Company Press Release
SOURCE: ComTech Consolidation Group, Inc.
ComTech Consolidation Group, Inc. Announces Acquisition and
Updates Aggressive Revenue Growth Figures for 2nd Quarter '98
HOUSTON, June 9 /PRNewswire/ -- ComTech Consolidation Group, Inc. (OTC Bulletin Board: CCGI - news),
today announced that it has finalized the acquisition of One Step Forward Mortgage, Inc. (OSF), a Texas corporation
that is headquartered in Houston. The stock for stock transaction, effective April 1, 1998, was consummated by
ComTech issuing 250,000 shares of its restricted common stock to the OSF shareholders in exchange for their capital
stock in OSF. OSF is a facilitator company that specializes in arranging turn key financial assistance (including
bonding) and property management services, designed to meet the needs of health care providers throughout the Gulf
Coast Region.
ComTech stated that it expects OSF sales to reach over $11.0 million for the balance of this year, thereby increasing
ComTech's 1998 sales forecast from $10.0 million to $21.0 million, and increasing before tax earning from $1.8
million to $2.65 million. ComTech went on to state that it has updated its sales forecast for second quarter of 1998
from $1.7 million (see May 12, 1998 announcement) to $5.1 million, an increase of approximately 300%.
Mr. Roger R. Stewart, ComTech's CEO and Chairman, commented, ''Early last month when we announced that our
sales were on target to reach $1.7 million for the second quarter, that was prior to concluding the OSF acquisition.
Now that we have both OSF and Unique Dawning, Inc. (UDI Consortum) posting combined monthly sales of $1.62
million for April and $1.78 million for May, we have sound reason to believe that ComTech will post sales of $5.1
million for the second quarter with EBIT earnings around 13.5%, representing roughly $.03 a share in net earnings for
the quarter.''
Mr. Stewart went on to state, ''ComTech's business fundamentals have vastly improved during the second quarter,
with more contemplated for the third and fourth quarters of this year, during which OSF should continue to post
monthly sales between $1.2 million to $1.5 million, while UDI continues to build its sales from the $700 thousand a
month range to roughly $2.0 million by year end (including planned roll-ups transactions). Based on these
assumptions, our financial model indicates that CCGI should post net earnings between $.11 and $.15 per share for
1998.''
Mr. Lloyd P. Boussard, OSF's CEO, commented, ''OSF operations certainly appear to compliment ComTech and
UDI's roll-up activities, with the way the health care industry is headed. All growing care providers continually require
additional space, likewise they require additional bonding capacity, which is what OSF is able to provide.''
Mr. Winfred Fields, CEO and Chairman of UDI, also commented, ''With OSF now under the ComTech umbrella, it
certainly enhances our roll-up capabilities.''
Statements regarding financial matters in this 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, 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 that are subject to change at any time, the Company's actual results may differ materially
from expected results.
SOURCE: ComTech Consolidation Group, Inc. |
