DENVER, Nov. 15, 2011 (GLOBE NEWSWIRE) -- HS3 Technologies, Inc. (OTCBB:HSTH) an information technology and integration company providing technology, services and people for solutions that enhance the level of security protection and surveillance services announces its financial results for the three months ended September 30, 2011. The Company develops HS3 proprietary technology, and acquires and integrates appropriate industry technology to provide surveillance solutions customized to be: "The trusted security architect providing vision when it matters." This is accomplished using the intellectual capital of both its employees and the surveillance industry to architect and design solutions that provide customers vision and situational awareness.
An overview of the financial performance for the three months ended September 30, 2011, as compared to the three months ended September 30, 2010, includes:
Total Revenues for quarter ended September 30, 2011 were: $602,000 vs. $28,000 in the quarter ended September 30, 20101 .
Operating income for the quarter ended September 30, 2011 was: $83,000 compared to an operating loss of ($47,000) for the quarter ended September 30, 2010
Net income for the quarter ended September 30, 2011 was: $57,000 vs. a net loss of ($52,000) for the quarter ended September 30, 2010.
- SG&A expenses increased $119,000 to $182,000 for the three months ended September 30, 2011, as compared to $63,000 for the three months ended September 30, 2010 due to increased wages, and payment of officer salaries.
"HS3 Technologies latest quarter and fiscal year results for the year ended June 30, 2011 reflect the Company's pursuit of new business opportunities in today's uncertain and consequently dynamic economic environment. While we are capitalizing on our Quick Service Restaurant and Public Storage Site IT opportunities, we are also continuing to develop and exploit other security-field and IT business," commented Mark Lana HS3 CEO.
"Importantly, we were able to also reduce debt and significantly reduce losses from operations. The changes in both our income statement and balance sheet reflect a much stronger fiscal position that should better support the Company as we pursue new opportunities."
"HS3 anticipates that fiscal 2012 will be another record year, as we fulfill our current contracts and exploit new possibilities."
1 Due primarily to the initiation of the quick service restaurant (QSR) component of our business starting December 2010, and the start effective January 1, 2011 of our revenue sharing from our agreement with Wizard Works.
Selected Financial Information and Results of Operations
Three Months Ended September 30, 2011
|Income Statement Data|
|September 30, 2011||September 30, 2010|
|Revenue||$ 602,213||$ 28,129|
|Gross Profit||$ 269,925||$ 25,660|
|Operating Expenses||$ 186,557||$ 72,638|
|Income (Loss) from operations||$ 83,368||$ (46,978)|
|Net Income (Loss)||$ 56,852||$ (52,164)|
|EBITDA||$ 88,388||$ (37,094)|
|Income (Loss) per share-basic||$ 0.0007||$ (0.0008)|
|Balance Sheet Data|
|September 30, 2011||June 30, 2011|
|Current Assets||$ 454,530||$ 427,013|
|Total Assets||$ 478,595||$ 452,628|
|Accounts Payable & Accrued Liabilities||$ 167,564||$ 128,179|
|Notes Payable / Debt||$ 812,000||$ 882,270|
|Stockholder's Deficit||$ (500,969)||$ (557,821)|
Selected results of operations data for each of the quarters in the years ended June 30, 2012, 2011 and 2010 are summarized below:
|Three months ended|
|Sept. 30, 2011||Dec. 31, 2011||Mar. 31 2012||June 30, 2012||Year ended|
|June 30, 2012|
|Revenue||$ 602,213||--||--||--||$ 602,213|
|Cost of Goods Sold||(332,288)||--||--||--||(332,288)|
|Income (Loss) from operations||83,368||--||--||--||83,368|
|Other Expenses, net||(26,516)||--||--||--||(26,516)|
|Net Income (Loss)||$ 56,852||--||--||--||$ 56,852|
|Three months ended|
|Sept. 30, 2010||Dec. 31, 2010||Mar. 31 2011||June 30, 2011||Year ended|
|June 30, 2011|
|Revenue||$ 28,129||$ 26,816||$ 567,786||$ 687,669||$ 1,310,400|
|Cost of Goods Sold||(2,470)||(19,842)||(333,045)||(387,055)||(742,412)|
|Income (Loss) from operations||(46,978)||(133,897)||103,833||55,117||(21,925)|
|Other Expenses, net||(5,186)||40,609||(24,538)||40,942||51,827|
|Net Income (Loss)||$ (52,164)||$ (93,288)||$ 79,295||$ 96,059||$ 29,902|
|Three months ended|
|Sept. 30, 2009||Dec. 31, 2009||Mar. 31 2010||June 30, 2010||Year ended|
|June 30, 2010|
|Revenue||$ 26,656||$ 37,220||$ 36,900||$ 12,494||$ 113,270|
|Cost of Goods Sold||(4,617)||(9,361)||(3,355)||(58,544)||(75,877)|
|Income (Loss) from operations||(284,398)||(49,523)||(115,102)||(93,671)||(542,694)|
|Other Expenses, net||(55,956)||(33,229)||(24,058)||(23,853)||(137,096)|
|Net Income (Loss)||$ (340,354)||$ (82,752)||$ (139,160)||$ (117,524)||$ (679,790)|
About HS3 Technologies, Inc.
HS3 expanded its technical installation service with a focus on the Quick Serve Restaurant market (QSR). Effective December 10, 2010 we entered into a Master Subcontract Agreement with Insight Direct USA, Inc. Pursuant to the agreement, our company will be a master provider of technical and installation services to an internationally renowned QSR chain. Our company's operational efforts have been refocused toward the services required by the QSR. Under the terms of the agreement with Insight, our company will provide IT services set forth in any statement of work issued by Insight. Each statement of work is a separate agreement that identifies a specific scope of work to be performed by our company.
HS3 is providing labor; trained installation teams to install cable, network upgrades of Point of Sale (POS) terminals, install software, and upgrade servers and cameras. The service that our company is providing is necessary for the QSR to meet federally mandated Payment Card Industry Data Security Standards (PCI) compliant requirements assembled by the Payment Card Security Standards Council.
To date our company's installation teams have successfully completed installations in a significant majority of the States within the continental United States, working from coast to coast servicing multiple sites within each market. The teams additionally preform the position of "Clean-up team" provider to the QSR. Clean-up teams are responsible for resolving technical and installation issues left unfinished by other services providers. We are very comfortable becoming the "expert" and a lead provider of choice to the QSR. It is our ability to acquire highly qualified individuals and allowing them to excel within our company's structure that continues to keep our company in the forefront of providing exceptional service.
Our company has recently increased services offered to the expanding self-storage market. Teams trained to service the QSR market have the ability to install systems and provide service to self-storage customers. Installing video cables and cameras, and providing video analytics through our remote video monitoring and data center fill a need lacking with-in the self-storage industry.
HS3 anticipates the addition of these two service markets will substantially improve our outlook in the near future.
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that 2012 results of operations will meet or exceed results to date, that any projected growth will enable the pursuant of additional opportunities, and any increased services or installations in the QSR or self storage markets.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, HS3s ability to design and manufacture its security and monitoring products and systems, the ability of the products to gain market acceptance, and the difficulties faced by an early stage company in the competitive security and monitoring industry. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the Company's annual report on Form 10-K, our quarterly reports on Form 10-Q, and other periodic and current reports filed from time to time with the Securities and Exchange Commission.
CONTACT: HS3 Technologies, Inc. 303-455-2555 Mark Lana, CEO Mlana@hs3tech.com