Thursday, July 19, 2007, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2007.
CORALVILLE, IOWA – July 19, 2007 – Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended June 30, 2007. Operating revenues for the quarter increased 4.2% to $149.1 million from $143.1 million in the second quarter of 2006. Operating income for the quarter was negatively impacted by a $5.6 million decrease in gains on disposal of property and equipment. Therefore, net income decreased 19.9% to $19.8 million from $24.8 million in the 2006 period. Earnings per share were $0.20 compared to $0.25 for the second quarter of 2006.
For the six months ended June 30, 2007, operating revenues increased 5.2% to $292.5 from $278.1 during the same period in 2006. Operating income for the six month period was negatively impacted by a $3.0 million decrease in gains on disposal of property and equipment. Therefore, net income decreased 4.7% to $42.4 million from $44.5 million in the 2006 period. Earnings per share were $0.43 compared with $0.45 for the 2006 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 81.2% and a 13.3% net margin. The Company reported an operating ratio of 79.7% and a 14.5% net margin for the six months ended June 30, 2007. During the quarter, Heartland Express paid a special dividend of $2.00 per share in addition to its regular quarterly cash dividend of $0.02 per share. This dividend in the amount of $198.5 million was paid on May 31, 2007 to shareholders of record at the close of business on May 24, 2007. The Company has now paid cash dividends of $220.8 million over the past sixteen consecutive quarters. The Company ended the second quarter with cash, cash equivalents, and short-term investments of $172.8 million, a $158.5 million decrease from the $331.3 million reported on December 31, 2006 primarily due to the special dividend paid. The Company’s balance sheet continues to be debt-free with total assets of $513.7 million.
The average age of the Company’s tractor fleet was 1.6 years at June 30, 2007, while the average age of the its trailer fleet was 3.4 years. The Company took delivery of 165 new International tractors and 300 new Wabash trailers during the quarter.
The Company was recently recognized by Sears Holding Corporation as their 2006 Supplier of the Year, Federal Express Corporation as their 2006 Truckload Carrier of the Year, and Wal-mart Transportation LLC as 2006 Truckload Carrier of the Year. In addition, the Company is pleased to announce the completion of its Phoenix, Arizona operational and shop facility during the quarter. The facility will serve as the Company’s base of operations for its Western United States transportation services. This past week the Company moved to its new corporate headquarters in North Liberty, Iowa. The new facility consolidates our corporate headquarters employees into one building and will accommodate future growth. A new shop facility adjacent to the corporate facility was completed and occupied prior to quarter end.
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
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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
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Six months ended
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June 30,
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June 30,
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2007
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2006
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2007
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2006
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OPERATING REVENUE
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$149,103,425
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$143,058,628
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$292,532,451
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$278,057,927
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OPERATING EXPENSES:
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Salaries, wages, benefits
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$ 50,950,587
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$ 46,040,770
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$ 98,964,316
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$ 92,411,352
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Rent and purchased transportation
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5,643,406
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6,772,305
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10,865,171
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12,971,977
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Fuel
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39,696,911
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37,789,391
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76,510,208
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70,750,409
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Operations and maintenance
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3,499,310
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3,358,967
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6,703,360
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6,305,700
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Operating taxes and licenses
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2,338,260
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2,203,726
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4,618,618
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4,270,893
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Insurance and claims
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5,687,899
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4,835,933
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11,277,730
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8,922,782
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Communications and utilities
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1,013,024
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943,092
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1,868,942
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1,895,431
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Depreciation
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11,876,953
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11,181,612
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23,580,708
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21,359,271
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Other operating expenses
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4,439,034
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4,158,378
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8,564,157
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8,356,007
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Gain on disposal of property & equipment
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(4,111,910)
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(9,724,303)
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(9,778,152)
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(12,783,540)
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121,033,474
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107,559,871
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233,175,058
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214,460,282
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Operating income
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28,069,951
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35,498,757
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59,357,393
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63,597,645
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Interest income
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2,905,704
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2,906,972
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6,221,768
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5,412,919
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Income before income taxes
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30,975,655
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38,405,729
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65,579,161
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69,010,564
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Federal and state income taxes
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11,134,509
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13,634,068
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23,184,714
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24,498,752
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Net income
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$ 19,841,146
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$ 24,771,661
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42,394,447
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44,511,812
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Earnings per share
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$ 0.20
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$ 0.25
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$ 0.43
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$ 0.45
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Weighted average shares
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outstanding
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98,251,889
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98,428,589
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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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$ 2.02
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$ 0.02
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$ 2.04
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$ 0.04
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HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 30,
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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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$ 10,579,024
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$ 8,458,882
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Short-term investments
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162,240,604
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322,829,306
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Trade receivables
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48,741,950
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43,499,482
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Prepaid tires
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5,050,605
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5,075,566
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Other prepaid expenses
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4,804,333
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1,635,077
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Deferred income taxes
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29,712,000
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29,177,000
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Total current assets
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$ 261,128,516
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$ 410,675,313
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PROPERTY AND EQUIPMENT
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$ 351,672,008
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$ 344,323,852
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Less accumulated depreciation
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109,607,867
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96,293,111
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$ 242,064,141
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$ 248,030,741
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OTHER ASSETS
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$ 10,555,412
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$ 10,363,658
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$ 513,748,069
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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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$ 12,188,502
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$ 15,075,647
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Compensation & benefits
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14,655,037
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15,028,378
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Income taxes payable
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470,127
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21,418,610
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Insurance accruals
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58,986,754
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56,651,853
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Other accruals
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8,269,890
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8,248,415
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Total current liabilities
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$ 94,570,310
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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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$ 35,537,701
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$ --
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Deferred income taxes
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51,391,000
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57,623,000
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$ 86,928,701
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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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330,827,838
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493,665,261
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$ 332,249,058
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$ 495,023,809
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$ 513,748,069
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$ 669,069,712
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