Host America Reports 3rd Quarter Loss of Revenue; EnerLume-EM Records First Significant Sales
16 5월 2007 - 7:47AM
PR Newswire (US)
HAMDEN, Conn., May 15 /PRNewswire-FirstCall/ -- Host America
Corporation (OTC Pink Sheets: CAFE) today reported lower net
revenues and an increased net loss in its fiscal third quarter
ended March 31, 2007, and attributed the results to a decision to
curtail the operations of the ground-up construction unit of RS
Services, Inc. "The ground up construction business is not
consistent with our focus on energy management and energy
conservation," said David Murphy, president and chief executive
officer. "During the quarter we worked towards the launch of our
EnerLume-EM(TM) line of light controllers and the negotiating of
the agreements we announced in April to sell our food service
businesses to focus on the energy conservation marketplace. Host
America's results met our objectives given the importance of those
actions and decisions." For the third fiscal quarter ended March
31, 2007, Host America reported net revenues of $8,333,575,
compared to net revenues in the prior year's third quarter of
$9,567,321, a decline of 12.9%. The net loss applicable to common
shareholders in the third quarter of fiscal 2007 was $1,877,507 or
21 cents per share, compared to $1,274,918 or 18 cents per share in
the comparable period a year ago. The Food Services business
reported a nominal sales increase, as new accounts offset the
losses of contracts that affected the second quarter of fiscal
2007. The company has previously announced agreements with the
present senior managers of each of the two food services business
units to sell those units to them. The sale is anticipated to close
in early fiscal 2008. Host reported that sales of EnerLume-EM(TM)
light controllers to its Master Channel Partner distributor in the
third quarter produced $322,400 in revenues. "We believe that this
success, the positive reception EnerLume received at the Globalcon
2007 exhibition in early April and our agreements reached this
month with four Direct Channel Partners and six Channel Partners
confirms that our decision to focus on energy conservation and
energy management is the right use of our resources," Mr. Murphy
said. Results (unaudited) for Host America Corporation are
presented in the following table: QUARTER ENDED March 31 2007 2006
NET REVENUES $8,333,575 $9,567,321 LOSS FROM OPERATIONS (1,340,434)
(1,047,364) OTHER EXPENSES (514,073) (204,553) LOSS BEFORE
PROVISION FOR INCOME TAXES (1,854,507) (1,251,917) PROVISION FOR
INCOME TAXES 15,000 15,000 NET LOSS (1,869,507) (1,266,917)
PREFERRED STOCK DIVIDENDS (8,000) (8,001) NET LOSS APPLICABLE TO
COMMON STOCKHOLDERS (1,877,507) (1,274,918) NET LOSS PER SHARE -
BASIC AND DILUTED $(0.21) $(0.18) BASIC AND DILUTED WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING 8,995,612 7,123,070 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 filings. 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 of Host
America Corporation, +1-203-328-3018, or
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