PLYMOUTH, Minn., Feb. 8, 2005 (PRIMEZONE) -- Heartland Inc. (OTCBB:HTLJ), an emerging conglomerate that focuses on taking established businesses and improving company results by access to new markets, has the opportunity to greatly improve its business due to the recent acquisition of three new companies. The announcement of the acquisitions was made earlier this month by Trent Sommerville, CEO of Heartland Inc.
The three businesses that were acquired by Heartland are Evans Columbus, Monarch Homes and Karkela Construction. These companies, along with Mound Technologies Inc., a subsidiary of Heartland, are all located in the Midwest. Working together with improved access to capital markets and the ability to market products through Heartland on a national and eventually international basis is projected to drastically improve sales while reducing unit costs.
Evans Columbus Corporation is a subsidiary that manufactures 55-gallon steel drums at a present production rate of 3,000 per day. Manufacturing is carried out in a fully equipped 70,000-square-foot facility located in Columbus, Ohio. This facility is able to do various coated products as well as standard painted drums. The combined purchasing effort of raw steel materials of Evans with the existing Mound Technologies business will result in a steel requirement of 12,000 tons. This should result in lowered costs due to the new economies of scale.
Monarch Homes Inc. is a builder of custom residential homes in the state of Minnesota. It is the intent to expand this business unit into the construction of super energy-efficient homes using new EPS technology that allows for custom construction, but with greatly increased "R" ratings. The equipment to produce the EPS necessary for the construction of the improved homes is manufactured by an existing division of Mound Technologies Inc.
Sommerville has stated that an agreement is in process to have exclusive rights to this type of construction product in the area of Central America. The new energy-efficient homes work equally well in hot climates as well as cold. Monarch homes will then be able to follow its namesake butterfly south when construction slows during the cold winters of Minnesota.
Karakela Construction is a designer and builder of custom office buildings for medical, financial and other service type businesses. It has been in existence for over 20 years providing quality buildings that meet the needs of its clients. Karkela has historically been a regional contractor. It is the intent of Heartland to expand that territory to include all of the Midwest. By teaming up with the Mound Technologies subsidiary of Heartland for structural steel, stairs and miscellaneous fabrications, Karkela can not only gain access to the Ohio, Kentucky and Indiana markets, but also have a dependable source for the building frames and some of the specialty metal requirements.
About Heartland Inc.
Heartland is a developing company whose mission is to become a leading diversified company within a number of different industry segments. In December 2003, the company completed its first acquisitions, achieving gross sales and revenues of $4.4 million. With the above acquisitions completed, the company's 2004 gross revenues were $49,763,380 with a net profit of $327,837 (unaudited). The company anticipates gross revenues and profits to significantly increase for 2005. The company expects to achieve this significant increase since the funds will provide the operating capital needed to support or develop its current operations, market its products and services, acquire and expand facilities to meet increased demand, and to fund future business acquisitions that fit with its business strategy.
Forward-Looking Statements
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of Heartland Inc. officials during presentations about Heartland Inc., are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by management, are all forward-looking statements as defined by the Act. Forward-looking statements are based upon current expectations and projections about future events and are subject to risks, uncertainties and assumptions about Heartland Inc., its products, economic and market factors and the industries in which Heartland Inc. does business, among other things. These statements are not guarantees of future performance, and Heartland Inc. has no specific intention to update these statements. More detailed information about those factors is contained in Heartland Inc.'s filings with the Securities and Exchange Commission.
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