UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 18, 2005
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 9.01. Financial Statements and Exhibits
Exhibit 99.1 - Heartland Express, Inc. press release dated January 18, 2005
with respect to the Company's financial results for the quarter ended December
31, 2004.
Item 2.02. Results of Operations and Financial Condition.
On January 18, 2005, Heartland Express, Inc. announced its financial
results for the quarter ended December 31, 2004. 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 18, 2005 BY: /s/ John P. Cosaert
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JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Tuesday, January 18, 2005, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of
2004.
CORALVILLE, IOWA - January 18, 2005 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today its financial results for the quarter and year ended December
31, 2004. For the fourth quarter, revenue increased 15.9%, to $119.4 million
from $103.0 million in the fourth quarter of 2003. Net income was $16.6 million
and basic earnings per share were $0.22. For the twelve months, revenue
increased 12.8%, to $457.1 million from $405.1 million during the same period in
2003. Net income for the twelve months was $62.4 million and basic earnings per
share were $0.83.
Heartland Express, Inc. posted an operating ratio (operating expenses as a
percentage of gross revenues) of 79.4%, and a net margin of 13.9% for the fourth
quarter of 2004. The Company ended the year with an operating ratio of 79.5% and
a 13.7% net margin.
The Company ended the year with cash, cash equivalents, and investments of
$258.3 million, a $55.9 million increase from the $202.4 million reported on
December 31, 2003. Total assets increased to $517.0 million from $448.4 million
at December 31, 2003. The Company's balance sheet continues to be debt-free.
A strong freight demand and a tight market for experienced drivers continue in
the truckload industry. In the first quarter of 2005, for the second year in a
row, the Company is increasing driver pay by $0.03 per mile. These increases
along with the increase implemented this past quarter for miles driven in the
upper Northeastern United States has solidified Heartland's industry leading
driver compensation package.
During the quarter, Heartland Express declared a regular quarterly cash
dividend. The quarterly dividend of $1,500,000 at the rate of $0.02 per share
was paid on January 3, 2005 to shareholders of record at the close of business
on December 23, 2004. The Company has now paid a cash dividend for six
consecutive quarters. In addition, the Company declared a 3-for-2 stock split,
paid as a 50% stock dividend in the third quarter of 2004. This stock split
increased the Company's outstanding common stock from 50.0 million to 75.0
million shares. As a result, the Company's annual cash dividend has increased to
$6.0 million from $4.0 million because of the additional shares outstanding. All
earnings per share data presented have been adjusted retroactively to reflect
the effect of the stock dividend.
The replacement of the Company's tractor fleet, scheduled to be completed by
December 31, 2006, continued during the fourth quarter. As of December 31, 2004
the Company has taken delivery of 800 new International 9400i model tractors.
Operating results for the fourth quarter of 2003 were impacted by adjustments
pertaining to self-insurance accruals. During the fourth quarter of 2003, the
Company 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 2003 earnings by $0.07 per share. Details of
the adjustment are as follows (in millions):
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Decrease in insurance and claims expense $ (11.2)
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Increase in salaries, wages, benefits (workers' compensation) 2.9
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Increase in operating income 8.3
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Income taxes (2.9)
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Increase in net income $ 5.4
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Net income for the fourth quarter of 2004 increased 21.1% over the fourth
quarter of 2003, excluding the aforementioned $5.4 million insurance adjustment.
Net income for the year increased 20.4% over 2003 excluding the insurance
adjustment.
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,
2004 2003 2004 2003
OPERATING REVENUE ............................ $ 119,438,580 $ 103,015,958 $ 457,086,311 $ 405,116,097
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OPERATING EXPENSES:
Salaries, wages, benefits ................. $ 38,341,494 $ 38,840,605 $ 157,505,082 $ 141,292,791
Rent and purchased transportation ......... 8,137,147 10,793,789 36,757,494 49,988,074
Operations and maintenance ................ 27,248,171 18,969,711 96,202,224 75,516,232
Taxes and licenses ........................ 2,357,922 2,139,066 8,996,380 8,402,986
Insurance and claims ...................... 6,089,455 (7,732,134) 16,544,050 2,187,537
Communications and utilities............... 839,546 841,447 3,668,494 3,604,661
Depreciation .............................. 8,413,915 7,100,937 29,628,157 26,533,937
Other operating expenses .................. 3,465,200 3,352,669 14,401,075 12,538,652
Gain on disposal of fixed assets .......... (75,027) (38,813) (174,831) (45,782)
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$ 94,817,823 $ 74,267,277 $ 363,528,125 $ 320,019,088
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Operating income ............... $ 24,620,757 $ 28,748,681 $ 93,558,186 $ 85,097,009
Interest income ........................... 1,046,434 543,800 3,070,956 2,045,793
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Income before income taxes ................ $ 25,667,191 $ 29,292,481 $ 96,629,142 $ 87,142,802
Federal and state income taxes ............ 9,111,854 10,252,369 34,182,554 29,921,477
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Net income ................................ $ 16,555,337 $ 19,040,112 $ 62,446,588 $ 57,221,325
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Earnings per common share:
Basic earnings per share .............. $ 0.22 $ 0.25 $ 0.83 $ 0.76
============= ============= ============= =============
Basic weighted average shares
outstanding ............................... 75,000,000 75,000,000 75,000,000 75,000,000
============= ============= ============= =============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
ASSETS
2004 2003
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CURRENT ASSETS
Cash and short term investments ......... $ 258,329,707 $ 202,431,155
Trade receivables ....................... 37,102,813 36,836,728
Prepaid tires ........................... 2,692,090 2,529,580
Deferred income taxes ................... 24,964,000 21,308,000
Other current assets .................... 158,267 673,101
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Total current assets .............. $ 323,246,877 $ 263,778,564
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PROPERTY AND EQUIPMENT ....................... $ 253,648,785 $ 232,650,992
Less accumulated depreciation ........... 68,973,751 56,951,186
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$ 184,675,034 $ 175,699,806
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OTHER ASSETS $ 9,089,940 $ 8,928,186
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$ 517,011,851 $ 448,406,556
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LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities .. $ 9,722,099 $ 15,684,826
Accrued expenses ........................ 63,142,908 53,724,940
Income taxes payable .................... 7,918,914 7,720,875
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Total current liabilities .......... $ 80,783,921 $ 77,130,641
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DEFERRED INCOME TAXES......................... $ 46,885,000 $ 39,760,000
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: Common, $.01 par value;
authorized 395,000,000 shares; issued and $ 750,000 $ 500,000
outstanding 75,000,000 shares in 2004 and
50,000,000 in 2003
Additional paid-in capital .............. 8,510,305 8,510,305
Retained earnings ....................... 380,906,884 323,710,296
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$ 390,167,189 $ 332,720,601
Less unearned compensation ........ (824,259) (1,204,686)
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$ 389,342,930 $ 331,515,915
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$ 517,011,851 $ 448,406,556
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End of Report