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Speedemissions, Inc Reports Fourth Quarter & December 31, 2010 Year End Results


speedemissions (select to view enlarged photo)

ATLANTA--March 31, 2011: Speedemissions, Inc. (OTC Bulletin Board: SPMI - News), a leading vehicle emissions testing and safety inspections company with testing stores in Atlanta, Houston, St. Louis and Salt Lake City today announced its financial results for the fourth quarter and year ended December 31, 2010.

2010 Summary:

  • Revenue decreased $663,580 or 6.7% to $9,253,098 for the year ended December 31, 2010 compared to revenue of $9,916,678 for year ended December 31, 2009. The decrease in revenue was primarily due to the loss of six months revenue of $433,021 at two Mr. Sticker stores closed in June 2010. Our same store sales decreased 4.1% over the comparable period of 2009.
  • Store operating expenses decreased $264,569 or 4.2% to $6,002,009 for the year ended December 31, 2010 compared to store operating expenses of $6,266,578 in the comparable period of 2009. Our same store operating expenses declined $268,780 during 2010.
  • General and administrative expenses increased 11.9% to $1,579,566 during the year ended December 31, 2010 compared to $1,411,296 in the same period of the prior year. The increase in our general and administrative expenses was primarily attributable to an increase in CARbonga related expenses and professional fees over the prior year.
  • The Company's net losses for the year ended December 31, 2010 and 2009 included goodwill impairment expenses of $1,902,590 and $2,873,766, respectively.
  • Net loss for the year ended December 31, 2010 was $2,182,874 or ($0.19) per basic and diluted share compared to a net loss of $2,787,072 or ($0.53) per basic and diluted share in 2009. Excluding the goodwill impairment expense, the Company lost ($0.02) per diluted share in the year ended December 31, 2010 compared to earning $0.01 per diluted share in the year ended December 31, 2009.

Richard A. Parlontieri, President and Chief Executive Officer of Speedemissions commented: "In the third Quarter 2010, we introduced the selling of a limited line of automotive products in many of our stores where we're required to do a vehicle safety inspection. This business segment of selling light bulbs, windshield wipers, along with our 'Headlight Restoration' program has provided a positive benefit to our customers. We're pleased our store employees were able to successfully implement a program that will help us recapture lost revenue, improve our income from continuing operations and reduce our total liabilities in this difficult economic environment. In addition, the latest version of CARbonga (our iPhone App) designed to give a consumer control over both his/her auto safety, as well as being an invaluable tool when buying or selling a used car by showing the buyer the vehicles history on Safety Recalls or Technical Service Bulletins, should contribute to increasing revenue in 2011."

Revenue in the fourth quarter of 2010 totaled $1,990,436, a decrease of $268,642 or 11.9%, compared with revenue of $2,259,078 in the same period last year. The closure of our two Mr. Sticker stores in Texas in June 2010 resulted in the loss of $207,843 revenue in the fourth quarter of 2010 compared to 2009. On a same-store basis, Speedemissions, Inc.'s fourth quarter sales were down 5.5%.

The Company's net losses in the fourth quarter ended December 31, 2010 and 2009 included goodwill impairment expenses of $1,902,590 and $2,873,766, respectively. The Company's net loss in the fourth quarter of 2010 was $2,079,005 or ($0.13) per basic and diluted share compared to a net loss of $2,992,673 or ($0.31) per basic and diluted share in the comparable period of 2009.

About Speedemissions Inc.

Speedemissions, Inc., based in Atlanta, Georgia, is a leading vehicle emissions testing and safety inspections company in the United States. We provide services in certain 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 current focus of the company is in the Atlanta, Georgia; Houston, Texas; St. Louis, Missouri and Salt Lake City, Utah markets.