Host America Corporation Reduces Loss in First Quarter FY 2007: Will Return to Timely Filed Financial Statements
December 21 2006 - 4:47PM
PR Newswire (US)
HAMDEN, Conn., Dec. 21 /PRNewswire-FirstCall/ -- Host America
Corporation (Other OTC: CAFE.PK) today announced a substantial
reduction in its loss for the first fiscal quarter of FY 2007
compared to the prior year's first quarter. The improvement
primarily reflects that the prior period was heavily influenced by
one-time charges associated with legal accruals, non-cash
compensation for stock options, charges associated with the
mark-to-market valuation of warrant liability and charges
associated with the conversion of a long term note into equity. The
company noted that this fiscal year's first quarter was also
favorably impacted by the diminishing charges for professional
fees. For the first quarter ended September 30, 2006, Host America
Corporation reported a net loss of $1,370,486 or $0.17 per share on
revenues of $9,114,810. This compares to a net loss of $7,629,009
or $1.16 per share on revenues of $9,048,808 in the first quarter
of fiscal 2006. The company had 8,071,840 weighted average common
shares outstanding in this year's first period compared to
6,572,798 a year ago. The company noted that with the delayed
filing of its 10Q for the first quarter of fiscal 2007 it will have
filed all past due periodic reports and is positioned to begin
regular and timely filing of financial statements with the
Securities and Exchange Commission. "Beginning normal reporting
practices in December 2006 is an important milestone for the
company and its shareholders, and we are pleased to have
accomplished this significant step among our major priorities,"
said David Murphy, acting president and chief executive officer of
Host America. "The results for the first quarter show that we are
making progress in implementing our business strategy as well,
including the introduction of the newly designed light controller
that is so important to the future of our Energy Management
business," Mr. Murphy said. He noted that deliveries have begun on
fulfilling the channel partner purchase order on the light
controller, which reduces electrical demand in fluorescent lighting
systems with minimal effect of reducing perceived luminosity.
Results for Host America are presented in the following table
QUARTER ENDED September 30 2006 2005 NET REVENUES $9,114,810
$9,048,808 LOSS FROM OPERATIONS (1,146,858) (3,394,106) OTHER
EXPENSES (208,628) (4,219,903) LOSS BEFORE PROVISION FOR INCOME TAX
(1,355,486) (7,614,009) PROVISION FOR INCOME TAX 15,000 15,000 NET
LOSS (1,370,486) (7,629,009) PREFERRED STOCK DIVIDENDS (8,000)
(8,000) NET LOSS APPLICABLE TO COMMON STOCKHOLDERS (1,378,486)
(7,637,009) NET LOSS PER SHARE - BASIC AND DILUTED $(0.17) $(1.16)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
8,071,840 6,572,798 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, +1-203-328-3018, , for Host America
Corporation
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