Home Solutions of America Announces Closing of Private Placement; Company Reaffirms Fiscal 2005 and Fiscal 2006 Guidance
December 01 2005 - 11:16AM
PR Newswire (US)
DALLAS, Dec. 1 /PRNewswire-FirstCall/ -- Home Solutions of America,
Inc. (AMEX:HOM) (the "Company'), a provider of recovery,
restoration and rebuilding/remodeling services, announced today
that it closed the previously announced private placement on
November 30, 2005. The Company raised $26,675,000 through a private
placement offering of common stock and warrants exercisable for
common stock, prior to deduction of placement agent fees and other
fees and expenses. The net proceeds of the offering, after
deduction of placement agent fees and other fees and expenses, will
be approximately $24.6 million and will be used to pay off $11
million in seller debt resulting from the acquisition of the assets
of Florida Environmental Remediation Services, Inc., to pay off $7
million of existing mezzanine debt, and for growth working capital
purposes. The Company reaffirmed its business outlook for fiscal
2005 and 2006. It expects to generate record full-year revenue of
$73.0 to $76.0 million, EBITDA of $14.0 to $15.0 million, and fully
diluted earnings per share of $0.25 to $0.27. The Company also
reaffirmed its outlook for 2006 of full-year revenue of $130.0
million to $140.0 million, EBITDA of $25.0 million to $28.0 million
and fully diluted earnings of $0.42 to $0.46. The fiscal 2006
guidance excludes any potential impact from storms, hurricanes or
other weather-related events that may occur during 2006 and is
consistent with the business forecast the Company released on
November 14, 2005. "This transaction significantly improves the
Company's balance sheet and increases our financial flexibility,"
said Frank Fradella, Chairman and CEO of Home Solutions. "The
private placement will allow us to implement our plan to
aggressively grow our businesses, while allowing the Company to
selectively pursue acquisitions that have significant potential to
enhance the profitability of our existing business units." Home
Solutions is a provider of recovery, restoration and
rebuilding/remodeling services to commercial and residential areas
that are (i) prone to flooding, hurricanes, tornados, fires or
other naturally occurring and repetitive weather related
emergencies; and/or (ii) experiencing robust housing development.
The Company has operations in California, Texas, Florida, Alabama,
Georgia, Louisiana, Mississippi and South Carolina through its five
subsidiaries, Cornerstone Building and Remodeling, Southern
Exposure, P.W. Stephens, Home Solutions Restoration of Louisiana
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, Florida and Louisiana. Home
Solutions Restoration of Louisiana provides Recovery Restoration
Services in Florida, Louisiana, Mississippi and Texas and Fiber
Seal Systems is a national licensor 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. Contact: Michael Wachs of CEOcast, Inc.,
+1-212-732-4300, for Home Solutions of America, Inc. 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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