Home Solutions of America Enters Into Letter of Intent to Purchase California Marble Company
August 01 2005 - 12:21PM
PR Newswire (US)
Home Solutions of America Enters Into Letter of Intent to Purchase
California Marble Company Acquisition Expected to Add $3 Million in
Annual Revenue and $500,000 in EBITDA and Expand Remodeling
Services Offerings DALLAS, Aug. 1 /PRNewswire-FirstCall/ -- Home
Solutions of America, Inc. (AMEX:HOM), a niche provider of
specialty residential services, announced today that its wholly
owned subsidiary, P.W. Stephens, Inc., has entered into a Letter of
Intent to acquire a granite and marble fabrication and installation
company in southern California. The acquired company, whose name
will be released upon completion of a definitive agreement, is
expected to generate $3 million in annual revenue and $500,000 in
EBITDA. The acquisition will be financed with internally generated
cash. The acquisition, which should be completed by the end of the
current quarter, is expected to be accretive to earnings in 2005.
Commenting on the transaction, P.W. Stephens' President Scott
Johnson said, "This 'tuck-in' transaction affords the Company an
opportunity to utilize its sales infrastructure and grow a business
that complements our current service segment of assisting
homeowners that have kitchen and bath related problems. In the more
than 500 individual homes that we provide services, we look to add
the replacement materials in the home. Granite, marble, and other
products will be the beginning of those services." Chairman and CEO
Frank J. Fradella added, "Southern California's remodeling market
will become one of the largest in the United States in the next 5
years due to the lack of land to continue building new homes. This,
combined with our knowledge of kitchen and bath products as a
result of our Southern Exposure and Cornerstone operations, opens
new opportunities for our three locations in California, where last
year alone we provided services in over 6,000 different homes. The
potential to add these products and services to our building
material retail customers is also one of our long-term objectives
as we continue to diversify our service offering. We expect this
acquisition to be accretive to earnings in 2005." Home Solutions is
a niche provider of specialty residential services including
Restoration and Specialty Interior Services. The Company has
operations in the California, Texas, Florida, Alabama, Georgia and
South Carolina markets through its four subsidiaries, Cornerstone
Building and Remodeling, Southern Exposure, P.W. Stephens and Fiber
Seal Systems. Cornerstone is a leading supplier and installer of
granite materials for kitchens and baths to national home centers,
as well as national builders and remodeling companies, in the
southeastern United States. Southern Exposure and related companies
is a provider of cabinet and countertop installation services in
the Florida marketplace. P.W. Stephens provides mold and asbestos
remediation services, and fire and water restoration services in
California and Florida, and Fiber Seal Systems is a national
franchise of cleaning and fabric protection businesses. For more
information on Home Solutions, please see the Company's website at
http://www.homcorp.com/ . Statements included in this update that
are not historical in nature are intended to be, and are hereby
identified as, "forward-looking statements" for purposes of the
safe harbor provided by Section 21E of the Securities Exchange Act
of 1934, as amended by Public Law 104-67. Forward-looking
statements may be identified by words including "anticipate,"
"believe," "intends," "estimates," "expect," and similar
expressions. The Company cautions readers that forward-looking
statements including, without limitation, those relating to the
Company's future business prospects are subject to certain risks
and uncertainties that could cause actual results to differ
materially from those indicated in the forward-looking statements,
due to factors such as those relating to economic, governmental,
technological, and other risks and factors identified from time to
time in the Company's reports filed with the SEC. HOME SOLUTIONS OF
AMERICA, INC. CONTACT: Cormac Glynn, CEOcast, Inc. Phone: 212 732
4300 DATASOURCE: Home Solutions of America, Inc. CONTACT: Cormac
Glynn of CEOcast, Inc., +1-212-732-4300, for Home Solutions of
America, Inc. Web site: http://www.homcorp.com/
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