ComTech Consolidation Group, Inc. Retains I.W. Miller & Co., Inc. For Financial Public Relations
HOUSTON, Feb. 23 /PRNewswire/ -- ComTech Consolidation Group, Inc., (OTC Bulletin Board: CCGI - news) announced today that it has retained the services of I.W. Miller & Co., Inc. to create and provide a financial public relations campaign.
A partial list of I.W. Miller & Co., Inc., client base includes: Westmark Group Holdings, Inc., (Nasdaq: WGHI - news), and Imaging Diagnostic Systems, Inc., (OTC Bulletin Board: IMDS - news), each possessing aggressive growth potential for 1998.
ComTech Consolidation Group, Inc., is a consolidation company that has identified acquisitions and is actively consolidating businesses in two high growth industries: Internet communications and home health care. ComTech acquired its first Internet company in August of 1997. Using this acquisition as their foundation, ComTech has streamlined operations and reduced operating costs. Estimates for consolidating additional companies under ComTech's centralized operations show costs reduced by 25% in newly acquired providers. ComTech is positioned for rapid growth and is pursuing an aggressive acquisition strategy to meet its earnings projections. The Company intends to complete at least three (3) acquisitions before year end. These three (3) acquisitions will add revenues of $3.0 million to CCGI in 1998. ComTech recently acquired, Professional Management Providers (PMP). PMP's core business is home health care consulting. PMP is aggressively seeking to acquire and consolidate home health agencies. Letters of Intent have been received from seven agencies and negotiations to acquire an additional sixteen (16) are underway. By improving communications technology and centralizing overhead, it is estimated that operating costs can be reduced by 10-15%. The additional sixteen (16) acquisitions will add revenues of $15.3 million to CCGI in 1998. ComTech will create annualized revenues of over $18 million in 1998, maintaining a 9.0% net after taxes (EPS $.10). This will be accomplished by acquiring three (3) additional Internet providers, and 23 home health agencies in the next 12 months.
Health Care: Total expenditures in the health care industry exceeded $1.2 trillion dollars in 1996. Approximately $36 billion of this was spent on home health care, one of the fastest growing segments of the industry. The home health industry is undergoing a massive restructuring which is being driven by Medicare/Medicaid. New regulations, increased scrutiny by inspectors and higher quality of care expectations are creating uncertainties for small operators and thereby creating opportunities for companies which offer solutions. Network Communications: Based on its size, ($750 billion), the fragmented structure of the provider base, (17,000+ Internet providers, 18,000 resellers/equipment vendors) and the projected growth of the user base, (1,000,000+ new users per month), the network communications industry is attractive to ComTech. The solid industry prospects added to the rapidly changing competitive landscape has created uncertainties encouraging consolidation and mergers between providers.
Financial statements in the press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward- looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. |
