Company Expects Minimum 2005 Revenue Growth of at Least 75% and EBITDA
Increase of Approximately 80% Resulting in Diluted EPS of $0.14 - $0.18
DALLAS, April 5 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc.
(Amex: HOM), a niche provider of specialty residential services, announced
today financial guidance for its fiscal year ending December 31, 2005. The
Company, which completed the acquisition of Cornerstone Building and
Remodeling, Inc. last week, expects to generate record full-year revenue of
$55 to $60 million, EBITDA of $8.5 to $9.5 million and record net income of
$0.14 to $0.18 per fully diluted share. For the full-year ended December 31,
2004, the Company generated revenue of $31.1 million, EBITDA of $4.9 million
and net income of $0.10 per fully diluted share.
"The acquisition of Cornerstone creates a powerful company which combines
Home Solutions' strong regional customer base with Cornerstone's national
customer base, including Home Depot and Lowe's," said Frank Fradella, Chairman
and Chief Executive Officer of Home Solutions. "As can be seen from our
financial expectations, we believe the integration of the two companies can
achieve significant scale, resulting in strong organic top-line growth and
enhanced operating efficiencies, leading to per share net income growth that
could be as much as 80% when compared to 2004. While we feel that there are
other attractive acquisition candidates available, we believe that we can grow
our existing business by at least 20% this year, and that the cross-selling
opportunities will be substantial with Cornerstone's customer base. The
entire management team and our employees are excited by the opportunities
ahead."
The Company will hold a conference call today at 4:15 p.m. Eastern
Daylight time to discuss its 2005 guidance. Interested participants should
call (888) 554-9234 and reference Conference ID 5307002. There will be a
30-day playback available as well. To listen to the playback, please call
(800) 642-1687. Please use conference ID 5307002 for the replay. The replay
will be available beginning at 5:00 pm the day of the call and will be
accessible through May 5, 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 be available until April 30th.
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
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SOURCE Home Solutions of America, Inc.
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Related links:
http://www.homcorp.com
CONTACT:
Cormac Glynn of CEOcast, Inc.,
+1-212-732-4300, for Home Solutions of America, Inc.
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