The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Speedemissions, Inc. Reports Third Quarter 2008 Net Income


PHOTO (select to view enlarged photo)

ATLANTA, GA. November 11, 2008: Speedemissions, Inc. a leading vehicle emissions testing and safety inspections company with 43 testing stores in Atlanta, Dallas, Houston, Salt Lake City and St. Louis today announced its results for the third quarter ended September 30, 2008.

For the quarter ended September 30, 2008, the Company reported revenue of $2,586,000, up 2.4% from $2,525,000 in the same period last year. The Company generated net income of $25,000, or $0.00 per basic and diluted share compared to net income of $17,000, or $0.01 per basic and $0.00 per diluted share in the comparable period year in 2007. Net income was negatively affected by $128,000 in early operating losses experienced at the Company's new locations in Dallas, St. Louis and Houston during the three months ended September 30, 2008. Revenue from same stores sales decreased $173,000 or (6.9%) in the quarter ended September 30, 2008. Same store net operating income in the three month period ended September 30, 2008 decreased $9,000 or (1.7%) to $543,000 from $552,000 in the comparable period in 2007. The decrease in same store revenue and same store net operating income was partially due to the loss of revenue sustained by our Houston stores during and after Hurricane Ike and the general economic environment in the United States.

For the nine months ended September 30, 2008, the Company reported record revenue of $7,679,000, up 3.7% from $7,406,000 in the same period last year. The Company incurred a net loss of $325,000, or ($0.06) per basic and diluted share compared to net income of $66,000, or $0.02 per basic and $0.01 per diluted share in the comparable period year in 2007. Net loss was affected by $577,000 in early operating losses experienced at the Company's new locations in Dallas, St. Louis and Houston during the nine months ended September 30, 2008. Revenue from same stores sales decreased $308,000 or (4.2%) in the nine month period ended September 30, 2008. Same store net operating income in the nine month period ended September 30, 2008 increased $291,000 or 21.8% to $1,631,000 from $1,340,000 in the comparable period in 2007.

Richard A. Parlontieri, President/CEO of Speedemissions stated:

"We are pleased to show a profit in the third quarter given the expected early operating losses from new stores and the current economic conditions in the United States."