DALLAS, Nov. 10, 2011 -- U.S. Home Systems, Inc. (NasdaqNGM: USHS) today reported financial results for the third quarter and nine months ended September 30, 2011. USHS is engaged in the specialty products home improvement business. The Company's principal product lines include kitchen cabinet refacing products, bathroom remodeling products, storage organization systems for closets and garages and related accessories.
Third Quarter 2011 Highlights
USHS reported revenue of $43.5 million, exceeding guidance of $41 to $42 million and up 10.0% compared to $39.6 million in the third quarter last year. This marks the second-highest quarterly revenues in Company history.
USHS reported record earnings per share of $0.22, significantly better than guidance of $0.14 to $0.16 per share and compared to $0.09 per share in the third quarter last year.
New orders increased 3.1% to $40.9 million in the third quarter 2011 from $39.7 million in the third quarter last year. The Company's backlog of uncompleted orders was $21.9 million at September 30, 2011.
For the third quarter, USHS revenues increased 10.0% to $43.5 million as compared to $39.6 million in the third quarter 2010. Net income was $1.6 million or $0.22 per share as compared to $620,000 or $0.09 per share, respectively.
Murray Gross, chairman and chief executive officer, commented, "We once again delivered strong financial results, exceeding our expectations for the third quarter and delivering record profitability. We continued to add to our already strong balance sheet with approximately $13 million in cash and marketable securities and no debt at September 30, 2011."
Mr. Gross continued, "Revenues increased 10% in the third quarter reflecting higher backlog at the beginning of the period coupled with a faster sale-to-completion cycle time and continued strength in new orders during the quarter. Our new orders in the third quarter were $40.9 million, our third strongest quarter on record. This resulted in record net income, far exceeding our guidance. Our operating margin in the quarter increased to 6.3% from 2.7% of revenues in the third quarter last year. We're continuing to emphasize cost control and efficiency programs to gain further leverage over fixed overhead costs."
For the nine months ended September 30, 2011, USHS had revenues of approximately $126.3 million as compared to $107.9 million in the same period last year. Net income was $3.7 million or $0.51 per share as compared to $1.4 million, or $0.20 per share, respectively.
Mr. Gross continued, "In June our Board of Directors approved our first cash dividend reflecting the Company's long term value and its commitment to promoting long-term investment in our common stock. The Board's decision to initiate and declare a quarterly dividend was a result of the Company's strong financial foundation and the Board's confidence in the Company's future performance. I am pleased to announce that the Board has authorized our third quarterly dividend, increasing the quarterly dividend from $0.015 per share to $0.02 per share. The dividend is payable December 13, 2011 to stockholders of record at the close of business on November 23, 2011. We believe the payment of dividends will provide us with an additional means of creating value for our stockholders as we continue to pursue growth opportunities."
Mr. Gross concluded, "Historically our fourth quarter reflects seasonally lower revenues. Accordingly, our guidance for the fourth quarter reflects this seasonality."
Fourth Quarter and Full Year 2011 Outlook
Revenues in the fourth quarter 2011 of $39 million, compared to $38 million in the fourth quarter 2010 and full year 2011 revenues of $165 million as compared to $146 million last year.
Net income in the fourth quarter 2011 of $0.13 per share, compared to $0.10 per share in the fourth quarter 2010 and full year 2011 net income of $0.64 per share, compared to $0.30 per share in 2010.
EBITDA in the fourth quarter 2011 of $1.8 million, compared to $1.4 million in the fourth quarter 2010, and full year 2011 of $8.8 million, compared to $4.7 million in 2010.
About U.S. Home Systems, Inc.
U.S. Home Systems, Inc. (www.ushomesystems.com) manufactures or procures, designs, sells and installs custom quality specialty home improvement products. The Company's product lines include kitchen cabinet refacing products utilized in kitchen remodeling, bathroom tub liners and wall surround products utilized in bathroom remodeling, and storage organization systems for closets and garages. The Company manufactures its own cabinet refacing products and bathroom cabinetry.
Have something to say? Share your thoughts with us in the comments below.