WellQuest Announces Record Revenues in Second Quarter of 2009
* Reuters is not responsible for the content in this press release.
* Revenue Growth Driven by Record Number of Client Visits to Medical Clinic
* Second Consecutive Quarter of Record Revenues
BENTONVILLE, Ark.--(Business Wire)--
WellQuest Medical & Wellness Corporation (the "Company" or "WellQuest")
(OTCBB:WEQL), announced revenues of $940,121 in the three months ended June 30,
2009, a new record for the Company, exceeding Q1 2009`s record of $930,336.
Revenues in the second quarter of 2009 increased $160,461, or 21% over 2008
first quarter revenues of $779,660.
"Our financial results, specifically record revenues and operating income, are
evidence that our business model continues to gain traction with our target
market. We look forward to replicating the success of our Bentonville flagship
location at future sites," stated WellQuest CEO Steve Swift.
Revenue growth was driven by increased demand for medical clinic services as
evidenced in a 30% rise in medical clinic visits from 6,435 visits in the second
quarter of 2008 to 8,384 visits in the second quarter of 2009.
The Company reported operating income of $14,085 in the second quarter of 2009
compared to an operating loss of $(447,315) in the second quarter of the prior
year. Results were driven by increased revenues and lower operating expenses in
the second quarter of the current fiscal year as compared to Q2 of fiscal 2008.
Operating expenses were lower in Q2 of 2009 as compared to the prior year`s
second quarter due to legal and corporate expenses associated with WellQuest
becoming public.
Net loss for the second quarter of 2009 was $(49,848) or $(0.002) per share,
compared to a net loss of $(513,959) or $(0.022) per share in the second quarter
of 2008. Net income results were driven by a combination of increased revenues
and lower corporate and legal expenses in the second quarter of the current
fiscal year.
For the six month period ended June 30, 2009, revenues grew 15% to $1,870,457 as
compared to $1,631,206 in the six months ended June 30, 2008. Revenue growth is
attributed to increased demand for medical clinic services which grew by 19%
from 13,876 client visits in the six months ended June 30, 2008 as compared to
16,550 visits in the six months ended June 30, 2009.
Operating loss was $(32,495) in the six months ended June 30, 2009 compared to
an operating loss of $(342,238) in the prior year`s period. Net loss decreased
in the six months of fiscal 2009 by $328,107 or 69% to $(150,352) from
$(478,459) in the six months ended June 30, 2008. Operating and net income
results were driven by increased revenues and decreased operating expenses in
the 2009 period as compared to 2008.
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 locations across the U.S.
In addition to historical information, this press release may contain statements
that constitute forward-looking statements within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements contained
in this press release include the intent, belief or expectations of the Company
and members of its management team with respect to the Company's future business
operations and the assumptions upon which such statements are based. Prospective
investors are cautioned that any such forward-looking statements are not
guarantees of future performance, and involve risks and uncertainties, and that
actual results may differ materially from those contemplated by such
forward-looking statements.
WELLQUEST MEDICAL & WELLNESS CORPORATION
(formerly HQHealthQuest Medical & Wellness Centers, Ltd.)
Consolidated Balance Sheets
June 30 December 31
2009 2008
(Unaudited)
Assets
Current assets:
Cash $ 59,801 $ 103,265
Accounts receivable, less allowance of $189,190 and $235,348 at June 30, 2009 and December 31, 2008, respectively 235,342 293,363
Other current assets 57,837 50,737
Total current assets 352,980 447,365
Property and equipment, net 334,681 387,125
Deferred financing costs, net of accumulated amortization of $9,258 and $0 at June 30, 2009 and December 31, 2008, respectively 101,842 -
Total assets $ 789,503 $ 834,490
Liabilities and Stockholders' Deficit
Current liabilities:
Line of credit $ 185,000 $ 202,494
Accounts payable 209,859 293,312
Accrued liabilities 219,590 207,329
Due to physicians and related parties 526,816 545,823
Note payable to related party - 349,608
Current maturities of long-term debt 462,276 517,324
Current obligations under capital leases 25,942 23,902
Current maturities of subordinated debentures payable to stockholders, net of unamortized discount of $0 and $17,093 at June 30, 2009 and December 31, 2008, respectively 490,497 523,409
Total current liabilities 2,119,980 2,663,201
Long-term subordinated convertible debenture to a stockholder, less current maturities 443,123 -
Long-term obligations under capital leases, less current portion 105,144 118,646
Total liabilities 2,668,247 2,781,847
Stockholders' deficit:
Preferred stock - $.01 par value; authorized 2,500,000 shares 255 374
75,000 designated as Series A convertible preferred stock; 25,515 and 37,440 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively
Common stock - $.001 par value; authorized 150,000,000 shares; 29,010,167 and 23,716,361 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively 29,010 23,716
Additional paid-in capital 1,476,820 1,263,030
Warrants outstanding 177,000 177,000
Accumulated deficit (3,561,829 ) (3,411,477 )
(1,878,744 ) (1,947,357 )
Total liabilities and stockholders' deficit $ 789,503 $ 834,490
WELLQUEST MEDICAL & WELLNESS CORPORATION
(formerly HQHealthQuest Medical & Wellness Centers, Ltd.)
Consolidated Statements of Operations
For the three and six months ended June 30, 2009 and 2008
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Net revenue $ 940,121 $ 779,660 $ 1,870,457 $ 1,631,206
Operating expenses:
Salaries, wages and benefits 310,449 358,100 615,809 653,044
Rents and facility expenses 71,142 79,334 143,723 154,186
Clinic direct expenses, excluding salaries, wages and benefits 366,766 301,185 717,833 540,325
Spa direct expenses, excluding salaries, wages and benefits 78,916 77,615 156,353 135,465
General corporate expenses 69,620 383,499 211,496 436,127
Depreciation and amortization 29,143 27,242 57,738 54,297
Total operating expenses 926,036 1,226,975 1,902,952 1,973,444
Operating income (loss) 14,085 (447,315 ) (32,495 ) (342,238 )
Interest income (expense):
Interest income - 530 - 3,232
Interest expense (63,933 ) (67,174 ) (117,857 ) (139,453 )
Net interest expense (63,933 ) (66,644 ) (117,857 ) (136,221 )
Net loss applicable to common stock $ (49,848 ) $ (513,959 ) $ (150,352 ) $ (478,459 )
Loss per common share:
Basic and diluted $ (0.002 ) $ (0.022 ) $ (0.006 ) $ (0.021 )
Weighted average number of common shares outstanding:
Basic and diluted 25,177,933 23,239,394 24,451,185 23,239,394
For WellQuest Medical & Wellness Corporation
Investor and Media Contact:
Dilek Mir, 310-591-5619
dmir@corporateprofile.com
Copyright Business Wire 2009
http://www.businesswire.com/news/home/20090817005192/en
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.



Follow Reuters