Hotel Outsource Management International, Inc. Presents Full Year 2012 Results
NEW YORK--(BUSINESS WIRE)-- Hotel Outsource Management International, Inc. ("HOMI") (OTC: HOUM), a multi-national service provider in the hospitality industry, supplying computerized minibars that are primarily intended for in-room refreshments, presented its consolidated financial results for the year ended December 31, 2012.
Mr. Daniel Cohen, HOMI's President, stated: "In 2012 we concentrated mainly on accelerating the development of our new generation open access minibar, the HOMI® 226, which we believe will fuel our growth for the coming years. We have successfully completed the R&D for this new minibar and started production and installations. We recently announced the execution of 10 new additional operating contracts with luxury hotels, adding more than 1,500 minibars to our portfolio. These installations, to be installed during 2013, include both the HOMI® 226 open access minibar, and the HOMI® 330 sealed minibar. Installations of the new HOMI® 226 minibar are going smoothly and we are very satisfied. We also began implementing our Direct Sales program, mainly for the HOMI® 226. We believe that our Direct Sales program, in conjunction with our outsource operation, will contribute to our growth in 2013."
Full Year 2012 results:
Revenues for the year ended December 31, 2012 reached US$3,315,000, similar to US$3,326,000 in the year ended 2011. Revenues arise primarily from the sale of products in the minibars. According to agreements with hotels in which HOMI conducts its outsource programs, the hotels, which collect the revenues generated from our minibars, deduct their portion of the revenues before distributing the remainder to HOMI.
For the year ended December 31, 2012, HOMI's three largest customers accounted for approximately 26.3% of the total revenues, compared to 27.7% in the same period of 2011.
Gross Profit in the year ended December 31, 2012, after consideration of depreciation expense, was US$541,000, similar to US$543,000 in the year ended 2011. Gross profit margin for the year ended in 2012 was 16.3%, similar to the year ended in 2011.
Operating Loss in the year ended December 31, 2012 was US$1,148,000, compared to an operating loss of US$1,315,000 in the year ended in 2011.
The research and development of the HOMI® 330, was completed in 2009. The research and development of an additional product, the new generation HOMI® 226, was completed in 2012. In 2012, HOMI incurred additional expenses to improve the production and functionality of these minibars. Total research and development expenses in the year of 2012 were $137,000. Selling and Marketing expenses decreased to US$273,000 from US$341,000 in year ended 2011, primarily as a result of our efforts to reduce expenses. General and administrative expenses decreased from US$1,408,000 to US$1,279,000.
Net Loss in the year ended December 31, 2012 was US$2,890,000, compared to a net loss of US$1,745,000 in the year ended in 2011. On June 29, 2012, a loan in the amount of US$2,000,000 was converted by Tomwood Ltd., the holder of the loan, into shares of HOMI common stock at a rate of $.0181 per share for a total of 110,497,238 shares. As a result of the conversion, Tomwood now holds approximately 55% of HOMI's issued share capital. The value of the costed benefit component of this transaction in the amount of approximately US$1,296,000 was charged to capital and offset against benefit reduction expenses, but did not affect HOMI's cash and balance sheet.
Cash and Cash Equivalents as of December 31, 2012 were US$221,000, including deposits, compared to US$345,000 as of December 31, 2011.
Total Shareholders' Equity as of December 31, 2012 was US$1,359,000, compared to US$1,176,000 as of December 31, 2011.
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 43 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
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