Speedemissions Inc. (SPMI)

[ThatStockGuy]

Speedemissions, Inc. Reports Third Quarter 2009 Results


Company reports 144% increase in third quarter net income

ATLANTA, Nov 10, 2009 (BUSINESS WIRE) -- 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 third quarter ended September 30, 2009.
Third Quarter Highlights:

-- Revenue increased 2.6% to $2,599,350 for the third quarter of 2009 compared to revenue of $2,532,993 for the third quarter of 2008. The increase in revenue was led by a 4.6% increase in same store sales over the comparable period of 2008.

-- General and administrative expenses decreased 13.8% to $378,880 during the third quarter of 2009 compared to $439,285 in the same period of the prior year.

-- Net income for the third quarter of 2009 increased 144.4% to $60,531 or $0.01 per diluted share from net income of $24,769, or $0.00 per diluted share in the comparable period of 2008.

Year-to-Date Results:

-- Revenue increased 2.4% to $7,657,600 for the nine month period ended September 30, 2009 compared to revenue of $7,481,467 in the nine month period ended September 30, 2008. Same store sales increased 4.1% in the nine month period ended September 30, 2009 over the comparable period of 2008.

-- General and administrative expenses decreased 27.0% to $1,041,299 during the nine month period ended September 30, 2009 compared to $1,427,368 in the nine-month period ended September 30, 2008.

-- Net income for the nine-month period ended September 30, 2009 increased to $205,599 or $0.02 per diluted share from a net loss of $324,509 or ($0.06) per diluted share.

-- Since December 31, 2008, the Company has increased its cash balances by 31.0% and decreased its total liabilities by 20.0%.

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

"We're pleased that we were able to increase revenue, increase same store sales and generate net income for the third consecutive quarter. We have increased our cash balance and reduced our liabilities during the quarter and first nine months of 2009. We were able to do all of this with our existing capital resources."

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

September 30, December 31,
2009 2008
(unaudited)
Assets
Current assets:
Cash $ 671,604 $ 512,492
Other current assets 144,038 137,691

Total current assets 815,642 650,183
Property and equipment, at cost less accumulated depreciation and 1,038,627 1,214,737
amortization
Goodwill 7,100,572 7,100,572
Other assets 101,787 100,937

Total assets $ 9,056,628 $ 9,066,429

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 227,850 $ 498,554
Accrued liabilities 302,536 237,127
Current portion of capitalized lease obligations 45,896 41,962
Current portion of equipment financing obligations 18,204 16,362
Current portion - deferred rent 17,949 17,949

Total current liabilities 612,435 811,954
Capitalized lease obligations, net of current portion 105,966 140,897
Equipment financing obligations, net of current portion 50,538 64,431
Deferred rent 227,953 230,521
Other long term liabilities 7,350 7,350

Total liabilities 1,004,242 1,255,153
Commitments and contingencies
Series A convertible, redeemable preferred stock, $.001 par value, 4,579,346 4,579,346
5,000,000 shares
authorized, 5,133 shares issued and
outstanding; liquidation preference: $5,133,000
Shareholders' equity:
Series B convertible preferred stock, $.001 par value, 3,000,000 2,481 2,481
shares authorized,
2,481,482 shares issued and outstanding;
liquidation preference: $6,372,446
Common stock, $.001 par value, 250,000,000 shares authorized, 5,162 5,162
5,162,108 shares issued
and outstanding
Additional paid-in capital 15,785,466 15,749,955
Accumulated deficit (12,320,069 ) (12,525,668 )

Total shareholders' equity 3,473,040 3,231,930

Total liabilities and shareholders' equity $ 9,056,628 $ 9,066,429

Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)

Three Months Ended Nine Months Ended
September 30 September 30
2009 2008 2009 2008
Revenue $ 2,599,350 $ 2,532,993 $ 7,657,600 $ 7,481,467
Costs of operations:
Cost of emission certificates 560,042 515,882 1,673,285 1,579,729
Store operating expenses 1,595,521 1,541,643 4,743,112 4,551,415
General and administrative expenses 378,880 439,285 1,041,299 1,427,368
Gain on disposal of non-strategic assets (5,500 ) (51,471 ) (30,330 ) (51,471 )

Operating income (loss) 70,407 87,654 230,234 (25,574 )
Interest income (expense)
Interest income 34 226 85 1,346
Interest expense (9,910 ) (9,183 ) (24,720 ) (28,160 )

Interest expense, net (9,876 ) (8,957 ) (24,635 ) (26,814 )

Income (loss) from continuing operations 60,531 78,697 205,599 (52,388 )
Loss from discontinued operations -- (53,928 ) -- (272,121 )

Net income (loss) $ 60,531 $ 24,769 $ 205,599 $ (324,509 )

Basic net income (loss) per share from continuing operations $ 0.01 $ 0.02 $ 0.04 $ (0.01 )

Diluted net income (loss) per share from continuing operations $ 0.01 $ 0.01 $ 0.02 $ (0.01 )

Basic net income (loss) per share from discontinued operations $ -- $ (0.01 ) $ -- $ (0.05 )

Diluted net income (loss) per share from discontinued operations $ -- $ (0.01 ) $ -- $ (0.05 )

Basic net income (loss) per share $ 0.01 $ 0.00 $ 0.04 $ (0.06 )

Diluted net income (loss) per share $ 0.01 $ 0.00 $ 0.02 $ (0.06 )

Weighted average common shares outstanding, basic 5,162,108 5,162,108 5,162,108 5,162,108

Weighted average common shares outstanding, diluted 9,439,606 9,439,606 9,439,606 5,162,108

Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)

Nine Months Ended
September 30,
2009 2008
Operating activities:
Net income (loss) $ 205,599 $ (324,509 )
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization 240,546 256,340
Gain on disposal of assets (30,330 ) (51,471 )
Share based compensation expenses 35,511 141,422
Changes in operating assets and liabilities:
Other current assets (6,347 ) 31,329
Other assets (850 ) (3,750 )
Accounts payable and accrued liabilities (205,296 ) (138,166 )
Other liabilities (2,568 ) (7,169 )

Net cash provided by (used in) operating activities 236,265 (95,974 )

Cash flows from investing activities:
Proceeds from disposal of assets 30,330 120,407
Purchases of property and equipment (64,435 ) (184,927 )

Net cash used in investing activities (34,105 ) (64,520 )

Cash flows from financing activities:
Payments on financing obligations (12,051 ) (10,465 )
Payments on capitalized leases (30,997 ) (26,994 )

Net cash used in financing activities (43,048 ) (37,459 )

Net increase (decrease) in cash 159,112 (197,953 )
Cash at beginning of period 512,492 804,662

Cash at end of period $ 671,604 $ 606,709

Supplemental Information:
Cash paid during the period for interest $ 23,288 $ 28,161

Non-cash Investing and Financing activities:
Non-cash asset additions for financed and capital leases $ -- $ 31,425

SOURCE: Speedemissions, Inc.



CONTACT:
Speedemissions, Inc. Michael Shanahan, 770-306-7667 Chief Financial Officer
Copyright Business Wire 2009
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KEYWORD: United States
North America
Georgia
INDUSTRY KEYWORD: Automotive
General Automotive
SUBJECT CODE: Earnings