Speedemissions, Inc. Announces Financial Results for Third Quarter Ended September 30,2023
ATLANTA, Oct. 26, 2023 (GLOBE NEWSWIRE) -- Speedemissions, Inc. (OTC Expert Market: SPMI) (the “Company”) a retail brand offering consumers automobile emissions testing and safety inspections, announced its unaudited financial results for the nine-month period ending September 30, 2023.
“With the closing of our 2023 third quarter, we are pleased to report that the Company continues to focus on building financial strength as it has again posted positive EBITDA1 and net income which demonstrates the noteworthy progress made in the overall management and operation of our business. These gains are most impressive as they have been achieved in an environment of uncertainty caused by the post COVID-19 pandemic employment challenge. Our business has been affected, as we have faced unparallel issues with turnover and recruiting. To that end we have increased hourly pay rates and introduced sign-on bonuses to stabilize the matter,” stated Rich Parlontieri, Speedemissions, President and CEO.
“What is important to note is that our employees continue to work diligently and tirelessly in providing our over 150,000 customers with quality customer service. The improvement in our financials is also allowing us the tactical flexibility to begin seeking and evaluating strategic growth opportunities with which we can strengthen and expand the business, not only organically, but also with potential acquisition candidates,” added Parlontieri.
Third Quarter End September 30, 2023 Unaudited Financial Highlights
Revenue for the period ended September 30, 2023, decreased $44,582 or 4.5% to $953,222, versus $997,808 for the same period in 2022. This reduction is directly attributed to staffing issues in both Atlanta and St, Louis, and to a decline in our mobile unit division which services the used car industry.
Store operating expenses dropped $11,079 or 2.1% with general and administration expenses up $19,599 or 8.8%, primarily due to accounting and consulting fees.
The Company’s net income for the third quarter was $40,099 as compared to net income of $13,295 for the same period ended September 30, 2022. The net income increase was attributed to a $75,000 expense settlement with a landlord from 2014 and recorded in the third quarter of 2022.
Nine Months End September 30, 2023 Unaudited Financial Highlights
Total revenue for nine months ended September 30, 2023 has increased 2.8% or $81,041 to $2,943,523 from $2,862,482 as compared to the same period in 2022.
Store operating expenses increased $94,087 or 6.5% compared to same period in 2022. The increase was primarily due to increases in employee compensation, station equipment rent, and business insurance.
General and administrative expenses increased $98,122 or 19.3% versus corresponding period 2022. This increase is related to accounting, legal, consulting, and shareholders’/directors’ expenses.
Net Income was $242,625, compared to $293,548, a 20.9% decline versus same period 2022. The operating expenses noted above resulted in the decrease in net income.
(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. |
|
|
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.
For more information:
Speedemissions, Inc.
Investor Relations
info@speedemissions.com
FORWARD-LOOKING STATEMENTS
On October 4, 2017, Speedemissions, Inc. Filed a Form 15 with the United States Securities and Exchange Commission, thereby ceasing to file Quarterly (10Q) and Annual (10K) reports. 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’ 2016 Annual Report on Form 10-K, 2017 Quarterly Reports on Form 10-Q and 2017, 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 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.
