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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