UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
Commission File No. 033-97034
HELP AT HOME, INC.
DELAWARE 36-4033986
(State of other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
223 W. Jackson Blvd., Suite 500
Chicago, IL 60606
(Address of principal executive offices) (Zip Code)
(312)663-4244
(Issuer's telephone number, including area code)
Indicate by checkmark whether the issuer (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes [X] No
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:
Common Stock, par value $.02 per share, 1,869,375 shares outstanding
as of November 9, 1998
Transitional Small Business Disclosure Format: Yes No [X]
<PAGE>
Help at Home, Inc.
Index
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Consolidated Balance Sheets at
June 30, 1998 and September 30, 1998 3
Consolidated Statements of Income
for the three month periods ended
September 30, 1997 and 1998 4
Consolidated Statements of Cash Flows
for the three month periods ended 5
September 30, 1997 and 1998
Notes to the Consolidated Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8
PART II: OTHER INFORMATION 13
ITEM 1. LEGAL PROCEEDINGS 13
ITEM 2. CHANGES IN THE RIGHTS OF THE COMPANY'S
SECURITY HOLDERS 13
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 13
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS 13
ITEM 5. OTHER INFORMATION 13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 13
SIGNATURES 14
<PAGE>
<TABLE>
HELP AT HOME, INC.
Consolidated Balance Sheet
September 30 June 30
1998 1998
(Unaudited) (Audited)
Assets
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 753,518 $ 412,012
Accounts receivable (net of allowance
for doubtful accounts of $665,000
and $560,000, respectively) 6,883,224 6,789,224
Prepaid expenses and other 124,750 154,163
Federal income tax receivable 494,667 436,583
Deferred income taxes - current 211,103 335,283
----------- -----------
Total Current Assets 8,467,262 8,127,265
Furniture and equipment, net 199,803 203,703
Due from officer 136,699 133,668
Other assets 88,275 88,275
----------- -----------
Total Assets $ 8,892,039 $ 8,552,911
=========== ===========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 874,245 $ 841,511
Accrued expenses 2,097,370 1,858,821
Due to third party payors 713,269 713,269
Current maturities of long-term debt 2,917,988 2,919,969
Deferred income taxes - current 107,880 152,600
----------- -----------
Total Current Liabilities 6,710,752 6,486,170
Deferred income taxes - noncurrent 174,463 158,600
Long-term debt, less current portion 843 2,793
----------- -----------
Total Liabilities 6,886,058 6,647,563
Stockholders' Equity
Preferred stock, par value $.01 per share;
1,000,000 shares authorized, none issued
or outstanding
Common stock, par value $.02 per share;
14,000,000 shares authorized, 1,869,375
issued and outstanding 37,388 37,388
Additional paid in capital 3,694,406 3,694,406
Retained deficit (1,725,813) (1,826,446)
----------- -----------
Total Stockholders' Equity 2,005,981 1,905,348
Total Liabilities and
Stockholders' Equity $ 8,892,039 $ 8,552,911
=========== ===========
</TABLE>
The accompanying notes to these consolidated financial statements
are an integral part hereof.
<PAGE>
<TABLE>
HELP AT HOME, INC.
Consolidated Statements of Income
(Unaudited)
Three Months Ended September 30
1998 1997
<S> <C> <C>
Service fees $ 6,659,133 $ 5,394,001
Direct costs of services 4,554,330 3,813,683
----------- -----------
Gross margin 2,104,803 1,580,318
Selling, general and
administrative expenses 1,966,929 1,928,266
----------- -----------
Income (loss) from continuing
operations before income taxes 137,874 (347,948)
Income tax expense (benefit) 37,239 (112,853)
----------- -----------
Income (loss) from continuing
operations 100,635 (235,095)
Discontinued operations:
Income from operations of
Medicare agencies (less
applicable income tax
expense of $9,560 in
1997) - 20,315
----------- -----------
Net Income (loss) $ 100,635 $ (214,780)
=========== ===========
Basic and Diluted Income (Loss)
Per Share:
Income (loss) from continuing
operations $ .05 $ (.12)
Income from discontinued
operations - .01
----------- -----------
Net Income (loss) per share $ .05 $ (.11)
=========== ===========
Weighted average number of
common shares 1,869,375 1,869,375
</TABLE>
The accompanying notes to these consolidated financial statements
are an integral part hereof.
<PAGE>
<TABLE>
HELP AT HOME, INC.
Statement of Consolidated Cash Flows
(Unaudited)
Three Months Ended September 30
1998 1997
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 100,635 $ (214,780)
Noncash changes in net loss
Depreciation 24,476 36,207
Amortization - 34,076
Deferred income taxes (25,331) (80,202)
Changes in:
Accounts receivable (94,000) (564,513)
Prepaid expenses and other 29,413 (84,575)
Accounts payable 32,734 115,376
Other current liabilities 238,547 197,615
Due to third party payors - 125,000
Current income taxes 62,570 (34,510)
----------- ----------
Net cash provided by (used in)
operating activities 369,044 (470,306)
Cash flows from investing activities:
Acquisition of property (20,576) (27,387)
(Increase) in shareholder loan (3,031) (3,410)
----------- ----------
Net cash used in investing activities (23,607) (30,797)
Cash flows from financing activities:
Proceeds from long-term debt - 100,000
Repayment of long-term debt (3,931) (16,519)
----------- -----------
Net cash (used in) provided by
financing activities (3,931) 83,481
----------- -----------
Net increase (decrease) in cash and
cash equivalents 341,506 (417,622)
Cash and cash equivalents:
Beginning of period 412,012 870,634
----------- ----------
End of period $ 753,518 $ 453,012
=========== ==========
Supplemental disclosure of noncash investing
and financing activities:
Cash payments for:
Interest $ 172,603 $ 12,199
Income taxes - 11,400
</TABLE>
The accompanying notes to these financial statements are an
integral part hereof.
<PAGE>
HELP AT HOME, INC.
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Basis of Presentation
These unaudited Consolidated Financial Statements should be read in
conjunction with the Consolidated Financial Statements and Notes
thereto included in Help at Home, Inc.'s (the Company) annual Report
on Form-KSB for the fiscal year ended June 30, 1998 (1998 Form 10-
KSB). The following Notes to the Unaudited Consolidated Financial
Statements highlight significant changes to the Notes included in the
1998 Form 10-KSB and such interim disclosures as required by the
Securities and Exchange Commission. Certain financial information
that is normally included in annual financial statements prepared in
accordance with generally accepted accounting principles but is not
required for interim reporting purposes has been omitted. The
accompanying unaudited Consolidated Financial Statements reflect, in
the opinion of management, all adjustments necessary for a fair
presentation of the interim financial statements. All such
adjustments are of a normal and recurring nature. The financial
results for interim periods may not be indicative of financial results
for the full year.
Note 2: Debt
Effective December 30, 1997, the Company entered into a one-year
revolving credit agreement with Harris Trust and Savings Bank (Harris
Bank), Chicago, IL. The credit facility, collateralized by the
entirety of the Company's accounts receivable together with the
capital stock of the Company's subsidiaries (other than Homemakers of
Montgomery, Inc.) had a maximum allowable loan limit of $3.5 Million
or 75% of eligible accounts receivable, whichever was less. An October
1998 transaction through which the Company sold certain assets of
Homemakers of Montgomery, Inc. for $350,000 operated to reduce the
maximum allowable loan limit to $3,150,000. The Company utilized 100%
of the proceeds of the Homemakers of Montgomery transaction to reduce
its indebtedness under the credit facility as of October 9, 1998.
Pursuant to the terms of the credit facility, the Company must, during
the life of the loan maintain defined tangible net worth of at least
$2,265,000 and a defined current ratio of no less than 1.25:1. As of
June 30, 1998 the Company was in technical default relative to
maintenance of both financial ratios. The Company's lender declined to
waive the technical defaults, but agreed to a standstill agreement
through November 30, 1998. As of September 30, 1998 the Company
remained in technical default with a (defined) current ratio of 1.24:1
and tangible net worth of approximately $2,006,000. The Company is
continuing to work toward finalization of a replacement credit
facility.
Note 3: Commitments and Contingencies
Litigation. The Company has been named in several legal proceedings
in connection with matters that arose during the normal course of its
business and related to certain acquisitions. While the ultimate
result of the litigation or claims cannot be determined, it is
management's opinion, based upon information it presently possesses,
that it has adequately provided for losses that may be incurred
related to these claims.
<PAGE>
Termination and Benefits Agreements. As of October, 1997 the
Company's Compensation Committee established a termination and
benefits policy with respect to key executive employees which provides
for payment of severance and benefits to promote adherence to the
Company's non-competition policies in the event of involuntary
termination without cause and/or a change in control. As of March 1,
1998 the Company entered into employment agreements with the Chief
Operating and Chief Financial Officers. In the event of a change in
control the maximum aggregate salary commitment for these employees
would be approximately $900,000.
As of December 5, 1997 the Compensation Committee also approved a
revised ten-year contract for the Chief Executive Officer which
provides for severance and a one-time change of control payment in the
event of involuntary termination without cause or termination arising
from a change in the ownership and/or management of the Company.
Assuming an effective date of December 1, 1998, the maximum aggregate
severance commitment pursuant to this contract provision is
approximately $2.5 Million. The change of control payment is defined
as an amount equal to 10% of excess market capitalization of the
Company on the 30th day following the change in control. Excess market
capitalization is defined as an amount equal to the Company's
outstanding capital stock multiplied by the closing per share price on
the 30th day following the change less $6 Million.
Note 4: Earnings Per Share.
Earnings per share have been determined by dividing earnings by the
weighted average number of shares of Common Stock outstanding during
each period.
<PAGE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
OVERVIEW:
Help at Home, Inc. (The "Company") provides general homemaker and
respite services to the elderly, medically fragile and disabled in
their homes. The Company has engaged in the provision of unskilled
homemaker services for over two decades. Help at Home operates 35
locations in Illinois, Missouri, Indiana, Alabama, Arkansas and
Mississippi. The Company derives a significant portion of its
revenues from 20 contracts with the Illinois Department on Aging.
Similarly, the Company contracts with other state, regional and
municipal agencies for the provision of custodial home care services.
The Company's Board of Directors elected to discontinue Medicare home
health operations and adopted a disposition plan as of June 30, 1998
which calls for the sale or closure of the Company's Medicare home
health agencies (Homemakers of Montgomery, Inc., Lakeside Home Health
Agency, Inc. [IL], Lakeside Home Health Agency, Inc. [MO], and
Rosewood Home Health, Inc. In connection with the Company's decision
to discontinue Medicare home health services, Lakeside Home Health
Agency, Inc. (IL) ceased operations as of August 31, 1998. Certain
assets of Homemakers of Montgomery, Inc. were sold as of October 9,
1998 and that entity's patients were simultaneously transferred to a
non-affiliated provider. Rosewood Home Health, Inc. was closed as of
October 30, 1998 and its patients transferred to another non-
affiliated provider.
The statements which are not historical facts contained in this form
10-QSB are forward looking statements that involve risks and
uncertainties, including, but not limited to, the integration of new
acquisitions into the operations of the Company, the ability of the
Company to locate attractive acquisition candidates, the effect of
economic conditions and interest rates, general labor costs, the
impact and pricing of competitive services, regulatory changes and
conditions, the results of financing efforts, the actual closing of
contemplated transactions and agreements, the effect of the Company's
accounting policies, and other risks detailed in the Company's
Securities and Exchange Commission filings. No asurance can be given
that the actual results of operations and financial condition will
conform to the forward-looking statements contained herein.
This report covers the Company's operations for the first quarter of
its 1999 fiscal year which will end on June 30, 1999. References
herein to the first quarter of 1999 are specifically intended to
relate to the quarter ended September 30, 1998, while references to
the first quarter of 1998 are specifically intended to relate to the
quarter ended September 30, 1997.
<PAGE>
THREE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1997:
Reportable Segments: In keeping with the adoption of SFAS No. 131,
"Disclosures about Segments of an Enterprise and Related Information",
the Company has identified reportable segments based on geographic
areas (states). Revenues in all four segments are derived from the
provision of unskilled homemaker/respite services. In addition to the
disclosures made elsewhere herein, the following table presents a
quarter to quarter comparison (in thousands) of the Company's
segments:
<TABLE>
Alabama Illinois Missouri Mississippi Total
1998 1997 1998 1997 1998 1997 1998 1997 1998 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues $ 884 $ 968 $4,576 $3,629 $ 311 $ 193 $ 888 $ 605 $6,659 $5,394
Direct
Costs 665 870 3,062 2,426 182 121 645 397 4,554 3,814
----- ----- ------ ------ ----- ----- ----- ----- ------ ------
Gross
Margin 219 98 1,514 1,203 129 72 243 207 2,105 1,581
Operating
Expenses 137 235 801 734 112 54 282 266 1,332 1,289
----- ----- ------ ------ ----- ----- ----- ----- ------ ------
Operating
income
(loss) 82 (137) 713 469 17 18 (39) (58) 773 292
Discontinued
Operations:
Gain (loss)
from ops 48 (12) (7) 29
----- ----- ------ ------ ----- ----- ----- ----- ------ ------
Net Gain
(loss) $ 82 $ (89) $ 713 $ 457 $ 17 $ 11 $ (39) $ (58) $ 773 $ 321
===== ===== ====== ====== ===== ===== ===== ===== ====== ======
Total
Assets $1,436 $3,250 $3,444 $3,760 $1,568 $ 115 $1,316 $1,552 $7,764 $8,677
====== ====== ====== ====== ====== ==== ====== ===== ====== ======
</TABLE>
Reconciliation of segments' operating income to the consolidated net gain
(loss) is as follows:
1998 1997
Segments' operating income $ 773 $ 321
Less:
Income tax expense 37 (103)
Corporate overhead expense 635 639
------ ------
Net income (loss) $ 101 $ (215)
====== ======
<PAGE>
Reconciliation of segments' total assets to consolidated net assets is
as follows:
Segments Total Assets $7,764 $8,677
Corporate/support entities' total assets 1,128 1,162
------ ------
Total Assets $8,892 $9,839
====== ======
Client Service Revenue: Revenues derived from services to the Company's clients
for the three months ended September 30, 1998 grew to approximately $6.7 Million
reflecting an increase of $1.3 Million or 24% over the first quarter of fiscal
1998.
Approximately $5.8 Million, or 88%, of the Company's revenues for the first
quarter of 1999 were derived from contracts pursuant to which the Company
provides custodial services to clients in their homes. For the same quarter of
fiscal 1998, contract services represented $4.7 Million or 86% of total
revenues. Approximately $837,000, or 12%, of the Company's first quarter 1999
revenue was derived from commercial payors, institutional staffing arrangements,
and private pay arrangements as compared to $742,000 or 13% for the same quarter
of 1998.
A comparison of the first quarter of fiscal 1999 as contrasted to the same
period in fiscal 1998, by state, shows the greatest revenue growth ($948,000 or
26%) in Illinois, followed by Mississippi ($283,012 or 47%) and Missouri
($118,274 or 61%). Alabama revenues declined by $84,000 or 9% from 1998 to 1999
due to the Company's decision to consolidate offices and/or de-emphasize
services in certain rural markets.
Approximately 64% ($803,000)of the fiscal 1999 growth in revenue was derived
from services provided to clients of the Illinois Department on Aging ("IDOA").
Services to IDOA client amounted to 60% of consolidated revenues for both
quarters. The Company realized, as of July 1, 1998, a 9.5% rate increase for
all services provided to IDOA clients.
Direct Costs of Providing Services: Direct costs of providing services to
clients, comprised entirely of wages and related expenses paid to field staff
members, were $4,554,000 (68% of revenues) for the three months ended September
30, 1998 versus $3,814,000 (71% of revenues)for the same quarter one year
earlier. The increase of $741,000 (19%) is attributable entirely to the increase
in service volume during the quarter. A comparison of direct costs by segment
shows that, as a percentage of revenues, Illinois direct costs remained
unchanged at 67% for both quarterly periods. Alabama direct costs were 75% for
the 1999 quarter compared to 90% for the corresponding quarter in 1998. The 15%
improvement in performance is the direct result of the Company's imposition of a
wage limit for field workers employed in that state. Missouri direct costs were
59% of revenues for the quarter ended September 30, 1998 versus 63% of revenues
for the same quarter one year earlier with the improvement attributable to
contract rate increases for services to clients of the Missouri Department on
Aging. Mississippi direct costs were 73% of revenues for the 1999 quarter
versus 66% for the same quarter in fiscal 1998. The 7% increase is attributable
to higher wage rates for new Mississippi Medicaid Waiver business acquired by
the Company in the fall of 1998.
<PAGE>
The gross margin on services grew by $524,000 in 1999 and reached $2.1 Million
as compared to $1.6 Million for the same quarter in fiscal 1998. Gross margin
contributions by state include $1,514,000 for Illinois (compared to $1,203,000
for the same quarter last year), $219,000 for Alabama (as compared to $98,000
for the same quarter last year), $129,000 for Missouri (as compared to $72,000
for the same quarter last year) and $243,000 for Mississippi (as compared to
$207,000 for the same quarter last year).
Selling, General and Administrative Expense: Overall selling, general and
administrative expenses grew by $39,000 for the first quarter of 1999 moving
from $1,928,000 in 1998 to $1,967,000. In general, the entirety of the increase
is related to increased service volume in the Company's Illinois locations
($125,000) which was offset by an $86,000 expense reduction in all other
entities combined. Expense reductions were the result of a cost
containment/expense reduction campaign begun in the third quarter of fiscal
1998.
Selling, general and administrative expense for the first quarter of fiscal 1999
represented 30% of revenues as compared to 36% of revenues for the same quarter
in fiscal 1998. The proportionate improvement enabled a pre-tax income
contribution of $138,000 versus a pre-tax loss of $318,000 for the same quarter
last year.
Administrative salaries and benefits decreased by $20,000 for the quarter to
$983,000 versus $1,003,000 for the same period one year earlier. The decrease
is attributable to corporate support staff expense reductions. Professional fees
and insurance expenses grew by $15,000 to $152,000 during the quarter with the
entirety of the increase attributable to higher insurance premiums due to
expansion. Occupancy expenses increased from $391,000 to $417,000 with the
entirety of the increase due to new locations in Arkansas, Kansas City and St.
Joseph, Missouri. Travel and entertainment expenses were reduced by $31,000
during the first quarter of 1998, moving from $90,000 to 59,000, with the
entirety of the decrease attributable to savings in corporate travel expenses.
Bad debt expenses increased by $21,000 from $79,000 to 100,000 due entirely to
service volume increases which form the basis for calculation of bad debt
expense reserves. Depreciation and amortization expense decreased by $33,000 to
$21,000 for the quarter largely as a result of the write-off of the Oxford
companies' goodwill as of June 30, 1998.
With respect to the Company's identified segments, Illinois operations
experienced a $66,000 increase in overall operating expenses which grew from
$734,000 to $800,000 quarter to quarter. The entirety of the growth is due to
expansion in new markets plus service volume growth in established locations.
Alabama operating expenses decreased by $99,000 from 1998 to 1999 due to the
imposition of cost cutting measures in virtually all of the Alabama offices
during the third quarter of fiscal 1998. Missouri operating expenses
essentially doubled ($53,000 in 1998 growing to $113,000) in the first quarter
of 1999 compared to the same quarter in 1998 due to the addition of two new
offices in Kansas City and St. Joseph. Mississippi operating expenses increased
by $16,000 to $282,000 during 1999 reflecting staff additions relative to the
Mississippi Medicaid Waiver Program.
Earnings: Net income of $101,000 in the first quarter of 1999 compares to a net
loss of $215,000 for the same quarter last year. Earnings per share of common
stock were $.05 and $(.11) for the quarters, respectively. The EPS calculation
is based on the computational guidelines for earnings per share information
contained in the FASB Statement of Financial Accounting Standards No. 128,
"Earning Per Share." The Company has 1,710,000 Warrants outstanding as a result
of its initial public offering.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES:
The Company's basic cash requirements are for operating expenses, generally
comprised of labor, occupancy and administrative costs. The Company relied in
1998 on approximately $1.9 Million of new borrowings under its existing credit
facility to augment cash flow from operations for business expansion. The
Company's secured debt obligations total approximately $2.9 Million as of
September 30, 1998. Total long-term debt as of September 30, 1997 totaled
approximately $1.5 Million. Total working capital stood at $1.6 Million as of
September 30, 1998 versus $2.6 Million as of the same date in 1997.
The Company, as of September 30, 1998, was in technical default relative to two
financial ratios enumerated in the loan agreement for its secured bank debt of
$2.9 Million. At September 30, 1998 the loan agreement required that the
Company's current ratio be maintained at a level of 1.25:1 and tangible net
worth equal at least $2,625,000. As of September 30, 1998, the current ratio
(as defined in the loan agreement) was 1.22:1 and tangible net worth stood at
$2.0 Million. The Company's lender has declined to waive the technical defaults
as noted, but has agreed to a standstill agreement effective through November
30, 1998. The Company, in the meantime, is working to obtain replacement
financing while continuing to work with its existing lender to ensure adequate
time to close a transaction with a new lender. The Company has also taken steps
to reduce its outstanding indebtedness by applying the entirety of the proceeds
received as a result of the sale of certain assets of Homemakers of Montgomery,
Inc. to a reduction of its loan principal ($350,000). Outstanding indebtedness
as of November 11, 1998 stood at approximately $2.5 Million. The Company
believes that it will be successful in closing a replacement credit facility by
November 30; however, there can be no assurance as to what action its current
lender will take in the event an alternate financing arrangement is not obtained
as of the expiration of the standstill agreement.
Cash provided by operations in 1999 was $396,000 versus and compares to an
operational cash deficit of $(470,000) for the same quarter in fiscal 1998.
The Company had approximately $750,000 of cash on hand as of September 30, 1998
as contrasted to $450,000 of cash on hand at September 30, 1997. Based on the
Company's operating projections, cash flows from established operations should
be sufficient to fund existing business locations during the remainder of the
fiscal year. Proceeds realized from future sales of discontinued operations may
be used to augment operating cash flows and bolster the Company's overall cash
position.
The Company presently has 1,638,750 Warrants outstanding with an exercise price
of $6.00. The Warrants can be exercised at any time prior to December 5, 2000
and can be called anytime after December 5, 1996 provided the closing price of
the Company's Common Stock is equal to or greater than $9.00 for ten consecutive
days. The Company could realize a maximum of approximately $9.8 Million from
the exercise of its Warrants. There can be no assurance, however, that the
closing price of the Company's common stock will reach a level sufficient to
precipitate exercise of the Warrants. As of the close of business November 12,
1998, the closing price of the Common Stock on the NASDAQ Stock Market was
$1.53.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any legal proceedings which it believes may have a
materially adverse effect on the Company's financial condition or results of
operations.
<PAGE>
ITEM 2. CHANGES IN THE RIGHTS OF THE COMPANY'S SECURITY HOLDERS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
None.
<PAGE>
SIGNATURES
pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HELP AT HOME, INC.
Registrant
Date: November 12, 1998 /s/ Louis Goldstein
Louis Goldstein
Chairman/CEO
Date: November 12, 1998 /s/ Sharon S. Harder
Sharon S. Harder
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> 753518
<SECURITIES> 0
<RECEIVABLES> 6883224
<ALLOWANCES> 665000
<INVENTORY> 0
<CURRENT-ASSETS> 8467262
<PP&E> 199803
<DEPRECIATION> 24476
<TOTAL-ASSETS> 8892039
<CURRENT-LIABILITIES> 6710752
<BONDS> 0
0
0
<COMMON> 37388
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8892039
<SALES> 6659133
<TOTAL-REVENUES> 6659133
<CGS> 4554330
<TOTAL-COSTS> 1966929
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 137874
<INCOME-TAX> 37239
<INCOME-CONTINUING> 100635
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 100635
<EPS-BASIC> .05
<EPS-DILUTED> .05
</TABLE>
