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):
July 14, 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 July 14,
2009 with respect to the Company's financial results for the quarter ended June
30, 2009.
Item 2.02. Results of Operations and Financial Condition.
On July 14, 2009 Heartland Express, Inc. announced its financial
results for the quarter ended June 30, 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: July 15, 2009 BY: /s/John P. Cosaert
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Tuesday, July 14, 2009, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of
2009.
NORTH LIBERTY, IOWA - July 14, 2009 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter and six months ended June 30,
2009. Earnings per share increased 5.6% to $0.19 from $0.18 in the second
quarter of 2008. Net income increased 2.2% to $17.6 million from $17.2 million
in the 2008 period. Operating revenues for the quarter decreased 28.9% to $117.0
million from $164.6 million in the second quarter of 2008. Operating revenues
for the quarter and the six month period were impacted by a reduction in fuel
surcharge revenues associated with lower fuel costs, and the continued economic
downturn and the related downward pressure on freight rates. Operating income
for the second quarter of 2009 was favorably impacted by $4.2 million or $0.03
per share due to an increase in gains on disposal of property and equipment.
Earnings per share for the six months ended June 30, 2009 increased 6.1% to
$0.35 from $0.33 in the compared 2008 period. Net income decreased 0.4% to $31.8
million from $31.9 million in the 2008 period. Operating revenues for the six
months ended June 30, 2009 decreased 26.0% to $232.0 million from $313.6 million
in the first six months of 2008. Operating income for this year's six month
period was favorably impacted by $5.2 million or $0.04 per share due to an
increase in gains on disposal of property and equipment.
Heartland Express, Inc. posted an operating ratio (operating expenses as a
percentage of operating revenues) of 81.4% and a 15.1% net margin (net income as
a percentage of operating revenues) in the second quarter of 2009, both
significant improvements over the comparative 2008 period. The Company reported
an operating ratio of 87.3% and a 10.5% net margin for the quarter ended June
30, 2008. The Company reported an operating ratio of 82.4% and a 13.7% net
margin for the six months ended June 30, 2009 compared to 87.0% and 10.2%,
respectively, for the comparative 2008 period. The Company ended the second
quarter of 2009 with cash, cash equivalents, short-term and long-term
investments of $205.0 million, a $23.0 million decrease from the $228.0 million
reported at December 31, 2008. Our quarter end cash position was impacted by the
purchase of new tractors and the repurchase of common stock as discussed below.
The Company's balance sheet continues to be debt-free.
This extended economic downturn is the worst experienced in the history of our
company. There continues to be excess capacity in our industry combined with the
continued decline in available freight resulting in extreme pressure on freight
rates. The Company has not seen any strong indicators of improvements in the
demand for freight services that would increase our levels of business in the
near future. In spite of depressed freight demand volumes, the Company remains
in an opportunistic position. Efforts are focused on customer service, cost
controls, and challenging ourselves to improve each department during this
period of economic downturn. Heartland opened its tenth regional operation near
Dallas, Texas in January of 2009. This strengthens the Company's presence in
Texas and the surrounding marketplace.
The industry continued to benefit from a reduction in fuel prices during the
quarter ended June 30, 2009, although fuel prices began trending upwards at
quarter end. During the quarter ended June 30, 2009, the U.S. average cost of
fuel was $2.34 per gallon compared to $4.42 for the compared 2008 period.
Accordingly, the Company's fuel cost per mile decreased 48.1% and 47.5% for the
three and six month periods ended June 30, 2009, respectively. Efforts continue
to effectively control the Company's fuel cost. The primary focus is on idle
hour reductions, terminal fuel purchases, strategic over-the-road purchases, and
the purchase of state-of-the-art International Pro Star trucks with increased
fuel economy features.
The Company took delivery of 416 new tractors in the second quarter of 2009 in
addition to 45 new tractors in the first quarter of this year. This fleet
upgrade now includes the purchase of 1,036 International Pro Star tractors.
These tractors are achieving positive results through advanced aerodynamics,
speed management, and idle controls.
Heartland Express continues to pay a regular quarterly cash dividend. The most
recent dividend of approximately $1.8 million at the rate of $0.02 per share was
paid on July 2, 2009 to shareholders of record at the close of business on June
19, 2009. The Company has now paid cash dividends of $235.9 million over the
past twenty-four consecutive quarters. In addition, the Company continues to
demonstrate its confidence in the strength of the organization through the
repurchase of its common stock. The Company has purchased approximately 3.5
million shares of its outstanding common stock during the first six months of
2009 at a cost of approximately $45.4 million.
Customer service continues to be the core foundation of our company. The Company
has now been awarded eleven service awards thus far this year for its ability to
deliver the highest quality of customer service. During the quarter Heartland
Express was recognized by Alcoa as a Tier One Core Carrier for its outstanding
commitment to customer service. In addition, the Company was named to the
Transplace 2008 Carrier Merit Program for the best on-time service provider.
Awards previously received in 2009 include: 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, Pella Windows and
Doors - 2008 Gettysburg Carrier of the Year.
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 Six months ended
June 30, June 30,
2009 2008 2009 2008
-------------------- --------------------
(unaudited) (unaudited)
OPERATING REVENUE $ 116,974 $ 164,592 $ 231,953 $ 313,641
--------- --------- --------- ---------
OPERATING EXPENSES:
Salaries, wages, benefits $ 42,938 $ 48,591 $ 86,997 $ 97,183
Rent and purchased transportation 2,806 5,144 5,744 10,250
Fuel 25,086 60,495 49,644 110,993
Operations and maintenance 4,314 4,353 8,354 8,316
Operating taxes and licenses 2,433 2,343 4,716 4,585
Insurance and claims 4,625 7,012 8,139 10,795
Communications and utilities 906 931 1,902 1,936
Depreciation 13,160 10,663 24,974 21,076
Other operating expenses 3,188 4,139 6,591 8,471
(Gain) loss on disposal of
property & equipment (4,190) 11 (5,857) (633)
-------- -------- -------- --------
95,266 143,682 191,204 272,972
-------- -------- -------- --------
Operating income 21,708 20,910 40,749 40,669
Interest income 563 2,236 1,434 5,099
-------- -------- -------- --------
Income before income taxes 22,271 23,146 42,183 45,768
Federal and state income taxes 4,656 5,915 10,427 13,874
-------- -------- -------- --------
Net income $ 17,615 $ 17,231 $ 31,756 $ 31,894
======== ======== ======== ========
Earnings per share $ 0.19 $ 0.18 $ 0.35 $ 0.33
======== ======== ======== ========
Weighted average shares outstanding 90,689 96,158 91,582 96,186
======== ======== ======== ========
Dividends declared per share $ 0.02 $ 0.02 $ 0.04 $ 0.04
======== ======== ======== ========
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
June 30, December 31,
ASSETS 2009 2008
--------- ---------
CURRENT ASSETS (unaudited)
Cash and cash equivalents $ 44,580 $ 56,651
Short-term investments 140 241
Trade receivables, net 36,884 36,803
Prepaid tires 6,051 6,449
Other current assets 6,205 2,834
Income tax receivable 2,025 --
Deferred income taxes 36,118 35,650
--------- ---------
Total current assets 132,003 138,628
--------- ---------
PROPERTY AND EQUIPMENT 397,069 389,561
Less accumulated depreciation 156,695 151,881
--------- ---------
240,374 237,680
LONG-TERM INVESTMENTS 160,322 171,122
OTHER ASSETS 10,329 10,284
--------- ---------
$ 543,028 $ 557,714
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LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $ 14,139 $ 10,338
Compensation & benefits 15,540 15,862
Income taxes payable -- 452
Insurance accruals 71,804 70,546
Other accruals 7,215 7,498
--------- ---------
Total current liabilities 108,698 104,696
--------- ---------
LONG-TERM LIABILITIES
Income taxes payable 30,558 35,264
Deferred income taxes 60,966 57,715
--------- ---------
91,524 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 350,083 367,281
Accumulated other comprehensive
loss (8,623) (8,623)
--------- ---------
342,806 360,039
--------- ---------
$ 543,028 $ 557,714
========= =========