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):
April 15, 2009
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)
901 NORTH KANSAS AVE, NORTH LIBERTY, IA 52317
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number (including area code): 319-626-3600
Item 9.01. Financial Statements and Exhibits
Exhibit 99.1 - Heartland Express, Inc. press release dated April 15, 2009
with respect to the Company's financial results for the quarter ended March 31,
2009.
Item 2.02. Results of Operations and Financial Condition.
On April 15, 2009 Heartland Express, Inc. announced its financial results
for the quarter ended March 31, 2009. 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: April 17, 2009 BY: /s/John P. Cosaert
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Wednesday, April 15, 2009 For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of
2009
NORTH LIBERTY, IOWA - April 15, 2009 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended March 31, 2009. As
previously announced the quarter started with negative freight trends from the
fourth quarter of 2008. Freight demand remained depressed throughout the first
quarter of 2009. However, for the quarter ended March 31, 2009, Heartland
Express, Inc. posted an operating ratio (operating expenses as a percentage of
operating revenues) of 83.4% and a 12.3% net margin (net income as a percentage
of operating revenues) both significant improvements over the prior year
comparative period. The Company reported an operating ratio of 86.7% and a 9.8%
net margin for the quarter ended March 31, 2008.
Operating revenues for the quarter decreased 22.8% to $115.0 million from $149.0
million in the first quarter of 2008. The significant reduction in fuel prices
period over period translated into lower fuel surcharge revenue which accounted
for approximately half of the decline in total operating revenues. Lower miles
driven by lower load counts attributed to overall general economic conditions
accounted for the other half of the reduction in operating revenues. Net income
for 2009 was $14.1 million compared to $14.7 million in the 2008 period.
Earnings per share were unchanged at $0.15 for both periods.
There continues to be excess capacity in the market and this combined with
declines in overall freight demand continued to place extreme pressure on
freight rates throughout the quarter. Further, the Company has not seen any
strong indicators of improvements in the demand for freight services that would
affect our levels of business in the near future. Although the Company
experienced depressed freight demand volumes during the quarter that affected
the financial results, the Company remains opportunistic about the steps the
Company took during the first quarter to position itself for future growth and
opportunities when freight demand returns. Heartland opened its tenth regional
operation near Dallas, Texas in the first quarter of 2009.
During the quarter ended March 31, 2009 the Company experienced a 51.4% decrease
in fuel expense mainly driven by a decrease in average fuel cost rates and
further by less miles driven. During the quarter ended March 31, 2009 the U.S.
average cost of fuel was $2.18 per gallon compared to $3.52 for the same period
of 2008. The Company's continued focus on idle hour reductions, terminal fuel
purchases as well as overall increased fuel efficiency of tractors provided
further contributing factors to the reduction of fuel expense period over
period. The Company continues to increase its intensity of controlling fuel
costs as well as all other operating expenses and is exploring other cost saving
opportunities and operating efficiencies to make the Company better prepared for
an economic recovery.
During the current turbulent economic conditions, the Company continues to
demonstrate its confidence in the financial strength of the Company and its
future prospects through its continued investment in the Company through its
share repurchase program. The Company purchased approximately 3.5 million shares
of its outstanding common stock during the quarter ended March 31, 2009 for a
cost of approximately $45.4 million. Another indication of our confidence was
reflected in our continued tractor fleet upgrade program that began in 2008 and
is expected to be completed by the 2009 year end. The Company took delivery of
45 new tractors in the first quarter of 2009 which brings the total purchases
under the current upgrade program to 620 tractors. Management believes the
Company has adequate liquidity to meet the capital requirements of the current
fleet upgrade through cash generated from operations and existing cash and cash
equivalents. The fleet upgrade is another example of how the Company is
positioning itself for the future. During the first quarter of 2009 the Company
achieved the highest level of environmental performance by the U.S.
Environmental Protection Agency through the SmartWay(sm) program. Heartland's
1.25 score given by SmartWay(sm) is a testament to our commitment to being
environmentally responsible and an industry leader in fuel saving strategies.
Despite spending $45.4 million on repurchasing stock, the Company ended the
quarter with cash, cash equivalents, short-term and long-term investments of
$216.2 million, an $11.8 million decrease from the $228.0 million reported at
December 31, 2008. 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 approximately $1.8 million at the rate of $0.02 per share
was paid on April 2, 2009 to shareholders of record at the close of business on
March 20, 2009. The Company has now paid cash dividends of $234.1 million over
the past twenty-three consecutive quarters.
The Company continues to focus on customer service as one of our core building
blocks. Heartland Express has most recently been awarded eight service awards
evidencing the Company's continued ability to deliver the highest quality of
service to our customers. Such awards included, 2008 LXP Carrier of the Year -
Tier One Carriers, LXP Carrier of the Year - Promotional Events, 2008 Lowes
Silver Carrier Award, Kelloggs Komplete Carrier of the Year 2008, Nestle Waters
- Tennessee Region Carrier of the Year 2008, Nestle Waters - Southeast Region
World Class Customer Service 2008, Eastman - Supplier Excellence Award for the
Year 2008, Quaker Oats - National Carrier of the Year 2008.
This press release may contain statements that might be considered as
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.
Mike Gerdin, President
John Cosaert, Chief Financial Officer
319-626-3600
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three months ended
March 31,
2009 2008
---------------- ----------------
OPERATING REVENUE $ 114,979 $ 149,049
---------------- ----------------
OPERATING EXPENSES:
Salaries, wages, and benefits $ 44,059 $ 48,592
Rent and purchased transportation 2,938 5,106
Fuel 24,558 50,499
Operations and maintenance 4,040 3,963
Operating taxes and licenses 2,284 2,243
Insurance and claims 3,514 3,782
Communications and utilities 996 1,005
Depreciation 11,814 10,412
Other operating expenses 3,403 4,332
Gain on disposal of property & equipment (1,667) (644)
---------------- ----------------
95,939 129,290
---------------- ----------------
Operating income 19,040 19,759
Interest income 871 2,863
---------------- ----------------
Income before income taxes 19,911 22,622
Federal and state income taxes 5,770 7,959
---------------- ----------------
Net Income $ 14,141 $ 14,663
================ ================
Earnings per share $ 0.15 $ 0.15
================ ================
Weighted average shares outstanding 92,485 96,215
================ ================
Dividends declared per share $ 0.020 $ 0.020
================ ================
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
March 31, December 31,
ASSETS 2009 2008
CURRENT ASSETS ---------------- ----------------
Cash and cash equivalents $ 46,601 $ 56,651
Short-term investments 133 241
Trade receivables, net 34,487 36,803
Prepaid tires 5,732 6,449
Other current assets 5,001 2,834
Deferred income taxes 36,331 35,650
---------------- ----------------
Total current assets 128,285 138,628
---------------- ----------------
PROPERTY AND EQUIPMENT 385,641 389,561
Less accumulated depreciation 158,605 151,881
---------------- ----------------
227,036 237,680
LONG TERM INVESTMENTS 169,472 171,122
OTHER ASSETS 10,191 10,284
---------------- ----------------
$ 534,984 $ 557,714
================ ================
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 14,626 $ 10,338
Compensation & benefits 15,190 15,862
Income taxes payable 7,899 452
Insurance accruals 71,699 70,546
Other accruals 7,182 7,498
---------------- ----------------
Total current liabilities 116,596 104,696
---------------- ----------------
LONG-TERM LIABILITIES
Income taxes payable 34,319 35,264
Deferred income taxes 56,938 57,715
---------------- ----------------
91,257 92,979
---------------- ----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value;
authorized 5,000 shares, none issued - -
Capital stock; common, $0.01 par value;
authorized 395,000 shares; issued and
outstanding 90,689 in 2009 and 94,229
in 2008 907 942
Additional paid-in capital 439 439
Retained earnings 334,283 367,281
Accumulated other comprehensive loss (8,498) (8,623)
---------------- ----------------
327,131 360,039
---------------- ----------------
$ 534,984 $ 557,714
================ ================