Speedemissions Reports Net Income in 1st Quarter of 2006; Revenue for Speedemissions Increases 90% in 1st Quarter of 2006.ATLANTA Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. -- Speedemissions, Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : SPMI SPMI Syndicat de la Presse Magazine et d'Information (French syndicate for news & newspaper) SPMI Severe & Persistent Mental Illness SPMI System Performance Measurement Interface SPMI Socialist Party of Michigan ), a leading vehicle emissions emissions npl → émissions fpl emissions npl → Emissionen pl testing and safety inspections company, today announced its financial results for the first quarter ended March 31, 2006. Revenue for the first quarter ended March 31, 2006 increased 90% to a record $2,427,529, up from $1,278,290 in the first quarter of 2005. The increase reflects the revenue contribution from its 2005 acquisitions that added fourteen emissions testing stations in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the and Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. . Gross margin increased 109% to a record $1,777,279 in the first quarter 2006, up from $849,247 in the first quarter of 2005. Gross margin as a percentage of revenues increased to 73% in the first quarter compared to 66% in the first quarter of 2005. The Company achieved a significant milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. by reporting net income attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common shareholders of $28,080, or $0.01 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the first quarter 2006. This is the first time its history that Speedemissions has generated net income in a quarter. The Company reported a net loss attributable to common shareholders of ($405,845) in the first quarter of 2005. Comments of Management "In Q1, we reached an important objective for the Company by generating net income and positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses ," said Rich Parlontieri, President/CEO of Speedemissions. "The positive impact on our gross margins and bottom line is a result of our aggressive acquisition strategy and our ability to successfully integrate these new companies into our existing business," continued Mr. Parlontieri. Speedemissions, Inc., based in Atlanta, Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , plans to become the leading vehicle emissions (and safety inspection where required) company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in areas where emissions testing is mandated by the Environmental Protection Agency Environmental Protection Agency (EPA), independent agency of the U.S. government, with headquarters in Washington, D.C. It was established in 1970 to reduce and control air and water pollution, noise pollution, and radiation and to ensure the safe handling and (EPA EPA eicosapentaenoic acid. EPA abbr. eicosapentaenoic acid EPA, n.pr See acid, eicosapentaenoic. EPA, n. ). Since the emissions testing market is highly fragmented frag·ment n. 1. A small part broken off or detached. 2. An incomplete or isolated portion; a bit: overheard fragments of their conversation; extant fragments of an old manuscript. 3. , Speedemissions expects to be the first company to create a national brand offering their customers quick and efficient vehicle emissions testing and safety inspection services. The focus of the company at the present time is the Atlanta, GA. Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , TX. and Salt Lake City, UT, markets. The Company expects to expand station sites. For more information, visit Speedemissions, Inc. http://www.speedemissions.com This press release contains forward -looking statements within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on the current expectations or beliefs of Speedemissions' management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward -looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : inability to further identify, fund and integrate additional acquisitions, increased competition and its effect on pricing, spending, third-party relationships and revenues; and other risks detailed from time to time in filings with the Securities and Exchange Commission.
Speedemissions, Inc. and Subsidiaries
Consolidated Balance Sheet
March 31, 2006
----------------------------------------------------------------------
(Unaudited)
Assets
Current assets:
Cash $ 223,464
Other current assets 170,397
-------------
Total current assets 393,861
Property and equipment, at cost less accumulated
depreciation and amortization 1,420,184
Goodwill 8,107,171
Other assets 48,401
-------------
Total assets $ 9,969,617
=============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,025,911
Debt payable to related parties 51,747
Accrued interest on debt payable to related parties 3,704
Current portion of capitalized lease obligation 15,954
-------------
Total current liabilities 1,097,316
-------------
Commitments and contingencies
Stockholders' equity:
Series A convertible and cumulative preferred stock,
$.001 par value, 5,000,000 shares authorized,
5,133 shares issued and outstanding 5
Series B convertible and cumulative preferred stock,
$.001 par value, 3,000,000 shares authorized,
2,481,482 shares issued and outstanding 2,481
Common stock, $.001 par value, 250,000,000 shares
authorized, 2,873,598 shares issued
and outstanding 2,874
Additional paid-in capital 19,294,000
Deferred compensation (21,685)
Accumulated deficit (10,405,374)
-------------
Total stockholders' equity 8,872,301
-------------
Total liabilities and stockholders' equity $ 9,969,617
=============
See accompanying notes to consolidated financial statements.
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
-----------------------
March 31
2006 2005
Revenue $ 2,427,529 $1,278,290
----------- -----------
Costs and expenses:
Cost of emission certificates 650,250 429,043
General and administrative expenses 1,746,422 1,146,889
----------- -----------
Income (loss) from operations 30,857 (297,642)
Interest expense 2,777 64,093
----------- -----------
Net income (loss) $ 28,080 $ (361,735)
Less preferred dividends - undeclared - 44,110
----------- -----------
Net income (loss) attributable to common
shareholders $ 28,080 $ (405,845)
=========== ===========
Basic and diluted net income (loss) per share $ 0.01 $ (0.16)
=========== ===========
Weighted average shares outstanding, basic and
diluted 2,762,481 2,484,437
=========== ===========
See accompanying notes to consolidated financial statements.
Speedemissions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
2006 2005
Operating activities:
Net income (loss) $ 28,080 $(361,735)
Adjustments to reconcile net (loss)
to net cash used by operating activities:
Depreciation and amortization 99,242 88,105
Gain on sale of assets (10,472) -
Share based compensation expenses 6,655 (19,949)
Stock issued for services 50,000 181,764
Changes in operating assets and liabilities, net
of acquisitions:
Other current assets (30,115) (8,083)
Other assets (7,200) -
Accrued interest on long-term debt
payable to related parties 1,294 58,427
Accounts payable and accrued liabilities (104,375) (207,839)
---------- ---------
Net cash provided by (used in) operating
activities 33,109 (269,310)
---------- ---------
Cash flows from investing activities:
Proceeds from asset sales 12,000 -
Net purchases of property and equipment (64,524) -
---------- ---------
Net cash used in investing activities (52,524) -
---------- ---------
Cash flows from financing activities:
Proceeds from promissory note payable to
related party - 350,000
Payments on promissory notes - (20,000)
Payments on capitalized leases (7,348) (14,477)
---------- ---------
Net cash provided by (used in) financing
activities (7,348) 315,523
---------- ---------
Net increase (decrease) in cash (26,763) 46,213
Cash at beginning of period, December 31 250,227 16,431
---------- ---------
Cash at end of period, March 31 $ 223,464 $ 62,644
========= ==========
Supplemental Information:
Cash paid during the period for interest $ 1,483 $ 4,797
========= ==========
See accompanying notes to consolidated financial statements.
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion