UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------------------------------
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):
October 23, 2007
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)
901 NORTH KANSAS AVE, NORTH LIBERTY, IA 52317
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number (including area code):
319-626-3600
Item 9.01. Financial Statements and Exhibits
Exhibit 99.1 - Heartland Express, Inc. press release dated October 23, 2007
with respect to the Company's financial results for the quarter ended September
30, 2007
Item 2.02. Results of Operations and Financial Condition.
On October 23, 2007, Heartland Express, Inc. announced its financial
results for the quarter ended September 30, 2007. 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: October 23, 2007 BY:/s/ JOHN P COSAERT
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
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
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$250,064,270 $248,030,741
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OTHER ASSETS $ 10,542,286 $ 10,363,658
------------ ------------
$515,957,043 $669,069,712
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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
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$ 87,718,099 $ 57,623,000
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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
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END OF REPORT