Published: August 17, 2009

WellQuest Announces Record Revenues in Second Quarter of 2009

Share This Story

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 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		255			374
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

NEWS

WIRES

OTHER

WellQuest Announces Record Revenues in Second Quarter of 2009

NewsBlaze Editors

NewsBlaze Writers

Writers Wanted

Follow NewsBlaze