SOURCE: Speedemissions, Inc.

Speedemissions, Inc.

April 05, 2013 16:30 ET

Speedemissions Reports Year End 2012 Financial Results

ATLANTA, GA--(Marketwired - Apr 5, 2013) - Speedemissions, Inc. (OTCBB: SPMI), today announced its financial results for the year ended December 31, 2012. The Financial and Operational Highlights are detailed below.

For the year ended December 31, 2012, revenue decreased (6.8%) or $569,390, from $8,321,991 in the prior year to $7,752,601. This reduction in revenue is primarily due to a (3.4%) drop in same store customers and a reduction in fees per customer of (4.0%). The company also sold two underperforming stores during the 4th quarter of 2012, which contributed to the decline in revenue as well. This drop in same stores revenue and in fees per customer is directly related to an increase in the level of competition and the continued discounting of inspection fees.

Store operating expenses were reduced by (5.7%) or $319,676 over the course of 2012. General and Administrative Expenses dropped for the year by (8.8%) or $124,873. 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 & maintenance expense. Adding to this improvement was the elimination of the two underperforming stores.

The decrease in general & administrative expense was primarily due to a $219,790 decrease in payroll and payroll related expenses, plus a decrease of $63,821 in shareholder and investor relations offset by $98,181 increase in professional fees and $30,021 in fees related to new financing.

The Company incurred a loss from operations for the year ended December 31, 2012, of ($534,549) and a net loss of ($656,037), or ($0.02) per basic and diluted share compared to an operating loss of ($1,564,572) and a net loss of ($1,578,591), or ($0.05) per basic and diluted share in the year ended December 31, 2011.

Rich Parlontieri, President/CEO, added, "This was a difficult year brought on by the increase in competitors from some national automotive service chains and heavy price discounting by local small business owners. We're continuing to seek ways to effectively reduce expenses without impeding our 95% customer satisfaction rating and are developing some new objectives in an effort to mitigate these new challenges."

About Speedemissions, Inc.
About CARbonga: and

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., Houston, TX., Salt Lake City, UT. and St. Louis, MO. markets. The Company is now expanding its business by selling SpeedEmissions Car Care Store Franchises and providing an emissions repair business segment. Speedemissions 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 app is used via their iPhone®, iPad® or iPod touch®. It should be available on Android® smart phones in 2013.

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.

Speedemissions, Inc. and Subsidiaries  
Consolidated Balance Sheets  
as of December 31, 2012  
    2012     2011  
Current assets:                
  Cash   $ 54,121     $ 129,095  
  Note receivable - current portion     12,000       21,125  
  Certificate and merchandise inventory     56,531       59,822  
  Deferred financing costs     99,856       -  
  Other current assets     96,198       59,320  
    Total current assets     318,706       269,362  
Note receivable, net of current portion     70,934       79,914  
Property and equipment, net     523,264       539,673  
Goodwill     1,619,866       1,240,152  
Other assets     110,298       104,363  
    Total assets   $ 2,643,068     $ 2,233,464  
Liabilities and Shareholders' Deficit                
Current liabilities:                
  Line of credit   $ 743,600     $ 90,000  
  Note payable     55,000       55,000  
  Accounts payable     467,750       220,625  
  Accrued liabilities     306,808       200,096  
  Current portion - capitalized lease obligations     26,844       40,659  
  Current portion - equipment financing obligations     3,144       24,780  
  Current portion - deferred rent     16,675       14,795  
    Total current liabilities     1,619,821       645,955  
Capitalized lease obligations, net of current portion     92,250       681  
Equipment financing obligations, net of current portion     4,106       -  
Deferred rent     112,431       121,390  
Other long term liabilities     12,409       7,350  
    Total liabilities     1,841,017       775,376  
Commitments and contingencies                
Series A convertible redeemable preferred stock, $.001 par value, 5,000,000 shares authorized, 5,133 shares issued and outstanding; liquidation preference: $5,133,000     4,579,346       4,579,346  
Shareholders' deficit:                
  Common stock, $.001 par value, 250,000,000 shares authorized, 34,688,166 shares issued and outstanding     34,618       34,618  
  Additional paid-in capital     15,918,329       15,918,329  
  Accumulated deficit     (19,730,242 )     (19,074,205 )
    Total shareholders' deficit     (3,777,295 )     (3,121,258 )
    Total liabilities and shareholders' deficit   $ 2,643,068     $ 2,233,464  
Speedemissions, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Years Ended December 31, 2012  
    2012     2011  
Revenue   $ 7,752,601     $ 8,321,991  
Costs of revenue:                
  Cost of emissions certificates     1,770,185       1,843,612  
  Store operating expenses     5,242,468       5,562,144  
General and administrative expenses     1,288,177       1,413,050  
(Gain) loss from disposal of non-strategic assets     (13,680 )     (41,157 )
Goodwill impairment expense     -       1,108,914  
Operating loss     (534,549 )     (1,564,572 )
Interest income (expense)                
  Interest income     3,020       3,288  
  Interest expense     (124,508 )     (17,307 )
    Interest, net     (121,488 )     (14,019 )
  Net loss   $ (656,037 )   $ (1,578,591 )
Basic and diluted net loss per common share   $ (0.02 )   $ (0.05 )
Weighted average common shares outstanding, basic and diluted     34,688,166       30,991,130  

Contact Information

  • For Further Information:
    Larry Cobb
    Chief Financial Officer