eRoomSystem Technologies, Inc. Reports 2000 Fiscal Year Results

Apr 02, 2001, 01:00 ET from eRoomSystem Technologies, Inc.

    LAS VEGAS, April 2 /PRNewswire/ --
 eRoomSystem Technologies, Inc. (Nasdaq: ERMS), the leading supplier of in-room
 technological amenities for the lodging industry, today announced revenues for
 the year ended December 31, 2000 of $2,983,640, an increase of $2,443,123
 compared to the year ended December 31, 1999.  Our revenue for the year ended
 December 31, 2000 consisted of product sales revenue of $2,552,578, or 85.6%,
 revenue sharing revenue of $266,730, or 8.9%, and maintenance fee revenue of
 $164,332, or 5.5%.  Our gross margin for the year ended December 31, 2000 was
 $827,979, an increase of $649,985 over the year ended December 31, 1999.
     Operating expenses for the year ended December 31, 2000 were $4,888,989
 compared to $2,764,046 for the year ended December 31, 1999, an increase of
 $2,124,943.  The increase in operating expenses was primarily due to an
 increase of $564,674 in non-cash compensation expense, a one-time
 restructuring charge of $418,606 and an increase of $629,327 in selling,
 general and administrative expenses.
     Net loss from operations was $4,061,010 for the year ended December 31,
 2000 compared to $2,586,052 for the year ended December 31, 1999, an increase
 of $1,474,958.  The loss attributable to common stockholders was $11,306,295
 for the year ended December 31, 2000 compared to $4,279,444 for the year ended
 December 31, 1999.  The $7,026,851 increase in the loss attributable to common
 stockholders was primarily due to an increase of $5,370,682 in non-cash
 dividends related to convertible preferred stock that occurred upon the
 mandatory conversion of all outstanding preferred stock upon the close of our
 initial public offering, and secondarily as a result of the one-time
 restructuring charge and the increase in non-cash compensation expense and
 selling, general and administrative expenses noted above.
     "The past year was one of the most challenging and exciting periods in our
 history, said David S. Harkness," Chairman and Chief Executive Officer of
 eRoomSystem Technologies.  "Although we experienced a loss from operations of
 approximately $4.0 million in 2000, we experienced revenues of more than
 $2.9 million and a gross margin of $827,000.  Further, on January 24, 2001, we
 restructured our operations to reduce our costs and maximize operational
 efficiencies, and, on March 22, 2001, we received our initial funding from our
 exclusive, post-installation financing arrangement with AMRESCO Leasing
 Corporation in the amount of $294,000."
     We have continued to incur losses subsequent to December 31, 2000.  While
 we expect to incur losses through the end of 2001, we expect to be profitable
 in 2002 upon achieving a revenue-sharing installed base of 16,000 rooms.  The
 Company will hold a conference call on April 19, 2001 at 11:00 a.m. eastern
 time to discuss the details of the above stated plan, as well as its business
 direction, strategy and new product initiatives.  An audio link to the
 conference call will be provided on the Company's website.  An archive of the
 conference call will be available at http://www.eroomsystem.com during the
 period April 20 through April 27.
 
                 eROOMSYSTEM TECHNOLOGIES, INC. AND SUBSIDIARY
                  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 
                                                            December 31,
     ASSETS                                              1999           2000
 
     Current Assets                                  $856,748     $4,576,112
     Refreshment Centers in Service                   169,791      1,762,245
     Property and Equipment, (Net)                    122,485        185,864
     Investment in Wholly Owned,
      Unconsolidated Subsidiary                     2,535,976        936,182
     Other Assets                                     665,631        354,746
 
     Total Assets                                  $4,350,631     $7,815,149
 
     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 
     Current Liabilities                           $3,507,364     $2,187,753
     Long-term Liabilities                            867,119         27,925
     Stockholders' Equity (Deficit)                  (23,852)      5,599,471
 
     Total Liabilities and Stockholders'
      Equity (Deficit)                             $4,350,631     $7,815,149
 
                                                        For the Years Ended
                                                             December 31,
                                                         1999           2000
 
     Revenue                                        $ 540,517     $2,983,640
     Gross Profit Margin                              177,994        827,979
     Loss from Operations                         (2,586,052)    (4,061,010)
 
     Loss Attributed to Common Stockholders      $(4,279,444)  $(11,306,295)
 
     Basic and Diluted Loss Per Common Share          $(1.33)        $(2.73)
 
     Basic and Diluted Weighted Average
      Common Share Outstanding                      3,220,709      4,137,458
 
     About eRoomSystem Technologies, Inc.
     eRoomSystem Technologies, Inc. is a full service in-room provider for the
 lodging and travel industry.  Its intelligent in-room computer platform and
 communications network supports eRoomSystem's line of fully automated and
 interactive refreshment centers, room safes and other proposed applications.
 Such applications include, or will include, in-room energy management systems,
 information management services, credit card/smart card capability for direct
 billing, network access solutions, remote engineering and maintenance
 services, and in-room cash advance.  eRoomSystem's products are installed in
 major hotel chains both domestically and internationally. eRoomSystem is a
 publicly traded company listed on the NASDAQ SmallCap Market.  You can visit
 eRoomSystem Technologies, Inc. on the worldwide web at
 http://www.eroomsystem.com.
 
     Certain statements in this press release with respect to future
 expectations and plans may be regarded as "forward-looking statements" within
 the meaning of Section 27A of Securities Act of 1933, Section 21E of
 Securities Exchange Act of 1934, and as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such statements, including, but not
 limited to, statements with respect to future earnings, and all other
 forward-looking statements involve risks and uncertainties and are subject to
 change at any time.
 
 

SOURCE eRoomSystem Technologies, Inc.
    LAS VEGAS, April 2 /PRNewswire/ --
 eRoomSystem Technologies, Inc. (Nasdaq: ERMS), the leading supplier of in-room
 technological amenities for the lodging industry, today announced revenues for
 the year ended December 31, 2000 of $2,983,640, an increase of $2,443,123
 compared to the year ended December 31, 1999.  Our revenue for the year ended
 December 31, 2000 consisted of product sales revenue of $2,552,578, or 85.6%,
 revenue sharing revenue of $266,730, or 8.9%, and maintenance fee revenue of
 $164,332, or 5.5%.  Our gross margin for the year ended December 31, 2000 was
 $827,979, an increase of $649,985 over the year ended December 31, 1999.
     Operating expenses for the year ended December 31, 2000 were $4,888,989
 compared to $2,764,046 for the year ended December 31, 1999, an increase of
 $2,124,943.  The increase in operating expenses was primarily due to an
 increase of $564,674 in non-cash compensation expense, a one-time
 restructuring charge of $418,606 and an increase of $629,327 in selling,
 general and administrative expenses.
     Net loss from operations was $4,061,010 for the year ended December 31,
 2000 compared to $2,586,052 for the year ended December 31, 1999, an increase
 of $1,474,958.  The loss attributable to common stockholders was $11,306,295
 for the year ended December 31, 2000 compared to $4,279,444 for the year ended
 December 31, 1999.  The $7,026,851 increase in the loss attributable to common
 stockholders was primarily due to an increase of $5,370,682 in non-cash
 dividends related to convertible preferred stock that occurred upon the
 mandatory conversion of all outstanding preferred stock upon the close of our
 initial public offering, and secondarily as a result of the one-time
 restructuring charge and the increase in non-cash compensation expense and
 selling, general and administrative expenses noted above.
     "The past year was one of the most challenging and exciting periods in our
 history, said David S. Harkness," Chairman and Chief Executive Officer of
 eRoomSystem Technologies.  "Although we experienced a loss from operations of
 approximately $4.0 million in 2000, we experienced revenues of more than
 $2.9 million and a gross margin of $827,000.  Further, on January 24, 2001, we
 restructured our operations to reduce our costs and maximize operational
 efficiencies, and, on March 22, 2001, we received our initial funding from our
 exclusive, post-installation financing arrangement with AMRESCO Leasing
 Corporation in the amount of $294,000."
     We have continued to incur losses subsequent to December 31, 2000.  While
 we expect to incur losses through the end of 2001, we expect to be profitable
 in 2002 upon achieving a revenue-sharing installed base of 16,000 rooms.  The
 Company will hold a conference call on April 19, 2001 at 11:00 a.m. eastern
 time to discuss the details of the above stated plan, as well as its business
 direction, strategy and new product initiatives.  An audio link to the
 conference call will be provided on the Company's website.  An archive of the
 conference call will be available at http://www.eroomsystem.com during the
 period April 20 through April 27.
 
                 eROOMSYSTEM TECHNOLOGIES, INC. AND SUBSIDIARY
                  CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 
                                                            December 31,
     ASSETS                                              1999           2000
 
     Current Assets                                  $856,748     $4,576,112
     Refreshment Centers in Service                   169,791      1,762,245
     Property and Equipment, (Net)                    122,485        185,864
     Investment in Wholly Owned,
      Unconsolidated Subsidiary                     2,535,976        936,182
     Other Assets                                     665,631        354,746
 
     Total Assets                                  $4,350,631     $7,815,149
 
     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 
     Current Liabilities                           $3,507,364     $2,187,753
     Long-term Liabilities                            867,119         27,925
     Stockholders' Equity (Deficit)                  (23,852)      5,599,471
 
     Total Liabilities and Stockholders'
      Equity (Deficit)                             $4,350,631     $7,815,149
 
                                                        For the Years Ended
                                                             December 31,
                                                         1999           2000
 
     Revenue                                        $ 540,517     $2,983,640
     Gross Profit Margin                              177,994        827,979
     Loss from Operations                         (2,586,052)    (4,061,010)
 
     Loss Attributed to Common Stockholders      $(4,279,444)  $(11,306,295)
 
     Basic and Diluted Loss Per Common Share          $(1.33)        $(2.73)
 
     Basic and Diluted Weighted Average
      Common Share Outstanding                      3,220,709      4,137,458
 
     About eRoomSystem Technologies, Inc.
     eRoomSystem Technologies, Inc. is a full service in-room provider for the
 lodging and travel industry.  Its intelligent in-room computer platform and
 communications network supports eRoomSystem's line of fully automated and
 interactive refreshment centers, room safes and other proposed applications.
 Such applications include, or will include, in-room energy management systems,
 information management services, credit card/smart card capability for direct
 billing, network access solutions, remote engineering and maintenance
 services, and in-room cash advance.  eRoomSystem's products are installed in
 major hotel chains both domestically and internationally. eRoomSystem is a
 publicly traded company listed on the NASDAQ SmallCap Market.  You can visit
 eRoomSystem Technologies, Inc. on the worldwide web at
 http://www.eroomsystem.com.
 
     Certain statements in this press release with respect to future
 expectations and plans may be regarded as "forward-looking statements" within
 the meaning of Section 27A of Securities Act of 1933, Section 21E of
 Securities Exchange Act of 1934, and as that term is defined in the Private
 Securities Litigation Reform Act of 1995.  Such statements, including, but not
 limited to, statements with respect to future earnings, and all other
 forward-looking statements involve risks and uncertainties and are subject to
 change at any time.
 
 SOURCE  eRoomSystem Technologies, Inc.