LandStar, Inc. Announces Facility Reorganization and Results of Annual Shareholder Meeting.Business Editors PHOENIX--(BUSINESS WIRE)--Aug. 28, 2001 Company Closes Flatrock, Michigan Plant, Completes Product Cost Review And Implements New Management Information Systems To Improve Cost Controls LandStar, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :LDSR, www.ldsr.com), a rapidly growing polymer regeneration and redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. company, today announced numerous developments in conjunction with the Company's operational reorganization. Landstar's Flatrock Michigan plant has been permanently closed and the Company has negotiated a termination of the lease of the premises effective October 31, 2001. The $5 million bond associated with this facility has been paid out and the Company is redistributing the equipment to other facilities to enhance overall production capacity. The Company has commenced termination or relocation of the employees and expects all equipment to be relocated by mid October. During the six months ended June 30, 2001, this facility had a loss of $1,679,000 that reflected structural fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). and inefficiencies that could not be remedied. LandStar has completed a product cost review and is now in position to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. product mix and marketing efforts to maximize product margin. The Company has developed and is implementing a detailed budgeting system that will support a cost control program and improve management information. In introducing the system to operating managers, Elroy Fimrite, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of LandStar, said, "We have succeeded in designing and implementing this system in several previous organizations with dramatic improvements in financial performance. This system will serve to deliver critical management information on cost behavior patterns, cost controllability and cost-volume-profit relationships. The key to profitability in crumb rubber Crumb rubber is generally manufactured from automotive and truck scrap tires. During the manufacturing process steel and fluff is removed leaving tire rubber with a granular consistency. production is maximizing production volume with tight cost control while astutely marketing the product to ensure viable pricing." In a separate announcement, LandStar noted that shareholder approval has been granted for several items that were recently proposed at the annual shareholders meeting. Items that were approved include the proposed slate of Directors; the increase in authorized share capital and issuance of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. to aid in the Company's agenda to raise capital and complete acquisitions. The Board of Directors also approved preparation of a stub A small software routine placed into a program that provides a common function. Stubs are used for a variety of purposes. For example, a stub might be installed in a client machine, and a counterpart installed in a server, where both are required to resolve some protocol, remote procedure audit of the Company for six months ending June 30, 2001 to facilitate the preparation and filing of a registration statement and a shelf offering of securities. The Board also approved an investor relations Investor relations The process by which the corporation communicates with its investors. program to improve communication with current and potential investors. The new investor relations program is to include a series of public investor information meetings with details of the location and time of these meetings to be posted on the Company web site under "What's New-Recent Events". A revised investor information package is also under development and will be forwarded to investors upon request. "We are pleased with our progress to date and thank our shareholders for their ongoing commitment to our management team," stated Fimrite. "We feel that we have achieved considerable success at firmly positioning ourselves in a burgeoning industry and believe we are on target to bring our polymer redeployment and reactivation reactivation to become active after a period of quiescence or, as in bacterial and viral infections, latency. cross reactivation technologies to the forefront of the rubber recycling industry, ultimately driving value for customers and investors alike," he added. About LandStar, Inc. LandStar is a polymer redeployment and polymer reactivation Company currently aggressively expanding through acquisitions and development of proprietary technologies in the polymer recycling industry. On behalf of the Company, KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association No Stock Exchange or Securities Commission has approved nor disapproved the statements in this release. Any statements that are not strictly historical are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " made pursuant to the "safe harbour" provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to a number of risks and uncertainties that may affect actual events or results materially. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. You may register to receive LandStar's future press releases or to download a complete Digital Investor Kit(TM) including press releases, regulatory filings and corporate materials by clicking on the "Digital Investor Kit(TM)" icon at www.kcsa.com. |
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