Homeserve Reports Fourth Quarter and Year-End Results

    TORONTO, June 12 /CNW/ - Homeserve Technologies Inc. today reported a net
loss for the fourth quarter ended February 28, 2009 of $2.3 million (a loss of
$0.46 per common share, after payment of preferred share dividends) on
revenues of $2.0 million for the fourth quarter ended February 28, 2009,
compared to net loss of $0.8 million (a loss of $0.25 per common share, after
payment of preferred share dividends) on revenues of $2.3 million for the same
period of the last fiscal year.  The most significant element contributing to
the $1.5 million quarter-to-quarter increase net loss was an impairment charge
of $1.6 million for software relating to our Aeromove(TM) and Move Services
Affinity Program ("MSAP") operations. A summary of the contribution margin by
business line is summarized in the table below:

                                   Three Months Ended    Twelve Months Ended
                                     February 28/29        February 28/29
    ($ thousands, except
     per share amounts)                2009       2008       2009       2008

    Revenue                           1,971      2,274     12,129     11,906
    Cost of sales                        67         66        345        195
    Gross margin                      1,904      2,208     11,784     11,711
    Operating costs - selling,
     general and administrative       1,189      1,588      5,373      6,204
    Operating costs - amortization    1,459      1,504      6,109      6,015
    Net income (loss) from
     operations                        (744)      (884)       302       (508)
    Investment income                    55        134        422      1,089
    Gain on sale of investments           -          -          -      2,225
    Impairment of intangible assets  (1,564)         -     (1,564)         -
    Net income (loss) for the
     period                          (2,253)      (750)      (840)     2,806
    Preferred share dividends          (971)      (984)    (3,936)    (3,956)
    Basic and diluted loss to
     common shareholders             (3,224)    (1,734)    (4,776)    (1,150)
    Basic and diluted loss per
     common share                    $(0.46)    $(0.25)    $(0.69)    $(0.17)

    Calculation of Earnings per share

    A summary of the components of the Company's diluted earnings per share is
as follows:

                                   Three Months Ended    Twelve Months Ended
                                     February 28/29        February 28/29

    ($ thousands, except number of
     shares and per share amounts)
    Net income (loss)                (2,253)      (750)      (840)     2,806
    Preferred share dividends          (971)      (984)    (3,936)    (3,956)
    Net loss to common shareholders  (3,224)    (1,734)    (4,776)    (1,150)
    Weighted average outstanding
     common shares                    6,944      6,944      6,944      6,944
    Common shares and common share
     equivalents                      6,944      6,944      6,944      6,944

    Basic and diluted loss per
     common share                    $(0.46)    $(0.25)    $(0.69)    $(0.17)


    With the slowdown in the North American economy, management anticipates
the Company's underlying clients may reduce their relocation activities and
accordingly in the future may reduce the number of relocation files serviced
by Brookfield Residential Property Services ("BRPS") with a corresponding
decrease in the licensing fees earned by the Company from these activities.
Similarly, with the slowdown in the Canadian economy and declining home sale
transaction volumes, future Aeromove(TM) transaction volumes may be negatively
    While markets for software remain uncertain, the real estate home sales
market and economy in general are declining, we are cautiously optimistic that
the sustainable stable cash flows from the ICON acquisition combined with
licensing opportunities from the Company's Aeromove(TM) and MSAP program
model, will position the Company well for the future growth.
    Approximately 99% of the Company's revenue is derived from transaction
fees paid by BRPS for the use of the Company's ICON technology for the
provision of relocation services under two separate contracts with the
Canadian Department of National Defense, Government of Canada and the Royal
Canadian Mounted Policy (collectively "GOC Contracts"). Approximately 73% of
the Company's estimated licensing revenue from BRPS is derived from the GOC
Contracts. On April 29, 2009, the Government of Canada issued a Request for
Proposal on the GOC Contracts with an effective start date of December 1,
2009. There can be no assurance that the GOC Contracts will be awarded to
BRPS. In the event that BRPS is not awarded the GOC Contracts, this could
significantly decrease the contribution margin from the ICON licensing
arrangement, and materially effect on the Company's expected business, results
of operations and financial condition.

    About Homeserve

    Homeserve is a Canadian based software development and services company
focused on home-related services for the real estate, relocation and banking
industries. Homeserve provides a one-stop shopping service for home buyers and
sellers, offering real-estate related products and services throughout the
customer's purchasing and selling cycle, coordinated by a proprietary software
system and contact centre.

    Forward-Looking Statements

    This press release contains forward-looking information, including
"forward-looking statements". The words "will", "intends", "expected" and
other expressions which are predictions of or indicate future events and
trends and which do not relate to historical matters identify forward looking
statements. Reliance should not be placed on forward-looking statements
because they involve known and unknown risks, uncertainties and other factors,
which may cause Homeserve's performance to differ materially from the
description of the investment expressed or implied by such forward-looking
statements. Although Homeserve believes that the anticipated future results,
performance or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on forward-looking
statements and information because they involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to differ materially from
anticipated future results, performance or achievement expressed or implied by
such forward-looking statements and information. Factors that could cause
actual results to differ materially from those contemplated or implied by
forward-looking statements include general economic conditions; interest rate
changes; availability of equity and debt financing; and other risks and
factors described from time to time in the documents filed by the Company with
the securities regulators in Canada including in the Annual Information Form
under the heading "Risk Factors." The Company undertakes no obligation to
publicly update or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise.

    Additional Information

    Detailed financial information and Management's Discussion and Analysis
of Results and Financial Condition as at and for the quarter and year ended
February 28, 2009 is posted on Homeserve's website (under Investor Relations,
Financial Information) at and should be read in conjunction
with this press release and is also available on SEDAR's website at

    %SEDAR: 00004370E

For further information:

For further information: Jenn Pearce, Homeserve Technologies Inc., (416)
510-5321 or

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