Speedemissions, Inc. Announces Financial Results for Second Quarter 2014
ATLANTA, GA--(Marketwired - Aug 14, 2014) - Speedemissions, Inc. (OTCQB: SPMI) (the "Company"), a leading vehicle emissions and safety inspection company with locations in Atlanta, St. Louis and Salt Lake City and the developer of CARbonga-SRI and CARbonga, the revolutionary automobile diagnostic iPhone apps, and now the BuyCarSafety.com Automotive Diagnostic Vehicle Inspections Safety Report ("ADVISR"), today announced its financial results for its quarter ended June 30, 2014.
President and CEO, Rich Parlontieri commented, "We still have much more work to do regarding the results at the store operations level in addition to managing our general and administrative expenses, as we look toward profitability. We continue to seek cost-saving measures in every area of the business along with pursuing additional sources of revenue."
After adjusting for non-cash goodwill impairment charge of $365,378, Speedemissions realized a 27% decrease in its operating loss over the same period in 2013. For the second quarter 2014, the Company reported an operating loss of ($87,864) versus a loss of ($211,490) for the same period in 2013. Total revenue declined approximately $170,000 to $1,600,643 compared to $1,770,709 in the second quarter ended June 30, 2013. The decrease in revenue was due to the sale of the Houston stores, plus the closing of one store each in St. Louis in April 2014, and Atlanta in May 2014.
A portion of the reduction in revenue, however, continued to be offset by the acquisition of the seven stores in Atlanta in late 2013. While overall same store sales saw a (-0.9%) drop, a 6% revenue increase in Atlanta and a 3.6% revenue increase in St. Louis helped to offset the decline in Salt Lake City, Utah. Same store operating expenses increased slightly (+0.4%), while general and administrative expenses decreased -4.5%.
A full analysis of results for the period ended June 30th, 2014 is available in the Company's Form 10-Q, which can be found on the Speedemissions website at www.speedemissions.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.
A recent addition to the Company's revenue sources is the Automotive Data Vehicle Inspection Safety Report ("ADVISR"), a product of the CARbonga-SRI database, and available at BuyCarSafety.com. The ADVISR can be purchased and downloaded on-line and is available at all Speedemissions retail stores. The Company is focusing its efforts on selling the ADVISR through a myriad of social media and internet channels. With safety recalls already at over 40 million as of August 8th 2014, the American car owner needs to pay strict attention to what is taking place in the safety recall car market.
It's estimated by Carfax ® that over 36 million cars of the 250 million+ on the road today have a safety recall problem that has not been fixed. Car owners are putting themselves at risk by not knowing what could happen to their car at any time.
The goal of Speedemissions is to expose automobile owners to the benefits and features of the ADVISR, and to show the market that the ADVISR is a tool they should consider as valuable and a necessary resource. It's also the one report that provides owners with Technical Service Bulletins (TSBs), thereby giving them the comprehensive and full story on what the manufacturer is telling the dealer about every make and model they produce. For more information, visit www.buycarsafety.com
ABOUT SPEEDEMISSIONS, INC.
Speedemissions, Inc., based in Atlanta, Georgia, is a national brand offering our customers quick and efficient emission testing and/or safety inspection as required by law. The Company is in the Atlanta, GA. Salt Lake City, UT and St. Louis, MO. markets. For more information, visit: www.speedemissions.com
ABOUT CARBONGA
Speedemissions, Inc. owns and developed the CARbonga line of apps for smart phone users. CARbonga is among the first apps which allows the average person to detect automotive car problems for their own vehicle or when buying a used vehicle. The CarBonga-SRI app provides a quick and easy way for consumers to stay on top of the safety of their vehicle by providing the most current safety-related recalls and service bulletins for their vehicles. For more information, visit www.carbonga.com and for CarBonga news updates follow @CarbongaApp on Twitter.
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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 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.
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