Speedemissions Announces Record Financial Results
ATLANTA--Aug. 1, 20059, 2005--| Second Quarter and Six Month Revenues Increase 68% and 85% Respectively; Gross Profits Increase 67% and 80% |
Speedemissions, Inc. (OTC Bulletin Board: SPEM), a leading vehicle emissions testing and safety inspections company, today announced record fiscal second quarter and six month financial results.
Revenues rose 68% to $1,256,000 for the three months ended June 30, 2005, from $749,000 for the three months ended June 30, 2004. Gross profit (revenues less cost of emissions certificates) was up 67% to $864,000 compared to prior year of $518,000. The Company had an operating loss of $(400,000) in the 2nd quarter of 2005 compared to an operating loss of $(817,000) in 2004 and a net loss of $(465,000) for the quarter compared to a net loss of $(817,000) in the prior year.
For six months ended June 30, 2005, revenues rose 85% to $2,534,000 from $1,367,000 for the comparable period ended June 30, 2004. Gross profit (revenues less cost of emissions certificates) was up 80% to $1,713,000 compared to the prior year of $951,000. The Company had an operating loss of $(698,000) in the six months ended June 30, 2005 compared to an operating loss of $(2,036,000) in 2004 and a net loss of $(827,000) for the six months compared to a net loss of $(2,072,000) in the prior year.
Larry Cobb, CFO stated, "The sizeable increases in revenues and gross profit along with the sizeable reduction in our operating losses are clear evidence of the continuing success of our aggressive acquisition strategy. As previously announced, we successfully acquired six emissions testing stations in the Houston, Texas area in December of 2004. We're especially pleased that store level general and administrative expenses associated with these stations were reduced $132,000 from the first six months of 2004 compared to the same period in 2005. In addition, per store revenue in the second quarter rose 31.5% compared to fourth quarter 2004 per store revenue."
Rich Parlontieri, President/CEO of Speedemissions added, "The new stations brought onboard in 2004, are now starting to contribute to the revenue and income growth we had planned for. We believe that the Mr. Sticker acquisition and the pending acquisition of Just Inc. in Salt Lake City, could push forward looking 2006 revenue to as high as $10,000,000. We continue to focus on maximizing operational efficiencies with the goal of driving profits to the bottom line in addition to building long term shareholder value. In light of many positive accomplishments, we're pleased with our progress, although acutely aware of the work yet to be done."
Additional information about Speedemissions can be found at: www.stocksontheweb.com.
About Speedemissions Inc. www.speedemissions.com
Speedemissions, Inc., based in Atlanta, Georgia, plans to become the leading vehicle emissions (and safety inspection where required) company in the United States in areas where auto testing is mandated by the Environmental Protection Agency (EPA). Since the emissions testing market is highly fragmented, Speedemissions expects to be the first company to create a national brand offering their customers quick and efficient vehicle emissions testing service. The initial focus of the company is in the Atlanta, Georgia and Houston, Texas markets. The Company expects to continue to rapidly expand store sites.
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 succeed in growing revenue, 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.