Speedemissions, Inc. to Revise Its Business Model
ATLANTA, May 7, 2013 /PRNewswire/ -- Speedemissions, Inc. (OTC Bulletin Board: SPMI), a leading vehicle emissions testing and safety inspections company with stores in Atlanta, Houston, St. Louis and Salt Lake City today announced a major change in the direction of its business model to the SpeedEmissions Car Care Stores. This new concept will allow the Company, using its emission customer base as the foundation, to provide not just emission repair services but an array of basic automotive services and products to its customers, and to more rapidly expand its store presence throughout the 22 states where de-centralized vehicle emission testing is mandated by the U.S. Environmental Protection Agency.
Over the past 12 years, Speedemissions has helped pioneer the "test only" model for emission testing and/or safety inspections. During this time, Speedemissions primary focus was to perform the vehicle inspection and not up-sell customers' on other automotive products and services. However, after reviewing emission industry and automotive aftermarket forecasts over the last several months, the Company now believes that remaking itself into more of a complete auto service provider will enable it to grow its business and potentially move into new markets and accelerate franchise sales.
"We have been studying this modification of our business model for some time," commented Rich Parlontieri, President/CEO of Speedemissions. "In an industry where the American consumer is now holding a car for 11+ years and where nearly 86% of light automotive vehicles are outside the manufacturers' warranty, we believe offering a number of different automotive services to our customers is a logical move for us to make now and for the long term. We believe this transition to emission repair, tune-up, brake repair, air-conditioning, diagnostics and other automotive services and products will hopefully result in a higher per customer ticket average, thereby increasing both revenue and income. In addition, we expect the decision to remodel four to six of our current stores and build new stores will enhance the growth of the SpeedEmissions Car Care Franchise unit."
Speedemissions, Inc., based in Atlanta, Georgia, is a national brand offering our customers quick and efficient emission testing and/or safety inspection as required by law. The Company is in the Atlanta, GA. Houston, TX, Salt Lake City, UT and St. Louis, MO. markets. The Company has expanded its business model through its newly introduced SpeedEmissions Car Care Stores and SpeedEmissions Car Care franchise unit. Speedemissions hopes to be among the first companies to offer its customers quick and efficient vehicle emissions testing and repair services. In addition, 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.
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 market acceptance for Speedemissions' products and services, its ability to succeed in increasing revenues in the near term to attain profitable operations and generate sufficient cash flow from operations, the effect of new competitors in its markets, its integration of acquired businesses, and other risk factors identified from time to time in its filings with the Securities and Exchange Commission, including Speedemissions' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K which are available at the SEC's website www.sec.gov. Other factors not currently anticipated may also materially and adversely affect Speedemissions' results of operations, financial position, and cash flows. There can be no assurance that future results will meet expectations. While Speedemissions believes that the forward-looking statements in this news release are reasonable, the reader should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Speedemissions does not undertake, and expressly disclaims any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
For Further Information: Contact Rich Parlontieri (firstname.lastname@example.org or 770-306-7667)
SOURCE Speedemissions, Inc.