United American Healthcare Corporation Reports
Strong Income Growth in Q3 Fiscal Year 2017
Propelled by Performance of its Wholly Owned
Subsidiaries
CHICAGO, Jan. 23, 2018 (GLOBE NEWSWIRE) -- United
American Healthcare Corporation (OTC:UAHC)
(the “Company” or “UAHC Parent”), today
announced the release of its unaudited third
quarter report ending September 30, 2017. The
quarterly report can be found here.
Additionally, the Company provided a summary of
financial results from the report and an
overview of recent operational highlights.
The
Company experienced significant income growth in
the three-month and nine-month periods ending
September 30, 2017, driven by strong
performances from the Company’s wholly owned
subsidiaries Pulse
Systems, LLC (“Pulse”), a
contract manufacturing company that provides
services to the medical device industry, and
newly formed UAHC Ventures, LLC (“UAHC
Ventures”), a strategic investment organization
focusing on opportunities in emerging and
high-growth sectors such as blockchain
technologies and cryptocurrency.
UAHC
Parent reported a consolidated year-over-year
third-quarter increase in net income of 668% and
a net comprehensive income increase of 1,312%
for the same period. Further, for the
nine-months ending September 30, 2017, the
Company reported a year-over-year increase in
net income of 452% and an increase in
net-comprehensive income of 828%.
Other financial highlights for the year-to-date
period ending September 30, 2017, include:
- An increase in total assets of 165% as
of September 30, 2017, compared to December
31, 2016;
- An increase in the total shareholder
equity of 137% as of September 30, 2017,
compared to December 31, 2016;
- A year-over-year increase in gross
profit from manufacturing services of 7.75%
and 32% for the three-month and nine-month
periods ending September 30, 2017,
respectively; and
- An increase in earnings per share from
net income of 300% for the nine-months
ending September 30, 2017, compared to the
nine-months ending September 30, 2016.
Pulse Systems, LLC
Pulse experienced
positive growth in sales revenue during the
third-quarter of 2017, achieving shipments of
$2.68 million compared to shipments of $2.17
million in the third-quarter of 2016, which
represents a 23% increase between the
comparative periods. Additionally, for the
nine-month period ending September 30, 2017,
shipments were $7.92 million, compared with
$6.73 million for the equivalent 2016 period,
resulting in a year-over-year increase of 18%.
This sales growth was largely the result of
strong customer orders that were successfully
converted to shipment revenue through the
expansion of Pulse’s laser machining operations
including increasing manufacturing capacity
through the addition of a third operating shift.
Further, Pulse’s management has focused on
generating new customer accounts and retaining
core customers by further investing in its sales
and marketing efforts, and making capital
investments in state-of-the-art equipment that
enhance its competitiveness through its ability
to provide customers with a more diverse range
of manufacturing capabilities at competitive
pricing, all while maintaining its high standard
of quality. Management also improved
organizational efficiencies and developed more
effective cash management strategies that have
resulted in higher margins and a reduction in
debt.
Pulse’s Chief Executive Officer, Herb Bellucci,
commented that “Contract manufacturing activity
in the medical device industry appears to have
built momentum in 2017. As a leading indicator
of continued growth in our market segment, we
have experienced an impressive increase in the
number of quote requests from potential
customers of more than 40% this year versus
last. In response to this significant business
opportunity, Pulse has invested in customer
service capabilities and personnel to further
improve our communications and responsiveness,
and to capture and support this new business.”
UAHC Ventures, LLC
UAHC
Ventures made its first investment in Q3 2017
through a $2.0 million purchase of a secured
convertible promissory note (“Note”) and warrant
to purchase common stock (“Warrant”) from MGT
Capital Investments, Inc. (OTC:MGTI) (“MGTI”),
the proceeds from which were for funding MGTI’s
further expansion and development of its bitcoin
mining operations. The Company’s valuation of
its UAHC Ventures’ investments in MGTI for the
period ending September 30, 2017 resulted in the
Company reporting unrealized gains of $7.14
million in consolidated net income from the
change in value of the Warrant and an additional
$5.94 million of unrealized gains in
consolidated other comprehensive income from the
change in value of the Note.
“The
first three quarters of 2017 were an extremely
exciting time for UAHC,” said John Fife, Chief
Executive Officer of UAHC and President of UAHC
Ventures. “We made a well-timed strategic
investment through our UAHC Ventures subsidiary
that resulted in initial valuation results,
indicating the likely future realization of a
substantial return on investment. Also, Pulse
Systems was able to focus on fundamental
organizational and operational business
initiatives that have shown an immediate
positive impact on the company’s profitability,
which will contribute to its continued success.
I am confident in these companies as well as
UAHC’s performance as a whole as we review the
final financial results for fourth quarter of
fiscal year 2017, and as we move into fiscal
year 2018.”
About United American Healthcare
Corporation
United American
Healthcare Corporation (“UAHC”), through its
subsidiary UAHC Ventures, LLC, pursues strategic
investment opportunities in various growth
industries. Additionally, UAHC subsidiary Pulse
Systems, LLC, is a contract manufacturing
company that provides services to the medical
device industry.
Forward-looking Statements
This
press release contains forward-looking
statements. The words or phrases “would be,”
“will allow,” “intends to,” “will likely
result,” “are expected to,” “will continue,” “is
anticipated,” “estimate,” “project,” or similar
expressions are intended to identify
forward-looking statements. All information set
forth in this news release, except historical
and factual information, represents
forward-looking statements. This includes all
statements about the Company’s plans, beliefs,
estimates and expectations. These statements are
based on current estimates and projections,
which involve certain risks and uncertainties
that could cause actual results to differ
materially from those in the forward-looking
statements. These risks and uncertainties
include issues related to: rapidly changing
technology and evolving standards in the
industries in which the Company and its
subsidiaries operate; the ability to obtain
sufficient funding to continue operations,
maintain adequate cash flow, profitably exploit
new business, and license and sign new
agreements; the unpredictable nature of consumer
preferences; and other factors set forth in the
Company’s most recently filed annual report and
registration statement. Readers are cautioned
not to place undue reliance on these
forward-looking statements, which reflect
management’s analysis only as of the date
hereof. The Company undertakes no obligation to
publicly revise these forward-looking statements
to reflect events or circumstances that arise
after the date hereof. Readers should carefully
review the risks and uncertainties described in
other documents that the Company files from time
to time at OTCMarket.com.