ATLANTA, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Speedemissions, Inc. (OTC Markets Expert Market: SPMI) (the “Company”) a retail brand emissions testing and safety inspections company, operating nineteen stores in the Atlanta and St. Louis markets, today announces its financial results for the third quarter ended September 30, 2021.
“Our third quarter showed solid progress in the overall operation of the business as we produced a positive EBITDA1 for the 11th consecutive quarter,” stated Rich Parlontieri, Speedemissions CEO & President. “It is a testament to the commitment and hard work provided by our employees and executive team and demonstrates that the collaborative decisions we have made continue to move Speedemissions in the right direction.”
“While we remain focused on the continual advancement of our core business, these results afford us the latitude to actively consider new strategies within the automotive industry that could allow us to diversify our revenue channels and grow overall margins and profitability,” added Parlontieri.
Financial Highlights for the Third Quarter Ended September 30, 2021 (Unaudited)
- Revenue increased by approximately $30,000 to $901,000 in the third quarter of 2021 compared to approximately $871,000 in the third quarter of 2020. The increase was due to a 4% increase in same store sales in Atlanta and St. Louis.
- Store Operating Expenses increased by approximately $28,000 or 6.7% in the third quarter of 2021 compared to the third quarter of 2020, primarily due to an increase in store wages and rent.
- General and Administrative Expenses decreased by $18,000 compared to the third quarter of 2020, which is attributed to a decrease in salaries and payroll taxes.
- The Company’s Net Income was approximately $217,000, an increase of $102,000, as compared to the third quarter of 2020. The 2021 third quarter net income included $88,000 of Other Income resulting from the write-off of certain accounts payable and accrued expenses, while Q3 2020 had no Other Income adjustments.
Financial Summary for Year-to-Date Nine Month Period Ended September 30, 2021 (Unaudited)
- Revenue had a slight decrease of 0.6% or $15,000 to approximately $2,496,000 in the nine months ended September 30, 2021, compared to $2,511,000 in the same period of 2020. The decrease in revenue over the comparable period was due to the closing of a store where the lease could not be renewed.
- Same Store Sales increased by 2.1% or $50,000 in the eighteen Georgia locations and 2.3% in the mobile testing units despite a system-wide shut down due to a ransomware attack of the Georgia Clean Air Force (GCAF) contract company. Missouri same store revenue increased 62.3%. This was largely due to the removal of state government regulations which had been put in place in response to Covid-19.
- Store Operating Expenses increased $19,000 in the nine months ended September 30, 2021, compared to the same period of 2020, primarily due to the adjustment of store employee payroll in 2021.
- General and Administrative Expenses decreased approximately $37,000 or (9.0%), during the nine months ended September 30, 2021, compared to the same period of 2020.
- For the year Total Expenses have been reduced by $238,000 or 13.5% versus the same period in 2020.
- The Company had a Net Income of $509,000 for the nine months ended September 30, 2021, compared to a Net Income of $280,000 for the same period 2020. The increase is attributed partly to the forgiveness of the PPP loan, plus $88,000 as the result of the write-off of certain accounts payable and accrued expenses. These were partially offset by the recognition of $130,000 in accumulated penalty and interest costs resulting from our settlement of prior years’ 941 issues with the IRS. Without this net other income differential of $198,000 for year-to-date 2021, net operating income for the nine months 2021 would be $304,000. This represents a $31,000 or 11% increase over the $273,000 net operating income recorded for the same period in 2020.
(1) EBITDA is a non-GAAP measure and is calculated as earnings before interest, tax, depreciation, and amortization and is commonly referred to evaluate a company’s operating performance. Consequently, EBITDA should not be considered in isolation or as a substitute for net income and loss presented in accordance with GAAP.
An analysis of results for the period ended September 30, 2021, can be found on the Speedemissions, Inc. website at www.speedemissions.com.
ABOUT SPEEDEMISSIONS, INC.
Speedemissions, Inc., based in Atlanta, Georgia, offers our customers quick and efficient emission testing and/or safety inspection as required by law. The company is in the Atlanta, GA. and St. Louis, MO. markets. For more information, visit: www.speedemissions.com.
Company Contact:
Speedemissions, Inc.
info@speedemissions.com
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 market acceptance for Speedemissions’ products and services, its ability to succeed in increasing revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, the effect of new competitors in its markets, its 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 through 6.30.2017, 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 expectations. 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.
