SOURCE: Oncologix Tech, Inc

January 16, 2015 09:26 ET

Oncologix Tech, Inc. Announces 1st Quarter Fiscal 2015 Financial Results Showing, New Business, Solid Revenue Growth and Continued Financial Improvements

LAFAYETTE, LA--(Marketwired - Jan 16, 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 financial results for its first quarter of fiscal 2015 ending November 30, 2014.

Financial Highlights over the past 12 months

  • Revenues for the first quarter 2015 were $1,161,874, up 60.3% from $724,632 for the comparable period in fiscal 2014.
  • Gross margins for the first quarter fiscal 2015 were $300,843, up 30.7% from $230,077 for the comparable period in fiscal 2014.
  • General and administrative expenses for the first quarter fiscal 2015 were $454,323, up from $277,360 in fiscal 2014. This was due primarily to general and administrative expenses from our acquisition of Esteemcare.
  • During the past twelve months, we have repaid over $1,515,000 of company debt and financing agreements.
  • Cash provided by financing activities was $817,600 for the first quarter fiscal 2015, up from $86,586 for the comparable period in fiscal 2014.
                         
                      Forecast  
  Q1 2014   Q2 2014   Q3 2014   Q4 2014   Q1 2015   Q2 2015  
                                     
Revenues $ 724,632   $ 983,758   $ 988,385   $ 974,575   $ 1,161,974   $ 1,309,842  
                                     
Cost of revenues   494,555     748,596     788,757     816,277     861,031     899,665  
                                     
  Gross profit   230,077     235,162     199,628     158,298     300,943     410,177  
  Gross profit %   31.75 %   23.90 %   20.20 %   16.24 %   25.90 %   31.31 %
                                     
Operating expenses:                                    
  General and administrative   277,360     482,383     276,950     310,098     454,323     383,029  
  Research and development expense   -     -     -     30,000     10,000     10,000  
  Depreciation and amortization   5,452     6,040     5,664     5,664     4,645     4,645  
                                     
  Total operating expenses   282,812     488,423     282,614     345,762     468,968     397,674  
                                       
  Loss before interest and taxes   (52,735 )   (253,261 )   (82,986 )   (187,464 )   (168,025 )   12,503  
                                       
  Gen and Admin. As % of Sales   38.28 %   49.03 %   28.02 %   31.82 %   39.10 %   29.24 %
                                       

Wayne Erwin, CEO of Oncologix, stated, "We are pleased to announce highlights of our first quarter fiscal 2015." Erwin also commented, "We continue to execute our strategy to focuses on strategic acquisitions and debt reduction, both of which significantly 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 physician referral sources for annual projected revenues of $140,000.00
    • Revamped staffing and consolidated positional responsibilities to position the company for expansion in to new markets.
    • Expanded respiratory therapy services into3 new markets
  • Acquired Amian Health Services December 2013 - $1.1 million in annual revenues
  • Continued reduction in non-essential FTE employees.
  • Continuing with final product redesign for Dotolo Research Toxygen-II hardware system and new disposable speculum products
  • Executed a $4.0 million line of credit facility with TCA Global Fund
  • Repaid $107,500 of convertible debt between October through December 2014 from operating capital preventing approximately 40 million shares from being sold into the market.

Erwin also noted, "We are on track to close on a potential acquisition within the next 45 days with an additional durable medical equipment company with annual revenues of approximately $9.8 million generating over $2.2 million in positive EBITDA. With our continued acquisition and growth strategy, we strive to grow our annualized revenues to $35 million by year-end 2015 with positive EBITDA exceeding $3.6 million. Our stock price does not accurately reflect the success of our operating activities and 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."

About Oncologix Tech
Oncologix is a fully reporting, diversified medical holding company that operates and manufactures Class II medical device products, delivers Personal Healthcare Services, and Home Medical and Durable Medical products nationally. For its clients, Oncologix provides FDA approved medical devices, state licensed healthcare services and medical product distribution. For its shareholders, Oncologix operates profitable operating divisions that build, maintain and nourish shareholder value. The Company's corporate mission is to be the best small cap healthcare services holding company in North America.

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. The Company's expectations, among other things, are dependent upon economic conditions, continued demand for its products, the availability of raw materials, retention of its key management and operating personnel, its ability to operate its subsidiary companies effectively, need for and availability of more capital as well as other uncontrollable or unknown factors which are more fully disclosed in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • CONTACT INFORMATION
    Wayne Erwin
    Chairman and CEO
    Email Contact
    (318) 451-9543

    INVESTOR RELATIONS
    Green Arrow Consulting LLC
    (850) 733-9181