Heartland, Inc. Reports First Quarter 2009 Results
Thu May 28, 4:35 PMMIDDLESBORO, Ky., May 28 /PRNewswire-FirstCall/ -- Heartland, Inc. (OTC Bulletin Board: HTLJ.OB), a diversified company with businesses in steel warehousing and fabrication and petroleum retail and wholesale operations, announced net income for the quarter ended March 31, 2009 of $96,227 or $.00 per diluted share ($.00 per basic share), compared to $386,943 or $.01 per diluted share ($.01 basic share) reported in the first quarter ended March 31, 2008.
Revenue for the quarter was $19.7 million, compared to $4.0 million reported in the 2008 quarter, and operating income was $240,943 compared to $400,214 in 2008.
Increased revenues for the quarter primarily reflects the acquisition of Lee Oil Company, a multi-state petroleum marketer and distributor which has in excess of 35 long term petroleum supply contracts with retail and wholesale customers, which was completed in October 2008.
Income was reduced by the cost associated with the startup of the Heartland Steel subsidiary. This new venture is expected to be fully operational in the third quarter of 2009.
"We began to assemble the primary pieces to build a thriving company in 2008, and 2009 will be a year of focused execution and performance for Heartland," said Terry Lee, Chairman of Heartland. "Lee Oil and Mound Technologies, our steel fabrication unit, provide us with a base of established businesses, with professional management and room for growth.
In addition, we recently formed Heartland Steel, Inc., a steel service center, which will be in a facility currently under construction in Washington Court House, Ohio. Its initial phase will be operational in the third quarter of this year, and we are encouraged by the opportunities for growth in what is an underserved region. We fully expect that Heartland Steel will contribute significant revenue and earnings contributions in 2010 and beyond."
As we build and upgrade our existing businesses, we continue to explore selective acquisitions that have established customer bases," concluded Mr. Lee. "In every area of our enterprise we look to maximize efficiencies, develop new synergies and put in place experienced and skilled management to build value for our company and our shareholders."
About Heartland Inc.
Heartland, Inc. is a holding company with three subsidiaries. Mound Technologies is a full service structural and miscellaneous steel fabricator located in Springboro, Ohio. Lee Oil Company services and sells over 40 million gallons of petroleum product annually through a combination of retail and wholesale operations. Heartland Steel, Inc., is a new venture which will operate a structural steel service center in Washington Court House, Ohio beginning in 2009.
Forward-Looking Statements
Statements contained in this news release, which are not historical facts, are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Amounts herein could vary as a result of market and other factors. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.
HEARTLAND, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, December 31,
2009 2008
(Unaudited)
CURRENT ASSETS
Cash $4,137,450 $4,101,692
Accounts receivable, net 5,680,448 4,885,878
Inventory 2,791,683 2,775,635
Other current assets 833,898 817,666
Total current assets 13,443,479 12,580,871
PROPERTY, PLANT AND EQUIPMENT, net 10,167,422 10,256,234
OTHER ASSETS 63,601 68,112
Total assets $23,674,502 $22,905,217
HEARTLAND, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS - continued
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
2009 2008
(Unaudited)
CURRENT LIABILITIES
Accounts payable $3,030,738 $2,741,435
Other current liabilities 1,283,366 1,244,170
Current portion of notes payable 1,545,594 1,205,594
Current portion of notes payable to
related parties 129,127 129,127
Total current liabilities 5,988,825 5,320,326
LONG-TERM OBLIGATIONS
Notes payable, less current portion 8,114,690 8,204,783
Notes payable to related parties, less
current portion 3,300,721 3,330,872
Other long-term liabilities 787,577 878,215
Total long term liabilities 12,202,988 12,413,870
STOCKHOLDERS' EQUITY
Preferred stock $0.001 par value
5,000,000 shares authorized, 2,370,000
shares issued and outstanding 2,370 2,370
Additional paid-in capital - preferred
stock 713,567 713,567
Common stock, $0.001 par value
100,000,000 shares authorized;
43,706,196 and 42,759,047 shares issued
and outstanding at March 31, 2009 and
December 31, 2008, respectively 43,706 42,759
Additional paid-in capital - common
stock 17,218,878 17,011,726
Accumulated deficit (12,495,832) (12,599,401)
Total stockholders' equity 5,482,689 5,171,021
Total Liabilities and Stockholders'
Equity $23,674,502 $22,905,217
HEARTLAND, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED
March 31,
2009 2008
SALES $19,737,679 $4,058,796
Cost of goods sold (17,070,440) (3,278,225)
Gross profit 2,667,239 780,571
EXPENSES 2,426,286 380,357
NET OPERATING INCOME 240,953 400,214
Other (expense) income (142,902) 1,542
INCOME BEFORE INCOME TAXES 98,051 401,756
Federal and state income taxes
Income taxes, current (13,897) -
Income tax benefit, deferred 26,886 -
NET INCOME 111,040 401,756
LESS: Preferred Dividends (14,813) (14,813)
NET INCOME AVAILABLE TO COMMON
STOCKHOLDERS $96,227 $386,943
Earnings per share basic and diluted .00 .01
Average Shares Outstanding 45,375,489 39,997,661
SOURCE Heartland, Inc.
