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Exhibit 99.1 Press release dated as of November 14, 2011

     Exhibit 99.1
 

Source: Speedemissions, Inc.

  

Press Release

    

Speedemissions, Inc. Reports Third Quarter 2011 Results

ATLANTA, GA. November 14, 2011/Business Wire/ — Speedemissions, Inc. (OTC Bulletin Board: SPMI—News), a leading vehicle emissions testing and safety inspections company with stores in Atlanta, Houston, St. Louis and Salt Lake City today announced its financial results for the third quarter ended September 30, 2011.

THIRD QUARTER 2011:

 

   

Revenue decreased $149,254 or 6.5% to $2,164,562 in the third quarter of 2011 compared to $2,313,816 in the third quarter of 2010. The decrease in revenue was primarily due to the closure of two unprofitable stores in Texas during 2011 and a decrease in same store sales of 4.4%. The decrease in same store sales is mainly attributable to increased competition and discounting at our Georgia, Texas and Utah locations.

   

Store operating expenses decreased $118,867 or 8.0% to $1,368,170 in the third quarter of 2011 compared to $1,487,037 in the third quarter of 2010. The decrease in store operating expenses was partially due to the closure of two unprofitable stores in 2011. Same store operating expenses decreased $66,786 in the third quarter of 2011 compared to the third quarter of 2010.

   

General and administrative expenses decreased $45,479 or 12.0% in the third quarter of 2011 compared to the third quarter of 2010.

   

The Company recognized net loss of $9,132, or $0.00 per basic and diluted share in the third quarter of 2011 compared to net income of $51,095, or $0.00 per basic and diluted share in the third quarter of 2010. Excluding the one-time gain of $106,881 from the settlement of a lawsuit, our net loss in the third quarter of 2010 was $55,786.

YEAR TO DATE 2011:

 

   

Revenue decreased $834,145 or 11.5% to $6,428,518 in the nine months ended September 30, 2011 compared to $7,262,663 in the same period of 2010. The decrease in revenue over the comparable period was primarily due to the closure of four stores in Texas since June 30, 2010, which resulted in lower revenue during the period of $537,561, and a decrease in same store sales of 5.9%. The decrease in same store sales is mainly attributable to increased competition and discounting at our Georgia, Texas and Utah locations.

   

Store operating expenses decreased $385,216 or 8.4% to $4,193,946 in the nine months ended September 30, 2011 compared to $4,579,162 in the same period of 2010. The decrease in store operating expenses was primarily due to the closure of four stores in Texas since June 30, 2010 and a decrease in same store operating expenses of $200,061 in the nine months ended September 30, 2011 compared to the same period of 2010.

   

General and administrative expenses decreased $170,063 or 13.5%, during the nine months ended September 30, 2011 compared to the same period of 2010.

   

The Company incurred a net loss of $245,551 or ($0.01) per basic and diluted share in the nine months ended September 30, 2011 compared to net loss of $103,869 or ($0.01) per basic and diluted share in the same period of 2010. Excluding the one-time gain of $106,881 from the settlement of a lawsuit, our net loss in the nine months ended September 30, 2010 was $210,750.

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

“While we’re disappointed in the same store sales for the quarter, we are encouraged by the increase we’ve seen in St. Louis with store over store sales. A most promising sign given that three of the stores have been open for 3+ years. As a means to combat the increased competition in both Atlanta and Salt Lake, we’ve added two part-time Marketing Representatives. Their task is to expand our government, corporate and fleet dealer business. There’s already been improvement in the Atlanta market because of these efforts. In addition, the selling of merchandise to customers whose vehicles fail their safety inspection for light bulbs, windshield wipers etc. continues to grow as we change to more of a selling culture with our store employees.”

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

 

     September 30,
2011
    December 31,
2010
 
     (unaudited)        

Assets

    

Current assets:

    

Cash

   $ 179,264      $ 261,600   

Note receivable – current portion

     19,500        12,000   

Certificate and merchandise inventory

     68,622        77,401   

Other current assets

     83,103        58,819   
  

 

 

   

 

 

 

Total current assets

     350,489        409,820   

Note receivable, net of current portion

     87,533        89,643   

Property and equipment, net

     580,433        728,016   

Goodwill

     2,349,066        2,349,066   

Other assets

     105,403        105,603   
  

 

 

   

 

 

 

Total assets

   $ 3,472,924      $ 3,682,148   
  

 

 

   

 

 

 

Liabilities and Shareholders’ Equity

    

Current liabilities:

    

Line of credit

   $ 60,280      $ —     

Accounts payable

     143,012        182,499   

Accrued liabilities

     190,584        196,829   

Current portion of capitalized lease obligations

     48,680        44,632   

Current portion of equipment financing obligations

     24,272        21,778   

Current portion—deferred rent

     35,776        35,776   
  

 

 

   

 

 

 

Total current liabilities

     502,604        481,514   

Capitalized lease obligations, net of current portion

     4,307        41,339   

Equipment financing obligations, net of current portion

     6,251        23,788   

Deferred rent

     107,784        159,820   

Note payable

     55,000        55,000   

Other long term liabilities

     7,350        7,350   
  

 

 

   

 

 

 

Total liabilities

     683,296        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’ deficit:

    

Series B convertible preferred stock, $.001 par value, 3,000,000 shares authorized, 63,981 shares issued and outstanding with a liquidation preference of $164,306 at September 30, 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, 33,904,466 and 22,789,288 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively

     33,834        22,789   

Additional paid-in capital

     15,917,549        15,806,600   

Accumulated deficit

     (17,741,165     (17,495,614
  

 

 

   

 

 

 

Total shareholders’ deficit

     (1,789,718     (1,666,009
  

 

 

   

 

 

 

Total liabilities and shareholders’ deficit

   $ 3,472,924      $ 3,682,148   
  

 

 

   

 

 

 


Speedemissions, Inc. and Subsidiaries

Consolidated Statements of Operations

(unaudited)

 

     Three Months Ended
September 30
    Nine Months Ended
September 30
 
     2011     2010     2011     2010  

Revenue

   $ 2,164,562      $ 2,313,816      $ 6,428,518      $ 7,262,663   

Costs of operations:

        

Cost of emission certificates

     469,756        498,599        1,420,251        1,607,340   

Store operating expenses

     1,368,170        1,487,037        4,193,946        4,579,162   

General and administrative expenses

     334,822        380,301        1,091,861        1,261,924   

(Gain) loss on disposal of assets

     (2,660     —          (43,282     9,713   

Gain from settlement of lawsuit

     —          (106,881     —          (106,881
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (5,526     54,760        (234,258     (88,595

Interest income (expense)

        

Interest income

     760        1,272        2,280        1,900   

Interest expense

     (4,366     (4,937     (13,573     (17,174
  

 

 

   

 

 

   

 

 

   

 

 

 

Interest expense, net

     (3,606     (3,665     (11,293     (15,274
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (9,132   $ 51,095      $ (245,551   $ (103,869
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income (loss) per share

   $ 0.00      $ 0.00      $ (0.01   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income (loss) per share

   $ 0.00      $ 0.00      $ (0.01   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding, basic

     33,764,249        13,179,213        29,813,331        9,570,761   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding, diluted

     33,764,249        17,456,711        29,813,331        9,570,761   
  

 

 

   

 

 

   

 

 

   

 

 

 


Speedemissions, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(unaudited)

 

     Nine Months Ended
September 30,
 
     2011     2010  

Cash flows from operating activities:

    

Net loss

   $ (245,551   $ (103,869

Adjustments to reconcile net loss to net cash from operating activities:

    

Depreciation and amortization

     155,180        206,088   

(Gain) loss on disposal of assets

     (43,282     9,713   

Stock issued for services

     3,000        —     

Share-based compensation

     54,842        25,201   

Gain from settlement of lawsuit

     —          (106,881

Changes in operating assets and liabilities:

    

Certificate and merchandise inventory

     8,779        (18,633

Other current assets

     (24,283     (42,481

Other assets

     200        (1,800

Accounts payable and accrued liabilities

     (45,734     33,596   

Other liabilities

     (54,552     (30,781
  

 

 

   

 

 

 

Net cash used in operating activities

     (191,401     (29,847
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Proceeds from note receivable

     12,127        3,742   

Proceeds from sales of property and equipment

     31,623        20,000   

Purchases of property and equipment

     (10,938     (60,449
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     32,812        (36,707
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Net proceeds from warrant exercise

     64,000        —     

Net proceeds from line of credit

     60,280        —     

Payments on equipment financing obligations

     (15,043     (14,716

Payments on capitalized leases

     (32,984     (44,547
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     76,253        (59,263
  

 

 

   

 

 

 

Net decrease in cash

     (82,336     (125,817

Cash at beginning of period

     261,600        449,203   
  

 

 

   

 

 

 

Cash at end of period

   $ 179,264      $ 323,386   
  

 

 

   

 

 

 

Supplemental Information:

    

Cash paid during the period for interest

   $ 13,573      $ 16,513   
  

 

 

   

 

 

 

Supplemental Disclosure of Non-Cash Activity:

    

Note receivable from disposal of assets

   $ 15,000      $ —