Heartland, Inc. Reports Third Quarter 2009 Results
MIDDLESBORO, Ky., Dec. 15 /PRNewswire-FirstCall/ — Heartland, Inc. (OTC Bulletin Board: HTLJ), a diversified company with businesses in steel warehousing and fabrication and petroleum retail and wholesale operations, reported revenue for the third quarter of $24.9 million, compared to $5.4 million reported in the 2008 third quarter. Operating income for the third quarter was $33,255 in 2009 compared to $620,608 in 2008.
The company reported a net loss of $128,895 or $.00 per diluted and basic share compared to a gain of $541,651, or $.01 per diluted and basic share reported in the third quarter ended September 30, 2008.
For the nine month period, 2009 revenue was $67.3 million compared to $15.6 million in the comparable 2008 period, and operating income was $230,000 compared to $1.4 million. The company recorded a net loss of $67,000 or $.00 per basic and diluted share, compared to a net gain of $1.3 million, or $.03 per basic and diluted share in the 2008 nine month period.
Increased revenue for the 2009 quarter and nine month periods primarily reflect the acquisition of Lee Oil Company, which was completed in October 2008.
Subsequent to the end of the quarter, Heartland Steel, the company’s steel warehousing subsidiary, completed the construction of its service center facility in Washington Court House, Ohio.
“Heartland has produced solid positive cash flow, made critical investments in Heartland Steel — an important initiative which we believe will provide significant growth potential for our company — and continued to prudently manage its businesses within a most challenging and difficult economic environment,” said Terry Lee, CEO and Chairman of Heartland, Inc. “Mound Technologies and Lee Oil remain profitable, while Heartland Steel is positioning itself as a primary and competitive player in the mid-Ohio region.
“It is the dedicated performance during these most difficult times that reflects the solid foundation of our enterprise, a foundation built by experienced management of synergistic businesses. Accordingly, I remain confident about and committed to an outstanding future for our company, and for 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 operates a structural steel service center in Washington Court House, Ohio.
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
------
Sept. 30, Dec. 31,
2009 2008
---- ----
(Unaudited)
CURRENT ASSETS
Cash $3,337,694 $4,101,692
Accounts receivable, net 5,777,642 4,885,878
Inventory 4,042,648 2,775,635
Prepaid expenses and other current assets 170,628 817,666
------- -------
Total current assets 13,328,612 12,580,871
PROPERTY, PLANT AND EQUIPMENT, net 13,119,751 10,256,234
OTHER ASSETS 757,747 68,112
------- ------
Total assets $27,206,110 $22,905,217
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HEARTLAND, INC. AND SUBSIDIARIES
--------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS - continued
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Sept. 30, Dec. 31,
2009 2008
---- ----
(Unaudited)
CURRENT LIABILITIES
Accounts payable $3,406,498 $2,741,435
Other current liabilities 1,329,104 1,244,170
Current portion of notes payable 4,011,381 1,205,594
Current portion of notes payable to
related parties 120,521 129,127
------- -------
Total current liabilities 8,867,504 5,320,326
LONG-TERM OBLIGATIONS
Notes payable, less current portion 7,685,539 8,204,783
Notes payable to related parties, less
current portion 3,240,124 3,330,872
Other long-term liabilities 1,841,547 878,215
--------- -------
Total long term liabilities 12,767,210 12,413,870
---------- ----------
Total liabilities 21,634,714 17,734,196
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; 44,667,558 and 42,759,047
shares issued and
outstanding at Sept. 30, 2009 and Dec. 31,
2008, respectively 44,668 42,759
Additional paid-in capital - common stock 17,440,011 17,011,726
Accumulated deficit (12,629,220) (12,599,401)
Total stockholders' equity 5,571,396 5,171,021
--------- ---------
Total Liabilities and Stockholders' Equity $27,206,110 $22,905,217
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HEARTLAND, INC. AND SUBSIDIARIES
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------
(Unaudited)
-----------
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ------------------------
2009 2008 2009 2008
----------- ---------- ----------- -----------
SALES $24,874,767 $5,425,498 $67,392,032 $15,684,082
Cost of goods sold (22,204,230) (4,337,807) (59,559,303) (12,908,296)
----------- ---------- ----------- -----------
Gross profit 2,670,537 1,087,691 7,832,729 2,775,786
EXPENSES (2,637,282) (467,083) (7,602,252) (1,338,386)
---------- -------- ---------- ----------
NET OPERATING
(LOSS)INCOME 33,255 620,608 230,477 1,437,400
Other income
(expense) (154,967) (64,145) (268,010) (49,681)
-------- ------- -------- -------
(LOSS) INCOME BEFORE
INCOME TAXES (121,712) 556,463 (37,533) 1,387,719
Federal and state
income taxes
Income taxes,
current period (25,597) - (73,152) -
Income tax benefit,
deferred 33,228 - 88,340 -
------ --- ------ ---
(LOSS) INCOME FROM
CONTINUING
OPERATIONS (114,081) 556,463 (22,345) 1,387,719
LESS: Preferred
Dividends (14,813) (14,812) (44,439) (44,438)
------- ------- ------- -------
NET (LOSS) INCOME
AVAILABLE TO COMMON
STOCKHOLDERS $(128,895) $541,651 $(66,784) $1,343,281
========= ======== ======== ==========
EARNINGS PER SHARE
BASIC $0.00 $0.01 $0.00 $0.04
EARNINGS PER SHARE
DILUTED (1) $0.01 (1) $0.03
AVERAGE SHARES
OUTSTANDING 44,592,558 37,998,822 44,023,582 37,017,096
(1) Due to the net loss available to common shareholders, adding
diluting securities to the denominator would not properly reflect
earnings per share.
SOURCE Heartland, Inc.