In spite of a 9-percent decrease in net sales, Speedemissions Inc. was able to narrow its net loss from $143,951 a year ago to a loss of $116,782 in the first quarter of 2012. This was possible because of decreased store operating expenses, as well as lower general and administrative expenses.
Revenue fell from $2.11 million to $1.92 million because of the closure of two underperforming stores, along with a decrease in same-store sales of 6.8 percent. Management attributed the decrease in same-store sales to revisions in emission-testing laws in Texas and Utah, resulting in an increase in the number of testing competitors.
“To mitigate the plethora of new competitors, we launched three initiatives. First, operating expenses at both the corporate and store level have been significantly reduced. Concurrent to that, we expect to close additional underperforming stores,” explained Richard Parlontieri, president and CEO. “Lastly, we have stepped up efforts in the selling of our limited product line (windshield wipers, light bulbs, etc.). We continue to see strong growth in this area despite a decrease in overall tests. And, to bolster same-store sales even more, we expect to add other automotive services sometime this year.”
Atlanta-based Speedemissions operates vehicle emissions and safety inspection centers in Atlanta, Houston, St. Louis and Salt Lake City.