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.”
The Company consolidates the results of its 80% owned subsidiary Fiducia Real Estate Services, Inc., which owns 100% of Timios, Inc., Timios Appraisal Management, Inc. and Default Servicing USA, Inc.Conference Call and Webcast The Company will host an earnings conference call at 4:00 p.m. EDT on Tuesday, April 3, 2012. During the call, C. Thomas McMillen, Chairman and Chief Executive Officer, Michael T. Brigante, Chief Financial Officer and Trevor Stoffer, Chief Executive Officer of Timios, Inc. will discuss the Company's performance, financial results and operations. The telephone number for the conference call is 877-407-0778 (Toll Free US); and 201-689-8565 (International). A live webcast of the call will also be available on the Company's website, www.hscapcorp.com. Investors can also access the webcast at www.InvestorCalendar.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 # 391866. 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 real estate service businesses. 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 real estate products and service 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 growth opportunities. Homeland Security Capital Corporation’s portfolio of companies includes:
Fiducia Real Estate Services, Inc. (“FRES”) is a holding company that provides real estate products and services through its three wholly-owned subsidiaries: Timios, Inc. Timios Appraisal Management, Inc. and Default Servicing USA, Inc.Timios, Inc. (“Timios”) is a national title and escrow company licensed to conduct business in forty states and the District of Columbia. The company provides various products and services to banks, direct mortgage companies and mortgage servicing companies through utilizing advanced technology in a paperless operating system. For more information about Timios, please visit www.timios.com. Timios Appraisal Management, Inc. (“TAM”) is a national appraisal management company providing property valuation services to banks, mortgage companies, portfolio managers and investors. TAM manages a national network of appraisers and utilizes advanced technology to deliver quality controlled products in a paperless environment. For more information about TAM, please visit www.timios.com. Default Servicing USA, Inc. (“DSUSA”) is national asset management company providing a full range of services in the real estate owned (REO) industry to banks, financial institutions, investors and mortgage companies. DSUSA manages the disposition of REO properties from eviction to closing of the sale, ensuring the highest return on value through utilizing advanced technology in a paperless environment. For more information about DSUSA, please visit www.defaultservicingusa.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.