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 June 30, 2013.
Mr. Daniel Cohen, HOMI’s President, stated: "The results of the second quarter of 2013 were affected by several factors. First, the early termination of an outsourcing agreement with a major U.S. hotel resulted in a decrease of 650 minibars operated. Second, delays in the opening of several new hotels in which we signed agreements for the installation and outsourcing of approximately 1,500 HOMI minibars resulted in the installation of only 400 minibars at end of the second quarter. The other remaining minibars will be installed during the third and fourth quarters of this year. These new installations will be reflected in future reports.
“In order to increase our business in the United States and Europe, we recently recruited two sales managers, one in the United States and one in Europe.
“At the end of July, HOMI filed a registration statement with the United States Securities and Exchange Commission, in which HOMI is offering to existing shareholders the right to purchase up to US$1.1 million of HOMI common stock. As of the date hereof we have received shareholders' commitments for converting shareholder loans into shares totaling approximately US$900,000."
Financial Results for Q2 2013:
Revenues for the three months ended June 30, 2013 reached US$765,000, a decrease of 12% compared to US$870,000 in the three months ended June 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 June 30, 2013, HOMI's three largest customers accounted for approximately 22.3% of the total revenues, compared to 28.8% in the same period in 2012.
Gross Profit in the three months ended June 30, 2013, after consideration of depreciation expense, was US$92,000, compared to US$112,000 in the three months ended June 30, 2012. Gross profit margin in the three months ended June 30, 2013 was 12%, compared to 12.9% in the three months ended June 30, 2012. This decrease is mainly due to the above mentioned decrease in revenues and due to the fact that the gross profits in HOMI's United States subsidiary is relatively low, for the period.
Operating Loss in the three months ended June 30, 2013 was US$353,000, compared to an operating loss of US$289,000 in the three months ended June 30, 2012.
The research and development of the new generation HOMI® 226 was completed in 2012, and began production. Total research and development expenses in the three months ended June 30, 2013 were US$14,000, compared to US$32,000 in the three months ended June 30, 2012. Selling and Marketing expenses were US$102,000 for the quarter ended June 30, 2013, as compared to US$72,000 for the similar quarter in 2012. General and administrative expenses were US$329,000 for the quarter ending June 30, 2013.
Net Loss in the three months ended June 30, 2013 was US$457,000, compared to a net loss of US$1,684,000 in the three months ended June 30, 2012 (Net Loss in the three months ended June 30, 2012 was effected by approximately US$1.3 million which was charged to capital and offset against financing expenses, and did not affect HOMI's cash and balance sheet).
Cash and Cash Equivalents as of June 30, 2013 were US$239,000, including deposits, compared to US$221,000 as of December 31, 2012.
Total Shareholders' Equity as of June 30, 2013 was US$594,000, 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 10,600 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/
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.