ATLANTA, GA. August 15, 2017 -- Speedemissions, Inc. (OTCPK: SPMI) (the “Company”), a national brand offering our customers quick and efficient emissions testing and safety inspections and the developer of Carbonga-SRI app, today announced its financial results for its second quarter ended June 30, 2017.
“In posting positive EBITDA for the second quarter of 2017, we have now produced positive EBITDA in seven of our last eight quarters, going back to September 2015. This past March, we executed the first strategic opportunity for diversified expansion with the asset purchase of Auto Recycling of Montgomery. When fully operational the auto salvage recycling business is expected to steadily increase Speedemissions’ revenue and contribute to our bottom line. Our central focus continues to be about obtaining sustainable profitability and creating equity value for our shareholders,” stated Rich Parlontieri, CEO of Speedemissions.
Select Financial Data for Quarter End June 30, 2017
§Total revenue decreased 7.4% or $54,531 to $1,677,817 for the quarter ended June 30, 2017 as compared to revenue of $1,727,348 for the quarter ended June 30, 2016. The decline in revenue is directly attributed to the lease termination and permanent closing of our Utah emission testing station in March 2017
§The same store emission tests increased by 2.0% in Atlanta and 3.0% in St. Louis 2016
§The Company reported an improvement of $216,518 in its adjusted EBITDA (a non-GAAP financial measurement) to $298,790 for the quarter end June 30, 2017, as compared to adjusted EBITDA of 82,273 for the quarter ended June 30, 2016.
§Store operating expenses decreased $8,000 or 1.6%, for the quarter ended June 30, 2017
§General and Administrative expenses increased 10.1%, or $16,058 for the quarter ended June 30, 2017.
§The Company realized a Net loss of ($67,434) for the quarter ended June 30, 2017, compared to a Net loss of ($29,282) for the quarter ended June 30, 2016. This increase in operating loss for the quarter was related to the Utah store closing, the absence of debt forgiveness and the expense of adding 25 emission testing machines as mandated by the States of Georgia and Missouri.
§Net Income for the six months ended June 30, 2017 was $160,185 as compared to a Net loss of ($54,289) for the same period in 2016
§Working capital deficit was reduced by 33% to $1,201,138 from $1,599,535 since December 31, 2016
Shareholders and investors are advised to review a full analysis of results for the quarter ended June 30, 2017 in the Company’s Form 10-Q, which is available on the Speedemissions, 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. 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.
AUTO RECYCLING OF MONTGOMERY
On March 21, 2017 Speedemissions announced the asset purchase of Auto Recycling of Montgomery. The Company intends to create an auto salvage business operation at the existing location in Montgomery, AL. It expects to fully operational in the third quarter of 2017. This will be a full-service salvage yard and offer OEM automobile parts to the general public, auto repair garages and body shops. In addition, Auto Recycling of Montgomery expects to build and develop an e-commerce channel for the selling of its recycled parts. For more information visit:
Speedemissions owns and developed the CARbonga-SRI app for iPhone users. CARbonga-SRI is an app which allows any consumer to detect automotive car problems for own vehicle or when buying a used car. CARbonga-SRI provides a quick and easy for consumers to stay on top of the safety of their vehicle. CARbonga-SRI contains vehicle information for Safety Recalls and/or Technical Service Bulletins (TSB’S) on nearly every make and model for the past 20 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.CARbonga.com.
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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.
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Speedemissions, Inc. Announces Second Quarter 2017 Financial Results