Pinnacle Transportation Inc. Announces Acquisition of Southern California Dispatch Terminal
05 May 2004 - 7:05AM
PR Newswire (US)
Pinnacle Transportation Inc. Announces Acquisition of Southern
California Dispatch Terminal MESA, Ariz., May 4
/PRNewswire-FirstCall/ -- Pinnacle Transportation Inc. of Mesa,
Arizona announced today that as of April 24, 2004, its newly
acquired Dispatch Terminal in Southern California is fully
operating and functioning. Based on historical financial statements
the Company believes that this acquisition will add revenues of
$14M on an annualized basis to its existing business. In 2003, its
first year as a public company, Pinnacle enjoyed sales of $8M. The
Company believes that with organic growth and this additional
Dispatch Terminal it will approach $25M in sales for 2004. This new
Dispatch Terminal will remain under the capable management of Roger
Welk, Western Division Operations Manager. Mr. Welk was a principal
of the acquired business and is a 30-year veteran of the Heavy Haul
Transport Industry. ABOUT PINNACLE TRANSPORTATION INC. Pinnacle is
a four-year-old company based in Mesa, Arizona that specializes in
transporting Manufactured Homes, Modular Homes, Schools and
Offices. Pinnacle, with, the addition of its new Dispatch Terminal
in Southern California, is the largest Heavy Haul Transporter in
the Western United States. This newest addition brings the total of
its Terminals in the West to 10. Pinnacle was incorporated in 2000
by Shawn Kling, a seasoned veteran of the Heavy Haul Transport
Industry, to take advantage of what he saw as the eventual
consolidation opportunities that would arise in the new millennium.
The Industry unlike the general transport or LTL has many barriers
to entry. It is highly specialized and demands experienced and
knowledgeable skilled drivers. Special licensing and permits are
required. Expensive insurance coverage and extensive routing
knowledge is critical for successful operations. In addition some
shipments require special equipment such as modular trailers to
meet the customer's needs. There are few companies that can meet
these stringent requirements. Pinnacle ships for companies in the
Manufactured Housing Industry. The Manufacturers have 275 factories
throughout the Nation producing units that have an economic impact
in excess of $20 Billion. Source -- Manufactured Housing Institute
2003. Manufacturers have reported a sales increase in Modular
Homes, they are permanent structures sited on conventional
foundations. This increase has been helped by the recent lending
announcements of Freddie Mac and Fannie Mae for loans specifically
designed for Manufactured and Modular homes. Warren Buffet recently
gave a ringing endorsement of the industry's long-term viability by
recently purchasing two of the industry leaders, Oakwood Homes and
Clayton Homes for his Berkshire Hathaway portfolio. Pinnacle
currently ships for six of the industry's top ten companies and has
the specialized Modular Trailers to service this growing market
segment. Disclaimer Except for historical matters contained herein,
the matters discussed in this press release are forward looking and
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned
that these forward-looking statements reflect numerous assumptions
and involve risk and uncertainties that may affect Pinnacle
Transportation Inc. and its subsidiary's business and prospects,
and cause results to differ materially from these forward-looking
statements. Among the factors that could cause actual results to
differ are operating history; competition; low barriers to entry;
reliance on strategic relationships; inability to complete
transactions on favorable terms; and those risks that will be
discussed in the Company's upcoming filings with the SEC.
DATASOURCE: Pinnacle Transporatation Inc. CONTACT: R. Chandler of
Pinnacle Transportation Inc., +1-480-833-4000
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