Monday, March 31, 2014

Speedemissions, Inc. (SPMI) Posts FY13 Financial Results, Reviews Measures to Counter Challenges

Speedemissions, a provider of vehicle emissions testing and automotive safety, reports full-year 2013 financial results for the 12 months ended December 31, 2013, acknowledging the impact of recent acquisitions and unforeseen challenges to revenue generation and corporate response to counter these conditions.

Revenue for the year was $7.09 percent, representing a decrease of 8.5 percent compared to 2012 revenue of $7.75 million. Same store sales increased 7.3 percent in Atlanta. Net loss was $814,482, or $0.016 per basic and diluted share, compared to a net loss of $656,037, or $0.02 per basic and diluted share, in the year ended December 31, 2012.

“While we were presented with several unanticipated challenges this year, there were tangible and measurable improvements that began showing positive results in late 2013 as a result of several corporate actions that we implemented,” Speedemissions president and CEO Rich Parlontieri stated in the news release. “The measures instituted, plus the November 2013 acquisition of seven stores in Atlanta, should help in recapturing the revenue drop realized in 2013, which was caused by two leases lost by stores in Atlanta and Salt Lake, plus the safety inspection law change in Utah that reduced the number of vehicles we inspect by over 33 percent These three events reduced revenue by approximately $600,000 and negatively impacted net income by an estimated $380,000. Had those events not occurred, our bottom line would have looked much healthier.”

To off-set the lost store leases and impact of revisions to safety inspection law, the company cut general and administrative expenses by 16 percent; trimmed same store operating expenses by 3 percent; and dissolved five underperforming and/or non-profitable stores, allowing for an improvement in 2014 store operations by an estimated $150,000.

Additionally, the company improved its CARbonga-SRI app with its “Push Notification” and its ability to notify any car owner with instant information on their model’s safety recall and/or technical service bulletin information (TSB). The company said it believes these enhancements can significantly increase in sales, citing that more than 22 million auto manufacturer safety recalls were issued in 2013 and that more than 40 million used cars are sold annually.

The CEO added that because the company is operating in an undercapitalized state, its focus will remain on managing expenses, exploring options to broaden product and service offerings, increasing per-store revenue, and initiating programs to increase the Speedemissions customer base.

For more information about the company visit www.speedemissions.com

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