News Column

Speedemissions Reports Year End 2012 Financial Results

Page 2 of 1

LogoTracker

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.

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 SubsidiariesConsolidated Balance Sheetsas of December 31, 2012 2012 2011 ------------ ------------AssetsCurrent 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 318,706 269,362Note receivable, net of current portion 70,934 79,914Property and equipment, net 523,264 539,673Goodwill 1,619,866 1,240,152Other assets 110,298 104,363 ------------ ------------ Total assets $ 2,643,068 $ 2,233,464 ============ ============Liabilities and Shareholders' DeficitCurrent 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 1,619,821 645,955Capitalized lease obligations, net of current portion 92,250 681Equipment financing obligations, net of current portion 4,106 -Deferred rent 112,431 121,390Other long term liabilities 12,409 7,350 ------------ ------------ Total liabilities 1,841,017 775,376 ------------ ------------Commitments and contingenciesSeries 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 SubsidiariesConsolidated Statements of OperationsFor the Years Ended December 31, 2012 2012 2011 ------------ ------------Revenue $ 7,752,601 $ 8,321,991Costs of revenue: Cost of emissions certificates 1,770,185 1,843,612 Store operating expenses 5,242,468 5,562,144General 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 ============ ============





For Further Information:
Contact
Larry Cobb
Chief Financial Officer
770-306-7667



Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters