February 19, 1998
ComTech Consolidation Group, Inc. (OTCBB:CCGI)
10497 Town & Country Way, Ste. 460
Houston, TX 77024
Company Contact: Investor Relations Contact:
Richard A. Behlmann-President Ira Miller/Omar Sanchez
(713) 467-7281 (714) 833-9001
OTCBB:CCGI Fiscal Year: December 31
Revenues
1997 $ 825,254 (Unaudited) 1997 EPS: ($0.01) (Unaudited)
1998 $25,912,000 (Est.) 1998 EPS: $0.18 (Est.)
Shares in Public Float ---- 2,400,000 Shares Outstanding ---- 12,880,200
ComTech Consolidations Group, Inc., is a consolidation company that has identified and is actively consolidating businesses in two high growth industries: Internet communications and home health care.
1. 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 has also added enhanced services, such as, Internet videoconferencing, network security and Internet telephony. These enhanced services will be made available to acquired companies which will increase revenue and profit margins in addition to a reduction in costs. 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 acquisitions before year end, increasing their monthly subscriber base by 6,000 - 7,500 subscribers.
2. 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 16 are underway. Preliminary analysis indicates owners are highly receptive to the consolidation concept and significant economies of scale are available. By improving communications technology and centralizing overhead, it is estimated that operating costs can be reduced by 10-15%. ComTech will add over 445, 000 health visits in 1998, provided all pending acquisitions are completed
3. 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. |
