LAFAYETTE, LA--(Marketwired - April 14, 2015) - Oncologix Tech Inc. (OTC PINK: OCLG), a fully reporting, diversified medical holding company with operating divisions in medical devices, healthcare services and durable medical product sales and distribution, announced its financial results for the three and six months ending February 28, 2015 ("fiscal 2015") and February 28, 2014 ("fiscal 2014").
Financial Highlights over the past 6 months
- Revenues for the three and six months ending February 28, 2015 were $1,227,877 and 2,389,751, respectively, up 74% from $983,758 and 1,708,391 for the comparable periods in fiscal 2014.
- Gross margins for the three and six months ending February 28, 2015 were $323,580 and 624,424, respectively, up 98% from $235,162 and 465,239 for the comparable periods in fiscal 2014.
- General and administrative expenses for the three months ended February 28, 2015 were $459,826, down 5% from $482,383 in fiscal 2014. The decrease was due to the effect of our operational synergies and cost cutting measures at both Amian Health and Esteemcare Inc.
- General and administrative expenses for the six months ended February 28, 2015 were $913,754, up from $759,744 in fiscal 2014. The increase is due primarily to additional general and administrative expenses from the acquisition of Esteemcare.
- During the past six months, we have repaid over $1,200,000 of company debt and prior financing agreements.
- Cash received by financing activities was $936,456 for the six months ended February 28, 2015, up from $479,779 for the comparable period in fiscal 2014.
Q2 2014 Q3 2014 Q4 2014
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Revenues $ 983,758 $ 988,385 $ 974,575
Cost of revenues 748,596 788,757 816,277
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Gross profit 235,162 199,628 158,298
Gross profit % 23.90% 20.20% 16.24%
Operating expenses:
General and administrative 482,383 276,950 310,098
Research and development
expense - - 30,000
Depreciation and amortization 6,040 5,664 5,664
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Total operating expenses 488,423 282,614 345,762
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Loss before interest and taxes (253,261) (82,986) (187,464)
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Gen and Admin. As % of Sales 49.03% 28.02% 31.82%
Forecast
Q1 2015 Q2 2015 Q3 2015
------------- ------------- -------------
Revenues $ 1,161,974 $ 1,227,877 $ 1,289,271
Cost of revenues 861,031 904,297 922,383
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Gross profit 300,943 323,580 366,888
Gross profit % 25.90% 26.35% 28.46%
Operating expenses:
General and administrative 454,323 459,826 464,424
Research and development
expense 10,000 - -
Depreciation and amortization 4,645 4,688 4,688
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Total operating expenses 468,968 464,514 469,112
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Loss before interest and taxes (168,025) (140,934) (102,224)
============= ============= =============
Gen and Admin. As % of Sales 39.10% 37.45% 36.02%
Wayne Erwin, CEO of Oncologix, stated, "We are pleased with the results of our second quarter fiscal 2015." Erwin also commented, "We continue to execute our strategy to focuses on strategic acquisitions and debt reduction, both of which continue to increase Oncologix's market value."
Key Company Activities over the past 12 Months
- Acquisition of Esteemcare Inc. effective September 2014 -- $1.7 million in annual revenues
- Obtained 10 new respiratory physician referral sources for increased annual revenues of $140,000.00
- Revamped staffing and consolidated positional responsibilities in both Amian Health and Esteemcare Inc to position the company for expansion in to new markets.
- Opened an additional office in South Carolina to expand respiratory therapy services into 3 MSA new markets
- Acquired Amian Health Services December 2013 -- $1.1 million in annual revenues
- Bench-Testing completed with final product redesign for Dotolo Research Toxygen-II hardware system and new disposable speculum products
- Repayment of over $165,000 of convertible debt between October thru February 2015 from operating capital preventing approximately 65 million shares from being sold into the market.
Erwin also noted, "We continue to work very closely with our lender on final due diligence and underwriting to close on a potential acquisition with an additional durable medical equipment company with annual revenues of approximately $9.8 million generating over $2.2 million in positive EBITDA. Although this has been a lengthy process, we are confident in our ability to move forward with the acquisition and also execute upon our continued acquisition and growth strategy to grow our annualized revenues to $25 million by year-end 2015 with positive EBITDA exceeding $2.6 million. Our stock price does not accurately reflect the hard work and success of our operating activities and it remains severely undervalued. With our continued execution on our acquisition and growth plan, we are confident that our stock value will rise in the coming year to its true, fair market values."
Reader Advisory
The proposed completion of the acquisition is subject to a number of conditions, including but not limited to, Board of Directors acceptance, financial due diligence, underwriting for capital lending and the company cannot close any transaction until the required approvals are obtained. There can be no assurance that this acquisition will be completed as proposed or at all.
This press release may contain forward-looking statements, made in reliance upon Section 21D of the Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to timing and completion of the due diligence relating to the Acquisition, the entering into of the Formal Agreement and the completion of the conditions precedent to the Acquisition. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in the United States and globally; industry conditions, including favorable results in the medical products competitive bid process, governmental regulation of medical reimbursements; unanticipated operating events or performance which can reduce product sales and distribution; failure to obtain industry partner and other third party consents and approvals, and the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; incorrect assessments of the value of acquisition; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
About Oncologix Tech
Oncologix is a diversified medical holding company that operates and manufactures Class II medical device products, delivers Personal Health Care Services, and sells and distributes Durable and Home Medical Equipment. For its clients, Oncologix provides FDA approved medical devices, state licensed healthcare services, and medical products and technologies. For its shareholders, Oncologix operates profitable divisions that build, maintain and nourish all shareholder value. The Company's corporate mission is to be the best small cap medical holding company in North America.
CONTACT INFORMATION
Wayne Erwin
Chairman and CEO
INVESTOR RELATIONS
Synergy Business Consultants, LLC.
(888) 259-9173
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