LifeGoal Home Down Payme... (AMEX:HOM)
Historical Stock Chart
From Sep 2019 to Sep 2024
Home Solutions (AMEX: HOM), a provider of recovery,
restoration and rebuilding/remodeling services, commented today on its
relationship with American Renaissance Homes (ARH), a provider of
affordable housing. On May 23rd, the Company announced through a press
release that it had been awarded a contract by ARH. The Company has
assumed, for purposes of its 2006 business outlook, that this
relationship will generate $5 million in revenue, largely in the
fourth quarter, representing a small portion of its 2006 financial
guidance of revenue of $160 million to $165 million as ARH is a
start-up company. In addition, Home Solutions has entered into an
agreement with ARH, under which it would loan up to $800,000, upon ARH
meeting certain performance criteria, to support ARH's working capital
requirements, secured by ARH's ownership in modular homes and land.
The parties have been in discussions regarding Home Solutions taking
an ownership position in the Company, but no agreement has been
consummated and Home Solutions does not, at the present time, have an
ownership stake in ARH.
"We believe this relationship is very strategic for the Company,
and as the rebuilding of New Orleans accelerates it will, in future
years, become a more important component to our revenue base," said
Frank J. Fradella, Chairman and CEO of Home Solutions. "The demand for
affordable housing is expected to be significant, however, we have
anticipated that much of that work will contribute to 2007 results."
Currently, many New Orleans area residents live in 200 square foot
trailers provided by FEMA. ARH will provide homes between 1,200 and
2,300 square feet at a fraction of the cost of construction in the
area, which is currently approaching $150 per square foot.
Home Solutions is a provider of recovery, restoration and
rebuilding/remodeling services to commercial and residential areas
that are (i) prone to flooding, hurricanes, tornados, fires or other
naturally occurring and repetitive weather related emergencies; and/or
(ii) experiencing robust housing development. The Company has
operations in California, Texas, Florida, Alabama, Georgia, Louisiana,
Mississippi and South Carolina through its five subsidiaries,
Cornerstone Building and Remodeling, Southern Exposure, P.W. Stephens,
Home Solutions Restoration of Louisiana 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 manufacturer and
installer of cabinet and countertop services in the Florida
marketplace. P.W. Stephens provides mold and asbestos remediation
services, and fire and water restoration services in California,
Florida and Louisiana. Home Solutions Restoration of Louisiana
provides Recovery Restoration Services in Florida, Louisiana,
Mississippi and Texas and Fiber Seal Systems is a national licensor 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.