Speedemissions, Inc. Announces Year-End 2014 Financial Results
ATLANTA, GA - (Marketwired - Apr 24, 2015) - Speedemissions, Inc. (OTC PINK: SPMI) (the "Company") is a national retail brand offering consumers automobile emissions testing and safety inspections, as well as the developer BuyCarSafety.com and the Automobile Date Vehicle Information Safety Report ("ADVISR"), today announced its financial results for the year ended December 31, 2014.
For the year ended December 31, 2014, revenue decreased (21.4%) or $1,517,244, from $7,095,937 in the prior year to $5,578,693. This reduction in revenue is primarily due to a the sale of six stores in Houston, five stores in Salt Lake City and eleven stores leases not renewed and/or closed due to lack of performance. The drop in revenue was mitigated by the acquisition of seven Auto Emissions Express in late 2013 and an increase in same store sales of $78,000 or 2.9%. The Atlanta stores increased 3.4%, St. Louis 7.3% with a decline of (4.4%) in Salt Lake.
Net store operating expenses decreased by (20.6%) or $1,050,000. Actual store operating expenses declined $1,447,000, which was related to the 21 stores sold and/or closed. This drop was offset by a an approximate $348,000 increase in store expenses as a result of the Auto Emissions Express acquisition and an increase of same store expenses of approximately $50,000.
This total savings in operating expenses was $445,549. Much of the decline in same-store operating expenses came from implementing staff and wage reductions, along with a decrease in repair and maintenance expense. Adding to this improvement was the elimination of the four underperforming stores. General and Administrative expenses were down for the year (5.4%) or approximately $58,000 compared to 2013.
The Company incurred a net loss for the year ended December 31, 2014, of approximately ($773,000) versus a loss of ($814,482) in 2013. The Company recognized a gain of approximately $789,000 from the disposal of non-strategic assets and took a goodwill impairment of approximately $723,000.
"While progress was made last year with respect to eliminating the credit line, reducing debt and improving business operations, there is much more to do in 2015. We are experiencing a business uptrend with respect to emission test customers in all three of our geographical markets.
"In addition, we're hopeful that our recently launched e-commerce BuyCarSafety.com ADVISR, will provide another revenue stream. The ADVISR is a custom report that informs and educates car owners about the auto manufacturers Technical Service Bulletins and Safety Recall Notices related to their vehicle, and the potential danger they can pose, along with the consequences of ignoring recall notices. Coupled with this e-commerce site, we anticipate seeking other related distribution channels. We also continue to review and study other opportunities in the automotive industry sector that could potentially allow us to again expand the business model," said Rich Parlontieri, President/CEO.
A full analysis of results for the year ended December 31, 2014 is available in the Company's Form 10-K, which is available on the Company's website at www.speedemissions.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.
About Speedemissions, Inc.
Speedemissions, Inc., based in Atlanta, Georgia, is a national brand offering our customers quick and efficient emissions testing and safety inspections as required by law. The Company is in the, Atlanta, GA. and St. Louis, MO. markets. The Company hopes to expand its business model by selling the Expresso Car Care Café Store concept and franchise unit. Speedemissions intends to offer its customers quick and efficient vehicle emissions testing and repair services in convenient locations. For more information visit: www.speedemissions.com.
Speedemissions owns and developed the BuyCarSafety.com website and e-commerce business featuring the Automobile Date Vehicle Information Safety Report or ADVISR. BuyCarSafety.com and the ADVISR are intended to keep the car owner informed about what's really happening under the hood of their vehicle.
For more information, visit www.BuyCarSafety.com and for BuyCarSafety.com news updates follow us on Twitter: @BuyCarSafety.com
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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 continued market acceptance for Speedemissions' products and services, its ability to increase revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, the effect of new competitors in its market, integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission, including Speedemisisons 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 expectation. 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.
SOURCE Speedemissions, Inc.