Host America Reports Significantly Reduced Quarterly Loss; Resumes Timely Financial Reporting
14 2월 2007 - 8:25AM
PR Newswire (US)
HAMDEN, Conn., Feb. 13 /PRNewswire-FirstCall/ -- Host America
Corporation (OTC:CAFE.PK) today announced a substantial reduction
in its loss for the second fiscal quarter of FY 2007 compared to
the prior year's second quarter. The improvement primarily reflects
that the prior period was heavily influenced by one-time charges
associated with legal accruals, but also reflected improved
revenues at the company's food services and energy management
businesses. The company noted that the timely filing with the
Securities and Exchange Commission of its results for the quarter
ended December 31, 2006 marks the promised resumption of timely
reporting after six quarters of delayed filings. For the second
fiscal quarter of its fiscal year 2007, Host America reported
revenues of $9,096,897, a 12.7% increase over the prior year's
second quarter when revenues of $8,069,729 were reported. The net
loss in the second quarter of fiscal 2007 was $1,615,371 or 18
cents per share, compared to $2,713,068 or 40 cents per share in
the comparable period a year ago. The improvements in food services
reflected new contracts as well as improved pricing in the contract
meals business, but was offset by the loss of a major customer,
because of an acquisition, which will have an adverse effect on
revenues later this year. The improvements in energy management
reflect new service contracts with existing clients. "We are very
pleased with Host America's progress in the second quarter of
fiscal 2007," David Murphy, acting President and Chief Executive
Officer stated. "We have resumed timely financial reporting, we
have strengthened our sales team with the addition of John Ekegren
as Vice President - Sales and Marketing, we have developed and
begun introducing the EnerLume-EM TM branding for the light
controller and we have substantially reduced our overall operating
losses." Mr. Murphy noted that the company has challenges ahead of
it, primarily related to resolving past litigation. "However, we
believe in our plan to grow our business through growth with our
EnerLume-EM TM product and through future strategic alliances." He
also noted that the company had entered into investment banking
relationships to assist in additional equity and debt financings to
enhance the company's liquidity. Results (unaudited) for Host
America Corporation are presented in the following table: QUARTER
ENDED December 31 2006 2005 NET REVENUES $9,096,897 $8,069,729 LOSS
FROM OPERATIONS (1,448,521) (2,414,402) OTHER EXPENSES (151,850)
(275,664) LOSS BEFORE PROVISION FOR INCOME TAXES (1,600,371)
(2,690,066) PROVISION FOR INCOME TAXES 15,000 15,000 NET LOSS
(1,615,371) (2,705,066) PREFERRED STOCK DIVIDENDS (8,000) (8,002)
NET LOSS APPLICABLE TO COMMON STOCKHOLDERS (1,623,371) (2,713,068)
NET LOSS PER SHARE - BASIC AND DILUTED $(0.18) $(0.40) BASIC AND
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 8,861,597
6,829,014 These financial results should be read in conjunction
with Host America's Quarterly Report on Form 10-Q. This Press
Release has been reviewed and approved by Host America's Disclosure
Committee. Cautions Concerning Forward-Looking Statements All
information in this news release consists of forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The statements contained in this release, which
are not historical facts and that relate to future plans or
projected results of Host and its subsidiaries, are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated or implied. These risks and
uncertainties include the risks associated with Host's entry into
new commercial food and energy markets that require the company to
develop demand for its products, its ability to access the capital
markets, litigation, regulatory investigations and many other risks
described in Host's Securities and Exchange Commission fillings.
The most significant of these uncertainties are described in Host
America's Annual Report on Form 10-K all of which any reader of
this release is encouraged to study (including all amendments to
those reports) and exhibits to those reports, and include (but are
not limited to) the following: the costs, difficulties, and
uncertainties related to the implementation of the early stage
energy management division, organizational changes and the
integration of acquired businesses; the potential loss of one or
more key customer or supplier relationships or changes to the terms
of those relationships; difficulties and uncertainties related to
transitions in senior management; the results, consequences,
effects or timing of any inquiry or investigation by or settlement
discussions with any regulatory authority or any legal and
administrative proceedings; the impact of previously announced
restatements; difficulties or delays or increased costs in
implementing Host America's overall prospective business plan; and
general economic and market conditions. Host America undertakes no
obligation to update or revise any forward-looking statement.
Readers of this release are cautioned not to put undue reliance on
forward-looking statements. DATASOURCE: Host America Corporation
CONTACT: Sam Ostrow for Host America Corporation, +1-203-328-3018,
Copyright