Homeland Security Capital Corporation (OTCBB: HOMS), a national provider of real estate services to banks, financial institutions and mortgage lenders reported in its Form 10K, filed March 30, 2012, its financial results for the six month transition period ended December 31, 2011. The Company changed its yearend from June 30 to December 31 in order to align its fiscal periods with those of its new subsidiaries.
Revenue for the six months was $9.2 million, derived entirely from our continuing operations in the real estate services industry and resulted from our acquisitions of Default Servicing USA, Inc. and Timios, Inc. that were completed during the transition period. Net income from these continuing operations was $1.1 million before giving effect to $518,325 attributable to minority interests and $406,586 of preferred dividends. Additionally, the Company recorded income of $3.7 million from discontinued operations, resulting from the sale of its homeland security subsidiaries during the transition period. Overall for the six month period ended December 31, 2011 the Company recorded $3.8 million in net income, or $0.07 per share.
During the transition period, the Company completed the sale of its Safety and Ecology Holdings Corporation (“Safety”) and Nexus Technologies Group, Inc. (“Nexus”) subsidiaries. The Company used $14,385,827 of the proceeds from these sales to retire debt. As part of the consideration for the sale of Safety, the Company received a note in the amount of $2.5 million, of which $880,274 has been received through March 30, 2012, all of which has been used to further retire debt. As of March 30, 2012 the Company has approximately $5.4 million of remaining debt.
At December 31, 2011 there were 55,159,022 common shares in issue, 51,588,591 common shares outstanding and 3,570,431 common shares held in treasury.C. Thomas McMillen, HOMS Chairman and CEO, stated, “We have had an active six months. In completing the sale of our former subsidiaries and finalizing the acquisition of our new subsidiaries, we have effectively changed the focus of the Company. We are very excited with this new direction.” McMillen continued, “We paid down a substantial portion of our debt from the proceeds received in the sales, and continue to work with our senior lender to satisfy our remaining debt.”