Shareholders and investors are advised to review a full analysis of results for the quarter ended March 31, 2016 in the Company’s Form 10-Q, which is available on the Speedemission, Inc.
website at www.speedemissions.com or through the Securities and Exchange Commission’s Edgar database at www.sec.gov.
ABOUT SPEEDEMISSIONS, INC.
Speedemissions, Inc., based in Atlanta, Georgia, is a national brand offering our customers quick and efficient emissions testing and safety inspections as required by law. The Company is in the, Atlanta, GA. Salt Lake City, UT and St. Louis, MO. markets. Speedemissions intends to offer its customers quick and efficient vehicle emissions testing and repair services in convenient locations. For more information visit: www.speedemissions.com.
Speedemissions owns and developed the MyVehicleRecalls.com website and e-commerce business featuring the Automobile Date Vehicle Information for Safety Recalls and/or Technical Service Bulletins (TSB’s) on nearly every make and model for the past 25 years. These reports are intended to keep the car owner informed about what’s really happening under the hood of their vehicle. For more information, visit www.MyVehicleRecalls.com for news and car safety updates.
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MyVehicleRecalls.com and Speedemissions, Inc.
FORWARD LOOKING STATEMENTS
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 increase revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, 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, including Speedemissions Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K which are available at the SEC’s website www.sec.gov. Other factors not currently anticipated may also materially and adversely affect Speedemissions results of operations, financial position and cash flows. There can be no assurance that future results will meet expectation. While Speedemissions believes that the forward-looking statements in this news release are reasonable, the reader should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Speedemissions does not undertake, and expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Included in the Company’s release of financial information are certain non-GAAP financial measures, such as Adjusted EBITDA, as defined by SEC regulations. Adjusted EBITDA is defined as (loss) income from continuing operations before deducting net interest expense, income taxes, depreciation, and amortization. Non-GAAP financial measures should not be considered as an alternative to net income, operating income, cash flow from operating activities, as a measure of liquidity or any other financial measure. They may not be indicative of the historical operating results of the company nor is it intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP.
For more information:
Speedemissions, Inc. Announces First Quarter 2016 Financial Results
Company Posts Significant Improvement in Majority of Financial Metrics
ATLANTA, GA. May 16, 2016 -- Speedemissions, Inc. (OTCPK: SPMI, the “Company”), a national brand offering our customers quick and efficient emissions testing and safety inspections today announced its financial results for its fiscal quarter ended March 31, 2016.
“This marks the first time in four quarters that we are able to report an operating profit, as the business and financial moves that we have implemented are beginning to show positive results. As stated earlier this year, we have identified and are currently analyzing strategic opportunities for diversified expansion and supplemental revenue channels in several different markets. We remain hopeful that we will be able to start discussing these new initiatives shortly. Our central focus continues to be on achieving sustainable profitability, and creating equity value for our shareholders,” stated Rich Parlontieri, CEO of Speedemissions.
Select Financial Data for Quarter End March 31, 2016
• Total revenue increased 6.3%, or $52,748, to $885,551 the quarter ended March 31, 2016 as compared to revenue of $832,803 for the quarter ended March 31, 2015
• The same store emission tests increased by 14.5%, while the number of safety inspections rose 12.3% versus 2015
• The Company reported an improvement of $110,599 in its adjusted EBITDA (a non-GAAP financial measurement) to $53,569 for the quarter end March 31, 2016, as compared to adjusted EBITDA of ($57,230) for the quarter ended March 31, 2015.
• The Company realized a $257,619 increase in adjusted EBITDA for the first quarter ended March 31, 2016 as compared to adjusted EBITDA of ($204,050) for its sequential quarter ended December 31, 2015.
• Store operating expenses decreased by approximately 5.0%, from $549,379 for the quarter ended March 31, 2015 to $522,030 for the quarter ended March 31, 2016
• General and Administrative expenses decreased 17%, from $206,393 for the quarter ended March 31, 2015 to $171,146 for the quarter ended March 31, 2016
• As a result of management’s tactical financial decisions, the Company realized a significant reduction in their Net loss for the quarter ended March 31, 2016. Net loss decreased by $87,589 to a net loss of ($25,007) for the quarter end March 31, 2016 as compared to a net loss of ($112,596) for the quarter ended March 31, 2015.