VLVT - Veltex Corporation Significantly Raises Sales Guidance for 2004
/FROM PR NEWSWIRE LOS ANGELES 213-626-5500/ TO BUSINESS EDITOR:
Veltex Corporation Significantly Raises Sales Guidance for 2004
CITY OF INDUSTRY, Calif., Sept. 24 /PRNewswire-FirstCall/ -- Veltex Corporation (OTC: VLVT) today raised its financial guidance for 2004 by 60% from its previously announced net sales estimate of $25 million to $40 million. Management is providing net income guidance for the full year 2004 of $6 million or $.03 per share. The improved guidance is due to the increased demand for the Company's products and the successful integration of the Company's acquisition, KCA Garment Industries. The acquisition of KCA has provided Veltex with numerous synergistic benefits including the ability to capture both the market for manufacturing high quality fabrics and garments. Additionally, the Company believes this acquisition positions it to compete for business with high-volume membership warehouse stores and mass merchandisers like Costco Wholesale Corp. and Walmart Stores Inc. Javeed Matin, Chairman and CEO stated, "After two quarters of tremendous growth in sales and profitability I am excited about the future of Veltex. Our acquisition of KCA has been a tremendous success. We look forward to continued growth through organic expansion and accretive acquisitions." Veltex sales were $21.0 million in the first half of 2004, totaled $19.99 million in 2003, totaled $13.9 million in 2002, and sales in 2001 were $8.7 million. Audited financial statements for the Company's 2001 and 2002 results are available at the investor relations section of the Company's website.
Veltex Corporation is a vertical manufacturing, import and distribution company composed of three divisions: Veltex Apparel, specializing in caps, apparel and apparel accessories for the Promotional Products Industry; Velvet Textile Mills, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, sheeting for consumer and industrial products; and KCA Garment Industries, specializing in the manufacture of garments.
Safe Harbor: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of market prices, product demand, market competition, risks inherent in the Company's international operations, and the Company's ability to replace and expand.
For further information, please contact Paul Knopick of E & E Communications, +1-949-707-5365, pknopick@eandecommunications.com, for Veltex Corporation.
SOURCE Veltex Corporation
/CONTACT: Paul Knopick of E & E Communications, +1-949-707-5365, pknopick@eandecommunications.com, for Veltex Corporation/Web site: http://www.veltexcorporation.com /
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