HomeServices.com Reports First Quarter Results

Apr 25, 2001, 01:00 ET from HomeServices.Com Inc.

    MINNEAPOLIS, April 25 /PRNewswire/ --
     HomeServices.Com Inc. (Nasdaq:   HMSV) ("HomeServices") today announced its
 financial results for the first quarter ended March 31, 2001.  Highlights are
 as follows:
     Three Months Ended March 31, 2001
     -- Revenues for the quarter were $99.5 million, up 13.5% from
        $87.7 million in the same quarter of 2000.
     -- Net loss of $2.3 million, as compared to a net loss of $2.6 million for
        the same period of 2000.
     -- Net loss per share of $0.26 on 8.7 million weighted-average shares
        outstanding, as compared to a loss of $0.28 on 9.3 million comparable
        shares for the first quarter of 2000.
     -- EBITDA (earnings before interest, taxes, depreciation and amortization)
        was a loss of $0.1 million for the quarter, compared to a loss of
        $0.3 million in the first quarter of 2000.
     -- Closed transaction volume for the quarter increased to $2.8 billion, as
        compared to $2.6 billion in the same period of 2000.  The average home
        sales price of $164,400 increased 8.2% from 2000, with closed
        transaction sides declining slightly to 17,089, as compared to
        17,364 in 2000.
 
     "The real estate industry has been surprisingly resilient in light of the
 significant and sudden downturn in other sectors of the economy," said Ron
 Peltier, president and chief executive officer.  "I am extremely pleased with
 the financial performance our team delivered this quarter given the economic
 conditions and the historically weak seasonality of the first quarter.  Our
 leading market presence and geographic dispersion of our regional brokerage
 companies -- coupled with increases in revenue from integrated services such
 as mortgage origination, title insurance and closing services -- has enhanced
 our revenue base and reduced the volatility of our earnings.
     "While there is still significant uncertainty as to the overall business
 outlook going forward, we remain cautiously optimistic about sustaining our
 performance in 2001, given the declining interest rate environment and low
 unemployment rates.  We feel our brand-leading companies are well positioned
 to take advantage of our value-added services that benefit our sales
 associates, enhance our customer experience and result in increased market
 share."
 
     Other Significant Events
     The Company continues to execute its business strategy and achieved the
 following milestones:
     -- Brokerage Operations Expansion: In January, Long Realty Company
        announced it had purchased Tucson Realty and Trust Company's
        Residential Division.  The acquisition has been fully integrated, with
        Long Realty now commanding a market share in excess of 40% of the
        Tucson-area market.
     -- ShowingTime.com Collaboration: In April, HomeServices aligned with
        Chicago-based ShowingTime.com to offer Web-based services for the
        company's sales associates and customers.  The agreement offers sales
        associates a new way to support customers looking to buy or sell a
        home, as well as provides customers with a new, innovative way to set
        up private-showing appointments.  Through the partnership,
        HomeServices' Web sites will allow homebuyers to request a
        private-showing appointment for properties listed for sale.
     -- Mortgage Operations: In January, HomeServices combined the mortgage
        origination business of its wholly owned Kansas City subsidiary, Plaza
        Mortgage, into its mortgage origination joint venture with Wells Fargo
        Home Mortgage, a subsidiary of Wells Fargo & Company.
     -- Web Site Metrics:  The Company's Web sites had in excess of 127 million
        hits and 3 million visitors during the first quarter.  These numbers
        are expected to increase as the Company further develops its Web sites
        and Web-based services.
 
     The first quarter analyst conference call will be held at 11 a.m. Eastern
 time (10 a.m. Central time), Thursday, April 26, 2001.  The U.S. number for
 the call is 800-576-7258.  Please request the HomeServices conference call.
 No special code is required.  Replay of the call will be available for
 24 hours following the conference call at 800-633-8284 using reservation code
 18469876.  The conference call will also be Webcast live and can be accessed
 from http://www.homeservices.com and clicking on "overview" in the investor
 information box of the Web page.
     HomeServices, based in Minneapolis, is the second-largest, full-service
 independent residential real estate brokerage firm in the U.S. based on closed
 transaction sides.  The HomeServices system offers integrated real estate
 services, including mortgage origination, title and closing services, and
 various related e-commerce services.  HomeServices operates primarily under
 the Edina Realty ( http://www.edinarealty.com ), Iowa Realty
 ( http://www.iowarealty.com ), CBSHOME Real Estate ( http://www.cbshome.com ),
 J.C. Nichols Residential (http://www.jcnichols.com ), Long Realty
 ( http://www.longrealty.com ), Paul Semonin Realtors
 ( http://www.semonin.com ), Carol Jones Realty ( http://www.caroljones.com ),
 First Realty/GMAC ( http://www.firstrealtyhomes.com ), and Champion Realty
 ( http://www.championrealty.com ) brand names in 12 states: Minnesota, Iowa,
 Nebraska, Kansas, Missouri, Arizona, Kentucky, Wisconsin, Indiana, North
 Dakota, South Dakota and Maryland.  HomeServices ranks first or second in
 market share in each of its major markets, operates more than 165 branch
 offices, has approximately 6,600 sales associates and has an average 50-year
 operating history in its major markets.  Information about HomeServices and
 its principal subsidiary companies is available on the Internet at
 http://www.homeservices.com
     Certain information in this release contains forward-looking statements
 made pursuant to the Private Securities Litigation Reform Act of 1995 ("Reform
 Act").  Such statements are based on current expectations and involve a number
 of known and unknown risks and uncertainties that could cause the actual
 results or performance of the company to differ materially from any expected
 future results or performance, expressed or implied, by the forward-looking
 statements.  In connection with the safe harbor provisions of the Reform Act,
 the company has identified important factors that could cause actual results
 to differ materially from such expectations, including uncertainty with
 respect to future acquisitions, development, implementation and customer
 acceptance of e-commerce services, general industry conditions and
 fluctuations, management of rapid growth, changes to regulations and
 legislation, interest rate changes, access to capital and future financing.
 Reference is made to all of the company's SEC filings, including the company's
 Report on Form 8-K dated March 16, 2001, incorporated herein by reference, for
 a description of such factors.  The company assumes no responsibility to
 update forward-looking information contained herein.
 
 
                               HomeServices.Com Inc.
                    Unaudited Consolidated Statements of Income
                     (in thousands, except per share amounts)
 
                                                    3 Months Ended March 31
                                                      2001              2000
     Revenues:
       Commission revenue                           $84,228           $79,548
       Mortgage fees                                  5,968               763
       Title fees                                     5,485             3,999
       Other                                          3,773             3,342
 
          Total revenues                             99,454            87,652
 
     Operating expenses:
       Commission expense                            60,608            55,218
       Salaries and employee benefits                18,135            15,989
       Occupancy                                      6,486             5,958
       Business promotion and advertising             4,703             4,616
       Professional and management fees               2,443               807
       Other operating expenses                       6,803             5,370
       Amortization of pending real estate
        sales contracts                                 346               665
       Depreciation and amortization                  2,733             2,735
 
          Total operating expenses                  102,257            91,358
 
     Other income (expense):
       Interest income                                  587               253
       Interest expense                              (1,053)             (969)
 
          Other income (expense), net                  (466)             (716)
 
     Loss before minority interest and
      income taxes                                   (3,269)           (4,422)
 
     Minority interest                                 (500)               --
 
     Loss before income taxes                        (3,769)           (4,422)
 
     Income tax benefit                              (1,470)           (1,791)
 
     Net loss                                       $(2,299)          $(2,631)
 
     Net loss per share:
       Basic and diluted                             $(0.26)           $(0.28)
 
     Weighted average shares outstanding -
      Basic and Diluted                               8,723             9,298
 
 
                             HomeServices.Com Inc.
 
                                                     3 Months Ended March 31
                                                      2001              2000
 
     Operating Data:
 
       Closed transaction sides                      17,089            17,364
 
       Average home sales price (in thousands)       $164.4            $151.9
 
       Closed transaction volume (closed
        transaction sides multiplied by average
        home sales price) (in millions)              $2,810            $2,638
 
       Average sales commissions (%)
        (commission revenues divided by home
         sales volume)                                  3.0%              3.0%
 
       Number of branch offices (at period end)         166               161
 
       Number of sales associates (at period end)     6,600             6,313
 
 
                                                          As of March 31
                                                      2001              2000
 
     Unaudited Condensed Consolidated Balance
      Sheet Data:
       (in thousands):
 
       Cash and cash equivalents                    $10,803            $6,914
       Long term debt, including current portion     57,024            53,712
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X77859171
 
 

SOURCE HomeServices.Com Inc.
    MINNEAPOLIS, April 25 /PRNewswire/ --
     HomeServices.Com Inc. (Nasdaq:   HMSV) ("HomeServices") today announced its
 financial results for the first quarter ended March 31, 2001.  Highlights are
 as follows:
     Three Months Ended March 31, 2001
     -- Revenues for the quarter were $99.5 million, up 13.5% from
        $87.7 million in the same quarter of 2000.
     -- Net loss of $2.3 million, as compared to a net loss of $2.6 million for
        the same period of 2000.
     -- Net loss per share of $0.26 on 8.7 million weighted-average shares
        outstanding, as compared to a loss of $0.28 on 9.3 million comparable
        shares for the first quarter of 2000.
     -- EBITDA (earnings before interest, taxes, depreciation and amortization)
        was a loss of $0.1 million for the quarter, compared to a loss of
        $0.3 million in the first quarter of 2000.
     -- Closed transaction volume for the quarter increased to $2.8 billion, as
        compared to $2.6 billion in the same period of 2000.  The average home
        sales price of $164,400 increased 8.2% from 2000, with closed
        transaction sides declining slightly to 17,089, as compared to
        17,364 in 2000.
 
     "The real estate industry has been surprisingly resilient in light of the
 significant and sudden downturn in other sectors of the economy," said Ron
 Peltier, president and chief executive officer.  "I am extremely pleased with
 the financial performance our team delivered this quarter given the economic
 conditions and the historically weak seasonality of the first quarter.  Our
 leading market presence and geographic dispersion of our regional brokerage
 companies -- coupled with increases in revenue from integrated services such
 as mortgage origination, title insurance and closing services -- has enhanced
 our revenue base and reduced the volatility of our earnings.
     "While there is still significant uncertainty as to the overall business
 outlook going forward, we remain cautiously optimistic about sustaining our
 performance in 2001, given the declining interest rate environment and low
 unemployment rates.  We feel our brand-leading companies are well positioned
 to take advantage of our value-added services that benefit our sales
 associates, enhance our customer experience and result in increased market
 share."
 
     Other Significant Events
     The Company continues to execute its business strategy and achieved the
 following milestones:
     -- Brokerage Operations Expansion: In January, Long Realty Company
        announced it had purchased Tucson Realty and Trust Company's
        Residential Division.  The acquisition has been fully integrated, with
        Long Realty now commanding a market share in excess of 40% of the
        Tucson-area market.
     -- ShowingTime.com Collaboration: In April, HomeServices aligned with
        Chicago-based ShowingTime.com to offer Web-based services for the
        company's sales associates and customers.  The agreement offers sales
        associates a new way to support customers looking to buy or sell a
        home, as well as provides customers with a new, innovative way to set
        up private-showing appointments.  Through the partnership,
        HomeServices' Web sites will allow homebuyers to request a
        private-showing appointment for properties listed for sale.
     -- Mortgage Operations: In January, HomeServices combined the mortgage
        origination business of its wholly owned Kansas City subsidiary, Plaza
        Mortgage, into its mortgage origination joint venture with Wells Fargo
        Home Mortgage, a subsidiary of Wells Fargo & Company.
     -- Web Site Metrics:  The Company's Web sites had in excess of 127 million
        hits and 3 million visitors during the first quarter.  These numbers
        are expected to increase as the Company further develops its Web sites
        and Web-based services.
 
     The first quarter analyst conference call will be held at 11 a.m. Eastern
 time (10 a.m. Central time), Thursday, April 26, 2001.  The U.S. number for
 the call is 800-576-7258.  Please request the HomeServices conference call.
 No special code is required.  Replay of the call will be available for
 24 hours following the conference call at 800-633-8284 using reservation code
 18469876.  The conference call will also be Webcast live and can be accessed
 from http://www.homeservices.com and clicking on "overview" in the investor
 information box of the Web page.
     HomeServices, based in Minneapolis, is the second-largest, full-service
 independent residential real estate brokerage firm in the U.S. based on closed
 transaction sides.  The HomeServices system offers integrated real estate
 services, including mortgage origination, title and closing services, and
 various related e-commerce services.  HomeServices operates primarily under
 the Edina Realty ( http://www.edinarealty.com ), Iowa Realty
 ( http://www.iowarealty.com ), CBSHOME Real Estate ( http://www.cbshome.com ),
 J.C. Nichols Residential (http://www.jcnichols.com ), Long Realty
 ( http://www.longrealty.com ), Paul Semonin Realtors
 ( http://www.semonin.com ), Carol Jones Realty ( http://www.caroljones.com ),
 First Realty/GMAC ( http://www.firstrealtyhomes.com ), and Champion Realty
 ( http://www.championrealty.com ) brand names in 12 states: Minnesota, Iowa,
 Nebraska, Kansas, Missouri, Arizona, Kentucky, Wisconsin, Indiana, North
 Dakota, South Dakota and Maryland.  HomeServices ranks first or second in
 market share in each of its major markets, operates more than 165 branch
 offices, has approximately 6,600 sales associates and has an average 50-year
 operating history in its major markets.  Information about HomeServices and
 its principal subsidiary companies is available on the Internet at
 http://www.homeservices.com
     Certain information in this release contains forward-looking statements
 made pursuant to the Private Securities Litigation Reform Act of 1995 ("Reform
 Act").  Such statements are based on current expectations and involve a number
 of known and unknown risks and uncertainties that could cause the actual
 results or performance of the company to differ materially from any expected
 future results or performance, expressed or implied, by the forward-looking
 statements.  In connection with the safe harbor provisions of the Reform Act,
 the company has identified important factors that could cause actual results
 to differ materially from such expectations, including uncertainty with
 respect to future acquisitions, development, implementation and customer
 acceptance of e-commerce services, general industry conditions and
 fluctuations, management of rapid growth, changes to regulations and
 legislation, interest rate changes, access to capital and future financing.
 Reference is made to all of the company's SEC filings, including the company's
 Report on Form 8-K dated March 16, 2001, incorporated herein by reference, for
 a description of such factors.  The company assumes no responsibility to
 update forward-looking information contained herein.
 
 
                               HomeServices.Com Inc.
                    Unaudited Consolidated Statements of Income
                     (in thousands, except per share amounts)
 
                                                    3 Months Ended March 31
                                                      2001              2000
     Revenues:
       Commission revenue                           $84,228           $79,548
       Mortgage fees                                  5,968               763
       Title fees                                     5,485             3,999
       Other                                          3,773             3,342
 
          Total revenues                             99,454            87,652
 
     Operating expenses:
       Commission expense                            60,608            55,218
       Salaries and employee benefits                18,135            15,989
       Occupancy                                      6,486             5,958
       Business promotion and advertising             4,703             4,616
       Professional and management fees               2,443               807
       Other operating expenses                       6,803             5,370
       Amortization of pending real estate
        sales contracts                                 346               665
       Depreciation and amortization                  2,733             2,735
 
          Total operating expenses                  102,257            91,358
 
     Other income (expense):
       Interest income                                  587               253
       Interest expense                              (1,053)             (969)
 
          Other income (expense), net                  (466)             (716)
 
     Loss before minority interest and
      income taxes                                   (3,269)           (4,422)
 
     Minority interest                                 (500)               --
 
     Loss before income taxes                        (3,769)           (4,422)
 
     Income tax benefit                              (1,470)           (1,791)
 
     Net loss                                       $(2,299)          $(2,631)
 
     Net loss per share:
       Basic and diluted                             $(0.26)           $(0.28)
 
     Weighted average shares outstanding -
      Basic and Diluted                               8,723             9,298
 
 
                             HomeServices.Com Inc.
 
                                                     3 Months Ended March 31
                                                      2001              2000
 
     Operating Data:
 
       Closed transaction sides                      17,089            17,364
 
       Average home sales price (in thousands)       $164.4            $151.9
 
       Closed transaction volume (closed
        transaction sides multiplied by average
        home sales price) (in millions)              $2,810            $2,638
 
       Average sales commissions (%)
        (commission revenues divided by home
         sales volume)                                  3.0%              3.0%
 
       Number of branch offices (at period end)         166               161
 
       Number of sales associates (at period end)     6,600             6,313
 
 
                                                          As of March 31
                                                      2001              2000
 
     Unaudited Condensed Consolidated Balance
      Sheet Data:
       (in thousands):
 
       Cash and cash equivalents                    $10,803            $6,914
       Long term debt, including current portion     57,024            53,712
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X77859171
 
 SOURCE  HomeServices.Com Inc.