Hotel Outsource Management International, Inc. (“ HOMI”) (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 : Revenues 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.
Gross Profit in 2010, after consideration of depreciation expense, was US$754,000, compared to US$815,000 in 2009. Gross Profit margin increased from 22.3% last year to 23.6% in 2010, mainly due to the fact that the new minibars are functioning more effectively and improving their revenue potential.Operating Loss in 2010 was US$1,304,000, compared to an operating loss of US$1,545,000 in 2009. The research and development of the HOMI ® 330, was completed in 2009. In 2010 the company incurred additional expenses to improve the production and functionality of the minibars. Total research and development expenses in 2010 were $128,000. Selling and Marketing expenses decreased to US$196,000 compared to US$261,000 in 2009, primarily as a result of the effort to reduce expenses. General and administrative expenses decreased from US$1,983,000 to US $1,734,000, due to the sale of two of HOMI's subsidiaries in Europe in April 2010, and the increased efforts made to reduce expenses. Net Loss in 2010 was US$1,904,000, compared to a net loss of US$1,561,000 in 2009. Cash and Cash Equivalents as of December 31, 2010 were US$772,000, including deposits, compared to US$252,000 at December 31, 2009. Total Shareholders' Equity as of December 31, 2010 was US$2,622,000, compared to US$4,612,000 as of December 31, 2009. 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 9,630 computerized minibar systems at 34 hotels located in the United States, Europe and Israel, 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 ® 330 and the HOMI ® 232. 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.