Speedemissions Reports Year End 2008 Financial Results
ATLANTA March 31, 2009: Speedemissions, Inc. (OTC Bulletin Board: SPMI), today announced its financial results for the year ended December 31, 2008.
The Company also announced that it has achieved a key financial milestone by removing the “going concern” opinion from its financial statements reported in its SEC Form 10-K filed on March 30, 2009. The Company’s auditors had included an advisory regarding the “going concern” since the Company was incorporated in 2001. A “going concern” opinion indicates that there is uncertainty in a company’s ability to continue operations.
Richard Parlontieri, President and CEO, stated “Achieving the removal of the going concern opinion is a significant event for the Company. It serves as a testament to the hard work and dedication of our entire team to improve our financial condition. We also appreciate the support of our customers, partners, vendors and stockholders in meeting this significant financial milestone.”
Speedemissions reported revenues for the year ended December 31, 2008 of $9.8 million up 1.3% from $9.7 million in the prior year. The increase in revenue was mainly attributable to revenue generated from new stores offset by a decrease of 3.4% in same store sales for the year and a reduction in revenue from closed stores.
The Company incurred a loss from continuing operations of $134,801 or ($0.03) per basic and diluted share in the year ended December 31, 2008 compared to a loss from continuing operations of $204,510, or ($0.06) per basic and diluted share in the year ended December 31, 2007.
Cost of emissions certificates during the year ended December 31, 2008 decreased 9.3% or $214,330 and totaled $2.1 million compared to $2.3 million in 2007. The decrease was mainly attributable to a reduction in per certificate costs at our Georgia stores.
Store operating expenses during the year ended December 31, 2008 totaled $6.1 million compared to $5.7 million in 2007. The increase in store operating expenses mainly resulted from new store operations and was offset by a decrease of 2.5%, or $134,510 in same store operating expenses.
For the year ended December 31, 2008, general and administrative expenses decreased 3.5% or $63,489 and were $1.77 million compared to $1.83 million in 2007. The decrease in general and administrative expenses was mainly attributable to a decrease in professional fees.
The Company incurred a loss from discontinued operations during the year ended December 31, 2008 of $360,975, or ($0.07) per basic and diluted share compared to a loss from discontinued operations of $59,722, or ($0.02) per basic and diluted share in 2007. The loss from discontinued operations consisted of the operating results for all 12 stores in the Dallas – Ft. Worth area that the Company closed.
The Company reported a net loss of $495,776, or ($0.10) per basic and diluted share during the year ended December 31, 2008 compared to $264,232, or ($0.07) per basic and diluted share in 2007. The increase in net loss was mainly attributable to the loss from discontinued operations.
Richard Parlontieri concluded: “During the fourth quarter of 2007, we began our expansion into the Dallas and St. Louis emissions testing and safety inspection markets. Unfortunately, we did not experience the expected returns in the Dallas market during 2008 and had to close those stores. However, we were able to make progress in the St. Louis market during the second half of 2008. I am pleased that we were able to achieve an increase in our revenues, while reducing our same store operating expenses and general and administrative expenses during 2008.”