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Hotel Outsource Management International, Inc. (“
HOMI”) (OTCQB: HOUM) presented its consolidated financial results for third quarter ended September 30, 2011.
Mr. Daniel Cohen, HOMI’s President, stated: "In the third quarter of 2011, our revenues increased as a result of new and additional installations. This quarter additional expenses associated with the HOMI 232, open display minibars which we purchased from a third party, continued affecting our gross profit and gross profit margin. In the third quarter of 2011, we successfully installed our HOMI 330 minibar in two new hotels and, to date, we have been pleased with its performance. The HOMI 330 is proving to be a very reliable and promising product. Also very promising is our external dry section with which we have equipped more than 1200 rooms, including rooms in the Hilton Olympia and the Sheraton Salobre."
Third quarter 2011 results:Revenues for the third quarter of 2011 reached US$885,000, compared to US$793,000 in the third quarter of 2010. These revenues arise primarily from the sale of refreshments in the minibars. This increase is mainly due to the additional minibars and computerized trays installed during this period.
For the third quarter of 2011, HOMI's three largest customers accounted for approximately 29.6% of the total revenues, compared to 30.6% in the second quarter of 2010.
Gross Profit in the third quarter of 2011, after consideration of depreciation expense, was US$123,000, compared to US$213,000 in the third quarter of 2010. Gross profit margin decreased from 26.9% in the third quarter of 2010 to 13.9% in the third quarter of 2011. The installations of the HOMI 232 minibars during the three months ended September 30, 2011 required additional costs that reduced the gross profit margin.
Operating Loss in the third quarter of 2011 was US$339,000, compared to an operating loss of US$264,000 in the third quarter of 2010.
The research and development of the HOMI
® 330, was completed in 2009. In 2010 and 2011 the company incurred additional expenses to improve the production and functionality of the minibars. Total research and development expenses in the third quarter of 2011 were $25,000. Selling and Marketing expenses increased to US$92,000 compared to US$86,000 in the third quarter of 2010. General and administrative expenses decreased from US$365,000 to US$345,000.
Net Loss in the third quarter of 2011 was US$490,000, compared to a net loss of US$338,000 in the third quarter of 2010.
Cash and Cash Equivalents as of September 30, 2011 were US$468,000, including deposits, compared to US$772,000 as of December 31, 2010.
Total Shareholders' Equity as of September 30, 2011 was US$1,282,000, compared to US$2,622,000 as of December 31, 2010.
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 "OTCQB" Exchange, under the symbol "HOUM."