Hotel Outsource Management International, Inc. Presents Q1 2013 Results
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 March 31, 2013.
Mr. Daniel Cohen, HOMI's President, stated: "The results of the first quarter of 2013 reflect the positive progress of our Direct Sales program. This program, mainly for the open access HOMI® 226, is gaining interest from upscale and luxury hotels internationally. We are already cooperating with two international distributors and we are looking to add new distributors, in order to significantly increase sales."
"We are preparing to install approximately 1,500 minibars, during Q2 and Q3, in upscale and luxury hotels, through our outsourcing and operating contracts, using mainly the HOMI® 226 open access minibar."
Financial Results for Q1 2013:
Revenues for the three months ended March 31, 2013 reached US$982,000, an increase of 14.5% compared to US$858,000 in the three months ended March 31, 2012. The growth is mainly due to the increase in minibars sold directly to distributors through HOMI's direct sales business model.
For the three months ended March 31, 2013, HOMI's three largest customers accounted for approximately 25.01% of the total revenues, compared to 22.6% in the same period in 2012.
Gross Profit in the three months ended March 31, 2013, after consideration of depreciation expense, was US$180,000, compared to US$183,000 in the three months ended March 31, 2012. Gross profit margin in the three months ended March 31, 2013 was 18.3%, compared to 21.3% in the three months ended March 31, 2012. The decrease is mainly due to the fact that the gross profits at our US subsidiary were relatively low this quarter.
Operating Loss in the three months ended March 31, 2013 was US$226,000, compared to an operating loss of US$222,000 in the in the three months ended March 31, 2012.
The research and development of the new generation HOMI® 226 was completed in 2012. Total research and development expenses in the three months ended March 31, 2013 were US$15,000, compared to US$34,000 in the three months ended March 31, 2012. Selling and Marketing expenses were US$68,000 for the quarter ended March 31, 2013, as compared to US$62,000 for the similar quarter in 2012. General and administrative expenses were US$323,000 for the quarter ending March 31, 2013.
Net Loss in the three months ended March 31, 2013 was US$412,000, compared to a net loss of US$317,000 in the three months ended March 31, 2012.
Cash and Cash Equivalents as of March 31, 2012 were US$181,000, including deposits, compared to US$221,000 as of December 31, 2012.
Total Shareholders' Equity as of March 31, 2012 was US$986,000, compared to US$1,359,000 as of December 31, 2012.
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 10,500 computerized minibar systems at 42 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/
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.
KEYWORDS: United States North America New York Middle East Israel
The article Hotel Outsource Management International, Inc. Presents Q1 2013 Results originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.