Speedemissions, Inc. (OTCQB: SPMI) (the "Company"), a leading vehicle emissions and safety inspection company with locations in Atlanta, Houston, St. Louis and Salt Lake City and the developer of CARbonga-SRI and CARbonga, the revolutionary automobile diagnostic iPhone apps and the BuyCarSafety.com (www.BuyCarSafety.com) vehicle inspections safety report, today announced its financial results for its first quarter ended March 31, 2014.
During the first quarter 2014, the Company was able to reduce its net loss by 12.5% to ($241,000), as compared to a net loss of ($271,000) for the same period in 2013.
Total revenue declined approximately $91,000 to $1,797,811 as compared to $1,889,013 for the same period 2013. The revenue drop was due to the closing of four Houston stores in 2013, plus the closing of a store in St. Louis in January 2014. In addition, for a period of 7 business days during the first quarter, the Company was forced to close all of its stores in Atlanta, St. Louis and Houston because of the severe winter weather conditions. This was the first time in the Company's 14-year history this occurred.
Part of the revenue reduction was mitigated by the acquisition of the seven stores in Atlanta in late 2013. Same store sales saw a (0.6%) drop, with increases in Atlanta and St. Louis offsetting the declines in Houston and Salt Lake. In addition same store operating expenses decreased 4.4%, while G&A increased by approximately $29,000 due to finance charges and a change in the company-wide phone/data system.
Rich Parlontieri, President and CEO, commented, "There's more work to be done both at the store operations and the G&A level as we continue to focus on measures toward profitability. The cost saving initiatives in these areas, along with analysis of marginal stores, continues to be aggressively pursued".
During the first quarter, Speedemissions also announced the undertaking of rebranding the company with the Expresso Car Care Café name, logo and store design as it looks to expand its emissions and light automotive repair model. Coupled with the news that the Company has entered into a joint venture to develop vehicle registration services for retail outlets in several new markets, Speedemissions is keenly focused on adding new and innovative revenue channels to its business model.
"On the revenue side we're also working hard to capitalize on the recently introduced BuyCarSafety.com Vehicle Inspection Safety Report or VISR (www.buycarsafety.com), which is a product of the CARbonga-SRI data base. Given the early results from the pilot program tested in 12 of our stores over the past three weeks, we're very encouraged by the potential of the VISR. When you consider there are 40+ million used cars sold in the U.S. annually, the job now is to expose the used-car buyer, or any car owner, to the benefits and features of the VISR, and to show the consumer market that our VISR is a tool they need before making a purchase. In addition, it's the one report that provides owners with Technical Service Bulletins, or TSBs, thereby giving them the full story on what the manufacturer is telling the dealer about every make and model they produce," added Parlontieri.
A full analysis of results for the period ended March 31st, 2014 is available in the Company's Form 10-Q, which is available on the Speedemissions website at www.speedemissions.comor 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 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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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 which are available at the SEC's websitewww.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.