Thursday, April 19, 2007 For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2007.
CORALVILLE, IOWA – April 19, 2007 – Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended March 31, 2007. Operating revenues for the quarter increased 6.2% to $143.4 million from $135.0 million in the first quarter of 2006. Net income increased 14.3% to $22.6 million from $19.7 million in the 2006 period. Earnings per share were $0.23 compared to $0.20 for the first quarter of 2006, a 15.0% increase.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 78.2% and a 15.7% net margin. The Company ended the first quarter with cash, cash equivalents, and short-term investments of $365.1 million, a $33.8 million increase from the $331.3 million reported on December 31, 2006. The first quarter net cash flow from operations of $34.1 million was 23.8% of our operating revenues. The Company’s balance sheet continues to be debt-free with total assets of $700.7 million.
The Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 “Accounting for Uncertainty in Income Taxes (an interpretation of FASB No. 109)” (FIN 48) effective January 1, 2007. The cumulative effect of adopting FIN 48 of $4.7 million has been recognized as a charge against retained earnings.
The average age of the Company’s tractor fleet was 1.5 years at March 31, 2007, with the entire fleet comprised of 2005 or newer model year Internationals. The average age of the Company’s trailer fleet was 3.3 years at March 31, 2007. The Company also began the upgrade of its trailer fleet in the first quarter with the purchase of 2008 Wabash trailers. The Company took delivery of 35 new tractors and 100 new trailers during the quarter.
During the quarter, Heartland Express declared a regular quarterly cash dividend. The quarterly dividend of approximately $2.0 million at the rate of $0.02 per share was paid on April 2, 2007 to shareholders of record at the close of business on March 22, 2007. The Company has now paid cash dividends of $22.3 million over the past fifteen consecutive quarters.
This press release may contain statements that might be considered as forward-looking statements or predictions of future operations. Such statements are based on management’s belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties. Actual events may differ from these expectations as specified from time to time in filings with the Securities and Exchange Commission.
Contact: Heartland Express, Inc.
Mike Gerdin, President
John Cosaert, Chief Financial Officer
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
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Three months ended
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March 31,
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2007
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2006
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OPERATING REVENUE
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$ 143,429,027
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$ 134,999,299
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OPERATING EXPENSES:
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Salaries, wages, benefits
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$ 48,013,729
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$ 46,370,582
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Rent and purchased transportation
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5,221,764
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6,199,672
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Operations and maintenance
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3,204,050
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2,946,733
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Fuel
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36,813,297
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32,961,018
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Taxes and licenses
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2,280,358
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2,067,167
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Insurance and claims
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5,589,831
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4,086,849
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Communications and utilities
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855,918
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952,339
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Depreciation
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11,703,756
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10,177,659
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Other operating expenses
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4,125,123
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4,197,629
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Gain on disposal of property and equipment
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(5,666,241)
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(3,059,237)
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$ 112,141,585
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$ 106,900,411
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Operating income
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$ 31,287,442
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$ 28,098,888
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Interest income
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3,316,063
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2,505,947
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Income before income taxes
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$ 34,603,505
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$ 30,604,835
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Federal and state income taxes
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12,050,204
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10,864,684
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Net income
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$ 22,553,301
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$ 19,740,151
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Earnings per share
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$ 0.23
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$ 0.20
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Weighted average shares outstanding
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98,251,889
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98,428,589
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Dividends declared per share
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$ 0.020
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$ 0.015
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HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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March 31,
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December 31,
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ASSETS
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2007
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2006
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(unaudited)
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CURRENT ASSETS
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Cash and cash equivalents
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$ 11,417,039
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$ 8,458,882
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Short-term investments
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353,689,572
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322,829,306
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Trade receivables
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45,504,423
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43,499,482
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Prepaid tires
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4,582,010
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5,075,566
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Other prepaid expenses
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6,811,936
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1,635,077
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Deferred income taxes
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28,614,000
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29,177,000
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Total current assets
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$ 450,618,980
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$ 410,675,313
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PROPERTY AND EQUIPMENT
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$ 344,732,728
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$ 344,323,852
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Less accumulated depreciation
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104,987,360
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96,293,111
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$ 239,745,368
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$ 248,030,741
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OTHER ASSETS
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$ 10,343,595
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$ 10,363,658
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$ 700,707,943
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$ 669,069,712
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES
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Accounts payable & accrued liabilities
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$ 15,887,364
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$ 15,075,647
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Compensation & benefits
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14,128,288
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15,028,378
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Income taxes payable
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8,836,953
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21,418,610
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Insurance accruals
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57,107,383
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56,651,853
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Other accruals
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8,076,648
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8,248,415
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Total current liabilities
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$ 104,036,636
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$ 116,422,903
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LONG-TERM LIABILITIES
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Income taxes payable
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$ 35,779,158
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$ --
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Deferred income taxes
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49,881,000
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57,623,000
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$ 85,660,158
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$ 57,623,000
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COMMITMENTS AND CONTINGENCIES
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STOCKHOLDERS' EQUITY
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Capital stock: common, $.01 par value;
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authorized 395,000,000 shares; issued and
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outstanding 98,251,889
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$ 982,519
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$ 982,519
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Additional paid-in capital
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438,701
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376,029
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Retained earnings
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509,589,929
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493,665,261
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$ 511,011,149
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$ 495,023,809
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$ 700,707,943
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$ 669,069,712
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