Host America Corporation Files Delayed 10-K for FY 2005, Restates FY 2004
14 Septiembre 2006 - 5:49PM
PR Newswire (US)
HAMDEN, Conn., Sept. 14 /PRNewswire-FirstCall/ -- Host America
Corporation (OTC:CAFE.PK) today filed with the Securities and
Exchange Commission its delayed Annual Report on Form 10-K for its
fiscal year ended June 30, 2005, which includes restated financial
results for the year ended June 30, 2004. The consolidated
financial statements in the Annual Report were audited by Mahoney
Cohen & Company CPA, P.C., which became the company's
independent registered public accounting firm on June 29, 2006.
Host America said that it expects to file its Annual Report on Form
10-K for the year ended June 30 2006, and the interim reports on
Form 10-Q as soon as practicable, and then resume regular, timely
financial reporting. "This is a very significant milestone in Host
America's recovery program," said David Murphy, acting chief
executive officer. "While the results in fiscal 2005 showed a
significant loss of $9.7 million on revenues of $30.8 million,
these losses were mainly the result of non-cash impairment charges,
and the costs associated with our entry into the Energy Management
business which includes the costs associated with settlement of
litigation. We expect that fiscal 2006 results will also show
significant non-cash charges." The restatement of the Fiscal 2004
results also included non-cash impairment charges which had a
material impact on the company's loss for that period. Results for
FY 2005 and FY 2004 are presented in the table at the conclusion of
this release. "We believe that we are exhibiting a full and
accurate reflection of the financial position and believe we are
accurately reflecting the historical results of the company and its
business units," Mr. Murphy added. "We are also confident that we
have proper valuations for our assets going forward, and, most
important, that we have financial review procedures in place to
manage the business, meet the regulatory requirements for timely
reporting and provide shareholder communications in the years
ahead." Additionally, Mr. Murphy commented, "Our Energy Management
business has moved its new and innovative light controller into
beta testing. We are pleased that there were positive initial
results at the facilities of potential multi-location customers. We
have moved ahead with the development of a new name for the product
line, and marketing material is currently being developed. The Food
Service business is continuing its solid performance, maintaining
strong relationships with existing clients and successfully
introducing new concepts to customers." Mr. Murphy noted that the
company has also recently completed two private financings
aggregating $850,000 - a $500,000 private placement of common
shares and warrants and a $350,000 Secured Promissory Note
Agreement entered into with five persons, including members of the
Board of Directors and management of the company, "which shows
their confidence in the future of our company," Mr. Murphy said.
Mr. Murphy also said that the company is in the process of a
strategic review of its business operations and has made progress
in implementing new initiatives at its important Energy Management
business as well as strengthening its food services business. He
said that a date for the delayed Annual Meeting of Shareholders
will be announced shortly after the filing of the Annual Report on
Form 10-K for FY 2006. The selected financial results for the
fiscal years ended June 30 2005 and 2004 are: Year Ended June 30,
2004 2005 As Restated Net revenues $30,793,836 $24,935,307 Cost of
revenues ($27,228,070) ($21,529,720) Selling, general and
administrative ($7,366,603) ($4,561,643) Impairment charges *
($3,695,024) ($9,566,042) Loss from operations ($8,085,778)
($11,331,800) Net loss ($9,663,155) ($12,860,893) Weighted average
common shares outstanding 4,374,918 3,725,721 Basic & diluted
loss applicable to common shareholders ** ($2.22) ($3.56) *
Includes goodwill impairment charge of $3,695,024 in fiscal 2005
and goodwill impairment charge of $8,658,719 and intangible
impairment charge of $907,323 in fiscal 2004 **Calculation takes
into effect preferred stock dividends of $32,000 and $28,800 for
2005 and 2004 and beneficial conversion charges of $400,000 in
2004. These financial results should be read in conjunction to Host
America's Annual Report on Form 10-K. 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 and Form 8-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
Copyright