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):
April 22, 2008
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 April 22, 2008
with respect to the Company's financial results for the quarter ended March 31,
2008.
Item 2.02. Results of Operations and Financial Condition.
On April 22, 2008, Heartland Express, Inc. announced its financial results
for the quarter ended March 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: April 22, 2008 BY:/s/ John P. Cosaert
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Tuesday, April 22, 2008, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of
2008.
NORTH LIBERTY, IOWA - April 22, 2008 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended March 31, 2008.
Operating revenues for the quarter increased 3.9% to $149.0 million from $143.4
million in the first quarter of 2007. Net income decreased 35.0% to $14.7
million from $22.6 million in the 2007 period. Earnings per share were $0.15
compared to $0.23 for the first quarter of 2007. Operating income during the
first quarter of 2008 was negatively impacted approximately $5.1 million or
$0.03 per share due to continued increases in fuel cost, net of fuel surcharge
revenue. Further, operating income was reduced during the first quarter of 2008
by approximately $5.0 million or $0.03 per share compared to the first quarter
of 2007 due to a decline in gains on disposals of property and equipment.
During the quarter ended March 31, 2008 the Company experienced a 41.6% increase
in average fuel costs per gallon from an average cost of $2.40 in the quarter
ended March 31, 2007 to an average cost of $3.40 in the same period of 2008.
Average cost per gallon of fuel during the year ended December 31, 2007 was
$2.71 per gallon. The Company continues to buy fuel in bulk for terminal
locations and continues its strategy of the majority of tractor fueling taking
place at terminal locations taking advantage of bulk fuel purchasing prices. All
of the Company's eleven terminal locations have fueling capabilities.
For the quarter ended March 31, 2008, Heartland Express, Inc. posted an
operating ratio (operating expenses as a percentage of operating revenues) of
86.7% and a 9.8% net margin (net income as a percentage of operating revenues).
The Company reported an operating ratio of 78.2% and a 15.7% net margin for the
quarter ended March 31, 2007. The Company ended the quarter with cash, cash
equivalents, short-term and long-term investments of $202.8 million, a $7.9
million increase from the $194.9 million reported at December 31, 2007. The
Company's balance sheet continues to be debt-free.
As of March 31, 2008, all of the Company's $186.6 million long-term investment
balance was invested in auction rate student loan educational bonds backed by
the U.S. government and were associated with unsuccessful auctions. The majority
of the underlying investments continue to hold AAA (or equivalent) ratings from
recognized rating agencies. Prior to the Company experiencing unsuccessful
auctions, these investments were classified as short-term as they were auctioned
and sold or interest rates were reset through a regular auction process. Based
on unsuccessful auctions, the Company's options are to sell such investments at
discounts or continue to hold such investments and earn higher rates of return
than the Company could currently earn otherwise in other AAA rated, short-term,
tax free security investments. Management continues to believe that current
amounts of cash and cash equivalents along with cash flows from operations are
sufficient to meet the Company's short term cash flow requirements and therefore
has chosen to hold such investments until successful auctions resume or the
investments are called by the issuer rather than selling the securities at
discounted pricing. The Company continues to earn the default maximum interest
rate of the underlying investments during the unsuccessful auction periods. 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. Based on the continued unsuccessful auctions of these
investments, the investments were reclassified to long-term assets during the
quarter ended March 31, 2008. Further, the Company was required to estimate the
fair market value of the securities in accordance with accounting regulations of
Statement of Financial Accounting Standards No. 157, "Fair Value Measurements"
which became effective for the Company as of January 1, 2008. As such, the fair
market value of the underlying investments as of March 31, 2008, as a direct
result of unsuccessful auctions, had declined below cost of the investments and
therefore the Company was required to record an $11.8 million unrealized loss,
net of tax, to stockholders' equity. Fair market value represents an estimate of
what the Company could have sold the investments for in an orderly transaction
with a third party as of the March 31, 2008 measurement date although it is not
the intent of the Company to sell such securities. Previously, the fair market
value of such investments was the recorded amortized cost due to the short-term
nature of such investments.
The Company purchased approximately 0.8 million shares of its outstanding common
stock during the quarter ended March 31, 2008 for a cost of approximately $10.6
million. 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.
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 April 2, 2008 to shareholders of record at the close
of business on March 20, 2008. The Company has now paid cash dividends of $226.5
million over the past nineteen consecutive quarters. Interest income decreased
in the first quarter of 2008 compared to the same period in 2007 primarily due
to a decrease in average investments balance as a result of the payment of the
special dividend in May 2007 of approximately $196.5 million which was primarily
funded with the sale of investments.
The Company has recently been awarded six service awards evidencing the
Company's continued ability to deliver the highest quality of service to the
Company's customers. Such awards included, 2007 Large Dry Van Carrier of the
Year Award for service provided to the McDonalds U.S. Supply Chain Network
managed by Leveraged Execution Providers, 2007 Quaker/Gatorade Carrier of the
Year for the Cedar Rapids, Iowa region, 2007 Walmart Carrier of the Year, 2007
Genpak Regional Carrier of the Year Award for the Louisville,
Kentucky/Scottsburg, Indiana region, 2007 Eastman Supplier Excellence Award and
a Unilever commitment to excellence award.
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
March 31,
2008 2007
--------- ---------
OPERATING REVENUE $ 149,049 $ 143,429
--------- ---------
OPERATING EXPENSES:
Salaries, wages, benefits $ 48,592 $ 48,014
Rent and purchased transportation 5,106 5,222
Fuel 50,499 36,813
Operations and maintenance 3,963 3,204
Operating taxes and licenses 2,243 2,280
Insurance and claims 3,782 5,590
Communications and utilities 1,005 856
Depreciation 10,412 11,704
Other operating expenses 4,332 4,125
Loss (gain) on disposal of property
& equipment (644) (5,666)
--------- ---------
129,290 112,142
--------- ---------
Operating income 19,759 31,287
Interest income 2,863 3,316
--------- ---------
Income before income taxes 22,622 34,603
Federal and state income taxes 7,959 12,050
--------- ---------
Net Income $ 14,663 $ 22,553
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Earnings per share $ 0.15 $ 0.23
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Weighted average shares outstanding 96,215 98,252
========= =========
Dividends declared per share $ 0.020 $ 0.020
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HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
March 31, December 31,
ASSETS 2008 2007
CURRENT ASSETS
Cash and cash equivalents $ 15,838 $ 7,960
Short-term investments 315 186,944
Trade receivables, net 44,309 44,359
Prepaid tires 4,247 4,764
Other current assets 7,246 3,391
Income tax receivable - 57
Deferred income taxes 32,127 30,443
--------- ---------
Total current assets 104,082 277,918
--------- ---------
PROPERTY AND EQUIPMENT 367,070 370,358
Less accumulated depreciation 140,852 132,545
--------- ---------
226,218 237,813
LONG-TERM INVESTMENTS 186,606 -
OTHER ASSETS 10,497 10,563
--------- ---------
$ 527,403 $ 526,294
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LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 13,700 $ 13,073
Compensation & benefits 15,258 14,699
Income taxes payable 9,346 -
Insurance accruals 61,600 60,882
Other accruals 7,147 6,718
--------- ---------
Total current liabilities 107,051 95,372
--------- ---------
LONG-TERM LIABILITIES
Income taxes payable 36,685 37,593
Deferred income taxes 50,592 50,570
--------- ---------
87,277 88,163
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; authorized
5,000 shares, none issued - -
Capital stock; common, $0.01 par value;
authorized 395,000 shares; issued and
outstanding 96,157 in 2008 and 96,949
in 2007 962 970
Additional paid-in capital 439 439
Accumulated other comprehensive loss (11,801) -
Retained earnings 343,475 341,350
--------- ---------
333,075 342,759
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$ 527,403 $ 526,294
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