ATLANTA, May 15 /PRNewswire-FirstCall/ -- Speedemissions, Inc. , a leading vehicle emissions testing and safety inspections company with 50 testing stores in Atlanta, Dallas, Houston, Salt Lake City and St. Louis today announced its results for the first quarter ended March 31, 2008.
For the quarter ended March 31, 2008, the Company reported revenue of $2,483,000, up 2.9% from $2,413,000 in the same period last year. Revenue from same stores sales decreased $36,000 or 1.5%. The Company incurred net loss of $176,000, or ($0.03) per basic and diluted share compared to a net loss of $52,000, or ($0.2) per basic and diluted share in the comparable period year in 2007. Net loss was negatively affected by $198,000 in pre-opening and early operating losses experienced at the Company's new locations in Dallas (12 stores), St. Louis (3 stores) and Houston (3 stores).
Cost of emissions certificates totaled $544,000 in the three-month period ended March 31, 2008 compared to $600,000 in the comparable period in 2007. Store operating expenses totaled $1,621,000 in the three-month period ended March 31, 2008 compared to $1,500,000 in the comparable period in 2007. Same store operating expenses decreased $153,000 in the three month period ended March 31, 2008 over the prior comparable period in 2007 as a result of cost saving initiatives.
For the quarter ended March 31, 2008, general and administrative expenses were $486,000 compared to $358,000 in the comparable period in 2007. General and administrative expenses increased mainly as a result of legal and accounting fees associated with additional SEC filings.
Richard A. Parlontieri, President/CEO of Speedemissions stated:
"We have grown from 35 stores at March 31, 2007 to 50 stores as of March 31, 2008. Our investment in the new locations in Houston, Dallas and St. Louis show our commitment to expand our presence in new and existing markets where vehicle emissions testing and safety inspections are mandated. As expected, the investment in new stores added additional revenue and operating expenses to our results. We may operate at a loss and our cash on hand may decrease as a result of the early operating losses at the new stores until they achieve the test volume necessary to break even. We are pleased that have made progress in increasing the net operating profit in our same stores improved compared to the comparable three month period in 2007."
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; Dallas and Houston, Texas; Salt Lake City, Utah and St. Louis, Missouri 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
March 31, December 31,
2008 2007
Assets (unaudited)
Current assets:
Cash $563,214 $804,662
Other current assets 225,183 226,051
Total current assets 788,397 1,030,713
Property and equipment, at cost less
accumulated depreciation and amortization 1,485,712 1,484,229
Goodwill 7,100,572 7,100,572
Other assets 104,537 103,787
Total assets $9,479,218 $9,719,301
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $672,158 $495,503
Accrued liabilities 237,190 522,385
Debt payable - -
Current portion of capitalized lease
obligations 38,314 32,325
Current portion of equipment financing
obligations 14,716 14,207
Current portion - deferred rent 13,628 13,628
Total current liabilities 976,006 1,078,048
Capitalized lease obligations 172,888 155,961
Equipment financing obligations 76,931 80,792
Deferred rent 241,367 243,948
Other long term liabilities 7,350 7,350
Total liabilities 1,474,542 1,566,099
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 4,579,346 4,579,346
Shareholders' equity:
Series B convertible preferred stock,
$.001 par value, 3,000,000 shares
authorized, 2,481,482 shares issued
and outstanding; liquidation
preference: $6,372,4462,481 2,481
Common stock, $.001 par value,
250,000,000 shares authorized,
5,162,108 shares issued and
outstanding 5,162 5,162
Additional paid-in capital 15,623,211 15,596,105
Accumulated deficit (12,205,524) (12,029,892)
Total shareholders' equity 3,425,330 3,573,856
Total liabilities and shareholders'
equity $9,479,218 $9,719,301
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
Three Months Ended
March 31,
2008 2007
Revenue $2,483,419 $2,412,538
Costs of operations:
Cost of emission certificates 543,704 599,690
Store operating expenses 1,621,231 1,499,965
General and administrative expenses 485,446 357,835
Loss from disposal of non-strategic assets - 3,849
Loss from operations (166,962) (48,801)
Other income (expense)
Other income 864 -
Interest expense (9,534) (3,327)
Other income (expense), net (8,670) (3,327)
Net loss attributable to common
shareholders ($175,632) ($52,128)
Basic and diluted net loss per share ($0.03) ($0.02)
Weighted average common shares
outstanding, basic and diluted 5,162,108 2,963,528
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended
March 31
2008 2007
Operating activities:
Net loss
Adjustments to reconcile net loss to
net cash provided by operating activities: $(175,632) $(52,128)Depreciation and amortization 85,478 87,136
Loss from disposal of non-strategic assets - 3,849
Share based compensation expenses 27,106 32,716
Changes in operating assets and
liabilities, net of acquisitions:
Other current assets 868 61,260
Other assets (750) -
Accounts payable and accrued liabilities (108,390) (84,816)
Other liabilities (2,581) 9,106
Net cash (used in) provided by operating
activities (173,901) 57,123
Cash flows from investing activities:
Proceeds from asset sales - 400
Purchases of property and equipment (55,686) (49,509)
Net cash used in investing activities (55,686) (49,109)
Cash flows from financing activities:
Payments on capitalized leases (11,861) (3,037)
Net cash used in financing activities (11,861) (3,037)
Net increase (decrease) in cash (241,448) 4,977
Cash at beginning of period 804,662 320,231
Cash at end of period $563,214 $325,208
Supplemental Information:
Cash paid during the period for interest $9,534 $2,514
Non-cash Investing and Financing activities:
Non-cash asset additions for financed
and capital leases $31,425 $-
Speedemissions, Inc.