Consumers Financial Announces $1.2 Million Acquisition
24 August 2004 - 3:30PM
PR Newswire (US)
Consumers Financial Announces $1.2 Million Acquisition CEDARHURST,
N.Y., Aug. 24 /PRNewswire-FirstCall/ -- Consumers Financial
Corporation (OTC Pink Sheets: CFIN) ("CFIN") today announced its
contract to acquire a 51% ownership of GS Woodmere, Inc., a Queens,
N.Y.-based medical bill paying and collections service agency
("Woodmere"). Jack Ehrenhaus, Chairman of the Board said, "Woodmere
possesses software programs that allow it to interact on a virtual
basis with the doctors it services. The uniqueness of the "virtual
billing" operation allows the doctor to check the status of patient
invoices on a real-time basis. This characteristic, plus the
competitive rates structured by Woodmere should allow the service
agency to rapidly expand with proper financial support." Woodmere
generates net revenues of approximately $800,000 per year and is
profitable. It operates two facilities in Queens, employs 16 people
and services over 25 clinic or doctor clients. CFIN's investment
will go directly into working capital for the firm, which will
enable the company to deploy more sophisticated cost-saving links
to its clientele, to better and more broadly market its services
and to integrate their service program into new and wide-ranging
service operations. Mr. Ehrenhaus further stated, "We see several
levels of opportunity that accompany this investment. First, there
is room for immediate expansion of the business that Woodmere does
simply by marketing more intensely. Second, through the
availability of CFIN and its financing activities, we will be
better able to offer doctors and medical services the advances
against receivables Woodmere has been contracted to collect.
Finally, the open architecture that Woodmere's software provides
will allow us to offer service to national organizations with
consoles and interactive features that should be very attractive.
In a word, properly financed and properly marketed, Woodmere has
the possibility of rapidly expanding its business base. The
addition of this solid bread and butter company will be
complemented by other acquisitions in the works which may round out
the profile that we have articulated of finding undiscovered gems
in the business environment that can benefit from our financing
expertise and generate great returns for our investors." Consumers
Financial Corporation is a diversified merchant banking and
financial services company dedicated to finding and assessing the
value of microcap companies strategically located in markets where
significant growth in profits can be obtained. CFIN targets
companies where management is exceptional, products are
proprietary, where techniques, software or technology provide some
measure of exclusivity, and where profit margins are above average
and where these companies can benefit from CFIN's financial
assistance either through equity or credit facilities. The company
trades under the symbol CFIN and can be found on the
Over-The-Counter Pink Sheets. Safe Harbor Statement under the
Private Securities Litigation Reform Act of 1995 This press release
includes certain forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995.
These statements are based on Consumer Financial's management's
current expectations and are subject to risks and uncertainties and
changes in circumstances. All forward-looking statements included
in this press release are based upon information available to
Consumers Financial as of the date of the press release, and it
assumes no obligation to update or alter its forward-looking
statements whether as a result of new information, future events or
otherwise. Further information on the risks that could affect
Consumer Financial's results of operations is detailed in its
filings with the United States Securities and Exchange Commission,
including the Annual Report for the year ended December 31, 2003.
DATASOURCE: Consumers Financial Corporation CONTACT: Howard A.
Scala, President of Wall Street Communications, Inc.,
+1-727-942-0011, for Consumers Financial; or Consumers Financial,
+1-800-338-9338
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