Home Solutions Announces Record Third Quarter Results
November 15 2004 - 3:00PM
PR Newswire (US)
Home Solutions Announces Record Third Quarter Results Company
Reports 122% Increase in Revenues and EPS of $0.03; Increases
Fourth Quarter and Full-Year EPS Guidance to $0.12 to $0.14 Per
Share DALLAS, Nov. 15 /PRNewswire-FirstCall/ -- Home Solutions of
America, Inc. (AMEX:HOM), a niche provider of specialty residential
services, announced today financial results for its third quarter
and nine months ended September 30, 2004. The Company recorded
third quarter revenues of approximately $7.9 million, a 122%
increase versus $3.6 million for the year earlier period, and net
income of $685,000, or $0.03 per basic share, versus net income of
$43,000, or $0.00 per basic share for the 2003 third quarter. The
Company generated $1,230,000 in EBITDA (which includes $1,026,000
of operating income plus $204,000 of depreciation and amortization)
in the 2004 third quarter versus net income of $43,000 and $305,000
in EBITDA (which includes $191,000 of operating income plus
$114,000 of depreciation and amortization) for the prior year's
period. For the nine months ended September 30, 2004, the Company
recorded revenues of $22.1 million, a 109% increase versus $10.6
million for the year earlier period, and net income of $1,691,000
or $0.08 per basic share versus a net loss of $(119,000), or a loss
of $(0.01) per basic share for the nine months ended September 30,
2003. During this period, the Company generated $2,992,000 in
EBITDA (which includes $2,365,000 of operating income plus $627,000
of depreciation and amortization) versus $593,000 in EBITDA (which
includes $166,000 of operating income plus $427,000 of depreciation
and amortization) for the same period in 2003. "We are pleased to
again report another strong quarter of operating results," said
Rick O'Brien, Chief Financial Officer of Home Solutions. "These
results demonstrate that we are not only able to acquire other
providers of specialty residential services, but we are able to
grow the business organically. Our Restoration Services business
grew organically by 10%. Revenue from our Specialty Interior
services division, which we acquired this year, showed another
quarter of strong sequential growth. We believe that the
acquisition of a home warranty company in California, which is
scheduled to close before the end of the year, will further
position us for growth in 2005. "We believe the opportunities for
growth across our business lines remain strong," said Frank
Fradella, Chairman and Chief Executive Officer. "The recent
hurricanes in Florida have created significant demand for our
services in the area, which is expected to provide substantial work
for several years to come. We were able to deploy some of the
resources from our operations in California to service the overflow
of business in Florida. The acquisition of RAM Home Warranty, once
complete, should create powerful cross selling opportunities in our
existing markets. We expect to be able to sell home warranty
service to many of our existing residential service customers and
to market our existing services to our new home warranty
customers." Business Outlook The Company expects to report fourth
quarter revenues of between $8.2 and $8.5 million and to generate
net income of $0.04 to $0.07 per basic share. This would result in
full-year net income of $0.12 to $0.14 per basic share, an increase
from the Company's previously announced guidance of $0.10 to $0.14
cents per basic share. This guidance does not include the financial
effect of any acquisitions. Home Solutions expects to provide 2005
financial guidance when it announces its fourth quarter and
year-end results. Interested participants should call (888)
554-9234 and reference Conference ID 2052832. There will be a
playback available as well. To listen to the playback, please call
(800) 642-1687. Please use conference ID 2052832 for the replay.
The replay will be available beginning at 5:15 pm the day of the
call and will be accessible through December 15. The Company will
also webcast the call. Investors may access the webcast by going to
the Company's website http://www.homcorp.com/ . The webcast will be
available from November 16 until November 30. Home Solutions is a
niche provider of specialty residential services including
Restoration Services and Specialty Interior Services. The Company
has operations in the California, Texas and Florida markets and is
rapidly growing its core business through both an internal and an
acquisition strategy. For more information on Home Solutions,
please see our 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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