LAKEWOOD, N.J., March 24, 2005 (PRIMEZONE) -- eRoomSystem Technologies, Inc. (OTCBB:ERMS), a supplier of in-room technological amenities for the lodging industry, today announced its financial results for the fiscal year ended December 31, 2004.
ERMS reported record earnings for fiscal year 2004. Revenues for fiscal year 2004 were $1,591,159 as compared to $1,498,859 for fiscal year 2003. Gross margin was $999,978 for the 12 months ended December 31 2004, as compared to a deficit of $111,691 for the 12 months ended December 31, 2003, an increase of 995.3%. Gross margin increased to 62.8% for fiscal year 2004 as compared to a deficit of 7.5% during the same period a year ago. Net operating expenses were $712,670 for fiscal year 2004 as compared to $2,077,878 for fiscal year 2003, a marked decrease of 65.7%. ERMS reported operating income of $287,308 for the 12 months ended December 31, 2004 as compared to an operating loss of $2,189,569 for the same period a year ago, an improvement of $2,476,877. The material decrease in operating expenses consisted of a decrease in selling, general and administrative expenses in the amount of $691,006; a decrease in interest expense in the amount of $381,210; and a gain on collection of previously written off receivables in the amount of $312,500. For fiscal year 2004, ERMS realized net income of $900,072, or $0.09 per basic share, which includes realization of gain on forgiveness of liabilities and debt in the amount of $612,764. In comparison, in the same period a year ago, ERMS had a net loss of $1,721,835, or $0.16 per basic share, a substantial improvement of $2,621,907, or $0.25 per basic share.
As of December 31, 2004, the balance sheet of ERMS reflects cash of $646,386, and monies on deposit in an attorney's escrow, which have since been deposited into the accounts of ERMS, in the amount of $225,000, for a total of $871,386. As of fiscal year end 2004, ERMS had working capital of $445,482, as compared to a working capital deficit of $603,709 on December 31, 2003, a measurable increase in working capital of $1,049,191. As of December 31, 2004, stockholders equity was $1,312,657 as compared to $352,197 as of December 31, 2003, an increase of $960,460.
About eRoomSystem Technologies, Inc.:
eRoomSystem Technologies, Inc. is a full service in-room provider of technological amenities for the lodging and travel industry. Its intelligent in-room computer platform and communications network supports eRoomSystem's line of fully automated and interactive refreshment centers, room safes and other applications. eRoomSystem's products are installed in major hotel chains both domestically and internationally. eRoomSystem is a publicly traded company listed on the Over The Counter Bulletin Board under the symbol "ERMS". You can visit eRoomSystem Technologies, Inc. on the worldwide web at www.eroomsystem.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:
NOTE: The foregoing is news relating to ERMS and contains forward-looking statements that are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to ERMS or its management, including without limitation, ERMS and its subsidiaries, are intended to identify such forward-looking statements. The actual results, performance or achievements of ERMS could differ materially from the results expressed in, or implied by these forward-looking statements. For more detailed information the reader is referred to the most recently filed Annual Report on Form 10-KSB and other related documents filed with the Securities and Exchange Commission. This does not constitute an offer to buy or sell securities by ERMS and is meant purely for informational purposes.