SOURCE: Oncologix Tech, Inc.

Oncologix Tech, Inc.

July 21, 2015 09:35 ET

Oncologix Announces Third Quarter Results

YTD Revenues Increase 34%, Margins Increase 58% Over Comparable Periods, Debt Is Repaid

LAFAYETTE, LA--(Marketwired - Jul 21, 2015) - Oncologix Tech Inc. (OTC PINK: OCLG), a fully reporting, diversified medical holding company with operating divisions in Advanced Medical Products, Healthcare Services and Durable Medical product sales and distribution, announced its financial results for the three and nine months ending May 31, 2015 and May 31, 2014.

Financial Highlights over the past nine months

  • Revenues for the three and nine months ending May 31, 2015 were $1,235,656 and $3,625,407, respectively, up from $988,385 and $2,696,776, an increase of 25% and 34%, respectively, from the comparable periods in 2014.
  • Gross margins for the three and nine months ending May 31, 2015 were $350,060 and $996,610, respectively, up from $199,628 and $629,976, an improvement of 75% and 58%, respectively, from the comparable periods in 2014.
  • General and administrative expenses for the nine months ended May 31, 2015 were $1,379,769, up from $999,910 in fiscal 2014, an increase due to additional general and administrative expenses from the acquisition of Esteemcare.
  • During the past nine months, the Company has repaid over $1,470,000 of corporate debt. During the nine months ended May 31, 2015, OCLG raised $1,056,968 through various financing activities, up from $664,818, for the comparable period in 2014.

Wayne Erwin, CEO of Oncologix, stated, "We are very pleased with the results of our third quarter fiscal 2015. We increased our division sales revenues by organic growth and we will continue to focus on debt reduction over the next three (3) months."

Key Company Activities over the past 9 Months

  • Acquisition of Esteemcare Inc. effective September 2014 -- $1,700,000 in annual revenues.
    • Obtained ten (10) new respiratory physician referral sources for increased revenues of $180,000.
    • Revamped staffing and consolidated positional responsibilities in both Amian Health and Esteemcare to position these units for expansion into new markets.
  • Opened an additional office in South Carolina to expand respiratory therapy services into 3 new MSA markets.
  • Completed product development final "Bench-Testing" on the AMPT Toxygen II Hardware system.
  • Retired over $170,000 in convertible note debts between October 2014 thru May 2015, from operating capital preventing 65 million shares from being sold into the market.

Erwin also noted, "We had an extremely productive 3rd quarter with strong revenue growth and debt reductions and we are on track to close out our fiscal year with great results. We recognize that we have been delayed in closing on our acquisitions as previously announced and this has caused some to doubt our ability close on these acquisitions. It is important to note that we will not enter into poor financial arrangements with lenders or acquisition candidates that will not provide positive results for our operations regardless of outside demands. In particular, the delays encountered are due to our final diligence analysis and results, primarily on asset verifications, discounted operational cash flows, and lender expectations on the internal rate of return on capital provided. We continue to work closely with our lender to work through these issues and, although we don't have a specific time line to announce at this time, please know that we recognize the importance of growing our business revenues, the continued revenue growth of our business units organically, while at the same time reducing our company debt levels. This is not an easy task and often we are required to utilize our company equity to obtain the capital we require for operations. Although we have needed to do so, it is our primary intent to pay off these debt instruments prior to them becoming due whenever possible. With the continued improvement in our revenues, operating margins, along with our acquisition and growth plans, we are confident that our stock values will rise from its current, low levels. The Enterprise Values of the Company remains evident."

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.

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.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the company's actual results to differ materially from those indicated in the forward-looking statements.

Contact Information

    Wayne Erwin
    Chairman and CEO
    Email Contact

    Jack Eversull
    The Eversull Group, Inc.
    214-469-2361 fax
    Email Contact