Most Home Corp.
OTC Bulletin Board : MHME

Most Home Corp.

November 16, 2005 15:34 ET

Most Home Corp. Announces Fiscal 2005 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 16, 2005) - Most Home Corp. ("Most Home") (OTCBB:MHME), a premier provider of technology and services to the North American real estate industry today announces its results for fiscal 2005.

Most Home reported a net loss of $1,560,546, or 7 cents per share, on revenues of $1,743,335 for the year ended July 31, 2005, compared to a net loss of $148,718, or 1 cent per share, for the year ended July 31, 2004. Most Home's gross margin was $805,978 (46.2%) for fiscal 2005 compared to $1,224,913 (59.6%) for fiscal 2004. Revenues for year ended July 31, 2005 decreased by $310,921 (15.1%) compared to fiscal 2004, while gross margin decreased by $418,935 (34.2%). In fiscal 2005, Most Home incurred approximately $142,000 in non-cash investor consulting and licensing fees relating to stock issued under services agreements. Most Home operations used $1,060,955 in cash for the year ended July 31, 2005, compared to $11,881 for fiscal 2004. $193,511 was spent on fixed assets, the acquisition of Executive Wireless, Inc. and website development, through investing activities for fiscal 2005, compared to $166,828 in fiscal 2004. Financing activities of Most Home raised $1,254,466, including $1,154,378 from the issuance and subscriptions of common stock for the year ended July 31, 2005, compared to $175,431 for fiscal 2004.

Operations Overview

The past eighteen months has seen significant changes occur in the real estate technology industry and Most Home has moved aggressively to adapt to the changing market conditions that it faces. Our Most Referred® subsidiary which has generated most of our revenues to date has been focused on selling lead generation and qualification services to agents now faces a plethora of competitors who are extremely well funded. Most Referred® now competes with much larger online portals like LendingTree®, Realtor.com®, HouseValues®, and HomeGain in the race to capture web leads for our agent customers. Most of these firms have entered into multi-million dollar advertising programs with traditional and online media like Yahoo, MSN and AOL, which are financially beyond our reach. In addition, individual agents now have many more Internet marketing options at their disposal with the advent of services such as paid search engine placement.

In analyzing the changing marketplace, Most Home management realized that there was an opportunity to re-package our core competency in lead qualification capabilities and offer this service to brokerages rather than just agents. So while most of our competitors have been spending millions of dollars focusing on generating raw, unqualified leads for agents, Most Home has been listening to brokerages who have communicated to us the need for highly qualified leads that strengthen their business through higher conversion ratios. Management believes that Most Home is in a unique position in the industry to meet to meet this new demand, unlike its competitors. We have transformed and expanded operations over the past year, to align ourselves with industry needs, at a cost of just over $1,000,000, which is reflected in losses for fiscal 2005. Most Home has improved and extended its product offerings, hired a new sales team, and established several reference accounts. The acquisition of Executive Wireless, Inc. has also added valuable wireless realty products to compliment Most Home's existing technology and services. Starting in Q1 of fiscal 2006, increased revenues are being generated from these efforts in Most Home's subsidiary Most Home Technologies, formed in May 2005. There is high demand for our new technology and services and promises strong revenue potential in fiscal 2006. As this new entity grows and expands we continue to offer services to agents via Most Referred® but without the expectation that it will be the primary driver of growth for our Most Home.

While this transformation has been very challenging for us as a Most Home, Most Home has emerged in the industry as a rising star with the opportunity to forge a solid future. The challenges that remain are in the areas of implementation and service delivery but we are convinced that our team is up to the challenge. We are very proud of the tremendous efforts that have been undertaken by our staff to effect this transformation to date and lay the groundwork for significant growth and profitability in the future.

Subject to available capital, Most Home will also look to expand its business through acquisitions that would enhance and complement our core competencies, such as the recent acquisition of Executive Wireless in June 2005. We believe that this combined strategy of growth, by organic means and acquisition, represents the best opportunity to meet the growth objectives of investors in fiscal 2006 and beyond.

For more information, see our financial statements for the year ended July 31, 2004 which were filed on Form 10-KSB at www.sec.gov.

About Most Home Corp.

Most Home Corp. (OTCBB:MHME) is a technology and services company specializing in Internet solutions for the real estate industry. It's newly formed subsidiary, Most Home Technologies Corp., provides its ClientBuilder technology solution to independent brokers and real estate franchises across the US and Canada. Most Home's client acquisition and qualification solution, incorporating its proprietary lead generation and response technology, represents the next generation in web services and customer relationship management.

Most Home Corp. also operates Most Referred Real Estate Agents Inc. Established in 1997, Most Referred® is a licensed real estate company specializing in acquiring and qualifying real estate leads for its network of peer-selected real estate agents in some 2,600 market centers across North America.

Most Home Corp. is headquartered in Vancouver, B.C., Canada and maintains a corporate Internet site at www.mosthome.com.

Certain information and statements included in this news release constitute "forward-looking" statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the results, performance, or achievements of the Most Home to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements.

Contact Information

  • Most Home Corp.
    Brad Long
    Investor Relations
    Toll Free: 877-360-0988 or Direct: (360) 945-2490 (PST)
    (260) 945-2491 (FAX)
    blong@mosthome.com
    or
    Most Home Technologies Corp.
    Lisa Gaetz
    Industry Relations
    Toll Free: 800-347-4701 or Mobile: (778) 231-1924
    (604) 460-7681 (FAX)
    lisa.gaetz@mosthome.com
    www.mosthome.com