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8-K - 8-K - SPEEDEMISSIONS INC | d256548d8k.htm |
Exhibit 99.1 Press release dated as of November 14, 2011 |
Exhibit 99.1 | |||
Source: Speedemissions, Inc. |
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Press Release |
Speedemissions, Inc. Reports Third Quarter 2011 Results
ATLANTA, GA. November 14, 2011/Business Wire/ Speedemissions, Inc. (OTC Bulletin Board: SPMINews), 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 were disappointed in the same store sales for the quarter, we are encouraged by the increase weve 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, weve added two part-time Marketing Representatives. Their task is to expand our government, corporate and fleet dealer business. Theres 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 |
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(unaudited) | ||||||||
Assets |
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Current assets: |
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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 | ||||||
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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 | ||||||
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Total assets |
$ | 3,472,924 | $ | 3,682,148 | ||||
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Liabilities and Shareholders Equity |
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Current liabilities: |
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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 portiondeferred rent |
35,776 | 35,776 | ||||||
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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 | ||||||
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Total liabilities |
683,296 | 768,811 | ||||||
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Commitments and contingencies |
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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 | ||||||
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Shareholders deficit: |
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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 | ) | ||||
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Total shareholders deficit |
(1,789,718 | ) | (1,666,009 | ) | ||||
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Total liabilities and shareholders deficit |
$ | 3,472,924 | $ | 3,682,148 | ||||
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Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
Three Months Ended September 30 |
Nine Months Ended September 30 |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue |
$ | 2,164,562 | $ | 2,313,816 | $ | 6,428,518 | $ | 7,262,663 | ||||||||
Costs of operations: |
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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 | ) | ||||||||||
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Operating loss |
(5,526 | ) | 54,760 | (234,258 | ) | (88,595 | ) | |||||||||
Interest income (expense) |
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Interest income |
760 | 1,272 | 2,280 | 1,900 | ||||||||||||
Interest expense |
(4,366 | ) | (4,937 | ) | (13,573 | ) | (17,174 | ) | ||||||||
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Interest expense, net |
(3,606 | ) | (3,665 | ) | (11,293 | ) | (15,274 | ) | ||||||||
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Net loss |
$ | (9,132 | ) | $ | 51,095 | $ | (245,551 | ) | $ | (103,869 | ) | |||||
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Basic net income (loss) per share |
$ | 0.00 | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
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Diluted net income (loss) per share |
$ | 0.00 | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
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Weighted average common shares outstanding, basic |
33,764,249 | 13,179,213 | 29,813,331 | 9,570,761 | ||||||||||||
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Weighted average common shares outstanding, diluted |
33,764,249 | 17,456,711 | 29,813,331 | 9,570,761 | ||||||||||||
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Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(unaudited)
Nine Months Ended September 30, |
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2011 | 2010 | |||||||
Cash flows from operating activities: |
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Net loss |
$ | (245,551 | ) | $ | (103,869 | ) | ||
Adjustments to reconcile net loss to net cash from operating activities: |
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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: |
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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 | ) | ||||
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Net cash used in operating activities |
(191,401 | ) | (29,847 | ) | ||||
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Cash flows from investing activities: |
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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 | ) | ||||
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Net cash provided by (used in) investing activities |
32,812 | (36,707 | ) | |||||
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Cash flows from financing activities: |
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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 | ) | ||||
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Net cash provided by (used in) financing activities |
76,253 | (59,263 | ) | |||||
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Net decrease in cash |
(82,336 | ) | (125,817 | ) | ||||
Cash at beginning of period |
261,600 | 449,203 | ||||||
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Cash at end of period |
$ | 179,264 | $ | 323,386 | ||||
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Supplemental Information: |
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Cash paid during the period for interest |
$ | 13,573 | $ | 16,513 | ||||
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Supplemental Disclosure of Non-Cash Activity: |
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Note receivable from disposal of assets |
$ | 15,000 | $ | | ||||
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