ANAHEIM, Calif., Dec. 3, 2004 (PRIMEZONE) -- Gateway International Holdings, Inc. (Pink Sheets:GWYI) released its quarterly letter to shareholders today:
Welcome to Gateway International's first quarterly letter to shareholders. I will be using this communication method on a quarterly basis to keep interested parties abreast of the many developments of our company. You can find this and other news updates on our website at www.gwyi.com.
As recently reported across the news wires, our financials for 2004 resulted in both record revenues and profits for the Company and it looks like 2005 is shaping up to be our best ever.
Elite Machine Tool Company is experiencing significant growth over prior years. As the industry continues to rebound, many manufacturing companies are beginning to retool for the first time in a number of years. As a premier supplier of refurbished Computer Numerically Controlled, or "CNC" machinery, Elite is well positioned to compete in this robust market.
Eran Engineering continues to exceed even our loftiest expectations. When we acquired this firm in 2003, we anticipated growth would follow. However the level of new growth at this subsidiary has resulted in record volume and the orders continue to flow in at a solid rate.
You may have read about our 2 most recent additions: All American CNC Sales and A-Line Capital. These companies represent growth in new business segments for our company and I am excited about their future prospects.
All American CNC Sales offers our company the opportunity for sales in CNC machinery market in the new equipment sales market. Additionally, we now offer a complete line of parts and accessories that we have not previously carried. We should see an immediate impact of this recent acquisition in our future financial results.
The formation of A-Line Capital will allow us to capture "lost" profits that we have been handing to lease brokers for decades. A-Line Capital allows our company to become a one-stop-shop for our clients as we will handle the brokering of the financing needs, and in some cases, provide the financing internally. As we currently arrange for approximately $5,000,000 in machinery financing each year, the impact that this subsidiary may contribute to the bottom line is very likely to be felt in only its first year in business.
We continue to evaluate acquisition opportunities. Being selective in our acquisition strategy is a luxury for our firm, and while finding companies that meet our stringent criteria is sometimes difficult to accomplish, using such discipline allows us to ensure that we are achieving solid results for you, our shareholders.
As Joe Gledhill and I were looking at alternatives for acquiring additional companies, we decided to use some of our personal shares to help the company grow without significant dilution to the existing shareholders. In order to effectively do this, we needed to retire a portion of our stock holdings so that the company could issue new shares for new acquisitions. Joe and I are each returning 6 million shares of our personal GWYI stock to the company to be used to fuel future growth. You may have already read about this as it was recently announced via the news wires. We have identified several potential target companies and look forward to exciting new additions to our growing portfolio of companies.
Earlier this year, First Capital Investors (FCI) (www.firstcapitalinvestors.com) began working with us on Investor Relations. FCI will be fielding all investor, analyst and media questions. They advised us that we should begin to tell investors more about the company and they developed a website at www.gwyi.com to provide interested parties with an abundance of information. You can also find information at another FCI site, www.thesmallcapinvestor.com, where investors can sign up for a free monthly newsletter and news alerts on GWYI, as well as other companies. The subscription is free to individual investors.
The improved visibility has resulted in many more investors becoming aware of our company. We continue to grow stronger both fundamentally and financially. Maintaining a strong financial condition will allow for the company to obtain premium credit ratings that will bolster our future growth.
This is an exciting time at Gateway International Holdings. I look forward to the opportunity to report new achievements in future reports. We always welcome new shareholders to our company and my line is always open.
Sincerely, Larry Consalvi Chief Executive Officer Gateway International Holdings, Inc.
"SAFE HARBOR"
This press release contains forward-looking statements. The words "estimate", "possible" and "seeking" and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.