Southern Home Medical Inc (SHOM)

[ACDCRules]

October Shareholder Update was emailed today:


September results came in as expected. These results give us a solid operating quarter vs. SMLY.

Our expectations for the final quarter of 2012 remain positive. Performance line items are below.

Our financial performance for 2012 indicates a stronger finish than 2011.



Share Information is below; as well as:

http://www.otcmarkets.com/stock/shom/quote

www.southernhomemedical.com


Outstanding Share Count as of 9/30/2012

Common 234,510,122

Preferred A 19,827,000

Preferred C 10,131,250


Authorized Share Count Shareholders

Common 500,000,000 1950

Preferred A 25,000,000 5

Preferred C 25,000,000 27



July, 2012 Results August, 2012 Results September, 2012 Results

Revenues 70,704 Revenues 72,352 Revenues 69,356

Cost of Goods 19,984 Cost of Goods 18,863 Cost of Goods 14,838

Expenses 43,314 Expenses 50,784 Expenses 42,515

Net Income 7,408 Net Income 2,709 Net Income 12,504


Answers to email questions:

1. SHOM 2011 tax returns will be posted on the OTC website prior to last day of November or before.
2. SHOM retired 1,730,000 common shares in September.
3. Line items vs. SMLY for SHOM:
a. ApneaRx total revenues were down $13,337.00 but nursing homes alone were down $14,233.00.
DME revenues were actually up vs. SMLY.
b. Cost of Goods was up $6870.98.
c. Auto expenses were up $2419.65 due to repairs and general maintenance of vehicles.
d. Health Insurance remained relatively same.
e. Marketing was down $159.37.
f. Professional fees was down $723.33
g. Total expenses were down $7777.45 vs. SMLY.

4. EMSI was 12.7%% of total revenues for September.
5. SHOM has spent NO company cash to purchase stock on open market.
6. SHOM has spent NO company cash to retire any stock that is being retired.
7. SHOM strategy continues to focus on NOT doing anything that creates debt for our shareholders.
8. SHOM profits continue and again will be profitable in 2012.
9. SHOM has reached higher net profits thru end of 3rd quarter 2012 than all of 2011.


Please continue to send to us any information, questions or concerns that you feel would benefit the
shareholders of SHOM and we will try to answer each request as they come in.

You can visit our website or email us at [e-mail].


Sincerely,

Jeff Sarvis

President & CEO