NEW YORK--(BUSINESS WIRE)--Hotel Outsource Management International, Inc. (“HOMI”)(OTC: HOUM), a multi-national service provider in the hospitality industry which supplies computerized minibars that are primarily intended for in-room refreshments, presented its consolidated financial results for the quarter ended September 30, 2013.
Mr. Daniel Cohen, HOMI’s President, stated: "In the third quarter of 2013 we continued the installations of HOMI minibars according to signed agreements with new hotels. We installed only 480 minibars and have more than 600 left to be installed in Q4. All new hotels are first class luxury hotels, in Israel, Europe and the United States, and these new installations will be reflected in future reports. These days we are also engaged in negotiations with new hotels for new installation and outsourcing agreements."
"In September 2013, HOMI completed a rights offering to existing shareholders, who purchased US$904,000 of HOMI common stock. This reflects shareholders' trust in the Company and its operations and will help us further execute on our strategic plan."
"Alongside the decline in revenues, mainly as a result of the early termination of an outsourcing agreement with a major U.S. hotel as reported in the previous quarter, but also as a result of a very poor Q3 in Israel (particularly September due to potential war in Syria), we have decided to drastically reduce on our General and Administrative expenses. On October 2, 2013, we have announced the resignation, on mutual consent, of Mr. Jack Ronnel ,CEO and co-founder of HOMI and Mr. Ariel Almog, CEO of the subsidiary HOMI USA, a director in HOMI and co-founder of HOMI, effective December 31, 2013. Mr. Ronnel and Mr. Almog were among the founders of the company in 1996. Mr. Ronnel will continue to serve as a director at HOMI and both will accompany the company as external advisors and continue contribute to the company with their vast knowledge and experience."
Financial Results for Q3 2013:
Revenues for the three months ended September 30, 2013 reached US$754,000, a decrease of 3.3% compared to US$780,000 in the three months ended September 30, 2012. The revenues arise primarily from the sale of refreshments in the minibars. The decrease is mainly due to a decrease in the quantity of minibars operated, as agreements with some hotels in the United States reached the end of their terms.
For the three months ended September 30, 2013, HOMI's three largest customers accounted for approximately 24.5% of the total revenues, compared to 27.5% in the same period in 2012.
Gross Profit in the three months ended September 30, 2013, after consideration of depreciation expense, was US$92,000, compared to US$130,000 in the three months ended September 30, 2012. Gross profit margin in the three months ended September 30, 2013 was 12.2%, compared to 16.7% in the three months ended September 30, 2012. The decrease is mainly due to a decrease in the quantity of minibars operated in hotels in the Unites States, as agreements with some hotels in the United States reached the end of their terms.
Operating Loss in the three months ended September 30, 2013 was US$380,000, compared to an operating loss of US$323,000 in the in the three months ended September 30, 2012.
The research and development of the new generation HOMI® 226 was completed in 2012, and began productions. Total research and development expenses in the three months ended September 30, 2013 were US$10,000, compared to US$44,000 in the three months ended September 30, 2012. Selling and Marketing expenses were US$97,000 for the quarter ended September 30, 2013, as compared to US$70,000 for the similar quarter in 2012. The increase is mainly due to a renewed effort in sales and marketing in the United States. General and administrative expenses were US$365,000 for the quarter ending September 30, 2013.
Net Loss in the three months ended September 30, 2013 was US$419,000, compared to a net loss of US$421,000 in the three months ended September 30, 2012.
Cash and Cash Equivalents as of September 30, 2013 were US$157,000, including deposits, compared to US$221,000 as of December 31, 2012.
Total Shareholders' Equity as of September 30, 2013 was US$1,031, compared to US$1,359,000 as of December 31, 2012. On September 9, 2013, HOMI closed a rights offering, pursuant to which HOMI raised an amount of approximately US$904,000. In consideration, HOMI issued 904,478 shares of its common stock at a price of $ 1.00 per share.
About HOMI
HOMI is a multi-national service provider in the hospitality industry, supplying a range of services in relation to computerized minibars that are primarily intended for in-room refreshments. HOMI was incorporated under the laws of Delaware in 2000 and is listed on the Over-the-Counter "OTC" Exchange, under the symbol "HOUM".
HOMI and its subsidiaries are engaged in the distribution, marketing and operation of computerized minibars in major branded hotel chains, operating approximately 10,200 computerized minibar systems at 44 hotels located in the United States, Europe and Israel, and in the development and manufacture of a new range of computerized minibar systems, designed to improve the performance of minibar departments, thereby improving the hotel’s bottom line.
HOMI offers a number of solutions that are designed to meet the hotels’ needs, ranging from consultation, supervision and rental services, to full outsource installation and operation arrangements.
HOMI's leading products are the HOMI® 330, HOMI® 226 and the External Dry-Section computerized trays.
For more information about HOMI, visit: http://www.my-homi.com/
Forward-Looking Statement
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or to the company's future financial performance. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause the company's or the industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, the company does not intend to update any of the forward-looking statements to conform these statements to actual results. The terms, the "Company", "we", "us", "our" means Hotel Outsource Management International, Inc. and its subsidiaries, unless otherwise indicated.
