Thursday, April 14, 2005, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2005.
CORALVILLE, IOWA – April 14, 2005 – Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the first quarter ended March 31, 2005. Gross revenues for the quarter increased 11.1% to $118.7 million from $106.8 million in the first quarter of 2004. Net income increased 15.0% to $15.1 million from $13.1 million in the 2004 period. Basic earnings per share were $0.20 compared to $0.17 for the first quarter of 2004.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 81.4% and a 12.7% net margin. These operating results were achieved in spite of record high fuel prices. For the second year in a row, the Company increased driver pay during the first quarter by $0.03 per mile in an effort to attract and retain experienced drivers who meet the Company’s safe driving requirements.
The Company ended the first quarter with cash, cash equivalents, and investments of $288.2 million, a $29.9 million increase from the $258.3 million reported on December 31, 2004. During the quarter the Company generated $32.9 million net cash from operations, a 28.4% increase over the first quarter of 2004. The Company’s balance sheet continues to be debt-free.
In March, the Company continued the replacement of its tractor fleet with new International 9400i model tractors. Approximately 860 new tractors have been received through the end of the quarter. The fleet replacement will continue throughout the year and is scheduled to be completed by December 31, 2006.
The Company is pleased to announce that it recently received a satisfactory rating, the highest attainable, from the U.S. Department of Transportation. The Company has always been committed to safety in its operating practices and driver hiring standards. The results of the recent compliance audit confirmed the Company’s continued focus on safety.
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 April 1, 2005 to shareholders of record at the close of business on March 22, 2005. The Company has now paid seven consecutive quarterly cash dividends. 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.
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