SOURCE: WellQuest Medical Clinic & Spa

April 15, 2011 07:09 ET

WellQuest Announces Record Operating Income at Bentonville Site for Fiscal 2010

Achieves Consolidated Net Income of $62,372 in 3rd and 4th Quarters of 2010

BENTONVILLE, AR--(Marketwire - Apr 15, 2011) - WellQuest Medical & Wellness Corporation (the "Company" or "WellQuest") (PINKSHEETS: WEQL), reported record operating income of $558,328 from its Bentonville site for the fiscal year December 31, 2010. This marks an increase over operating income of $554,312 in fiscal 2009. The growth in operating income came on slightly reduced revenues of $3,673,604 offset by lower direct operating expenses, excluding intercompany charges, of $3,115,276 for the fiscal year ended December 31, 2010. This marks three consecutive years of growth in operating income for WellQuest operations.

As reported in the Company's 2010 annual filing, the Company's reduction in SEC related expenses beginning in the second quarter of 2010, along with reduction in interest and other operating expenses, allowed the Company to achieve positive consolidated net income of $62,372 in the 3rd and 4th quarters of 2010. This reduced the company's annual consolidated loss to $(81,069) for the fiscal year ended December 31, 2010, a 76% reduction from a consolidated loss of $(262,797) in 2009.

"The continued success of our Bentonville facility substantiates our goal to grow the WellQuest brand by replicating our model across the country. Our flagship location has been increasingly profitable for the past three years. This reflects our client's positive response to our customer focused concept: an upscale environment where clients receive excellent and convenient medical care integrated with wellness and preventative services, and advanced skin care and aesthetic services. This integration results in a comfortable and trusted location to meet a family's primary healthcare needs. Our approach to healthcare goes beyond just treating sickness, and we are finding more corporations who want this for their employees. Disease prevention, weight-loss, nutritional supplements and aesthetics address the broader spectrum of health concerns for more of today's families and health conscious businesses," stated WellQuest President Steve Swift.

WellQuest seeks to lead its customers in their personal "Quest for Wellness." The Company's aim is to make a positive difference in the health and lives of its staff, its clients and its community. In 2010, the Bentonville site had 39,705 total client visits with 80% of the visits from repeat customers and 20% of all visits being new clients.

WellQuest intends to replicate its positive integrative medical experience by opening branded WellQuest facilities in other metropolitan areas of the U.S. The Company believes families and businesses are seeking options in the U.S. where annual sick care costs exceed $2.5 trillion, approaching 17% of GDP, and yet our nation ranks below many other nations in health status. WellQuest is a relevant option toward treatment, prevention and wellness. The Company's business is aimed at the evolving healthcare market which includes a $500 billion physician services sector, an $86 billion nutraceutical sector, a $12 billion cosmeceutical sector, and a $12.8 billion spa/medical spa sector. These sectors have traditionally been segregated in their delivery of services and products. WellQuest brings them together in a way that meaningfully serves its customers.

About WellQuest Medical & Wellness Corporation
WellQuest offers its innovative concept in healthcare delivery by integrating conventional and complementary physician medicine with wellness, and aesthetic services in one center, creating an effective environment for the pursuit and maintenance of a healthy life. WellQuest's unique model for healthcare helps customers get well, stay well, and look well. Currently operating in Bentonville, Arkansas, WellQuest seeks to open additional locations in the U.S.

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its products and services in new markets and to offer healthcare services at competitive pricing, anticipated revenue from client visits; general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Consolidated Balance Sheets
December 31, 2010 and 2009
Current assets:
Accounts receivable, less allowances of $251,084 and $245,388 at December 31, 2010 and 2009, respectively181,018294,246
Other current assets58,63470,777
Total current assets251,063414,723
Property and equipment, net193,870279,967
Deferred financing costs, net of accumulated amortization of $64,808 and $27,775 at December 31, 2010 and 2009, respectively46,29283,325
Liabilities and Stockholders' Deficit
Current liabilities:
Line of credit$110,000$167,500
Accounts payable86,715309,778
Accrued liabilities234,152155,783
Due to physicians and related parties677,104598,230
Note payable to related party40,00040,000
Current maturities of long-term debt305,883408,920
Current obligations under capital leases33,16528,155
Current maturities of subordinated debentures payable to stockholders491,497493,497
Total current liabilities1,978,5162,201,863
Long-term obligations under capital leases, less current portion57,32790,492
Subordinated debentures payable to stockholders, less current maturities443,123443,123
Total liabilities2,478,9662,735,478
Stockholders' deficit:
Preferred stock - $.01 par value; authorized 2,500,000 shares; 75,000 shares designated as Series A convertible preferred stock; 25,515 shares issued and outstanding at December 31, 2010 and 2009255255
Common stock - $.001 par value; authorized 150,000,000 shares; 29,335,167 and 29,272,667 shares issued and outstanding at December 31, 2010 and 2009, respectively29,33529,273
Additional paid-in capital1,561,0121,510,283
Accumulated deficit(3,755,343)(3,674,274)
Total stockholders' deficit(1,987,741)(1,957,463)
Total liabilities and stockholders' deficit$491,225$778,015
Consolidated Statements of Operations
Years ended December 31, 2010 and 2009
Net revenues$3,673,604$3,823,994
Operating expenses:
Salaries, wages and benefits1,257,8401,247,574
Rents and facility expenses275,364287,131
Clinic direct expenses, excluding salaries, wages and benefits1,404,6261,527,040
Spa direct expenses, excluding salaries, wages and benefits282,420295,639
General corporate expenses246,161389,646
Depreciation and amortization97,754115,625
Total operating expenses3,564,1653,862,655
Operating income (loss)109,439(38,661)
Interest expense(190,508)(224,136)
Net loss$(81,069)$(262,797)
Loss per common share:
Basic and diluted$(0.003)$(0.010)
Weighted average number of common shares and dilutive common share equivalents outstanding:
Basic and diluted29,330,20126,867,425

Contact Information

  • Investor and Media Contact:
    Steve Swift
    Email Contact