UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 23, 2004
HEARTLAND EXPRESS, INC.
(Exact name of registrant as specified in its charter)
Commission File Number - 0-15087
NEVADA 93-0926999
(State of other Jurisdiction (IRS Employer ID No.)
of Incorporation)
2777 HEARTLAND DRIVE, CORALVILLE, IOWA 52241
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number (including area code): 319-545-2728
Item 7. Financial Statements and Exhibits
Exhibit 99.1 - Heartland Express, Inc. press release dated January 23, 2004
with respect to the Company's financial results for the quarter ended December
31, 2003.
Item 12. Results of Operations and Financial Condition.
On January 23, 2004, Heartland Express, Inc. announced its financial
results for the quarter ended December 31, 2003. The press release is attached
as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf by the undersigned
thereunto duly authorized.
HEARTLAND EXPRESS, INC.
Date: January 26, 2004 BY: /s/ John P. Cosaert
---------------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Friday, January 23, 2004, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of
2003.
CORALVILLE, IOWA - January 23, 2004 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the fourth quarter ended December 31,
2003. For the fourth quarter revenue increased 12.0% to $103.0 million from
$92.0 million in the fourth quarter of 2002. Net income was $19.0 million and
basic earnings per share were $0.38. The results reflect an adjustment
pertaining to self insurance accruals. The impact of the reserve adjustment was
an increase in net income of $5.4 million or $.11 per share. The reserve
adjustment has no impact on cash flows. Heartland Express, Inc. posted an
operating ratio (operating expenses as a percentage of gross revenues) of 72.1%.
The reserve adjustment reduced the operating ratio from 80.1%.
For the twelve months, revenue increased 18.9% to $405.1 million from $340.7
million during the same period in 2002. Net income for the twelve months was
$57.2 million and basic earnings per share were $1.14.
During the fourth quarter Heartland Express, Inc. engaged consulting actuaries
to assist in determining the liability for self insurance reserves. As a result
of the actuarial studies management decreased the amount accrued for accident
liability claims and increased the amount accrued for workers' compensation
claims. This $5.4 million reserve adjustment, net of taxes, increased fourth
quarter earnings by $0.11per share. Details of the adjustment are as follows (in
millions):
Decrease in insurance and claims expense $ (11.2)
Increase in salaries, wages, benefits
(workers' compensation) ____2.9
Increase in operating income 8.3
Income taxes ___(2.9)
Increase in net income $ 5.4
The Company ended the fourth quarter with cash, cash equivalents, and
investments of $202.4 million, a $48.5 million increase from the $153.9 million
reported on December 31, 2002. Total assets increased to $448.4 million from
$373.1 million at December 31, 2002. The Company's balance sheet continues to be
debt-free.
During the quarter, Heartland Express declared a regular quarterly cash
dividend. The quarterly dividend of $1,000,000 at the rate of $0.02 per share
was paid on January 2, 2004 to shareholders of record at the close of business
on December 22, 2003.
This press release may contain statements that might be considered
forward-looking statements or predictions of future operations. Such statements
are based on management's belief or interpretation of information currently
available. These statements and assumptions involve certain risks and
uncertainties. Actual events may differ from these expectations as specified
from time to time in filings with the Securities and Exchange Commission.
Contact: Heartland Express, Inc.
John Cosaert
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
OPERATING REVENUE $103,015,958 $ 91,991,577 $405,116,097 $340,745,026
------------ ------------- ------------ ------------
OPERATING EXPENSES:
Salaries, wages, benefits $ 38,840,605 $ 31,028,763 $141,292,791 $109,959,772
Rent and purchased transportation 10,793,789 15,325,211 49,988,074 64,159,365
Operations and maintenance 18,969,711 16,334,060 75,516,232 56,334,769
Taxes and licenses 2,139,066 1,894,192 8,402,986 7,144,078
Insurance and claims (7,732,134) 1,929,319 2,187,537 9,192,632
Communications and utilities 841,447 716,308 3,604,661 2,956,810
Depreciation 7,100,937 6,350,883 26,533,937 20,378,720
Other operating expenses 3,352,669 2,591,462 12,538,652 8,843,137
(Gain) on disposal of fixed assets (38,813) (422,012) (45,782) (273,549)
------------ ------------ ------------ ------------
$ 74,267,277 $ 75,748,186 $320,019,088 $278,695,734
------------ ------------ ------------ ------------
Operating income $ 28,748,681 $ 16,243,391 $ 85,097,009 $ 62,049,292
Interest income 543,800 682,550 2,045,793 2,811,181
------------ ------------ ------------ ------------
Income before income taxes $ 29,292,481 $ 16,925,941 $ 87,142,802 $ 64,860,473
Federal and state income taxes 10,252,369 5,754,818 29,921,477 22,052,559
------------ ------------ ------------ ------------
Net income $ 19,040,112 $ 11,171,123 $ 57,221,325 $ 42,807,914
============ ============ ============ ============
Earnings per common share:
Basic earnings per share $ 0.38 $ 0.22 $ 1.14 $ 0.86
============ ============ ============ ============
Basic weighted average shares
outstanding 50,000,000 50,000,000 50,000,000 50,000,000
============ ============ ============ ============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
ASSETS
2003 2002
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CURRENT ASSETS
Cash and short term investments $ 202,431,155 $ 153,861,422
Trade receivables 36,836,728 33,012,394
Prepaid tires 2,529,580 4,757,850
Deferred income taxes 21,308,000 21,134,000
Other current assets 673,101 620,344
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Total current assets $ 263,778,564 $ 213,386,010
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PROPERTY AND EQUIPMENT $ 232,650,992 $ 191,116,893
Less accumulated depreciation 56,951,186 39,715,307
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$ 175,699,806 $ 151,401,586
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OTHER ASSETS $ 8,928,186 $ 8,320,593
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$ 448,406,556 $ 373,108,189
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 15,684,826 $ 8,632,810
Accrued expenses 53,724,940 52,386,322
Income taxes payable 7,720,875 6,070,318
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Total current liabilities $ 77,130,641 $ 67,089,450
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DEFERRED INCOME TAXES $ 39,760,000 $ 30,089,000
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: Common, $.01 par value;
authorized 395,000,000 shares; issued and
outstanding 50,000,000 $ 500,000 $ 500,000
Additional paid-in capital 8,510,305 8,603,762
Retained earnings 323,710,296 268,488,971
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$ 332,720,601 $ 277,592,733
Less unearned compensation (1,204,686) (1,662,994)
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$ 331,515,915 $ 275,929,739
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$ 448,406,556 $ 373,108,189
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END OF REPORT