Nice topic
HOM - 1.58 + .15
Q report looks damn impressive.
Particularly GUIDANCE
PE under 10
Revenues almost $3 a share.
Home Solutions of America Reports Record First Quarter Results
Monday May 23, 4:05 pm ET
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 - News), 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.
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