ANAHEIM, Calif., Aug. 10, 2004 (PRIMEZONE) -- Gateway International Holdings, Inc. (Pink Sheets:GWIH) released its quarterly letter to shareholders today.
Welcome to our 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. It has been an exciting year for the Company and the 4th quarter looks to be shaping up to be our best ever.
Elite Machine Tool Company is experiencing significant growth over last year. As the industry begins to rebound, many manufacturing companies are beginning to retool for the first time in a number of years. As a premier supplier of 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, in the month of July we received over 300 purchase orders for precision parts. This level of activity represented record volume for Eran and the orders continue to flow in at a solid rate. This acquisition will be accretive to EPS in the very first year.
We continue to evaluate opportunities to purchase other companies. Being selective in our acquisitions is a luxury for our firm, as we seek to acquire firms that will not only be complementary to our existing operations, but also must be cash flow positive and accretive to our EPS on a near-term basis. While that is sometimes difficult to accomplish, using such a discipline allows us to ensure that we are achieving solid results for you, our shareholders.
As we reported in a recent press release, we have retained First Capital Investors, Inc. (www.firstcapitalinvestors.com) to direct our Investor Relations Program. First Capital will be handling investor, analyst and media questions, as well as advising management on how to present the company to the public markets in the most effective manner. First Capital advised us that we should begin to tell investors more about the company and they developed a website at www.gwih.com to provide interested parties with an abundance of information.
Additionally, First Capital arranged for our company to be featured at www.thestockbroker.com. We are currently receiving radio time across the country on their nationally syndicated radio show, "Profiles on Wall Street." I am excited that this platform will introduce the company to a large group of new investors and give them a solid understanding of the exciting prospects for our future.
The improved visibility has resulted in more investors becoming aware of our company. The recent rise in our stock price is only beginning to scratch the surface of the true value of our company. The company continues to grow and become stronger both fundamentally and financially. We are currently paying down existing debts and hope to be debt free within the next 6 months with ownership of our manufacturing facilities -- including all of our equipment, machinery and real estate. Eliminating debt from the balance sheet is a near-term goal that I believe will show the financial strength of our company. A strong financial condition will allow for the company to obtain premium credit ratings that will assist in our future growth.
This is indeed an exciting time at Gateway International Holdings. I look forward to the opportunity to report new achievements in future shareholder reports. We always welcome new shareholders to our firm 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.