DALLAS--(BUSINESS WIRE)--U.S. Home Systems, Inc. (NasdaqNGM: USHS) today reported fiscal
consequences for the 3rd one-fourth ended September 30, 2007.
For the 3rd one-fourth 2007, USHS reported grosses from continuing
trading operations of $34.2 million as compared to $36.3 million in the same
time period last year. Net income from continuing trading operations was $1.2
million, or $0.15 per share, for the three calendar calendar months ended September 30,
2007, as compared to $2.4 million, or $0.29 per share, for the three
months ended September 30, 2006.
For the nine calendar months ended September 30, 2007, grosses from continuing
trading operations were $93.9 million as compared to $89.8 million in the same
time period last year. Net income from continuing trading operations was $2.8
million, or $0.34 per share, as compared to $2.9 million, or $0.36 per
share, respectively.
USHS previously reported that effectual September 30, 2007 it had exited
the consumer finance concern and completed the sale of its consumer
finance subordinate assets. Operating consequences of its former consumer
finance section have got been reclassified as discontinued trading operations for
all periods. Net loss from these discontinued trading operations in 3rd
one-fourth 2007 was $2.4 million, or $0.30 per share, which included a nett
loss of $2.2 million on the disposal of the concern consisting of a
pre-tax loss of $1.3 million and an income taxation disbursal of $910,000 on
the transaction. Net loss from discontinued trading operations in the 3rd
one-fourth 2006 was $167,000, or $0.02 per share.
Net loss from discontinued trading operations was $2.7 million, or $0.33 per
share, in nine calendar months ended September 30, 2007, as compared to $292,000,
or $0.04 per share in the anterior twelvemonth period.
Consolidated network loss was $1.2 million, or $0.15 per share, for the
3rd one-fourth 2007 as compared to nett income of $2.2 million, or $0.27
per share, for the 3rd one-fourth last year. Consolidated network income was
$103,000, or $0.01 per share for the nine calendar months ended September 30,
2007 as compared to $2.6 million, or $0.32 per share, in the same time period
last year.
USHS is engaged in the forte merchandises place improvement business. The
Company’s principal merchandise lines include
kitchen cabinet refacing products, bathroom bathtub line drives and wall environ
products, wood and composite decks and related to accessories. The Company’s
place improvement merchandises are marketed exclusively through The Home
Depot.
“The diminution in our place improvement grosses
in the current one-fourth resulted from less new order input signal in the
former quarter”, stated Gilbert Murray Gross,
president and main executive director officer. “Because
our rhythm clip to finish the installing of a new order and acknowledge
the related to gross is generally 60 days, our grosses in 3rd one-fourth
were largely influenced by less backlog of orders at the beginning of
the one-fourth which resulted from a lessening in new orders in the 2nd
one-fourth 2007.”
“In the 3rd quarter, although external
pressure levels in the lodging marketplace continued to hinder demand in some of
our traditionally strong kitchen refacing markets, such as as Golden State
and the New England area, and in all of our deck merchandise markets, we
achieved an addition of new orders of 3.6% to approximately $31.0
million from $29.9 million last year”, stated
Mr. Gross. “We property the addition in new
orders to our in-store-marketing program which we initiated in June 2007
to increase the figure of client appointments. During the 3rd
one-fourth we expanded this successful selling enterprise into 175 choice
The Home Terminal Stores. We be after to spread out this programme into further
The Home Terminal supplies in the 4th quarter. I believe we will go on
to see demand for place improvement merchandises retrieve at a faster charge per unit
than the general lodging market.”
Gross net income for place improvement trading operations was $17.8 million, or 51.9%
of grosses in the 3rd one-fourth 2007 as compared with $19.8 million, or
54.6% of grosses on the 3rd one-fourth 2006.
“The diminution in grosses in the current
time period resulted in a decrease of gross net income of $1.2 million as
compared to the same one-fourth last year. Gross net income border per centum
was adversely affected by higher stuff and manufacturing labour costs
resulting principally from merchandise alterations in our kitchen refacing
program, and decreased deck merchandise merchandising terms in our deck merchandise
line. We are currently evaluating respective options to better our
gross net income margins”, said Mr. Gross.
Mr. Gross concluded, “Our network income from
place improvement trading operations in the current one-fourth reflects less
revenues, reduced gross net income borders and approximately $430,000 of
start-up losses in marketplaces we opened since June 2007. In late June 2007,
we opened new gross sales and installing centres in Nashville, Volunteer State and
Birmingham, Alabama. In July 2007, we opened a centre in Harrisburg,
Keystone State and in August we opened centres in the American Bison and
Rochester, New House Of York markets. We anticipate improved operating public presentation in
these marketplaces in the 4th one-fourth of 2007.”
“However, because of the softness in the deck
business, we gauge that the part to net income from the place
improvement concern will be $0.41 to $0.44 diluted share in 2007 as
compared to our anterior counsel of $0.55 to $0.58. These estimations make not
include any accommodation that may ensue from additional stock redemptions or
any losings incurred in the consumer finance business.”
Discontinued Operations: Effective
September 30, 2007, USHS exited the consumer finance concern and sold
substantially all of the assets of its consumer finance subsidiary,
First Consumer Credit, Inc. (FCC), for approximately $2.6 million in a
buyout led by direction of the consumer finance subsidiary. Included
among the assets sold were FCC’s portfolio of
retail installment contracts (RIOs), FCC’s
service asset, furniture, fixtures, equipment, good will and certain
intellectual property. The Company retained FCC’s
hard cash and certain of its business relationships receivable.
“In connexion with the transaction, FCC
recognized a pre-tax loss of approximately $1.3 million, which included
a compose down of goodwill”, said Mr. Gross. “Because
the good will makes not measure up as a taxation taxation deduction under current taxation
regulations, for income tax intents the dealing resulted in a
nonexempt gain. Consequently, FCC recognized an income taxation disbursal of
approximately $910,000 consequent in a nett loss of $2.2 million on the
disposal of the assets. Excluding the loss from the transaction, FCC
incurred a nett loss of $186,000 in the three calendar months ended September 30,
2007 as compared with $167,000 in the same time period last year.”
Mr. Gross concluded, “During the 3rd
one-fourth we implemented our stock redemption program. We purchased
approximately 411,000 shares of our stock for $3.1 million. We mean to
go on making purchases of our stock at modern times as we find prudent. Based on our current stock price, we believe purchases of the Company’s
stock stand for an first-class investing that volition supply long-term
value to our shareholders.”
conference call INFORMATION
Management of USHS will host a conference phone call to discourse its 2007 3rd
one-fourth consequences at 4:30 p.m. ET on November 14. Financial consequences will
be released that day.
Interested political parties may access the phone phone call by calling 866-225-8729 from
within the United States, or 480-293-1741 if calling internationally,
approximately five proceedings prior to the start of the call. A rematch will
be available through November 21, 2007, and can be accessed by dialing
800-406-7325 (U.S.), 303-590-3030 (Int’l),
passcode 3801262.
This phone call is being web cast of characters of characters of characters by ViaVid Broadcast Media and can be accessed
at U.S. Home Systems’ website at .
The web cast may also be accessed at ViaVid's website at .
The web cast can be accessed until December 14, 2007 on either site. To
entree the web cast, you will necessitate to have got the Windows Media Player on
your desktop. For the free download of the Media Player delight visit: .
About U.S. Home Systems, Inc.
U.S. Home Systems, Inc. ()
fabricates or procures, designs, sells and installs usage quality
forte place improvement merchandises for The Home Terminal in certain
markets. The Company’s place improvement
merchandises are marketed nationally under the The Home Depot®
Kitchen and Bathroom Refacing and The Home Terminal Installed Decks brand. The Company’s merchandise lines include kitchen
cabinet refacing merchandises utilized in kitchen remodeling, bathroom bathtub
line drives and wall environ merchandises utilized in bathroom remodeling, wood
decks and related to accessories. The Company fabricates its ain cabinet
refacing products, bathroom cabinetwork and wood decks.
This fourth estate release may incorporate forward-looking statements within the
significance of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements are based on a figure of assumptions,
including outlooks for continued marketplace growing and awaited
gross levels. Although the Company believes these premises are
reasonable, no self-assurance can be given that they will turn out correct. The
Company's ability to go on to turn gross sales and to spread out geographically
and through new merchandises and acquisitions will be cardinal to its success in
the future. If the industry's or the Company's public presentation differs
materially from these premises or estimates, U.S. Home Systems'
existent consequences could change significantly from the estimated public presentation
reflected in any forward-looking statements
FINANCIAL HIGHLIGHTS
Consolidated Statements of Operations
(In thousands, except shares and per share amounts)
Three Months EndedSeptember 30,
Nine Months Ended
September 30,
2007
2006
2007
2006
Revenues
$34,249
$36,316
$93,934
$89,786
Cost of remodeling contracts
16,489
16,471
44,265
42,624
Gross profit
17,760
19,845
49,669
47,162
Costs and expenses:
Branch operations
2,081
1,876
5,907
5,460
Sales, selling and licence fees
11,153
11,525
31,966
30,333
General and administrative
2,569
2,507
7,373
6,451
Sum costs and expenses
15,803
15,908
45,246
42,244
Operating income
1,957
3,937
4,423
4,918
Interest expense
54
122
153
326
Other income (expense)
100
101
370
244
Income from continuing trading operations before income taxes
2,003
3,916
4,640
4,836
Income taxation expense
767
1,527
1,795
1,927
Income from continuing operations
1,236
2,389
2,845
2,909
Loss on discontinued operations
(1,669
)
(267
)
(2,113
)
(469
)
Income taxation disbursal (benefit)
797
(100
)
629
(178
)
Loss on discontinued operations
(2,466
)
(167
)
(2,742
)
(291
)
Net income (loss)
$(1,230
)
$
2,222
$103
$
2,618
Net income (loss) per common share –
basic and diluted:
Continuing operations
$0.15
$
0.29
$0.34
$
0.36
Discontinued operations
(0.30
)
(0.02
)
(0.33
)
(0.04
)
Net income (loss) per common share –
basic and diluted
($0.15
)
$
0.27
$0.01
$
0.32
Number of weighted-average shares of common stock outstanding –
basic
8,228,691
8,172,607
8,264,984
8,086,659
Number of weighted-average shares of common stock outstanding –
diluted
8,228,691
8,312,562
8,403,161
8,275,188
U.S. Home Systems, Inc.
Consolidated Balance Sheets
September 30,
2007
December 31, 2006
ASSETS
(unaudited)
Current assets:
Cash and hard cash equivalents
$
7,558,217
$
10,561,972
Accounts receivable-trade, nett of allowance for dubious business relationships of
$157,834 and $246,204, respectively
7,426,618
4,714,808
Accounts receivable-other
4,298,334
430,877
Finance receivables held for investment, current
-
166,090
Income taxation receivable
103,641
104,381
Committee advances
1,331,084
899,780
Inventories
4,625,765
4,258,866
Postpaid expenses
1,592,551
858,522
Deferred income taxes
681,473
839,610
Sum current assets
27,617,683
22,834,906
Property, plant, and equipment, net
5,607,196
5,796,318
Finance receivables held for investment, nett of current portion
-
97,575
Goodwill
3,589,871
7,357,284
Engagement investment
-
2,191,285
Other assets
424,334
524,078
Sum assets
$
37,239,084
$
38,801,446
liabilities AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
4,980,568
$
2,583,328
Customer deposits
57,472
74,625
Accrued wages, commissions, and bonuses
2,046,265
1,574,310
Federal Soldier and state taxations payable
259,555
2,786,034
Long-term debt, current portion
114,038
217,920
Other accumulated liabilities
1,677,386
1,377,904
Sum current liabilities
9,135,284
8,614,121
Deferred income taxes
405,413
432,223
Deferred revenue
-
6,640
Long-term debt, nett of current portion
2,775,376
2,861,673
Stockholders’ equity:
Park stock – $0.001 par value,
30,000,000 shares authorized, 8,342,941 and 8,210,160 shares issued;
7,931,648 and 8,210,160 shares outstanding at September 30, 2007 and
December 31, 2006, respectively
8,343
8,210
Additional capital
20,080,053
19,016,937
Retained earnings
7,964,240
7,861,642
Treasury stock, at cost, 411,293 shares at September 30, 2007
(3,129,625
)
-
Sum stockholders’ equity
24,923,011
26,886,789
Sum liabilities and stockholders’ equity
$
37,239,084
$
38,801,446