Home Solutions of America — Shareholder Meeting (June 2006)
16 slides from Home Solutions of America's shareholder meeting presentation, Jun 16, 2006
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 16, 2006
Slide 2: Forward-Looking Statements Disclosure
Forward-Looking Statements Disclosure Statements included in this presentation that are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended b
Slide 3: Financial Performance
FINANCIAL PERFORMANCE 2004 Act. 2005 Act. 2006 Est. Range Revenue ($ in Millions) $31.1 $68.1 $160.0 - $165.0 Growth Rate 121% 119% 135% - 143% EPS (Fully Diluted) $.10 $.25 $.56 -$.60 EPS Growth Rate 266% 150% 124%-140% 3
Slide 4: Company Overview
COMPANY OVERVIEW Home Solutions of America, Inc. (a.) is a leading provider of Recovery, Restoration and Rebuilding/Remodeling Services throughout the Southeast, Gulf Coast and California • Recovery Business Segments • Restoration • Rebuilding/Remodeling • Areas prone to weather-related emergencies
Slide 5: Core Services
CORE SERVICES Rebuilding/ Recovery Restoration Remodeling • First Responder Clean-Up Services • Fire and water damage • Specialty interior services – Floods, Fires, Hurricanes, etc. restoration • Cabinet manufacturing and • Preparation of areas for next stage • Air decontamination (IAQ, countertop f
Slide 6: Management Team
MANAGEMENT TEAM Frank J. Fradella, Chairman, CEO • Former CEO of two service related public companies • 20+ years experience in service industries Rick J. O’Brien, President and COO • Former owner of Fiber-Seal and other businesses • 20+ years experience in finance, m&a, and operations Jeff Mattich,
Slide 7: Company History
COMPANY HISTORY 2002 2003 2004 2005 • Experienced • Acquired Fiber Seal • Integrated • Acquired Cornerstone management team Systems L.P. acquisitions Building and forms HOM ($1.2mm) made to date Remodeling, Inc. • Acquired Southern ($7.7mm) • Acquired PW Exposure Unlimited • Founded HSR of Stephens,
Slide 8: Major Customers
MAJOR CUSTOMERS • Centex • The Home Depot • C&B Restoration • Farmers Insurance • State Farm Insurance • Allstate 8
Slide 9: Industry Overview
INDUSTRY OVERVIEW Billion Dollar U.S. Weather Disasters 1980 - 2005 G NOAA/NESDIS/NCDC 8 ry _ Actualdamage amounts mM _— #8 8| ss | 7 ——— atthe time of the event m ? Damage amounts J BRAT + 6 "0.2002 using ani co Seeing SP OD .. gl wealth index a “3s eeu 45 & Gen = ae | SS BS @ = i eee | 34 ns L onc
Slide 10: Industry Overview
INDUSTRY OVERVIEW Predicting storms The National Hurricane Center predicts four to six major hurricanes in the upcoming season. Last year was much busier than predicted. Prediction vs. reality Number of actual hurricanes during the season _ Predicted storms -* 2001 ‘Oo2 "o3 “O4 05 2006 SOURCE: Naton
Slide 11: Industry Overview
INDUSTRY OVERVIEW 1980-2005 NOAA's National Climatic Data Center Asheville, North Carolina NUMBER OF EVENTS DISASTER NUMBER OF — PERCENT NORMALIZED PERCENT TYPE EVENTS FREQUENCY DAMAGES DAMAGE 21-25 {Billions of Dollars) 16-20 | Topics! Stormattiurricanes 24 35.8% 269 52.0% ~ Non-Tropical Floods 12
Slide 12: Industry Overview
INDUSTRY OVERVIEW • HOM targets high growth housing areas U.S. Residential Construction Activity Concentration New Privately-Owned Housing Units Started, 7/2005 10% 24% 18% 48% Housing Permits Issued 1994-2003 0-5,000 5,000-10,000 10,000-20,000 20,000 and up Sources: U.S . C en sus Bureau, Construct
Slide 13: Industry Overview
INDUSTRY OVERVIEW • Sizable remodeling market with estimated $138 billion in annual spending Homeowner Improvement Spending (in Billions of Dollars) Kitchen Remodels & Additions 13.5 25.0 Bath Remodels & Additions 10.5 Other Interior Additions & Alterations 15.4 Exterior & Interior Replacements 35.0
Slide 14: Geographic Focus
(GEOGRAPHIC FOCUS quarters Fiber-Seal Systems Headquarters Dallas, TX @ = Fiber-Seal Franchises Comerstone Building & Remodeling Headquarters Home Solutions of America, Inc. Fort Myers, FL Headquarters rome Dallas, TX SOLUTIONS of America, Inc. 1 4 ‘An AMEX company
Slide 15: Growth Strategy
GROWTH STRATEGY HOM Comprehensive Service Offering to Residential and Commercial Markets Leverage Key Accretive First Responder Relationships Acquisitions • Leverage FERS and HSR of • Build Home Depot • Continue to execute on Louisiana to build on “first relationship to expand # of strategic acquisi
Slide 16: Financial Summary
FINANCIAL SUMMARY • Revenue and EBITDA growth, driven by the Company’s expansion into Recovery Services • Industry leading operating margins - 21% 2005 EBITDA margin • 2006 guidance issued by Company management – $160 - $165 million in 2006 projected revenue (135% increase over 2005) – $.56 - $.60 E
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