NORTH WILKESBORO, NC--Expo Holding, Inc. releases a summary of statements made by James D. Brown, company CEO and Chairman. The summary is in the form of a special letter to shareholders.
"First, I would like to thank our loyal shareholders, without whom our company would not have survived last year's nationwide financial meltdown. Thank you sincerely for your support.
"This year has been exciting and demanding. Survival was foremost on our minds in early 2009 with that transitioning to a growth and investment philosophy in late 2009. From an investment point of view we started this year with a PPS of around .0015 and as of yesterday we were trading in the high .006s to the low .007s. This represents a significant gain in the market cap of the company.
"Management is forecasting $9,000,000 to $11,000,000 in annual sales for 2010 down from previous estimates of $17,000,000 plus. We are revising this based on the best information possible from our retail partners and reports regarding the lagging retail sector. The economy continues to struggle and we believe that any broad based U.S. economic recovery may be delayed into 3rd or even 4th quarter 2010. Management also believes pent up demand exists, and will benefit the company in terms of purchase orders with values exceeding $1,000,000, in late 2009 or early 2010.
"Previously the company announced its intention to spin off its newly formed ETC. division into a private company. Up to an estimated 5% of Expo Holdings, Inc.'s assets may be transferred to the new entity. If approved, this stand alone private entity could secure its own conventional financing, secure appropriate distribution facilities, and operate independently as a debt free distribution / sales and marketing company. As announced earlier, this entity would be completely quiet for some period.
"The company has entered into an agreement to supply a nationwide retailer with our new proprietary product ETC. It is management's best estimate that by January 10, 2010 this retailer will begin store level training and implementation. It is also management's best estimate that this retailer, along with Expo Holdings, will go public with a formal stand alone press announcement in the very near future. Originally, our goal was reveal our finalized plans today, but this was not possible given the retailer's timetable. The company will offer no sales estimates for the ETC. spin-off company except to note that it is expected that the new ETC. entity will eventually dwarf its parent company Expo Holdings, Inc. Shareholders are cautioned that immediate results should not be expected as retail rollouts of this nature take many months or even years to complete. A press release concerning this subject will be released before any 'quiet' period begins.
"The company will remain a 'pinksheet' company for the balance of 2009; however, it has aspirations to trade on a higher exchange. Currently the company is not required to report its financial performance but does so as a courtesy to its valued shareholders. Long term, it is the company's goal to report in a timelier and more efficient manner. Additional accounting staffing is currently under consideration. Shareholders should not expect the company to be fully reporting now, or in next few months. Shareholders are cautioned that we have just emerged from survival mode and we will focus on profitability first, growth second, and shareholder transparency third. It is anticipated that 3rd Quarter financials will be released in the near future.
"The company continues to serve such companies as Kronotex USA, Lowe's Home Improvement, Inc., Harris Teeter, Inc., and many notable others. The company expects these and other customers to strengthen in mid to late 2010, and increase their purchases as they scramble to gain market share amidst recovering retail spending."
At the shareholder meeting the company sought majority approval for its tentative spin off, as well as conducted tours and a question and answer period.
Expo Holdings operates in North Wilkesboro, NC. D&D Displays is a wholly owned subsidiary of Expo Holdings, which specializes in custom cabinetry and high end store fixtures for retail vendors such as Newell-Rubbermaid, Inc., Bosch Tool Corporation, and Lowe's Companies. D&D Displays has been in operation since 2000 and joined Expo Holdings in 2006.
SOURCE: Expo Holdings
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