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