ATLANTA, March 28, 2023 (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 fourth quarter and year ended December 31, 2022.
“The 2022 year-end results show once again the progress the company has made over the past few years. The operation of our business produced a positive EBITDA1 for the sixteenth consecutive quarter,” stated Rich Parlontieri, Speedemissions CEO & President. “It is an attitude among our employees that the commitment of hard work, and outstanding customer service result in increase in sales.
“While we remain driven on the continual advancement of our core business, we now clearly have a foundation to selectively examine various new strategies within the automotive sector and, just as importantly, potentially leverage the business as it relates to the environment which could broaden revenue channels, grow margins, improve profitability and create more value,” added Parlontieri.
Financial Highlights for the Fourth Quarter Ended December 31, 2022 (Unaudited)
- Revenue increased by approximately $76,000 to $940,000 in the fourth quarter of 2022 compared to approximately $864,000 in the fourth quarter of 2021. This increase was due to a 9.5% increase in same store sales in Atlanta and a 3.0% increase in the St. Louis location.
- Store Operating Expenses increased by approximately $28,000 or 5.7% in the fourth quarter of 2022 compared to the fourth quarter of 2021, primarily due to an increase in store wages.
- General and Administrative Expenses increased by $16,000 or 11.2% compared to the fourth quarter of 2021, primarily due to an increase in compensation.
- The Company’s Net Income was approximately $90,000, an increase of $26,000, as compared to the fourth quarter of 2021.
Financial Summary for Twelve Month Period Ended December 31, 2022 (Unaudited)
- Revenue increased 13.2%, or $443,000, to approximately $3,802,000 in the twelve months ended December 31, 2022, compared to $3,359,000 in the same period of 2021. This increase was achieved despite the closing of a station and the acquisition of a new station.
- Same Store Sales increased by 13.2% for twelve month ended December 31, 2022 or $443,000, as compared to same period 2021, including an increase in Georgia stations and two mobiles of 13.3% and an increase in one Missouri station of 12.3%.
- Store Operating Expenses increased $121,000 in the twelve months ended December 31, 2022, compared to the same period of 2021. This increase was primarily due to increases in compensation, advertising, and automobile expenses.
- General and Administrative Expenses increased approximately $121,000 or 22.1%, during the twelve months ended December 31, 2022, compared to the same period of 2021. This increase was due to accounting, legal and compensation expenses.
- The Company had a Net Income of $392,000 for the twelve months ended December 31, 2022, compared to a Net Income of $770,846 for the same period 2021. After eliminating the PPP loan forgiveness and other accounts payable write-offs of $400,000 from twelve-month period ending December 31, 2021, adjusted net income for 2021 was reduced to $371,000 compared same period 2022 adjusted net income of $457,000, (adjusted for a landlord settlement of a closed location) an increase of $86,000 or 23.1%. The $86,000 increase was due primarily to a $360,000 increase in gross profit resulting from the $443,000 in revenue.
(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 December 31, 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
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 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.
