Speedemissions, Inc. Reports First Quarter Results

ATLANTA--Speedemissions, Inc. (OTC Bulletin Board: SPMI - News), a leading vehicle emissions testing and safety inspections company with testing stores in Atlanta, Houston, St. Louis and Salt Lake City today announced its financial results for the first quarter ended March 31, 2010.

Financial and Operational Highlights:

The Company opened its 14^th store in the Atlanta area, its 41^st store overall.
Revenue remained relatively flat in the first quarter of 2010, decreasing $18,829 or (0.8%) to $2,453,113 from $2,471,942. The decrease in revenue was partially attributable to an extended period of inclement weather which led to a 1.6% decrease in same store sales over the comparable period of 2009.
Same store operating expenses decreased 4.1%, or $64,693.
General and administrative expenses increased $93,897, or 31.2%, mainly due to higher professional fees.
The Company incurred a net loss of $51,575, or ($0.01) per diluted share in the first quarter of 2010 compared to net income of $42,152, or $0.00 per diluted share in the first quarter of 2009.
Since December 31, 2009, the Companyā€™s cash balance has increased 8.8% as of March 31, 2010.

Richard A. Parlontieri, President and Chief Executive Officer of Speedemissions commented:

ā€œWeā€™re pleased that we were able to open our 41^st store and reduce our same store operating expenses by 4.1% during the first quarter. We believe the inclement weather in January and February negatively impacted our same store sales comparisons, especially in Georgia. However, we are encouraged by the increase in same store sales of 21.8% at our Missouri stores. We expect to use the cash flows provided by operations to open between two and three new stores in 2010 and to pursue other opportunities to increase our business and shareholdersā€™ value.ā€???

About Speedemissions Inc. http://www.speedemissions.com

Speedemissions, Inc., based in Atlanta, Georgia, is a leading vehicle emissions testing and safety inspections company in the United States. We provide services in certain areas where auto testing is mandated by the Environmental Protection Agency (EPA). Since the emissions testing market is highly fragmented, Speedemissions expects to be the first company to create a national brand offering their customers quick and efficient vehicle emissions testing service. The current focus of the company is in the Atlanta, Georgia; Houston, Texas; St. Louis, Missouri and Salt Lake City, Utah markets.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Speedemissions' products and services, its ability to succeed in growing revenue, the effect of new competitors in its market, integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.

Speedemissions, Inc. and Subsidiaries Consolidated Balance Sheets
	Ā				Ā
		March 31,				December 31,
		Ā	2010	Ā		Ā	2009
		(unaudited)
Assets
Current assets:
Cash		$	488,806			$	449,203
Other current assets		Ā	155,830	Ā		Ā	136,790	Ā
						Ā
Total current assets			644,636				585,993
Property and equipment, net			882,438				953,183
Goodwill			4,251,657				4,251,657
Other assets		Ā	105,803	Ā		Ā	104,003	Ā
						Ā
Total assets		$	5,884,534	Ā		$	5,894,836	Ā
						Ā
Liabilities and Shareholdersā€™ Equity
Current liabilities:
Accounts payable		$	223,380			$	177,647
Accrued liabilities			219,435				196,544
Current portion of capitalized lease obligations			36,158				47,288
Current portion of equipment financing obligations			19,553				18,865
Current portion - deferred rent		Ā	30,513	Ā		Ā	30,513	Ā
						Ā
Total current liabilities			529,039				470,857
Capitalized lease obligations, net of current portion			80,057				93,604
Equipment financing obligations, net of current portion			40,412				46,389
Deferred rent			197,522				205,701
Other long term liabilities		Ā	7,350	Ā		Ā	7,350	Ā
						Ā
Total liabilities		Ā	854,380	Ā		Ā	823,901	Ā
Commitments and contingencies
Series A convertible, redeemable preferred stock, $.001 par value,
5,000,000 shares authorized, 5,133 shares issued and outstanding;
liquidation preference: $5,133,000		Ā	4,579,346	Ā		Ā	4,579,346	Ā
Shareholdersā€™ equity:
Series B convertible preferred stock, $.001 par value, 3,000,000
shares authorized, 2,187,981 and 2,279,982 shares issued and
outstanding; liquidation preference: $5,618,738 and $5,854,991			2,188				2,280
Common stock, $.001 par value, 250,000,000 shares authorized,
7,380,968 and 6,685,448 shares issued and outstanding			7,381				6,685
Additional paid-in capital			15,805,554				15,795,364
Accumulated deficit		Ā	(15,364,315	)		Ā	(15,312,740	)
						Ā
Total shareholdersā€™ equity		Ā	450,808	Ā		Ā	491,589	Ā
						Ā
Total liabilities and shareholdersā€™ equity		$	5,884,534	Ā		$	5,894,836	Ā
						Ā
						Ā

Speedemissions, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)
	Ā				Ā
		Three Months Ended March 31,
		Ā	2010	Ā		Ā	2009	Ā
Revenue		$	2,453,113			$	2,471,942
Costs of operations:
Cost of emission certificates			541,485				548,577
Store operating expenses			1,556,722				1,572,829
General and administrative expenses			395,263				301,366
Loss on disposal of non-strategic assets		Ā	4,989	Ā		Ā	ā€”	Ā
						Ā
Operating income (loss)		Ā	(45,346	)		Ā	49,170	Ā
						Ā
Interest income (expense)
Interest income			615				25
Interest expense		Ā	(6,844	)		Ā	(7,043	)
						Ā
Interest, net		Ā	(6,229	)		Ā	(7,018	)
						Ā
Net income (loss)		$	(51,575	)		$	42,152	Ā
						Ā
Basic net income (loss) per share		$	(0.01	)		$	0.01	Ā
						Ā
Diluted net income (loss) per share		$	(0.01	)		$	ā€”	Ā
						Ā
Weighted average common shares outstanding, basic		Ā	6,954,836	Ā		Ā	5,162,108	Ā
						Ā
Weighted average common shares outstanding, diluted		Ā	6,954,836	Ā		Ā	9,439,606	Ā
								Ā
								Ā

Speedemissions, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited)
	Ā				Ā
		Three Months Ended March 31,
		Ā	2009	Ā		Ā	2008	Ā
Cash flows from operating activities:
Net income (loss)		$	(51,575	)		$	42,152
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			72,559				79,800
Loss on disposal of assets			4,989				ā€”
Share based compensation			10,793				11,837
Changes in operating assets and liabilities:
Other current assets			(19,040	)			(7,837	)
Other assets			(1,800	)			3,000
Accounts payable and accrued liabilities			68,625				(77,109	)
Other liabilities		Ā	(8,179	)		Ā	(1,138	)
						Ā
Net cash provided by operating activities		Ā	76,372	Ā		Ā	50,705	Ā
						Ā
Cash flows from investing activities:
Proceeds from sales of property and equipment			20,000				ā€”
Purchases of property and equipment		Ā	(26,803	)		Ā	(6,527	)
						Ā
Net cash used in investing activities		Ā	(6,803	)		Ā	(6,527	)
						Ā
Cash flows from financing activities:
Payments on equipment financing obligations			(5,289	)			(3,876	)
Payments on capitalized leases		Ā	(24,677	)		Ā	(10,025	)
						Ā
Net cash used in financing activities		Ā	(29,966	)		Ā	(13,901	)
						Ā
Net increase in cash			39,603				30,277
Cash at beginning of period		Ā	449,203	Ā		Ā	512,492	Ā
						Ā
Cash at end of period		$	488,806	Ā		$	542,769	Ā
						Ā
Supplemental Information:
Cash paid during the period for interest		$	6,184	Ā		$	8,211	Ā