Homeland Security Capital Corporation (OTCBB:HOMS), an international provider of specialized technology-based radiological, nuclear, environmental, disaster relief, and security solutions to government and commercial customers, today reported financial results for the third quarter ended March 31, 2010. Revenue for the quarter was $23.7 million compared to $19.1 million for the same period last year. Net income for the quarter, before giving effect to preferred stock dividends, was $1.1 million or $0.02 per share compared to a net loss of $1.8 million or $0.04 per share for the same period last year. Net income attributable to common stockholders, after excluding preferred stock dividends, was $0.7 million or $0.01 per share compared to a net loss of $2.9 million or $0.06 per share for the same period last year. EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $2.3 million compared to negative $0.1 million for the previous year’s quarter. EBITDAS (EBITDA before stock based compensation) for the quarter was $2.5 million compared to $0.4 million in the previous year’s quarter. Revenue for the nine months was $71.1 million compared to $58.9 million for the same period last year. Net income for the nine months, before giving effect to preferred stock dividends, was $1.6 million or $0.03 per share compared to a net loss of $4.0 million or $0.09 per share for the same period last year. Net income attributable to common stockholders, after excluding preferred stock dividends, for the nine months was $0.4 million or $0.01 per share compared to a net loss of $5.8 million or $0.12 per share for the same period last year. EBITDA for the nine months was $5.3 million compared to a negative $1.0 million for the previous year’s nine months. EBITDAS for the nine months was $6.1 million compared to $0.7 million for the previous year’s nine months.
At March 31, 2010 there were 44,995,830 common shares outstanding.The Company reported funded backlog of $98.7 million at March 31, 2010. Backlog reflects new additions, less revenue earned and any adjustments for contract cancellations. Our funded backlog increased in the quarter by approximately $4.0 million. C. Thomas McMillen, HOMS Chairman and CEO, stated, “We are continuing our diligence in cost reductions in all of our operations. Our margins have increased 6.0% year over year and our SG&A costs have dropped 3.4% year over year. These cost reductions coupled with 20.6% year over year revenue increase has lead us to a record profitable nine months. These achievements can be credited to the dedicated oversight by our subsidiarys’ senior management.” McMillen continued, “We continue to track favorably to our annual plan and believe we will continue profitably through the remainder of our fiscal year.” The Company consolidates the results of subsidiaries Safety & Ecology Holdings Corporation, Nexus Technologies Group, Inc., Polimatrix, Inc. and Homeland Security Capital Corporation, the holding company. The Company measures its operating performance against plan taking into consideration EBITDAS adjustments and one time charges. Financial Measures In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, the Company presents EBITDA and EBITDAS which are non-GAAP measures. EBITDA is determined by taking the net income before preferred dividends and adding back amortization of intangible assets, depreciation and amortization of property and equipment, taxes and interest expense (income), net. EBITDAS is determined by taking EBITDA and then adding back stock based compensation expense. The Company believes that these non-GAAP measurements, viewed in addition to and not in lieu of the Company's reported GAAP results, provides useful information to investors because these metrics provide a more focused measure of operating results. These metrics are an integral part of the Company's internal reporting to measure operations of the company and the performance of senior management.
Conference CallThe Company will host an earnings conference call at 9:00 a.m. EDT on Wednesday, May 19, 2010. During the call, C. Thomas McMillen, Chairman and Chief Executive Officer, Chris P. Leichtweis, President and Michael T. Brigante, Chief Financial Officer, will discuss the Company's performance and financial results. The telephone number for the conference call is (877) 407-8031 (Toll Free US); and (201) 689-8031 (International). A live webcast of the call will also be available on the Company's website, www.hscapcorp.com. The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for one week by calling 1-877-660-6853 (Replay Toll Free US) 1-201-612-7415 (Replay International), conference ID # 350542. The encore recording will be available after the conference call has concluded. About Homeland Security Capital Corporation Homeland Security Capital Corporation is a company engaged in the strategic acquisition, development, and consolidation of homeland security-related businesses, within the fragmented homeland security industry. The company is focused on creating long-term value by taking controlling interest and developing its subsidiary companies through superior operations and management. Former Maryland Congressman C. Thomas McMillen, who served three consecutive terms in the U.S. House of Representatives from the 4th Congressional District of Maryland, heads the company. Homeland Security Capital Corporation operates businesses that provide homeland security products and services solutions, growing organically and by acquisitions. The company is targeting emerging companies that are generating revenues but face challenges in scaling their businesses to capitalize on homeland security opportunities. Homeland Security Capital Corporation’s portfolio of companies include: Safety and Ecology Corporation is a rapidly growing environmental services company in the U.S., providing services nationally, in Europe and the Caribbean. The Company specializes in the removal and remediation of hazardous nuclear materials for the U.S. Department of Energy, U.S. Department of Defense, and other federal agencies. SEC also provides advanced environmental services for private industry across the country and internationally. Since its founding in 1991, SEC has grown approximately 30 percent per year, and has emerged as a technology innovator with more than 450 personnel worldwide and with annual revenues of more than U.S. $70 million. For more information on SEC, visit www.sec-tn.com. Nexus Technologies Group, a mid-Atlantic security integrator for the corporate and governmental security markets that specializes in non-proprietary integrated security solutions including access control, alarm, video, communication, perimeter protection and bomb and metal detection security systems. Utilizing cutting-edge technologies, Nexus provides innovative, engineered and scalable solutions to effectively protect people, property and assets. For more information about Nexus, visit www.nexusna.com. Polimatrix, Inc., a system integrator and total solutions provider delivering advanced radiation and nuclear protection and detection services. The company has been operating since September 2006 as a joint venture between Homeland Security Capital Corporation and Polimaster, Inc. For more information about Polimatrix, visit www.polimatrix.com. For more information about Homeland Security Capital Corporation, visit www.hscapcorp.com. Forward-Looking Statement This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future activities, performance, events or developments, are forward-looking statements. Although HOMS believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements.