ATLANTA, GA--(Marketwired - Apr 5, 2013) - 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 Subsidiaries
Consolidated Balance Sheets
as of December 31, 2012
2012
2011
Assets
Current 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
269,362
Note receivable, net of current portion
70,934
79,914
Property and equipment, net
523,264
539,673
Goodwill
1,619,866
1,240,152
Other assets
110,298
104,363
Total assets
$
2,643,068
$
2,233,464
Liabilities and Shareholders' Deficit
Current 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
645,955
Capitalized lease obligations, net of current portion
92,250
681
Equipment financing obligations, net of current portion
4,106
-
Deferred rent
112,431
121,390
Other long term liabilities
12,409
7,350
Total liabilities
1,841,017
775,376
Commitments and contingencies
Series 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 Subsidiaries
Consolidated Statements of Operations
For the Years Ended December 31, 2012
2012
2011
Revenue
$
7,752,601
$
8,321,991
Costs of revenue:
Cost of emissions certificates
1,770,185
1,843,612
Store operating expenses
5,242,468
5,562,144
General 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 Officer770-306-7667
View More
View More
