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Home Solutions of America Reports Record First Quarter Results
Revenue, Net Income and Earnings Per Share Highest in Company's History;
Company Earns $0.04 Per Share Compared to $0.02 for Q1 2004; Results Exclude
the Impact of Cornerstone Acquisition
DALLAS, May 23 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc.
(AMEX:HOM), a niche provider of specialty residential services, announced today
record first quarter financial results for the period ended March 31, 2005.
The Company generated first quarter revenue of $9.3 million, a 38.8% increase
versus the same period in 2004 when Home Solutions had revenue of $6.7 million.
Home Solutions generated $1.7 million of EBITDA during the first quarter
versus EBITDA of $0.7 million during the 2004 first quarter. The Company
generated 2005 first quarter net income of $1.0 million or $0.04 per diluted
share compared to $0.4 million or $0.02 per diluted share in the year earlier
period. The results exclude the acquisition of Cornerstone Building and
Remodeling ("Cornerstone"), which the Company completed on March 31, 2005.
However Cornerstone's assets and liabilities are included in Home Solutions'
balance sheet.
Including the acquisition of Cornerstone, Home Solutions, on a pro forma basis,
would have had revenue of $14.1 million, EBITDA of $2.4 million and net income
of $1.0 million, or $.04 per diluted share. The above pro forma non- GAAP
adjustments are based upon the Company's unaudited consolidated statements of
operations for the 2005 first quarter. These adjustments are not in accordance
with, or an alternative for, U.S. Generally Accepted Accounting Principles
(GAAP). However, Home Solutions believes pro forma non- GAAP reporting
provides meaningful insight into the company's ongoing economic performance and
therefore uses pro forma non-GAAP reporting internally to assist in evaluating
and managing the company's operations. Home Solutions has chosen to provide
this supplemental information to investors to enable them to perform additional
comparisons of operating results and to illustrate the results of ongoing
operations.
Restoration Services generated first quarter revenue of $5.1 million, a 41.6%
increase versus $3.6 million for the 2004 first quarter. The increase in
revenue was a result of strong demand in Florida for restoration services as a
result of the hurricane activity last year. Specialty Interior Services had
revenue of $4.2 million, a 40% increase versus $3.0 million in the comparable
year-earlier period.
"We are extremely pleased by the strong first quarter we recently completed,"
said Frank Fradella, Chairman and CEO of Home Solutions. "Despite being highly
focused on closing the Cornerstone acquisition, we were able to capitalize on
many of the opportunities in Florida and have positioned the company for solid
growth in the region for years to come. We have clearly demonstrated that we
can acquire companies that are accretive to our business and create synergies
to increase organic growth. With the acquisition of Cornerstone, we have
broadened our product lines and relationships with several of the leading home
retailers in the country that has positioned Home Solutions to meaningfully
expand its revenue base. Already, Cornerstone has begun to expand its
relationships with Home Depot and Lowe's."
Business Outlook:
The Company expects to generate record full-year revenue of $55.0 to $60.0
million, EBITDA of $8.5 to $9.5 million and record net income of $0.14 to $0.18
per fully diluted share. These results include the acquisition of Cornerstone.
The Company believes that its guidance is conservative, as it has assumed that
Cornerstone will incur significant additional costs in connection with the roll
out of its products to Home Depot and Lowe's. Home Solutions has assumed these
expenses, as it does not have any operating history with either of the national
retail chains. Cornerstone currently services over 104 Home Depot locations
throughout the southeastern United States. It has an agreement with Lowe's to
provide services to over 269 home centers in the southeast over the next 12
months.
The Company will hold a conference call and webcast at 4:15 pm eastern time
today. Interested participants should call (888) 554-9234 and reference
Conference ID 6015567. There will be a 30-day playback available as well. To
listen to the playback, please call (800) 642-1687. Please use conference ID
6015567 for the replay. The replay will be available beginning at midnight the
day of the call and will be accessible through June 15, 2005. 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 also be available
until June 15th.
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/