November 7, 2007, Dallas, TX - (Business Wire) - Home Solutions of America, Inc. (NASDAQ: HSOA; the “Company” or “Home Solutions"), a provider of restoration, construction and interior services to commercial and residential customers, announced today that it will delay the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007 and intends to file a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission to extend the Company’s filing deadline by five (5) calendar days. The Company expects to file its Form 10-Q on or before November 14, 2007, and hold a conference call to discuss its results as soon as practicable after the filing. The Company will announce the date and time, and the dial-in number for the conference call in a future press release.
The delay is necessary due to the previously announced voluntary review of related party transactions and other matters being conducted by the Audit Committee of the Company’s Board of Directors. In addition, the delay will allow the Company more time to potentially resolve the previously announced claims asserted by the Company’s subsidiary Fireline Restoration, Inc. against the state-run, Florida Insurance Guarantee Association. (“FIGA”) Meetings to discuss a settlement with FIGA have been scheduled beginning November 6, 2007.
Commenting, Chairman and CEO Frank Fradella stated, “We continue to work toward a resolution regarding the FIGA settlement and look to provide an update. The Audit Committee also continues to review certain related party transactions and other matters as part of a process requested by management. We apologize for the delay but felt it urgent to provide all factual information as it becomes available, and much of that information will not be available until after the Company required filing date.”
About Home Solutions of America, Inc.
Home Solutions of America, Inc. is a provider of restoration, construction and interior services to commercial and residential customers. Its Fireline subsidiary is involved in providing construction services, rebuilding, catastrophic storm response and contents restoration for commercial, industrial and residential properties. Based in Tampa, Fireline is certified in multiple aspects of the restoration industry, including smoke, fire, water and mold. The Company has operations in California, Texas, Florida, Alabama, Georgia, Louisiana, Mississippi and North Carolina. Home Solutions Restoration of Louisiana, Inc., which does business as Associated Contractors ("Associated"), is a Louisiana based commercial, industrial and residential contractor working in the governmental and private arenas. Associated has been one of the larger players in redeveloping public schools in the aftermath of Hurricane Katrina. Its clients include the State of Louisiana, the City of New Orleans, the Louisiana National Guard, the historic French Market and Louis Armstrong International Airport. For additional information, please visit the Company’s Web site at http://www.hsoacorp.com.
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Cautionary Notice: This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include, but are not limited to, the Company’s future financial performance, business prospects, ability to win new contracts, the performance under existing contracts, the timing of completion of projects, ability to secure bonding, ability to secure labor in markets where it does not have a labor force, performance of subcontractors and the ability to collect accounts receivable. In addition, there can be no assurance that the actions taken or to be taken by the Company as described herein will result in increased revenues. There is no guaranty that the acquisition will close. There is no guaranty that the Company’s revenues will increase as a result of the APA and/or the Release Agreement or the transactions contemplated by the APA and the Release Agreement over any quarterly or annual period, or that the Company’s revenues, if any, resulting from these transactions will be lesser than, equal to or greater than RG America’s 2006 revenues. Other important factors are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2006 in the section entitled “Risk Factors.”
