ATLANTA, GA -- (Marketwired) -- 04/05/13 -- 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. www.speedemissions.com
About CARbonga: www.carbonga.com and www.carbonga.com/SRI
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.
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