VLVT - - Veltex Corporation Publishes Audited Financials for 2001 &2002, Veltex Earns 3 Cents EPS for 2002 4/15/03
DIAMOND BAR, Calif., Apr 15, 2003 /PRNewswire-FirstCall via COMTEX/ --
Veltex Corporation (OTC: VLVT) has announced its results for the Year 2002. Total revenues for the Year 2002 were $13,770,987, up $3,816,105 from 2001, or up over 38%. Earnings per share were .03 based on roughly 35 million shares issued and outstanding. Veltex ended 2002 with a book value of approximately 23 cents per share. These financials represent results from all divisions of Veltex Corporation and have been audited by Aaron Sherman &Associates, Inc.
'The audit has produced no surprises and we expect our shareholders will be pleased with the results,'commented Javeed Matin, Chairman and CEO of Veltex Corporation. 'We are having a good experience reorganizing Veltex Transportation and future results should be in line with our projections. We expect 2003 revenue of $35 million, comprised of $5 million from apparel, $15 million from trucking, and $15 million from textiles. This revenue increase will be more than 100% from last year.'
Asked about plans for 2003, Matin said, 'We expect to continue good earnings in both trucking and apparel. Veltex Transportation will add 60 more trucks over the year to the current line of 40 in operation. Our experience has been profits of approximately 10% of revenue, or $2,000 a month per truck. Veltex Apparel is pursuing some excellent projects that will likely add significant revenues over the year. We are looking to hire experienced managers in all our divisions.'
'We have made a few mistakes and have learned from those mistakes,' continued Matin, 'but we are also proud of the fact that we moved quickly to correct any problems. Most of all, we are grateful for our patient shareholders who have supported our every effort to grow our company. In the coming months we expect to start a share repurchase program which will demonstrate our gratitude.'
Fixed Assets at December 31, 2002 consisted of the following:
Land and Improvements $1,516,355
Buildings 1,053,783
Plant and Equipment 8,218,217
Trucks 263,248
Less accumulated depreciation (1,490,470)
$9,561,133
Depreciation expense for the years ended December 31, 2002 and 2001 was $816,967 and $673,503, respectively.
VELTEX CORPORATION
Statements of Cash Flows
For the Years Ended
December 31,
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $1,138,713 $1,565,920
Adjustments to reconcile net loss
to net cash used by operating
activities:
Common stock issued for services
and contributions 78,400 --
Depreciation expense 816,967 673,503
Changes in operating assets and
liabilities:
(Increase) decrease - in accounts
receivable (380,513) (658,176)
(Increase) decrease - inventory (826,808) (446,621)
(Increase) decrease - prepaid expenses 47,359 59,198Increase (decrease) - in accounts
payable and accrued expenses 990,508 788,332
Net Cash Provided by
Operating Activities 1,864,626 1,982,156
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of other assets (13,070) 2,353
Purchase of fixed assets (1,710,744) (1,407,658)
Net Cash Used by Investing Activities (1,723,814) (1,405,305)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable 360,766 --
Payments on notes payable (12,520) --
Proceeds from notes payable -
related parties 611,436 66,719
Common stock issued for cash 397,760 --
Net Cash Provided by
Financing Activities 1,357,442 66,719
NET CHANGE IN CASH 1,511,324 643,570
CASH AT BEGINNING OF YEAR 541,696 867,764
CASH AT END OF YEAR 2,053,020 1,511,324
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Interest paid $6,397 $--
Income taxes paid $-- $--
SCHEDULE OF NON-CASH FINANCING ACTIVITIES
Common stock issued for services $78,400 $--
VELTEX CORPORATION
Statements of Operations
For the Years Ended
December 31,
2002 2001
REVENUE
Sales, net $13,770,987 $9,954,882
Cost of sales 9,705,986 7,024,418
Gross Margin 4,065,001 2,930,464
EXPENSES
General and administrative expenses 2,088,481 693,435
Total Expenses 2,088,481 693,435
INCOME FROM OPERATIONS 1,976,520 2,237,029
OTHER INCOME (EXPENSE)
Interest expense 6,397 --
NET INCOME BEFORE INCOME TAXES 1,970,123 2,237,029
INCOME TAX EXPENSE 831,410 671,109
NET INCOME $1,138,713 $1,565,920
BASIC EARNINGS PER SHARE
Earnings per share $ 0.032 $0.06
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 34,786,110 27,393,808
VELTEX CORPORATION
Statements of Stockholders'Equity
Additional
Common Stock Paid-In Retained
Shares Amount Capital Earnings
Balance
December 31, 2000 27,393,808 $27,394 $5,016,084 $1,414,470
Net income for the
year ended
December 31, 2001 -- -- -- 1,565,920
Balance
December 31, 2001 27,393,808 27,394 5,016,084 2,980,390
Common stock
issued for cash
at an average price
of $0.032 per share 12,334,604 12,334 385,426 --
Common stock
issued for services
at an average price
of $0.032 per share 2,450,000 2,450 75,950 --
Net income for the
year ended
December 31, 2002 -- -- -- 1,138,713
Balance,
December 31, 2002 42,178,412 $42,178 $5,477,460 $4,119,103
VELTEX CORPORATION
BALANCE SHEET
ASSETS
December 31,
2002
CURRENT ASSETS
Cash $2,053,020
Accounts receivable - trade, net 1,488,835
Inventory 2,815,145
Prepaid expenses 189,436
Total Current Assets 6,546,436
FIXED ASSETS, NET 9,561,133
OTHER ASSETS
Other assets 30,683
Total Other Assets 30,683
TOTAL ASSETS $16,138,252
LIABILITIES AND STOCKHOLDERS'EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $2,594,949
Current portion of long-term debt 97,518
LONG-TERM DEBT 2,692,467
Notes payable 250,728
Related party payable 3,556,316
Total Long-term Debt 3,807,044
Total Liabilities 6,499,511
Commitments and Contingencies --
STOCKHOLDERS'EQUITY
Common stock: $0.001 par value
70,000,000 shares authorized;
42,178,412 shares issued and
outstanding 42,178
Additional paid-in capital 5,477,460
Retained earnings 4,119,103
Total Stockholders'Equity 9,638,741
TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY $16,138,252
Veltex Corporation is a diversified holding company composed of four divisions: Trucking; Distribution, specializing in caps, apparel and apparel accessories for the Promotional Products Industry; Manufacturing, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, sheeting for consumer and industrial products; and Marketing specializing in online marketing and promotions for the vacation ownership industry.
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