UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 14, 2005
HEARTLAND EXPRESS, INC.
(Exact name of registrant as specified in its charter)
Commission File Number - 0-15087
NEVADA 93-0926999
(State of other Jurisdiction (IRS Employer ID No.)
of Incorporation)
2777 HEARTLAND DRIVE, CORALVILLE, IOWA 52241
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number (including area code): 319-545-2728
Item 9.01. Financial Statements and Exhibits
Exhibit 99.1 - Heartland Express, Inc. press release dated April 14, 2005
with respect to the Company's financial results for the quarter ended March 31,
2005.
Item 2.02. Results of Operations and Financial Condition.
On April 14, 2005, Heartland Express, Inc. announced its financial results
for the quarter ended March 31, 2005. The press release is attached as Exhibit
99.1 to this Form 8-K and is incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf by the undersigned
thereunto duly authorized.
HEARTLAND EXPRESS, INC.
Date: April 14, 2005 BY: /s/ John P. Cosaert
-----------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
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
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended
March 31,
2005 2004
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OPERATING REVENUE $ 118,677,472 $ 106,836,912
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OPERATING EXPENSES:
Salaries, wages, benefits $ 42,716,841 $ 39,766,096
Rent and purchased transportation 7,712,212 10,518,625
Operations and maintenance 28,133,948 20,945,552
Taxes and licenses 2,075,290 2,290,282
Insurance and claims 2,832,265 2,496,641
Communications and utilities 698,877 962,183
Depreciation 8,388,684 6,613,704
Other operating expenses 4,234,394 3,504,034
Gain on disposal of fixed assets (181,342) (36,251)
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$ 96,611,169 $ 87,060,866
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Operating income $ 22,066,303 $ 19,776,046
Interest income 1,335,225 567,516
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Income before income taxes $ 23,401,528 $ 20,343,562
Federal and state income taxes 8,307,543 7,221,965
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Net income $ 15,093,985 $ 13,121,597
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Basic earnings per share $ 0.20 $ 0.17
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Basic weighted average shares
outstanding 75,000,000 75,000,000
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HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, December 31,
2005 2004
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(unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 994,070 $ 1,610,543
Short-term investments 287,184,043 256,727,782
Trade receivables 38,283,677 37,102,813
Prepaid tires 2,280,990 2,692,090
Deferred income taxes 26,275,000 24,964,000
Other current assets 3,198,427 158,267
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Total current assets $ 358,216,207 $ 323,255,495
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PROPERTY AND EQUIPMENT $ 257,619,738 $ 253,648,785
Less accumulated depreciation 76,987,853 68,973,751
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$ 180,631,885 $ 184,675,034
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OTHER ASSETS $ 9,021,193 $ 9,081,322
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$ 547,869,285 $ 517,011,851
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 13,418,791 $ 9,722,099
Compensation & benefits 14,402,754 11,151,523
Insurance accruals 47,077,892 45,995,442
Other 6,719,540 5,995,943
Income taxes payable 17,767,286 7,918,914
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Total current liabilities $ 99,386,263 $ 80,783,921
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DEFERRED INCOME TAXES $ 45,451,000 $ 46,885,000
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: common, $.01 par value;
authorized 395,000,000 shares;
issued and outstanding 75,000,000 $ 750,000 $ 750,000
Additional paid-in capital 8,510,305 8,510,305
Retained earnings 394,500,869 380,906,884
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$ 403,761,174 $ 390,167,189
Less unearned compensation (729,152) (824,259)
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$ 403,032,022 $ 389,342,930
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$ 547,869,285 $ 517,011,851
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