PRESS RELEASE - FEBRUARY 19, 2013
Capital Group Holdings Reports $1,736,029 in Revenues for Quarter Ended December 31, 2012; OneHealth Urgent Care Reports 36% Increase in Revenues for the Same Period
SCOTTSDALE, AZ--(Marketwire - Feb 19, 2013) - Capital Group Holdings, Inc. (OTCBB: CGHC) announced its consolidated results of operations for the quarter ending December 31, 2012. The results include a 36% increase in revenue for the urgent care group (Alliance Urgent Care) over the same period when it was a private company in the previous year.
THREE MONTH PERIOD ENDED DECEMBER 31, 2012 COMPARED TO THE SAME THREE MONTH PERIOD INI 2011.
The Company had sales of $1,736,029 dollars vs. no sales in the same period a year earlier.
On a reporting basis the Company reported a net loss for the quarter of $695,858 which represents an increase of approximately $550,800 from the same quarter in 2011. The increase is primarily attributable to the increased ongoing professional fees needed for the Company's public filings, the acceleration of certain expenses associated with cancelled or amended contracts, increased operating expenses for our two new clinics whose revenues have not yet stabilized as well as expenses associated with the new initiatives regarding marketing for OneHealthPass™.
On a pro forma basis for the three months ended December 31, 2012, OneHealth Urgent Care is reporting its first full three month quarterly revenues which were $1,736,029, versus $1,278,604 for AUC for the same period last year before it was acquired. This represents an increase of $457,425 or 36%.
Operating income from OneHealth Urgent Care improved by approximately 10% of revenue. This is an increase of $125,302 for the second quarter ending December 31, 2012 over the same period last year for AUC. For the period ended December 31, 2012 income before taxes was $16,586 vs. a loss of $108,716 in the period ending December 31, 2011. This improvement was primarily due to the increased revenue mentioned above and an overall reduction in costs related to economies of scale. Management expects these numbers to improve as the two newest clinics stabilize and begin to generate increased revenue and profits over time.
SIX MONTH PERIOD ENDED DECEMBER 31, 2012 COMPARED TO THE SIX MONTH PERIOD ENDED DECEMBER 31, 2011
The revenues reported for the six month period ended December 31, 2012 of $2,244,454 represents the revenues of the urgent care centers from the date of their acquisition on September 3, 2012. There were no revenues for the six month period ended December 31, 2011 as the Company was still in the development stage at that point.
On a reporting basis the Company reported a net loss for six month period ended December 31, 2012 of $1,292,202 which represents an increase of approximately $976,000 from the same quarter in 2011. The increase is primarily attributable to the increased ongoing professional fees needed for the Company's public filings, the acceleration of certain expenses associated with cancelled or amended contracts, costs associated with the acquisition, increased operating expenses for our two new clinics whose revenues have not yet stabilized as well as expenses associated with the new initiatives regarding marketing for OneHealthPass™.
The Company's subsidiary, OneHealth Urgent Care generates all of the Company's revenue since its acquisition of Alliance Urgent Care on September 3, 2012 and this is the first full quarter of revenue from that acquisition that the Company is reporting. On a pro forma basis, including the July and August 2012 results of operations for Alliance, the six month period revenues increased by $738,199, or 31% over 2011; $3,124,802 vs. $2,386,603.
On a pro forma basis OneHealth Urgent Care reported that operating results improved over the 6 month period by $49,000 from a net loss of $313,000 in the six month period ended December 31, 2011 vs. a net loss of $264,000 in the current six month period. This represents a 15.7% improvement.
Erik Cooper, CEO of Capital Group stated, "We are very pleased with the progress we are making with the integration of the urgent care group."
Dr. Mike Blumhoff, CEO of OneHealth Urgent Care, Inc. which operates the urgent care group under the Alliance name said, "Our results this quarter partially benefited from an early flu season but our 6 month trend with a 31% increase in revenue is very encouraging. I am excited by the start of our television advertising which I believe should further enhance our growth."
The Company expects to secure and utilize additional outlets for its advertising to further build revenue for the urgent care group.
About Capital Group Holdings Inc.:
Capital Group Holdings, Inc. (OTCBB: CGHC) ("Capital Group") is an acquirer and operator of innovative health and wellness organizations that have strong market presence, brand awareness, and talented management teams working towards achieving exceptional performance over time. The Company, through its subsidiaries, currently operates 7 urgent care clinics ("OneHealth Urgent Care," "OneHealth UC") in metropolitan Phoenix, Arizona and will soon launch its telemedicine services through its subsidiary OneHealthPass™ ("OHP"). OneHealthPass™ is a direct-to-consumer medical membership program that provides members with 24/7/365 access to board-certified physicians via telephone or internet. Capital Group is positioning these companies to provide immediate access to medical services to the public in an effort to avoid any delay in access to physicians and to provide a significantly lower cost for high quality, patient-centric healthcare.
Our customers can reach a physician any time, day or night, can access basic medical services, and have the ability to receive sound medical advice and treatment for the most common minor medical issues. Our network of independent board-certified doctors may, at their discretion, provide prescriptions for treatment that can be retrieved immediately at the member's local pharmacy. Should a member need to be examined in person, they can be examined at one of our local urgent care clinics, or be referred elsewhere such as the ER, a primary care doctor, or even a specialist. Capital Group's strategy of partnering OHP with OneHealth Urgent Care is unique. The linkage will allow us to direct our new OHP members to our urgent care clinics instead of competitor clinics when they get sick, thus significantly extending our membership services, promoting customer loyalty, and significantly reducing the inherent medical liability associated with traditional telemedicine services. www.capitalgroupholdings.com
About OneHealth Urgent Care, Inc.:
OneHealth Urgent Care, Inc., through its acquisition of Alliance Urgent Care, LLC, is a rapidly growing, progressive urgent care organization in Arizona. Using state of the art technology, a virtually paperless environment and electronic health records (CCHIT certified) coupled with caring Doctors, board certified providers and staff, Alliance is able to consistently beat the national average for patient wait times. Alliance maintained a 99% patient satisfaction rating throughout 2012. For patient convenience we provide on-site lab testing and X-ray imaging. Alliance accepts credit cards (Visa, MasterCard and Discover) as well as all major insurance providers including; Aetna, Blue Cross/Blue Shield, Cigna, Medicare and Medicaid, United Healthcare, TriCare, Banner Health Plan, Arizona Foundation, Health Net, and many others. Alliance, though internally funded, has grown from 1 clinic in 2007 to 7 presently and plans to open additional clinics in the next 12 months, all conveniently located in the Phoenix, Arizona Metropolitan Area. Alliance plans to bring its unique brand of speedy, caring, patient friendly clinics to other states in the near future. www.OneHealthUrgentCare.com
OneHealthPass™ (OHP) is a wholly owned subsidiary of Capital Group Holdings, Inc. OneHealthPass™ is bringing to market a suite of patient-centric telehealth services. OHP contracts with physician networks to provide 24/7 telephone consultations to board-certified physicians. OHP is designed to become an industry standard telehealth platform for the management and administration of patient-centric telemedicine programs. The OHP platform is developed as a central hub so members can access OHP and 3rd party medical services and products that can be managed from virtually anywhere utilizing the telephone, wireless networks and the internet. OHP is currently researching additional strategic marketing agreements and acquisition candidates. www.OneHealthPass.com
Forward-Looking Statements Disclaimer:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding Capital Group Holdings, Inc.'s expectations, intentions, strategies and beliefs pertaining to future events or future financial performance. All statements contained herein are based upon current information available to Capital Group Holdings, Inc.'s management as of this date. The business and operations of the Company are subject to substantial risks which increase the uncertainty that forward-looking results will be achieved and actual events or results may vary materially as a result of various important factors including those which management has little or no control. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.
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