Hotel Outsource Management International, Inc. (“
”) (OTCBB: HOUM) presented its consolidated financial results for the year ended December 31, 2010.
Mr. Daniel Cohen, HOMI’s President,
stated: "In 2010 we continued to execute our strategic plan. We showed a slight improvement in gross margin, as the minibars we installed during 2009 and 2010 now function effectively, increasing their revenue potential. During the year we also took measures to cut our operating expenses.
"During 2010, we sold two subsidiaries in Germany and Italy, as we have continued to streamline our focus on specific countries in Europe, the USA and Israel. For the same reason we have ceased operating minibars in Australia. We enter 2011 with a positive momentum of aggressive marketing efforts, proving itself in a meaningful deal flow of new contracts for installation of our minibar systems in our target geographies. We also intend to install in most of the existing hotels where we operate, as well is in new hotels, our latest development, the EDS, a computerized Electronic Dry Section for dry goods and large Mineral Water (non-refrigerated) – which proved itself in a pilot conducted in three hotels as a significant revenue growth-engine.
"Going forward, we believe that the financing agreement we signed in October with Tomwood Limited for US $2 million will enable us to continue our growth plan.”
Full Year 2010 results
for the year ended December 31, 2010 reached US$3,201,000, compared to US$3,651,000 in the year ended December 2009. The decrease in revenues is mainly due to the sale of two of HOMI's subsidiaries in Europe: HOMI
Hotel Outsource Management International (Deutschland) GmbH and HOMI Italia S.R.L on April 2010 and due to the fact that HOMI Australia ceased operating the minibars in Hilton Sydney, the only hotel with which HOMI conducted outsource operations in Australia, and transferred the operation and the minibars installed to that hotel.
For the year ended December 31, 2010, HOMI's three largest customers accounted for 30% of the total revenues, as compared to 25.6% in 2009.