Speedemissions, Inc. Announces Financial Results for Third Quarter 2014
ATLANTA, GA, Nov 14, 2014 (Marketwired via COMTEX) -- Speedemissions, Inc. (PINKSHEETS: SPMI) (the "Company"), a leading vehicle emissions and safety inspection company with locations in Atlanta, St. Louis and Salt Lake City, the creator of BuyCarSafety.com Automotive Diagnostic Vehicle Inspections Safety Report ("ADVISR"), and the developer of CARbonga-SRI, the revolutionary Automotive Safety Recall iPhone(R) app, today announced its financial results for its quarter ended September 30, 2014.
President and CEO, Rich Parlontieri, stated, "The third quarter showed improvement in the overall operational performance of the business, with the Company having posted its first positive EBITDA* in over two years. Along with the selling of the six Houston locations and the closing of three stores earlier in the year, we ceased operations in four more underperforming stores during the period in our continuing efforts to manage expenses."
Speedemissions realized a 29% decrease in revenue or $524K to $1,238K compared to $1,870K over the same period in 2013. The decrease was primarily due to the sale of the stores in Texas and the closing of stores in Atlanta, St. Louis and Salt Lake. There was a $145K increase in revenue resulting from the seven stores acquired in November 2013. Same store sales experienced a $17K decline. For the third quarter 2014, the Company reported an operating loss of ($26K) versus a loss of ($74K) for the same period in 2013. Store operating expenses decreased $406K or (32.7%), while general and administrative expenses decreased $76K or (30.3%) versus the third quarter 2013.
A full discussion of results for the period ended September 30th, 2014 is available in the Company's Form 10-Q, which can be found on the Speedemissions website at www.speedemissions.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.
The Automotive Data Vehicle Inspection Safety Report or "ADVISR," a product of the CARbonga-SRI database, and available at BuyCarSafety.com has seen its customer base climb. The company has been testing a 1-on-1 selling strategy in two of its locations. Based on the results thus far, it anticipates using this 'personal' selling approach in several more stores over the next few weeks.
Given that automobile safety recall issues are being broadcast on a regular basis and given the high risk car owners are taking by driving a car with a recall that has not yet been fixed (Carfax(R) estimates this number at over 36 million), the Company is hopeful that consumers will turn to BuyCarSafety.com's ADVISR to quickly learn about safety recalls on their make/model. In addition, they'll get the added value of the TSB (Technical Service Bulletins) that gives them a real detailed history on all the mechanical problems for their car's model year. The ADVISR can be purchased and downloaded on-line and is available at all Speedemissions retail stores. For more information, visit www.buycarsafety.com.
*Earnings Before, Interest, Taxes, Depreciation and Amortization ("EBITDA", a non-GAAP financial performance metric).
ABOUT SPEEDEMISSIONS, INC. Speedemissions, Inc., based in Atlanta, Georgia, is a national brand offering our customers quick and efficient emission testing and/or safety inspection as required by law. The Company is in the Atlanta, GA. Salt Lake City, UT and St. Louis, MO. markets. For more information, visit: www.speedemissions.com
ABOUT CARBONGA-SRI Speedemissions, Inc. owns and developed the CARbonga line of apps for smart phone users. CARbonga is among the first apps which allows the average person to detect automotive car problems for their own vehicle or when buying a used vehicle. The CARbonga-SRI app provides a quick and easy way for consumers to stay on top of the safety of their vehicle by providing the most current safety-related recalls and service bulletins for their vehicles. For more information, visit www.carbonga.com and for CARbonga news updates follow @CARbongaApp on Twitter.
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FORWARD LOOKING STATEMENTS 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 market acceptance for Speedemissions' products and services, its ability to succeed in increasing revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, the effect of new competitors in its markets, its integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission, including Speedemissions' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K which are available at the SEC's website www.sec.gov. Other factors not currently anticipated may also materially and adversely affect Speedemissions' results of operations, financial position, and cash flows. There can be no assurance that future results will meet expectations. While Speedemissions believes that the forward-looking statements in this news release are reasonable, the reader should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Speedemissions does not undertake, and expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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