Hotel Outsource Management International, Inc. (“ HOMI”) (OTCBB: HOUM) presented its consolidated financial results for the first quarter ended March 31, 2012. Mr. Daniel Cohen, HOMI’s President, stated: "In the first quarter of 2012 we continued to execute our strategic plan, signing agreements with additional hotels and implementing our new business model. Pursuant to this business model, HOMI receives loans from third parties secured by specific minibars, and such minibars continue to be installed, managed and operated by HOMI. In addition, we are finalizing the development of the new HOMI ® 226 minibar, and expect to begin production during June 2012." "In the first quarter of 2012, Revenues increased by 21%, with Gross Profit improving by 48% compared to the first quarter of 2011. We are continuing our efforts to reduce expenses. The General and Administrative and Marketing Expenses were reduced by 19% compared to the first quarter of 2011. We expect that this trend will continue, with 2012 being a year of significant cost savings across the board." First quarter 2012 results : Revenues for the first quarter of 2012 reached US$858,000, compared to US$710,000 in the first quarter of 2011, an increase of 21%. These revenues arose primarily from the sale of products in the minibars, as well as the direct sale of HOMI minibars. The increase in revenues is mainly due to the increased number of minibars operated and sold. For the three months ended March 31, 2012, HOMI's three largest customers accounted for approximately 22.5% of the total revenues, compared to 30.6% in the same period of 2011. Gross Profit in the first quarter of 2012, after consideration of depreciation expense, was US$182,000, compared to US$124,000 in the first quarter of 2011, an increase of 48%. Gross profit margin increased from 17.5% in the first quarter of 2011 to 21.2 % in the first quarter of 2012. The improvement in Gross Profit margin is mainly due to an increased number of minibars operated and sold during this period. Operating Loss in the first quarter of 2012 was US$222,000, compared to an operating loss of US$359,000 in the first quarter of 2011. The research and development of the HOMI ® 330, was completed in 2009. The research and development of an additional product, the new generation HOMI® 226, began in the first quarter of 2012. Total research and development expenses in the first quarter of 2012 were $34,000. Selling and Marketing expenses decreased to US$62,000 compared to US$94,000 in the first quarter of 2011, primarily as a result of the company's efforts to reduce marketing expenses. General and administrative expenses decreased from US$363,000 to US$309,000, due to cost reduction and ongoing efforts to save on general and administrative expenses. Net Loss in the first quarter of 2012 was US$317,000, compared to a net loss of US$442,000 in the first quarter of 2011. Cash and Cash Equivalents as of March 31, 2012 were US$156,000, including deposits, compared to US$345,000 as of December 31, 2011. Total Shareholders' Equity as of March 31, 2012 was US$832,000, compared to US$1,176,000 as of December 31, 2011. 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 "OTCQB" Exchange, under the symbol "HOUM.PK"
HOMI and its subsidiaries are engaged in the distribution, marketing and operation of computerized minibars in major branded hotel chains, operating approximately 10,500 computerized minibar systems at 41 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 hotels’ 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 External Dry-Section / Trays. 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.