Tuesday, October 23, 2007, For Immediate Release

Press Release

Heartland Express, Inc. Reports Revenues and Earnings for the Third Quarter of 2007.

NORTH LIBERTY, IOWA – October 23, 2007 – Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended September 30, 2007.  Operating revenues for the quarter decreased slightly to $146.6 million from $147.1 million in the third quarter of 2006.  Operating income for the quarter was negatively impacted by a $4.3 million decrease in gains on disposal of property and equipment. Net income decreased 25.5% to $17.1 million from $23.0 million in the 2006 period. Earnings per share were $0.18 compared to $0.23 for the third quarter of 2006. The Company expects a minimal amount of gains from disposal of property and equipment in the fourth quarter of 2007.

For the nine months ended September 30, 2007, operating revenues increased 3.3% to $439.1 from $425.1 during the same period in 2006. Operating income for the nine month period was negatively impacted by a $7.3 million decrease in gains on disposal of property and equipment. Net income decreased 11.8% to $59.5 million from $67.5 million in the 2006 period. Earnings per share were $0.61 compared with $0.69 for the 2006 period.

For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 81.9% and an 11.7% net margin.  The Company reported an operating ratio of 80.4% and a 13.6% net margin for the nine months ended September 30, 2007. The Company ended the third quarter with cash, cash equivalents, and short-term investments of $166.9 million, a $164.4 million decrease from the $331.3 million reported on December 31, 2006. The Company’s balance sheet continues to be debt-free with total assets of $516.0 million. 

During the quarter, Heartland Express declared a cash dividend of $0.02 per share.  This dividend in the amount of $1.9 million was paid on October 2, 2007 to shareholders of record at the close of business on September 20, 2007.  The Company has paid dividends of $222.7 million over the past seventeen quarters, including a $196.5 million special dividend paid on May 30, 2007. Interest income decreased in the third quarter of 2007 primarily due to the payment of the special dividend. The Company expects interest income in the fourth quarter of 2007 to be slightly more than the amount reported in the third quarter.

The Company repurchased 1.3 million shares of the Company’s common stock during the quarter.  The Company paid $19.3 million for the shares repurchased.  “We believe that the repurchase program is a great investment and demonstrates our confidence in the long-term prospects of Heartland Express.”, said Russell Gerdin, the company’s chief executive officer.   

The average age of the Company’s tractor fleet was 1.8 years at September 30, 2007, while the average age of the its trailer fleet was 3.6 years. The Company took delivery of 300 new Wabash trailers during the quarter.

On October 11, 2007, Forbes magazine named Heartland Express one of the “Best 200 Small Companies in America.”  The Company has been recognized sixteen times during its twenty one years as a public company, and has made the list the past six consecutive years.  In addition, the Company earned the Logistics Management “Quest for Quality” award for the fifth consecutive year by achieving the highest ranking for dry freight carriers.

In mid-July, the Company moved to its new corporate headquarters in North Liberty, Iowa. The new headquarters and shop facility are designed to increase efficiency and will accommodate our growth well into the future.

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 (UNAUDITED)                   Three months ended Nine months ended   September 30, September 30,                   2007   2006   2007   2006                 OPERATING REVENUE $146,574,527   $147,057,490   $ 439,106,979   $ 425,115,417                 OPERATING EXPENSES:                                  Salaries, wages, benefits $  48,095,554   $  47,925,921   $ 147,059,870   $ 140,337,273                    Rent and purchased transportation    5,252,239      6,093,688   16,117,409   19,065,664                    Fuel 40,746,953   38,971,251   117,257,161   109,721,660                    Operations and maintenance 3,253,233   3,324,149   9,956,593   9,629,849                    Operating taxes and licenses 2,551,510   2,259,227   7,170,128   6,530,121                    Insurance and claims 2,826,087   2,620,921   14,103,817   11,543,703                    Communications and utilities 995,708   912,515   2,864,650   2,807,947                    Depreciation 12,365,139   12,446,339   35,945,848   33,805,611                    Other operating expenses 4,472,108   4,757,332   13,036,265   13,113,338                    Gain on disposal of property & equipment (493,197)   (4,788,227)   (10,271,348)   (17,571,767)                   120,065,334     114,523,116   353,240,393   328,983,399                 Operating income 26,509,193    32,534,374    85,866,586    96,132,018                    Interest income 1,741,202   3,141,022   7,962,969   8,553,942                    Income before income taxes 28,250,395   35,675,396   93,829,555   104,685,960                   Federal and state income taxes 11,105,619   12,664,766   34,290,332   37,163,518                    Net income $  17,144,776   $  23,010,630   59,539,223   $   67,522,442                    Earnings per share $             0.18   $            0.23   $             0.61   $             0.69                      Weighted average shares                  outstanding    97,498,975      98,330,636   97,998,160   98,395,579                    Dividends declared per share $           0.020   $           0.020   $          2.065     $           0.055     HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS             ASSETS               September 30,   December 31,       2007   2006       (unaudited)       CURRENT ASSETS                Cash and cash equivalents   $             5,369,305   $               8,458,882        Short-term investments   161,572,944                322,829,306        Trade receivables   49,159,158   43,499,482        Prepaid tires   5,236,026   5,075,566        Other prepaid expenses   4,030,127   1,635,077        Income taxes receivable   397,927   --         Deferred income taxes   29,585,000   29,177,000                     Total current assets   $        255,350,487   $           410,675,313               PROPERTY AND EQUIPMENT   $        370,231,778   $           344,323,852        Less accumulated depreciation            120,167,508               96,293,111       $        250,064,270               $           248,030,741   OTHER ASSETS   $          10,542,286   $             10,363,658       $         515,957,043   $           669,069,712               LIABILITIES AND STOCKHOLDERS' EQUITY                     CURRENT LIABILITIES                Accounts payable & accrued liabilities $          17,876,958   $             15,075,647        Compensation & benefits   14,849,451   15,028,378        Income taxes payable                          --   21,418,610        Insurance accruals   59,433,331   56,651,853        Other accruals   7,913,602                 8,248,415                Total current liabilities   $        100,073,342   $            116,422,903               LONG-TERM LIABILITIES                Income taxes payable    $          36,945,099   $                        --        Deferred income taxes             50,773,000                   57,623,000       $          87,718,099   $             57,623,000          COMMITMENTS AND CONTINGENCIES                     STOCKHOLDERS' EQUITY                Capital stock: common, $.01 par value;              authorized 395,000,000 shares; issued and                 outstanding 96,956,833 in 2007 and                98,251,889 in 2006     $              969,569   $                  982,519        Additional paid-in capital   438,701          376,029         Retained earnings   326,757,332   493,665,261         $       328,165,602   $           495,023,809         $       515,957,043   $           669,069,712