Hotel Outsource Management International, Inc. (“ HOMI”) (OTCBB:HOUM) presented its consolidated financial results for the year ended December 31, 2009. Highlights:
Gross Profit in 2009, after consideration of depreciation expense, was US$815,000, compared to US$1,341,000 in 2008. The decrease in Gross Profit margin (22.3% for this year compared to 36.2% for 2008) is mainly due to the fact that the cost of revenues already include the cost associated with the operation of the newly installed HOMI ® 336 and HOMI ® 330 minibars, whereas such minibars have not yet reached their expected revenue potential.Operating Loss in 2009 was US$1,545,000, compared to an operating loss of US$1,286,000 in 2008. The research and development of the HOMI ® 330, was completed in the first quarter of 2009. In the second, third and fourth quarters of 2009 HOMI incurred additional expenses to improve the production and functionality of the minibars. Selling and Marketing expenses decreased to US$261,000 compared to US$460,000 in 2008, primarily as a result of the reduction of marketing efforts in favor of focusing on the new installations related to the HOMI ® 336 and HOMI ® 330 systems already signed, as well as enhancing the necessary operating platforms. Net Loss in 2009 was US$1,561,000, compared to a net loss of US$1,974,000 in 2008. Cash and Cash Equivalents as of December 31, 2009 were US$252,000, including deposits, compared to US$797,000 at December 31, 2008. In 2009 HOMI raised US$2.2 million through new subscriptions and the conversion of shareholder loans, and issued 48,500,000 shares of common stock. During 2009 HOMI announced the adoption of a new Business Model which has been designed to raise funds for the company's ongoing operations and growth. Under this new Business Model, the Company received US$ 480,000 for transfer of title in 1,006 HOMI minibars installed in four hotels in Israel and in the US. Total Shareholders' Equity as of December 31, 2009 was US$4,612,000, compared to US$4,077,000 as of December 31, 2008. Mr. Daniel Cohen, HOMI’s President, stated: "In 2009 our main focus was executing most of the installations of the HOMI ® 336 and HOMI ® 330 and we are proud to say that, as of December 31, 2009 we had a total of 3,762 proprietary self- developed computerized minibars installed and fully operated in various hotels around the world. That is in addition to the approximately 7,000 minibars from other manufacturers that we are operating. "In the beginning of 2009, occupancy rates decreased significantly, due to the global economic crisis in the main three markets in which HOMI operates: the United States, Europe and Israel. Toward the end of the year, there was a moderate increase in occupancy rates in Europe and Israel, while in the USA occupancy rates still haven't recovered. This decrease affected our top line and as a result, had a detrimental effect on our earnings. We believe that the installations we performed in 2009 will begin to realize their expected revenue potential in 2010.
"Looking ahead to 2010, we intend to proceed with our strategic plan and improve our results by completing the installations under existing and new contracts. In the USA we will focus primarily on business hotels in NYC, which are less effected by the crisis in terms of occupancy rates."In terms of operational expenses, we reached stable levels after completing most of our R&D of the HOMI ® 336 and HOMI ® 330 systems and matched our marketing expenses to the pace of installations. We believe all of that will contribute to an improvement in bottom line and cash flow." Mr. Cohen continued, "Our new business model, by which we sell HOMI minibars to third parties in return for a cash purchase price, whilst these minibars continue to be installed, managed and operated by HOMI, is showing positive results. In 2009 we signed contracts for 4 hotels under this model – which is well suited to HOMI's operations since it enables us to concentrate on our core business and expertise – managing and operating installed minibars - and financing this business in a way that improves our profitability for the long term. We expect to sign additional such agreements in the near future." About HOMI 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 Bulletin Board, or "OTC Bulletin Board" under the symbol "HOUM.OB." HOMI and its subsidiaries are engaged in the distribution, marketing and operation of computerized minibars in major branded hotel chains, operating approximately 10,501 computerized minibar systems at 34 hotels located in the United States, Europe, Israel and Australia, 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 hotel's needs, ranging from consultation, supervision and rental services, to full outsource installation and operation arrangements.HOMI's leading products are the HOMI ® 336 and the HOMI ® 330, a smaller version of the HOMI ® 336. The novel HOMI ® 336 and HOMI ® 330 are the next generation of computerized minibar systems, designed to increase the accuracy of automatic billing and reduce the cost of operating minibars. Since 2008, HOMI has completed 3,762 installations of the HOMI ® 336 and HOMI ® 330 systems. For more information about HOMI, visit: http://www.my-homi.com/ Forward-Looking Statement 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.