SOURCE: Stronghold Industries, Inc.

December 22, 2006 16:05 ET

Stronghold Releases 3rd Quarter Financial Report

SANTA MONICA, CA -- (MARKET WIRE) -- December 22, 2006 -- Stronghold Industries, Inc. (PINKSHEETS: SGDS) today reported financial results for the fiscal quarter ended September 30, 2006. The Stronghold Industries, Inc. Voluntary Quarterly Report has been posted at http://www.pinksheets.com/quote/finance.jsp?symbol=SGDS and is available for download now.

Financial results for the three-month period ended September 30, 2006 compared to the three-month period ended September 30, 2005 include:

--  Revenue decreased 29% to $165,344 from $231,512 in 2005. The decrease
    is due to a change in revenue recognition policies.
--  Contract accruals of $216,612 from $0 in 2005. The increase is due to
    a change in revenue recognition policies.
--  There was a net loss of $87,398 compared to a profit of $51,960 in
    2005. This was the result of increased operating expenses.
    
Robert Perea, Stronghold President, stated, "The comparative revenue numbers are deceiving because of our change in revenue recognition policies. We actually generated nearly $190k in additional executed contracts where the work has not yet been fully completed.

"Looking forward, we see significant growth on the horizon. Both our acquisition program and new Hawaii operations are progressing well and we expect an extremely busy January as the seeds planted during 2006 begin to mature," added Perea.

About Stronghold Industries, Inc.

Stronghold provides end-to-end premium intelligent home solutions to its established and rapidly growing client base in the most affluent areas of Southern California. Through a horizontally integrated strategy encompassing a wide range of technologies and disciplines, Stronghold is positioning itself as a leading supplier of premium home technologies and services.

Forward-Looking Statements

Any statements made in this press release that are not based on historical facts are "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995. Although such statements are based on management's current estimates and expectations, and currently available competitive, financial, and economic data; forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2005 Voluntary Annual Report, and in particular the discussions contained under "Risk Factors."

Contact Information

  • Contact:
    Tony Breeden
    Sr. Vice President
    Stronghold Industries Inc.
    (310) 683-0410