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 20, 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 October 20, 2005
with respect to the Company's financial results for the quarter ended September
30, 2005.
Item 2.02. Results of Operations and Financial Condition.
On October 20, 2005, Heartland Express, Inc. announced its financial
results for the quarter ended September 30, 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: October 20, 2005 BY:/s/ John P. Cosaert
----------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Thursday, October 20, 2005, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Third Quarter of
2005.
CORALVILLE, IOWA - October 20, 2005 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended September 30, 2005.
Gross revenues for the quarter increased 16.1% to $136.2 million from $117.3
million in the third quarter of 2004. Net income increased 2.8% to $17.5 million
from $17.1 million in the 2004 period. Basic earnings per share were $0.24
compared to $0.23 for the third quarter of 2004.
For the nine months, gross revenues increased 13.7% to $383.7 from $337.6 during
the same period in 2004. Net income increased 9.5% to $50.3 million from $45.9
million in the 2004 period. Basic earnings per share were $0.67 compared with
$0.61 for the 2004 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating
expenses as a percentage of gross revenues) of 81.4% and a 12.9% net margin. The
Company reported an operating ratio of 81.1% and a 13.1% net margin for the nine
months ended September 30, 2005. The third quarter operating ratio was favorably
impacted by a $2.0 million gain from the trade of revenue equipment. These gains
are now being recognized in compliance with Statement of Financial Accounting
Standards No. 153, "Accounting for Non-monetary Transactions", which became
effective July 1, 2005. Gains were previously deferred as a reduction of the
basis of new revenue equipment. The Company's third quarter operating ratio was
82.8% prior to the recognition of the aforementioned gain. Gains on sales of
assets are reflected as a reduction of Other Operating Expenses in the Company's
consolidated statements of income. In addition, the third quarter operating
ratio and net income were negatively impacted by record high diesel prices which
have continued into the fourth quarter.
The Company ended the third quarter with cash, cash equivalents, and short-term
investments of $276.5 million, an $18.2 million increase from the $258.3 million
reported on December 31, 2004. The Company's balance sheet continues to be
debt-free.
Heartland Express was recently named to the Forbes magazine listing of "200 Best
Small Companies in America". This marks the fourteenth time in the past eighteen
years, and the fourth consecutive year that we have been recognized. This
recognition exemplifies our consistent performance and solid financial position.
The selection process is based on growth in revenues, earnings, and return on
equity over the past five years and latest twelve months.
The Company has purchased approximately 1.2 million shares of its outstanding
common stock this year under a 5.0 million share repurchase program approved in
September 2001 by its Board of Directors. Our strong cash position has allowed
us to improve shareholder return with share repurchases and cash dividends
without effecting growth opportunities. This repurchase of shares demonstrates
the Board of Director's confidence in the Company's performance and future
prospects.
The Company is continuing the replacement of its entire tractor fleet. The
Company has taken delivery of 600 new Internationals this year. The fleet
replacement is approximately 50% completed and is scheduled to be completed by
December 31, 2006. In addition, the Company purchased 700 new Wabash trailers
during this year and will take delivery of 300 more during the fourth quarter.
During the quarter, Heartland Express declared a regular quarterly cash
dividend. The quarterly dividend of approximately $1.5 million at the rate of
$0.02 per share was paid on October 3, 2005 to shareholders of record at the
close of business on September 22, 2005. The Company has now paid quarterly
dividends of $11.5 million over the past nine consecutive quarters.
The Company recently announced the expansion to the Western United States. The
Western operation will be based in Phoenix, Arizona with service initially to
the west coast. This expansion will allow for growth with both existing and new
customers. Expansion to additional western markets is anticipated in the future.
In addition, the Company announced the relocation of its corporate headquarters
to North Liberty, Iowa. The new office and shop facilities are expected to be
completed in the spring of 2007 and will be funded primarily with proceeds from
the sale of the existing corporate headquarters location.
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 or Mike Gerdin
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
---- ---- ---- ----
OPERATING REVENUE .................. $136,209,698 $117,299,278 $383,738,516 $337,647,731
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Salaries, wages, benefits ....... $ 45,028,528 $ 40,305,667 $131,192,465 $119,163,588
Rent and purchased transportation 7,462,499 8,578,807 23,004,432 28,620,347
Operations and maintenance ...... 38,055,562 25,297,575 98,465,534 68,954,053
Taxes and licenses .............. 2,249,347 2,143,218 6,505,283 6,638,458
Insurance and claims ............ 5,015,569 2,562,377 11,817,266 10,454,595
Communications and utilities .... 969,344 886,416 2,596,260 2,828,948
Depreciation .................... 9,819,033 7,842,781 27,260,730 21,214,242
Other operating expenses ........ 2,277,868 4,022,516 10,217,239 10,836,071
------------ ------------ ------------ ------------
110,877,750 91,639,357 311,059,209 268,710,302
------------ ------------ ------------ ------------
Operating income ..... 25,331,948 25,659,921 72,679,307 68,937,429
Interest income ................. 1,865,656 805,135 5,252,948 2,024,522
------------ ------------ ------------ ------------
Income before income taxes ...... 27,197,604 26,465,056 77,932,255 70,961,951
Federal and state income taxes .. 9,655,150 9,395,071 27,665,951 25,070,700
------------ ------------ ------------ ------------
Net income ...................... $ 17,542,454 $ 17,069,985 $ 50,266,304 $ 45,891,251
============ ============ ============ ============
Earnings per common share:
Basic earnings per share .... $ 0.24 $ 0.23 $ 0.67 $ 0.61
============ ============ ============ ============
Basic weighted average shares
outstanding ..................... 73,821,609 75,000,000 74,520,040 75,000,000
============ ============ ============ ============
Dividends declared per share .... $ 0.020 $ 0.020 $ 0.060 $ 0.047
============ ============ ============ ============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, December 31,
2005 2004
------------- -------------
(unaudited)
CURRENT ASSETS
Cash and cash equivalents ............... $ 3,656,609 $ 1,610,543
Short-term investments .................. 272,854,676 256,727,782
Trade receivables ....................... 44,983,188 37,102,813
Prepaid tires ........................... 3,407,570 2,692,090
Deferred income taxes ................... 27,496,000 24,964,000
Other prepaid expenses .................. 2,773,510 158,267
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Total current assets ....... 355,171,553 323,255,495
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PROPERTY AND EQUIPMENT ....................... 271,567,085 253,648,785
Less accumulated depreciation ........... 81,818,608 68,973,751
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189,748,477 184,675,034
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OTHER ASSETS ................................. 8,959,853 9,081,322
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$ 553,879,883 $ 517,011,851
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities .. $ 15,513,402 $ 9,722,099
Accrued expenses ........................ 71,666,382 63,142,908
Income taxes payable .................... 8,868,330 7,918,914
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Total current liabilities ....... 96,048,114 80,783,921
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DEFERRED INCOME TAXES ........................ 44,834,000 46,885,000
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: Common, $.01 par value;
authorized 395,000,000 shares;
issued and outstanding 73,821,500
and 75,000,000 .......................... 738,215 750,000
Additional paid-in capital .............. -- 8,510,305
Retained earnings ....................... 412,793,508 380,906,884
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413,531,723 390,167,189
Less unearned compensation .............. (533,954) (824,259)
------------- -------------
412,997,769 389,342,930
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$ 553,879,883 $ 517,011,851
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END OF REPORT