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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):
July 19, 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 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 July 19, 2007
with respect to the Company's financial results for the quarter ended June 30,
2007
Item 2.02. Results of Operations and Financial Condition.
On July 19, 2007, Heartland Express, Inc. announced its financial results
for the quarter ended June 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: July 19, 2007 BY:/s/John P. Cosaert
------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Thursday, July 19, 2007, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of
2007.
CORALVILLE, IOWA - July 19, 2007 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended June 30, 2007. Operating
revenues for the quarter increased 4.2% to $149.1 million from $143.1 million in
the second quarter of 2006. Operating income for the quarter was negatively
impacted by a $5.6 million decrease in gains on disposal of property and
equipment. Therefore, net income decreased 19.9% to $19.8 million from $24.8
million in the 2006 period. Earnings per share were $0.20 compared to $0.25 for
the second quarter of 2006.
For the six months ended June 30, 2007, operating revenues increased 5.2% to
$292.5 from $278.1 during the same period in 2006. Operating income for the six
month period was negatively impacted by a $3.0 million decrease in gains on
disposal of property and equipment. Therefore, net income decreased 4.7% to
$42.4 million from $44.5 million in the 2006 period. Earnings per share were
$0.43 compared with $0.45 for the 2006 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating
expenses as a percentage of operating revenues) of 81.2% and a 13.3% net margin.
The Company reported an operating ratio of 79.7% and a 14.5% net margin for the
six months ended June 30, 2007. During the quarter, Heartland Express paid a
special dividend of $2.00 per share in addition to its regular quarterly cash
dividend of $0.02 per share. This dividend in the amount of $198.5 million was
paid on May 31, 2007 to shareholders of record at the close of business on May
24, 2007. The Company has now paid cash dividends of $220.8 million over the
past sixteen consecutive quarters. The Company ended the second quarter with
cash, cash equivalents, and short-term investments of $172.8 million, a $158.5
million decrease from the $331.3 million reported on December 31, 2006 primarily
due to the special dividend paid. The Company's balance sheet continues to be
debt-free with total assets of $513.7 million.
The average age of the Company's tractor fleet was 1.6 years at June 30, 2007,
while the average age of the its trailer fleet was 3.4 years. The Company took
delivery of 165 new International tractors and 300 new Wabash trailers during
the quarter.
The Company was recently recognized by Sears Holding Corporation as their 2006
Supplier of the Year, Federal Express Corporation as their 2006 Truckload
Carrier of the Year, and Wal-mart Transportation LLC as 2006 Truckload Carrier
of the Year. In addition, the Company is pleased to announce the completion of
its Phoenix, Arizona operational and shop facility during the quarter. The
facility will serve as the Company's base of operations for its Western United
States transportation services. This past week the Company moved to its new
corporate headquarters in North Liberty, Iowa. The new facility consolidates our
corporate headquarters employees into one building and will accommodate future
growth. A new shop facility adjacent to the corporate facility was completed and
occupied prior to quarter end.
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 Six months ended
June 30, June 30,
2007 2006 2007 2006
------------- ------------- ------------- -------------
OPERATING REVENUE ............................ $ 149,103,425 $ 143,058,628 $ 292,532,451 $ 278,057,927
------------- ------------- ------------- -------------
OPERATING EXPENSES:
Salaries, wages, benefits ................. $ 50,950,587 $ 46,040,770 $ 98,964,316 $ 92,411,352
Rent and purchased transportation ......... 5,643,406 6,772,305 10,865,171 12,971,977
Fuel ...................................... 39,696,911 37,789,391 76,510,208 70,750,409
Operations and maintenance ................ 3,499,310 3,358,967 6,703,360 6,305,700
Operating taxes and licenses .............. 2,338,260 2,203,726 4,618,618 4,270,893
Insurance and claims ...................... 5,687,899 4,835,933 11,277,730 8,922,782
Communications and utilities .............. 1,013,024 943,092 1,868,942 1,895,431
Depreciation .............................. 11,876,953 11,181,612 23,580,708 21,359,271
Other operating expenses .................. 4,439,034 4,158,378 8,564,157 8,356,007
Gain on disposal of
property & equipment ................... (4,111,910) (9,724,303) (9,778,152) (12,783,540)
------------- ------------- ------------- -------------
121,033,474 107,559,871 233,175,058 214,460,282
------------- ------------- ------------- -------------
Operating income ........................ 28,069,951 35,498,757 59,357,393 63,597,645
Interest income ........................... 2,905,704 2,906,972 6,221,768 5,412,919
------------- ------------- ------------- -------------
Income before income taxes ................ 30,975,655 38,405,729 65,579,161 69,010,564
Federal and state income taxes ............. 11,134,509 13,634,068 23,184,714 24,498,752
------------- ------------- ------------- -------------
Net income ................................ $ 19,841,146 $ 24,771,661 42,394,447 44,511,812
============= ============= ============= =============
Earnings per share ........................ $ 0.20 $ 0.25 $ 0.43 $ 0.45
============= ============= ============= =============
Weighted average shares
outstanding ............................... 98,251,889 98,428,589 98,251,889 98,428,589
============= ============= ============= =============
Dividends declared per share .............. $ 2.02 $ 0.02 $ 2.04 $ 0.04
============= ============= ============= =============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
ASSETS .......................................... 2007 2006
------------ ------------
(unaudited)
CURRENT ASSETS
Cash and cash equivalents .................. $ 10,579,024 $ 8,458,882
Short-term investments ..................... 162,240,604 322,829,306
Trade receivables .......................... 48,741,950 43,499,482
Prepaid tires .............................. 5,050,605 5,075,566
Other prepaid expenses ..................... 4,804,333 1,635,077
Deferred income taxes ...................... 29,712,000 29,177,000
------------ ------------
Total current assets .......... $261,128,516 $410,675,313
------------ ------------
PROPERTY AND EQUIPMENT .......................... $351,672,008 344,323,852
Less accumulated depreciation .............. 109,607,867 96,293,111
------------ ------------
$242,064,141 $248,030,741
------------ ------------
OTHER ASSETS .................................... $ 10,555,412 $ 10,363,658
------------ ------------
$513,748,069 $669,069,712
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities ..... $ 12,188,502 15,075,647
Compensation & benefits .................... 14,655,037 15,028,378
Income taxes payable ....................... 470,127 21,418,610
Insurance accruals ......................... 58,986,754 56,651,853
Other accruals ............................. 8,269,890 8,248,415
------------ ------------
Total current liabilities .......... $ 94,570,310 116,422,903
------------ ------------
LONG-TERM LIABILITIES
Income taxes payable ....................... $ 35,537,701 --
Deferred income taxes ...................... 51,391,000 57,623,000
------------ ------------
86,928,701 57,623,000
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: common, $.01 par value;
authorized 395,000,000 shares; issued and
outstanding 98,251,889 ..................... $ 982,519 982,519
Additional paid-in capital ................. 438,701 376,029
Retained earnings .......................... 330,827,838 493,665,261
------------ ------------
$332,249,058 $495,023,809
------------ ------------
$513,748,069 $669,069,712
============ ============
END OF REPORT