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):
January 22, 2009
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 January 22, 2009
with respect to the Company's financial results for the quarter ended December
31, 2008.
Item 2.02. Results of Operations and Financial Condition.
On January 22, 2009, Heartland Express, Inc. announced its financial
results for the quarter ended December 31, 2008. 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: January 22, 2009 BY: /s/John P. Cosaert
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Thursday, January 22, 2009, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of
2008.
NORTH LIBERTY, IOWA - January 22, 2009 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter and year ended December 31,
2008. Operating revenues for the quarter decreased 7.0% to $142.0 million from
$152.8 million in the fourth quarter of 2007. Net income increased 16.4% to
$19.4 million from $16.6 million in the 2007 period. Earnings per share were
$0.20 compared to $0.17 for the fourth quarter of 2007. Operating income for the
quarter was favorably impacted approximately $6.1 million or $0.04 per share due
to increased gains on disposal of property and equipment.
For the year ended December 31, 2008, operating revenues increased 5.7% to
$625.6 from $591.9 million during the same period in 2007. Net income decreased
8.1% to $70.0 million for the period ended December 31, 2008 from $76.2 million
in the 2007 period. Earnings per share were $0.73 in 2008 compared to $0.78 in
2007 period.
For the quarter, Heartland Express, Inc. (the "Company") posted an operating
ratio (operating expenses as a percentage of operating revenues) of 79.8% and a
13.6% net margin (net income as a percentage of operating revenues) compared to
83.9% and 10.9% for the same period of 2007. The Company reported an operating
ratio of 84.3% and an 11.2% net margin for the year ended December 31, 2008
compared to 81.3% and 12.9% for the same period of 2007. The fourth quarter
operating ratio was favorably impacted by a decrease in net fuel costs and an
increase in the amount of gains on disposals of property and equipment. The
Company ended the fourth quarter with cash, cash equivalents, short-term and
long-term investments of $228.0 million, a $33.1 million increase from the
$194.9 million reported on December 31, 2007. The Company's balance sheet
continues to be debt-free.
Freight demand in the fourth quarter was down. Many in our industry hoped for an
increase in freight volumes historically experienced from fall through
Christmas, however, excess capacity and the continued economic downturn
presented our industry with unprecedented negative freight trends throughout the
quarter. The first quarter is off to a dismal start. Freight volumes have
continued to decline from those experienced in the fourth quarter. With the
current economic environment we believe freight volumes are not likely to
improve in the near term. Given the recent trends and current economic
conditions, the Company is prepared to downsize its fleet through attrition if
the demand for freight services worsens.
The decline in freight volumes comes on the heels of high fuel prices which were
unprecedented in the second quarter and early third quarter of 2008. As fuel
prices increased it became clear fuel surcharges originally instituted to
shelter carriers from fuel spikes were not sufficient with Heartland's operating
ratio being driven into the mid 80's. High fuel prices, a tightening economy,
and tight credit drove many in the industry to bankruptcy. The precipitous
decline in fuel beginning in the third quarter provided needed cost relief to
many. Though fuel cost has recently declined it remains high compared to past
years. This along with the harsh realities of declining freight volumes will
make it an even tougher operating environment and more difficult for the weaker
carriers to survive.
Current financial and operating results stand as a testimony of Heartland's
strength and determination to meet the challenges in the industry while striving
to be the "Provider of choice when it comes to Service". The operating
environment has become significantly more difficult, however the Company remains
committed to maintaining the core values which defines the Company. During these
difficult economic times the Company is characteristically focused on managing
cost, improving efficiencies, and customer service in preparation for the
rebound in the economy and industry consolidation.
As of December 31, 2008, all of the Company's $171.1 million long-term
investments continue to be invested in auction rate student loan educational
bonds backed by the U.S. government and continue to be associated with
unsuccessful auctions. The Company's average rate of return on these investments
continues to exceed the current rates of return on other AAA rated, short-term,
tax free security investment options. During the fourth quarter the Company
received $9.5 million in calls, at par, of these investments. There were not any
significant changes in the status of the fair value during the quarter ended
December 31, 2008.
The Company took delivery of 378 new tractors and 152 new trailers in the fourth
quarter. The tractor fleet upgrade is expected to continue in 2009 with the
purchase of approximately 1,025 International ProStar tractors. As announced in
the third quarter, the Company purchased a terminal location near Dallas, Texas
and property renovations have been completed. The start up of this new regional
operation and shop facility began in January.
The Company repurchased 2.7 million shares of its common stock on the open
market during the year, including 1.9 million shares in the fourth quarter. The
total purchase price for these shares was $36.4 million. During the quarter,
Heartland Express declared a regular quarterly cash dividend. The quarterly
dividend of approximately $1.9 million at the rate of $0.02 per share was paid
on December 23, 2008 to shareholders of record at the close of business on
December 12, 2008. The Company has now paid cash dividends of $232.3 million
over the past twenty-two consecutive quarters which includes the special
dividend of $2.00 per share during the second quarter of 2007.
On October 14, 2008, Forbes magazine named Heartland Express one of the "Best
200 Small Companies in America." The Company has been recognized seventeen times
during its twenty two years as a public company, and has made the list the past
seven consecutive years. In addition, in 2008 the Company was recognized with
nineteen customer service awards. Also, for the sixth consecutive year the
Company received the dry van Quest for Quality award from Logistics Management.
These awards exemplify the quality of service provided to our customers.
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
(in thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2008 2007 2008 2007
--------- --------- --------- ---------
OPERATING REVENUE ................ $ 142,023 $ 152,786 $ 625,600 $ 591,893
--------- --------- --------- ---------
OPERATING EXPENSES:
Salaries, wages, benefits...... $ 49,346 $ 49,243 $ 197,992 $ 196,303
Rent and purchased trans-
portation ................... 3,728 5,304 18,703 21,421
Fuel .......................... 35,322 47,029 204,708 164,285
Operations and maintenance..... 3,208 2,357 15,575 12,314
Operating taxes and licenses... 2,409 2,283 9,317 9,454
Insurance and claims .......... 7,070 4,006 24,307 18,110
Communications and utilities... 901 992 3,693 3,857
Depreciation .................. 13,529 12,532 46,109 48,478
Other operating expenses ...... 3,880 4,344 16,807 17,380
(Gain) loss on disposal of
property & equipment ........ (6,026) 113 (9,558) (10,159)
--------- --------- --------- ---------
113,367 128,203 527,653 481,443
--------- --------- --------- ---------
Operating income ...... 28,656 24,583 97,947 110,450
Interest income ............... 2,090 2,322 9,132 10,285
--------- --------- --------- ---------
Income before income taxes .... 30,746 26,905 107,079 120,735
Federal and state income taxes. 11,395 10,274 37,111 44,565
--------- --------- --------- ---------
Net income .................... $ 19,351 $ 16,631 $ 69,968 $ 76,170
========= ========= ========= =========
Earnings per share ............ $ 0.20 $ 0.17 $ 0.73 $ 0.78
========= ========= ========= =========
Weighted average shares
outstanding ................. 95,076 96,953 95,900 97,735
========= ========= ========= =========
Dividends declared per share .. $ 0.02 $ 0.02 $ 0.08 $ 2.08
========= ========= ========= =========
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
December 31, December 31,
ASSETS 2008 2007
--------- ---------
CURRENT ASSETS
Cash and cash equivalents ................... $ 56,651 $ 7,960
Short-term investments ...................... 241 186,944
Trade receivables, net ...................... 36,803 44,359
Prepaid tires ............................... 6,449 4,764
Other current assets ........................ 2,834 3,391
Income tax receivable ....................... -- 57
Deferred income taxes ....................... 35,650 30,443
--------- ---------
Total current assets ........... 138,628 277,918
--------- ---------
PROPERTY AND EQUIPMENT ........................... 389,561 370,358
Less accumulated depreciation ............... 151,881 132,545
--------- ---------
237,680 237,813
LONG-TERM INVESTMENTS ............................ 171,122 --
OTHER ASSETS ..................................... 10,284 10,563
--------- ---------
$ 557,714 $ 526,294
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities ...... $ 10,338 $ 13,073
Compensation & benefits ..................... 15,862 14,699
Income taxes payable ........................ 452 --
Insurance accruals .......................... 70,546 60,882
Other accruals .............................. 7,498 6,718
--------- ---------
Total current liabilities ........... 104,696 95,372
--------- ---------
LONG-TERM LIABILITIES
Income taxes payable ........................ 35,264 37,593
Deferred income taxes ....................... 57,715 50,570
--------- ---------
92,979 88,163
--------- ---------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; authorized
5,000 shares, none issued ................. -- --
Capital stock: common, $0.01 par value;
authorized 395,000 shares; issued and
outstanding 94,229 in 2008, 96,949 in 2007 .. 942 970
Additional paid-in capital .................. 439 439
Retained earnings ........................... 367,281 341,350
Accumulated other comprehensive loss ........ (8,623) --
--------- ---------
360,039 342,759
--------- ---------
$ 557,714 $ 526,294
========= =========