Home Solutions Expands Disaster Remediation Infrastructure Through Acquisition of Assets from Florida Environmental Remediation
September 29 2005 - 10:10AM
PR Newswire (US)
Company Raises 2005 Full-Year EPS Guidance to $0.23 to $0.25 From
Previous Range of $0.18 to $0.20 DALLAS, Sept. 29
/PRNewswire-FirstCall/ -- Home Solutions of America, Inc.
(AMEX:HOM), a niche provider of specialty residential services,
announced today that its wholly-owned subsidiary, Home Solutions
Restoration of Louisiana, Inc. (HSRL) has completed the acquisition
of substantially all of the assets of privately-owned Florida
Environmental Remediation Services, Inc. (FERS), a Pompano
Beach-based restoration company. Founded in 2005, FERS has 450
employees and has been actively involved in disaster recovery
activities in Florida, Louisiana and Mississippi. Home Solutions
has worked with FERS for the past 9 months. In connection with the
acquisition, Home Solutions issued FERS an $11 million note. In
addition, FERS has the opportunity to receive additional
compensation based upon the level of earnings HSRL generates from
the assets acquired from FERS through the end of fiscal year 2007.
FERS had 2005 (based on the unaudited financial statements of FERS
for the eight months ended August 31, 2005) revenue of $8.0 million
and EBITDA of $1.7 million. The acquisition is expected to be
additive to earnings this year and to contribute significantly to
revenue and earnings growth in 2006 as FERS is expected to play an
active role in restoration activities in the Gulf Coast. "We have
worked closely with FERS over the last 9 months, including recently
in Florida," said Frank Fradella, Chairman and CEO of Home
Solutions. "The company played a significant role in our ability to
respond quickly to the need to cleanup the devastation brought on
by the 2004 Florida hurricanes. The problems in Mississippi and
Louisiana are far greater, and will require far more resources than
were necessary in Florida. Based upon the initial assessment, our
challenge is to be able to respond to the demand for our services.
This acquisition will provide us with the infrastructure,
management and labor force to address the substantial opportunities
in the Gulf Coast area. Since the companies have worked closely
together this year, we have developed a strong working
relationship, which will allow us to integrate the assets we
acquired from FERS seamlessly and deliver compelling synergies for
our customers, employees and shareholders. We also believe that the
substantial restoration work that we will participate in for
several years during the cleanup efforts will lead to follow-up
opportunities for our Southern Exposure subsidiary to provide
cabinet and countertop installation services and for our
Cornerstone Building and Remodeling unit to provide granite during
the rebuilding process." Business Outlook: The Company also updated
its 2005 full-year business outlook. Due to the significant
increase in hurricane-related work in the Gulf Coast region and the
acquisition of the assets from FERS, the Company raised its
business forecast for the second time since mid-August. It now
expects full-year revenue of $70 million to $75.0 million, an
increase from previous expectations for revenue of $57.0 to $61.0
million. It now expects EBITDA of $11.0 million to $12.0 million,
an increase versus the previous forecast of $9.0 million to $9.9
million, and fully diluted earnings per share of $0.23 to $0.25,
above previous estimates of $0.18 to $0.20. 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. 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: Michael
Wachs, CEOcast, Inc. PHONE: 212-732-4300 DATASOURCE: Home Solutions
of America, Inc. CONTACT: Michael Wachs of CEOcast, Inc.,
+1-212-732-4300, for Home Solutions of America, Inc. Web site:
http://www.homcorp.com/
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