Houston, Texas, November 24, 2003 - (PRNewswire) - Home Solutions of America, Inc. (AMEX: HOM), a niche provider of specialty residential services, reported third quarter earnings for the period ended September 30, 2003. The Company reported revenues of approximately $3.6 million, a 17% increase versus the second quarter. It had no revenues for the fiscal 2002 third quarter. The Company generated operating income of $191,000, resulting in net income of $43,000, or $0.00 per diluted share. For the year earlier period, Home Solutions reported an operating loss of $434,000, or ($0.03) per share.
For the nine months ended September 30, 2003, the Company reported revenues of $10.6 million, EBITDA of $593,000 and operating income of $166,000. The Company reported a loss of $119,000, or ($0.01) per diluted share. During the comparable fiscal 2002 period, the Company had no revenues and a loss of ($0.03) per share.
During the third quarter, the Company closed the acquisition of Central Texas Residential Services ("CTRS") and Fiber Seal Systems ("FSS"). CTRS and FSS are the second and third acquisitions the Company has completed since announcing its specialty residential services strategy in 2002. Subsequent to the end of the quarter, Home Solutions announced that it had signed a letter of intent to acquire a Florida-based specialty interior services company with revenues of approximately $14 million annually. The Company expects to complete the acquisition before the end of the year.
“Our recently completed acquisitions position Home Solutions to gain significant market share within these niche residential markets,” said Frank Fradella, Chairman and CEO of Home Solutions. “However, we are most excited by the potential from the Florida acquisition we recently announced. This acquisition will create synergies among our existing businesses, enable us to penetrate new geographies and potentially triple our cash flow from operations. Furthermore, since the housing market remains strong, we expect there to be significant cross-selling opportunities both for our new and existing customers.”
Home Solutions is a niche provider of specialty residential services including Restoration Services, Cleaning and Fabric Protection Services and Residential Renovation Sales. Home Solutions closed its first acquisition, PW Stephens, in November of 2002 and has subsequently closed two additional acquisitions in July 2003 as part of this strategy. In addition, Home Solutions currently has two letters of intent outstanding.
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.
