Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - SPEEDEMISSIONS INC | d8k.htm |
Exhibit 99.1
Press release dated as of May 13, 2011
| Press Release | Source: Speedemissions Inc. |
Speedemissions, Inc Reports First Quarter Results
ATLANTA, GA. May 13, 2011/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 first quarter ended March 31, 2011.
Financial and Operational Highlights:
| • | Revenue decreased 13.9% or $341,987 to $2,111,126 in the first quarter of 2011 compared to $2,453,113 in the comparable period of 2010. The decrease in revenue over the comparable period was primarily due to the closure of two stores and a decrease in same store sales of 7.5%. The decrease in same store sales was mainly attributable to an extended period of inclement weather during the first quarter and increased competition. |
| • | Store operating expenses decreased 7.4% or $114,835 to $1,441,887 in the first quarter of 2011 compared to $1,556,722 in the first quarter of 2010. The decrease in store operating expenses was primarily due to the closure of two stores and a decrease in same store operating expenses of $62,215. |
| • | General and administrative expenses decreased $54,940, or 13.9% in the first quarter of 2011 over the comparable period of 2010, mainly due to lower professional fees. |
| • | The Company incurred a net loss of $143,951, or ($0.01) per basic and diluted share in the first quarter of 2011 compared to a net loss of $51,575, or ($0.01) per basic and diluted share in the first quarter of 2010. |
Richard A. Parlontieri, President and Chief Executive Officer of Speedemissions commented:
“The first quarter historically is one of our slowest periods. This year was impacted even more so by the large patches of inclement weather. We’re happy to put it behind us. We believe the poor weather conditions in January and February, which forced us to close stores in all four cities for a collective ten (10) days, negatively affected our same store sales comparisons across all of our stores. On a positive note, we continue to see a growth in product sales (windshield wipers, light bulbs, etc.) despite a decrease in overall tests. To bolster sales even further, we will be adding other automotive services sometime this year.”
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.
For Further Information: Contact Michael Shanahan, Chief Financial Officer, 770-306-7667.
Speedemissions, Inc. and Subsidiaries
Consolidated Balance Sheets
| March 31, 2011 |
December 31, 2010 |
|||||||
| (unaudited) | ||||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash |
$ | 152,910 | $ | 261,600 | ||||
| Note receivable – current portion |
12,000 | 12,000 | ||||||
| Certificate and merchandise inventory |
83,803 | 77,401 | ||||||
| Other current assets |
73,690 | 58,819 | ||||||
| Total current assets |
322,403 | 409,820 | ||||||
| Note receivable, net of current portion |
87,398 | 89,643 | ||||||
| Property and equipment, net |
672,215 | 728,016 | ||||||
| Goodwill |
2,349,066 | 2,349,066 | ||||||
| Other assets |
105,603 | 105,603 | ||||||
| Total assets |
$ | 3,536,685 | $ | 3,682,148 | ||||
| Liabilities and Shareholders’ Deficit |
||||||||
| Current liabilities: |
||||||||
| Line of credit |
$ | 70,357 | $ | — | ||||
| Accounts payable |
165,608 | 182,499 | ||||||
| Accrued liabilities |
171,732 | 196,829 | ||||||
| Current portion of capitalized lease obligations |
45,942 | 44,632 | ||||||
| Current portion of equipment financing obligations |
22,578 | 21,778 | ||||||
| Current portion - deferred rent |
35,776 | 35,776 | ||||||
| Total current liabilities |
511,993 | 481,514 | ||||||
| Capitalized lease obligations, net of current portion |
29,351 | 41,339 | ||||||
| Equipment financing obligations, net of current portion |
18,826 | 23,788 | ||||||
| Deferred rent |
144,779 | 159,820 | ||||||
| Note payable |
55,000 | 55,000 | ||||||
| Other long term liabilities |
7,350 | 7,350 | ||||||
| Total liabilities |
767,299 | 768,811 | ||||||
| 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, 63,981 shares issued and outstanding with a liquidation preference of $164,306at March 31, 2011 and 215,981 shares issued and outstanding with a liquidation preference of $554,642 at December 31, 2010 |
64 | 216 | ||||||
| Common stock, $.001 par value, 250,000,000 shares authorized, 23,938,408 and 22,789,288 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively |
23,938 | 22,789 | ||||||
| Additional paid-in capital |
15,805,603 | 15,806,600 | ||||||
| Accumulated deficit |
(17,639,565 | ) | (17,495,614 | ) | ||||
| Total shareholders’ deficit |
(1,809,960 | ) | (1,666,009 | ) | ||||
| Total liabilities and shareholders’ deficit |
$ | 3,536,685 | $ | 3,682,148 | ||||
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| Revenue |
$ | 2,111,126 | $ | 2,453,113 | ||||
| Costs of operations: |
||||||||
| Cost of emission certificates |
470,067 | 541,485 | ||||||
| Store operating expenses |
1,441,887 | 1,556,722 | ||||||
| General and administrative expenses |
340,323 | 395,263 | ||||||
| (Gain) loss on disposal of non-strategic assets |
(1,000 | ) | 4,989 | |||||
| Operating loss |
(140,151 | ) | (45,346 | ) | ||||
| Interest income (expense) |
||||||||
| Interest income |
759 | 615 | ||||||
| Interest expense |
(4,559 | ) | (6,844 | ) | ||||
| Interest expense, net |
(3,800 | ) | (6,229 | ) | ||||
| Net loss |
$ | (143,951 | ) | $ | (51,575 | ) | ||
| Basic and diluted net loss per share |
$ | (0.01 | ) | $ | (0.01 | ) | ||
| Weighted average common shares outstanding, basic and diluted |
23,874,568 | 6,954,836 | ||||||
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ | (143,951 | ) | $ | (51,575 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
| Depreciation and amortization |
55,801 | 72,559 | ||||||
| (Gain) loss on disposal of assets |
(1,000 | ) | 4,989 | |||||
| Share based compensation |
— | 10,793 | ||||||
| Changes in operating assets and liabilities: |
||||||||
| Certificate and merchandise inventory |
(6,402 | ) | 11,644 | |||||
| Other current assets |
(14,871 | ) | (30,684 | ) | ||||
| Other assets |
— | (1,800 | ) | |||||
| Accounts payable and accrued liabilities |
(41,988 | ) | 68,625 | |||||
| Other liabilities |
(15,041 | ) | (8,179 | ) | ||||
| Net cash (used in) provided by operating activities |
(167,452 | ) | 76,372 | |||||
| Cash flows from investing activities: |
||||||||
| Proceeds from note receivable |
2,245 | — | ||||||
| Proceeds from sales of property and equipment |
1,000 | 20,000 | ||||||
| Purchases of property and equipment |
— | (26,803 | ) | |||||
| Net cash provided by (used in) investing activities |
3,245 | (6,803 | ) | |||||
| Cash flows from financing activities: |
||||||||
| Net proceeds from line of credit |
70,357 | — | ||||||
| Payments on equipment financing obligations |
(4,162 | ) | (5,289 | ) | ||||
| Payments on capitalized leases |
(10,678 | ) | (24,677 | ) | ||||
| Net cash provided by (used in) financing activities |
55,517 | (29,966 | ) | |||||
| Net increase (decrease) in cash |
(108,690 | ) | 39,603 | |||||
| Cash at beginning of period |
261,600 | 449,203 | ||||||
| Cash at end of period |
$ | 152,910 | $ | 488,806 | ||||
| Supplemental Information: |
||||||||
| Cash paid during the period for interest |
$ | 3,980 | $ | 6,184 | ||||