Expo Holdings Jumps on Distribution and Restructuring
Expo Holdings Inc. (EXPH) shares jumped more than 200 percent this week after restructuring its debt and preparing to ship to more than 1,400 Lowe’s retail locations.
Expo Holdings Inc. [[EXPH.PK]], a customized cabinetry and high end store fixture maker, saw its shares jump more than 200 percent over the past week after restructuring its debt and preparing to ship to more than 1,400 Lowe’s home-center locations in mid-July 2009. As soon as the shipments begin, the company will update its shareholders further.
Expo Holdings’ D&D Displays subsidiary designs, manufactures and distributes high quality displays and cabinetry at an affordable price. In May, the subsidiary reported a profitable first quarter with gross profits exceeding $150,000. Meanwhile, the company remains cautious in 2009 in terms of sales and profitability, due to market volatility.
Unfortunately, Expo Holdings trades on the Pinksheets and has very little financial information available. In fact, the latest financial statements date back to the fiscal year 2007, where it reported revenues of $1,433,595 and a net loss of $144,991. However, the company noted in a recent press release that it would soon post its 2008 financial statements.
In June, Expo Holdings restructured nearly $400,000 worth of short-term loans with Wachovia Bank and Southern Community Bank into long-term notes. No shares had to be issued and the rates are favorable given the market conditions. The company also continues to enjoy a relationship with Crestmark Bank, through which they have a $1 million credit facility.
In the end, Expo Holdings remains a risky play due to its lack of financial information. However, it appears that the company is on track to profitability and the agreement with Lowe’s should help substantially boost revenues. But the true value of the stock won’t be clear until the 2008 financials are released with updated debt levels and share counts, among other things.
CONTACT: Daniel Minton, Managing Director, 406-862-5400, daniel@accelerize.com