HOM LifeGoal Home Down Payment Investment ETF

Home Solutions Announces Record Third Quarter Results Company Reports 122% Increase in Revenues and EPS of $0.03; Increases Fourth Quarter and Full-Year EPS Guidance to $0.12 to $0.14 Per Share DALLAS, Nov. 15 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc. (AMEX:HOM), a niche provider of specialty residential services, announced today financial results for its third quarter and nine months ended September 30, 2004. The Company recorded third quarter revenues of approximately $7.9 million, a 122% increase versus $3.6 million for the year earlier period, and net income of $685,000, or $0.03 per basic share, versus net income of $43,000, or $0.00 per basic share for the 2003 third quarter. The Company generated $1,230,000 in EBITDA (which includes $1,026,000 of operating income plus $204,000 of depreciation and amortization) in the 2004 third quarter versus net income of $43,000 and $305,000 in EBITDA (which includes $191,000 of operating income plus $114,000 of depreciation and amortization) for the prior year's period. For the nine months ended September 30, 2004, the Company recorded revenues of $22.1 million, a 109% increase versus $10.6 million for the year earlier period, and net income of $1,691,000 or $0.08 per basic share versus a net loss of $(119,000), or a loss of $(0.01) per basic share for the nine months ended September 30, 2003. During this period, the Company generated $2,992,000 in EBITDA (which includes $2,365,000 of operating income plus $627,000 of depreciation and amortization) versus $593,000 in EBITDA (which includes $166,000 of operating income plus $427,000 of depreciation and amortization) for the same period in 2003. "We are pleased to again report another strong quarter of operating results," said Rick O'Brien, Chief Financial Officer of Home Solutions. "These results demonstrate that we are not only able to acquire other providers of specialty residential services, but we are able to grow the business organically. Our Restoration Services business grew organically by 10%. Revenue from our Specialty Interior services division, which we acquired this year, showed another quarter of strong sequential growth. We believe that the acquisition of a home warranty company in California, which is scheduled to close before the end of the year, will further position us for growth in 2005. "We believe the opportunities for growth across our business lines remain strong," said Frank Fradella, Chairman and Chief Executive Officer. "The recent hurricanes in Florida have created significant demand for our services in the area, which is expected to provide substantial work for several years to come. We were able to deploy some of the resources from our operations in California to service the overflow of business in Florida. The acquisition of RAM Home Warranty, once complete, should create powerful cross selling opportunities in our existing markets. We expect to be able to sell home warranty service to many of our existing residential service customers and to market our existing services to our new home warranty customers." Business Outlook The Company expects to report fourth quarter revenues of between $8.2 and $8.5 million and to generate net income of $0.04 to $0.07 per basic share. This would result in full-year net income of $0.12 to $0.14 per basic share, an increase from the Company's previously announced guidance of $0.10 to $0.14 cents per basic share. This guidance does not include the financial effect of any acquisitions. Home Solutions expects to provide 2005 financial guidance when it announces its fourth quarter and year-end results. Interested participants should call (888) 554-9234 and reference Conference ID 2052832. There will be a playback available as well. To listen to the playback, please call (800) 642-1687. Please use conference ID 2052832 for the replay. The replay will be available beginning at 5:15 pm the day of the call and will be accessible through December 15. The Company will also webcast the call. Investors may access the webcast by going to the Company's website http://www.homcorp.com/ . The webcast will be available from November 16 until November 30. Home Solutions is a niche provider of specialty residential services including Restoration Services and Specialty Interior Services. The Company has operations in the California, Texas and Florida markets and is rapidly growing its core business through both an internal and an acquisition strategy. For more information on Home Solutions, please see our website at http://www.homcorp.com/ . Statements included in this update that are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67. Forward-looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expect," and similar expressions. The Company cautions readers that forward-looking statements including, without limitation, those relating to the Company's future business prospects are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to factors such as those relating to economic, governmental, technological, and other risks and factors identified from time to time in the Company's reports filed with the SEC. HOME SOLUTIONS OF AMERICA, INC CONTACT: Cormac Glynn, CEOcast, Inc. PHONE: 212-732-4300 DATASOURCE: Home Solutions of America, Inc. CONTACT: Cormac Glynn of CEOcast, Inc., +1-212-732-4300, for Home Solutions of America, Inc. Web site: http://www.homcorp.com/

Copyright