ATLANTA, GA - October 28, 2013 - Speedemissions, Inc. (OTCQB: SPMI), a leading vehicle emissions testing and safety inspections company operating 36 stores in the Atlanta, Houston, St. Louis and Salt Lake City markets and developer of CARbonga and CARbonga-SRI, the revolutionary automobile diagnostic iPhone apps, today announced that it has acquired seven emission testing stores in the greater Atlanta, Georgia marketplace.
The stores are being acquired from Auto Emissions Express and JK Express Emissions and are part of Speedemissions' overall strategic expansion plan to become one of the nation's leading vehicle emissions testing and repair companies.
The transaction, which closed on October 25th, brings the number of vehicle emission testing stores that Speedemissions owns and operates across the country to 43. A significant part of this acquisition is that it allows the company to enter new geographical trade locations within greater Atlanta with five of the stores. The two remaining locations will expand the company's brand in already established locales.
Rich Parlontieri, President and CEO of Speedemissions stated, "We're excited to be able to make this acquisition, as it fits perfectly with the company's core growth initiatives. We are optimistic that adding these seven retail stores will result in improved revenues for us in 2014. Plus, it gets us into our sixth market within the thirteen county emissions testing areas of greater Atlanta."
"Both Auto Emissions Express and JK Express Emissions have been providing superior service in their respective areas for some time and over the years have built a large and loyal customer base. We're looking forward to providing an exceptional experience for both existing and new customers as we anticipate delivering several additional value-added services and products to our retail stores over the next 12 months," added Parlontieri.
Automotive Aftermarket and Emissions Testing Industry
Currently, there are approximately 250 million light duty vehicles on the road and over 85% of these vehicles are outside the manufacturer's warranty. According to the recent study released by BB&T Capital Markets, the nation's leading automotive aftermarket investment banking and research firm, the automobile aftermarket is an estimated $307 billion industry, comprised of the $231 billion light vehicle aftermarket and the $76 billion medium and heavy duty aftermarket. The research also showed that, historically, vehicles in operation have exhibited consistent growth despite wide fluctuation in new vehicle sales and economic conditions. In addition, the research found a clear trend toward an aging vehicle fleet that has accelerated as a result of fewer new vehicle sales and consumers maintaining their vehicles. As of 2012, the average age of cars and light trucks reached 11.3 years, which compares favorably to the aftermarket "sweet spot" for repair of 8+ years. A significant and growing sector of the vehicle aftermarket is the emissions testing industry. Americans currently spend over $2.5 billion in emissions testing in the 32 states (and District of Columbia) that are required by the U.S. Environmental Protection Agency to have vehicle emissions testing. In 24 of these states, testing can be conducted by independently-owned businesses such as Speedemissions, Inc., a leading vehicle testing and safety inspections company, now operating 43 stores across the country.
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. Houston, TX, Salt Lake City, UT and St. Louis, MO. markets. The company has expanded its business model through its newly introduced SpeedEmissions Car Care Stores and SpeedEmissions Car Care franchise unit. Speedemissions hopes to be among the first companies to offer its customers quick and efficient vehicle emissions testing and repair services. For more information, visit: www.speedemissions.com
Speedemissions, Inc. owns and developed the CARbonga line of apps for smart phone users. CARbonga is the first app 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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SOURCE: Speedemissions, Inc.