DALLAS - U.S. Home Systems, Inc reported second quarter revenues rose 38 percent to $35.2 million, marking the cabinet refacing firm's fourth consecutive quarterly revenue rise. While net income was just $464,000 after a pre-tax charge of $180,000 it compared favorably with a year-ago loss of  $1.2 million for the period, which last year included a pre-tax charge of $1.5 million related to a litigation settlement.

CEO Murray Gross said U.S. Homes results were also buoyed by a 41% rise in new orders in the second quarter - to $37.4 million - which bodes well for future earnings. New orders for the second quarter were also running 8.8 percent ahead of the first quarter 2010.  "We saw robust growth in our kitchen refacing and countertop product line across most of our geographic regions," Gross said, attributing the robust growth to  The Home Depot's inclusion of cabinet refacing in its new national kitchen marketing strategy, which highlights "A Solution for Every Kitchen and Budget - Replace, Reface, Renew." Murray said, "Supporting this marketing strategy we continued the installation of new kitchen refacing product displays in The Home Depot stores. The new displays better demonstrate the benefits of the cabinet refacing category." and our product offering."

Gross also said that a move to home improvement contractors also helped boost results. "In May, in connection with our market expansion plan, we identified three markets we previously served through our sales and installation centers that we transitioned to SCN contractors to better penetrate the marketplace and reduce our cost," Gross said. "We intend to sublease our sales and installation centers in these three markets." That shift lead to a one-time charge of $180,000 to pay off leases.

 "Despite no improvement in the credit approval rate for our customers, we have achieved solid growth," said Gross, who again cited the Harvard  Leading Indicator of Remodeling Activity (LIRA) report forecasting a recovery in home improvement spending on an annual basis by the end of the year."

A year ago U.S. Home Systems  moved to market, sell and install its products and installed services exclusively through The Home Depot under a service provider agreement (SPA). As of last September it served The Home Depot in 42 markets covering 27 states; kitchen cabinet refacing is available in all 42 Home Depot markets covering some 1,660 home improvement stores; bath productswere available in 17 markets through 567 stores. Last year earnings were affected when U.S. Home Systems paid $1.5 million to settle claims by current and former employees in California.

Earlier U.S. Homes and The Home Depot tested a pilot program in the Dallas market to offer a new range of home storage organization products for closets and garages. This followed a December 2008 five-year franchise agreement with a Home Depot subsidiary to market, sell and apply a wood kitchen cabinet and wood floor refinishing system at The Home Depot stores in Boston,  Long Island, New York, and Philadelphia markets under the brand name N-Hance. The N-Hance wood renewal system uses a proprietary process involving the application of N-Hance cleaners, neutralizers, repair/fillers, coloring agents, sealers and finishes.

U.S. Home Systems, Inc. which manufactures or procures, designs, sells and installs custom quality specialty home improvement product including kitchen cabinet refacing products, bathroom tub liners and wall surround products for bathroom remodeling, and storage organization systems for closets and garages.U.S. Home Systems manufactures its own cabinet refacing products and bathroom cabinetry>>.