Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2004.
CORALVILLE, IOWA – July 22, 2004 – Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the second quarter ended June 30, 2004. Gross revenues for the quarter increased 10.4% to $113.5 million from $102.8 million in the second quarter of 2003. Net income increased 24.2% to $15.7 million from $12.6 million in the 2003 period. Basic earnings per share were $0.31 compared to $0.25 for the second quarter of 2003.
For the six months, revenue increased 11.5% to $220.3 from $197.6 during the same period in 2003. Net income increased 21.7% to $28.8 million from $23.7 million in the 2003 period. Basic earnings per share were $0.58 compared with $0.47 for the 2003 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 79.3% and a 13.8% net margin. The Company ended the six months ended June 30, 2004 with an operating ratio of 80.4% and a 13.1% net margin.
The Company ended the second quarter with cash, cash equivalents, and investments of $229.1 million, a $26.7 million increase from the $202.4 million reported on December 31, 2003. The Company’s balance sheet continues to be debt-free. The Company opened its newly acquired (December, 2003) Carlisle, Pennsylvania facility in June, 2004. This location is much larger than the previously leased facility and will provide a solid base of operations in the Northeast.
In June, 2004 the Company began the replacement of their entire tractor fleet. The current fleet will be replaced with the International 9400i. Currently the Company has taken delivery of 315 new Internationals. The delivery of new trucks and the trade-in of the current fleet are scheduled to be completed by December 31, 2006. In addition, the Company purchased 400 new Wabash trailers during the second quarter of 2004.
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 July 2, 2004 to shareholders of record at the close of business on June 21, 2004.
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.
John Cosaert
319-545-2728
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HEARTLAND EXPRESS, INC. |
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AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF INCOME |
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(UNAUDITED) |
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Three months ended |
Six months ended |
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June 30, |
June 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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OPERATING REVENUE |
$113,511,541 |
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$102,799,789 |
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$ 220,348,453 |
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$197,639,524 |
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OPERATING EXPENSES: |
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Salaries, wages, benefits |
$ 39,091,825 |
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$ 35,190,604 |
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$ 78,857,921 |
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$ 67,502,911 |
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Rent and purchased transportation |
9,522,915 |
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13,151,043 |
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20,041,540 |
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27,104,114 |
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Operations and maintenance |
22,710,926 |
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18,141,646 |
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43,656,478 |
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37,451,826 |
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Taxes and licenses |
2,204,958 |
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2,125,293 |
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4,495,240 |
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3,998,699 |
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Insurance and claims |
5,395,577 |
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4,164,378 |
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7,892,218 |
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6,535,371 |
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Communications and utilities |
980,349 |
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923,038 |
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1,942,532 |
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1,816,883 |
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Depreciation |
6,757,757 |
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6,926,441 |
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13,371,461 |
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12,293,984 |
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Other operating expenses |
3,411,410 |
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3,551,159 |
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6,915,444 |
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6,105,931 |
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(Gain) on disposal of fixed assets |
(65,638) |
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(27,110) |
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(101,889) |
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(30,771) |
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$ 90,010,079 |
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$ 84,146,492 |
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$ 177,070,945 |
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$ 162,778,948 |
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Operating income |
$ 23,501,462 |
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$ 18,653,297 |
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$ 43,277,508 |
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$ 34,860,576 |
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Interest income |
651,871 |
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492,404 |
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1,219,387 |
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1,031,021 |
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Income before income taxes |
$ 24,153,333 |
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$ 19,145,701 |
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$ 44,496,895 |
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$ 35,891,597 |
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Federal and state income taxes |
8,453,664 |
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6,509,537 |
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15,675,629 |
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12,203,141 |
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Net income |
$ 15,699,669 |
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$ 12,636,164 |
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$ 28,821,266 |
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$ 23,688,456 |
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Earnings per common share: |
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Basic earnings per share |
$ 0.31 |
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$ 0.25 |
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$ 0.58 |
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$ 0.47 |
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Basic weighted average shares |
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outstanding |
50,000,000 |
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50,000,000 |
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50,000,000 |
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50,000,000 |
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HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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ASSETS |
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June 30, |
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December 31, |
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2004 |
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2003 |
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(unaudited) |
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CURRENT ASSETS |
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Cash and short term investments |
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$ 229,089,575 |
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$ 202,431,155 |
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Trade receivables |
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38,065,754 |
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36,836,728 |
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Prepaid tires |
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2,113,480 |
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2,529,580 |
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Deferred income taxes |
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24,467,000 |
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21,308,000 |
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Other current assets |
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3,611,629 |
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673,101 |
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Total current assets |
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$ 297,347,438 |
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$ 263,778,564 |
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PROPERTY AND EQUIPMENT |
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$ 241,470,443 |
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$ 232,650,992 |
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Less accumulated depreciation |
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65,500,979 |
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56,951,186 |
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$ 175,969,464 |
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$ 175,699,806 |
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OTHER ASSETS |
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$ 8,796,373 |
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$ 8,928,186 |
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$ 482,113,275 |
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$ 448,406,556 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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CURRENT LIABILITIES |
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Accounts payable & accrued liabilities |
$ 13,612,430 |
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$ 15,684,826 |
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Accrued expenses |
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61,597,080 |
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53,724,940 |
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Income taxes payable |
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8,514,370 |
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7,720,875 |
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Total current liabilities |
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$ 83,723,880 |
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$ 77,130,641 |
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DEFERRED INCOME TAXES |
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$ 39,862,000 |
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$ 39,760,000 |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS' EQUITY |
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Capital stock: Common, $.01 par value; |
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authorized 395,000,000 shares; issued and |
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outstanding 50,000,000 |
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$ 500,000 |
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$ 500,000 |
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Additional paid-in capital |
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8,510,305 |
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8,510,305 |
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Retained earnings |
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350,531,562 |
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323,710,296 |
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$ 359,541,867 |
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$ 332,720,601 |
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Less unearned compensation |
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(1,014,472) |
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(1,204,686) |
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$ 358,527,395 |
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$ 331,515,915 |
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$ 482,113,275 |
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$ 448,406,556 |