DALLAS -- U.S. Home Systems, Inc. (NasdaqGM: USHS) today reported financial results for the second quarter and six months ended June 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.
Second Quarter 2011 Highlights
USHS reported record revenue of $43.8 million, exceeding guidance of $40 to $41 million and up 24.4% compared to $35.2 million in the second quarter last year.
USHS reported earnings per share of $0.21, significantly better than guidance of $0.11 to $0.13 per share and compared to $0.06 per share in the second quarter last year.
New orders increased to a record $44.0 million in the second quarter 2011 from $37.4 million in the second quarter last year. The Company's backlog of uncompleted orders was $24.5 million at June 30, 2011.
Fixed operating costs, consisting of branch operating and general and administrative expenses, declined to 12.1% of revenues in the second quarter 2011 from 13.5% in the same quarter last year. The decline reflected increased leverage from higher revenues.
For the second quarter, USHS had record revenues of $43.8 million, an increase of 24.4%, as compared to $35.2 million in the second quarter 2010. Net income was $1.6 million or $0.21 per share as compared to $464,000 or $0.06 per share, respectively.
Murray Gross, chairman and chief executive officer, commented, "We recorded our seventh consecutive year-over-year quarterly increase in revenues in the second quarter and achieved a record $43.8 million. Faster installation cycle time coupled with a significant increase in new orders during the period boosted revenues above guidance. Our new orders increased 17.7%, from $37.4 million in the second quarter last year to a record $44.0 million in the second quarter 2011."
Mr. Gross continued, "The marketing programs we initiated in 2010 are continuing to drive demand and new orders, as evidenced by our record level of bookings. In addition, our SCN market expansion and DIY programs, which we initiated in the first quarter last year, are contributing to our growth and performance. In the second quarter, revenues from these programs increased $2.3 million or 201% as compared to the same period last year."
Mr. Gross continued, "As I stated last quarter, I consider it quite an accomplishment that we have significantly grown our revenues while simultaneously increasing customer satisfaction levels. We have been successful adopting and achieving the high standards of customer satisfaction levels set by our strategic partner, The Home Depot, as measured through The Home Depot's Voice of The Customer (VOC) survey. Our customer satisfaction ratings are a testament to the commitment and dedication of our associates around the country."
For the six months ended June 30, 2011, USHS had revenues of approximately $82.8 million as compared to $68.3 million in the same period last year. Net income was $2.1 million or $0.29 per share as compared to $0.8 million, or $0.12 per share, respectively.
Mr. Gross concluded, "After our annual shareholder's meeting 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 initial dividend was paid in July. 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 second quarterly dividend of $0.015 per share payable September 13, 2011 to stockholders of record at the close of business on August 25, 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."
Third Quarter 2011 Outlook
Revenues in the third quarter 2011 of $41 to $42 million as compared to revenues of $39.6 million in the third quarter 2010.
Net income of $0.14 to $0.16 per share, compared to $0.09 per share in the third quarter 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.
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