8-K 1 eightk123103.txt 4TH QUARTER 2003 8-K 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 23, 2004 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 7. Financial Statements and Exhibits Exhibit 99.1 - Heartland Express, Inc. press release dated January 23, 2004 with respect to the Company's financial results for the quarter ended December 31, 2003. Item 12. Results of Operations and Financial Condition. On January 23, 2004, Heartland Express, Inc. announced its financial results for the quarter ended December 31, 2003. 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 26, 2004 BY: /s/ John P. Cosaert --------------------------- JOHN P. COSAERT Vice-President Finance and Treasurer Exhibit No. 99.1 Friday, January 23, 2004, For Immediate Release Press Release Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of 2003. CORALVILLE, IOWA - January 23, 2004 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the fourth quarter ended December 31, 2003. For the fourth quarter revenue increased 12.0% to $103.0 million from $92.0 million in the fourth quarter of 2002. Net income was $19.0 million and basic earnings per share were $0.38. The results reflect an adjustment pertaining to self insurance accruals. The impact of the reserve adjustment was an increase in net income of $5.4 million or $.11 per share. The reserve adjustment has no impact on cash flows. Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 72.1%. The reserve adjustment reduced the operating ratio from 80.1%. For the twelve months, revenue increased 18.9% to $405.1 million from $340.7 million during the same period in 2002. Net income for the twelve months was $57.2 million and basic earnings per share were $1.14. During the fourth quarter Heartland Express, Inc. engaged consulting actuaries to assist in determining the liability for self insurance reserves. As a result of the actuarial studies management decreased the amount accrued for accident liability claims and increased the amount accrued for workers' compensation claims. This $5.4 million reserve adjustment, net of taxes, increased fourth quarter earnings by $0.11per share. Details of the adjustment are as follows (in millions): Decrease in insurance and claims expense $ (11.2) Increase in salaries, wages, benefits (workers' compensation) ____2.9 Increase in operating income 8.3 Income taxes ___(2.9) Increase in net income $ 5.4 The Company ended the fourth quarter with cash, cash equivalents, and investments of $202.4 million, a $48.5 million increase from the $153.9 million reported on December 31, 2002. Total assets increased to $448.4 million from $373.1 million at December 31, 2002. The Company's balance sheet continues to be debt-free. During the quarter, Heartland Express declared a regular quarterly cash dividend. The quarterly dividend of $1,000,000 at the rate of $0.02 per share was paid on January 2, 2004 to shareholders of record at the close of business on December 22, 2003. This press release may contain statements that might be considered 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 319-545-2728 HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Three months ended Twelve months ended December 31, December 31, 2003 2002 2003 2002 OPERATING REVENUE $103,015,958 $ 91,991,577 $405,116,097 $340,745,026 ------------ ------------- ------------ ------------ OPERATING EXPENSES: Salaries, wages, benefits $ 38,840,605 $ 31,028,763 $141,292,791 $109,959,772 Rent and purchased transportation 10,793,789 15,325,211 49,988,074 64,159,365 Operations and maintenance 18,969,711 16,334,060 75,516,232 56,334,769 Taxes and licenses 2,139,066 1,894,192 8,402,986 7,144,078 Insurance and claims (7,732,134) 1,929,319 2,187,537 9,192,632 Communications and utilities 841,447 716,308 3,604,661 2,956,810 Depreciation 7,100,937 6,350,883 26,533,937 20,378,720 Other operating expenses 3,352,669 2,591,462 12,538,652 8,843,137 (Gain) on disposal of fixed assets (38,813) (422,012) (45,782) (273,549) ------------ ------------ ------------ ------------ $ 74,267,277 $ 75,748,186 $320,019,088 $278,695,734 ------------ ------------ ------------ ------------ Operating income $ 28,748,681 $ 16,243,391 $ 85,097,009 $ 62,049,292 Interest income 543,800 682,550 2,045,793 2,811,181 ------------ ------------ ------------ ------------ Income before income taxes $ 29,292,481 $ 16,925,941 $ 87,142,802 $ 64,860,473 Federal and state income taxes 10,252,369 5,754,818 29,921,477 22,052,559 ------------ ------------ ------------ ------------ Net income $ 19,040,112 $ 11,171,123 $ 57,221,325 $ 42,807,914 ============ ============ ============ ============ Earnings per common share: Basic earnings per share $ 0.38 $ 0.22 $ 1.14 $ 0.86 ============ ============ ============ ============ Basic weighted average shares outstanding 50,000,000 50,000,000 50,000,000 50,000,000 ============ ============ ============ ============
HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31, ASSETS 2003 2002 -------------- -------------- CURRENT ASSETS Cash and short term investments $ 202,431,155 $ 153,861,422 Trade receivables 36,836,728 33,012,394 Prepaid tires 2,529,580 4,757,850 Deferred income taxes 21,308,000 21,134,000 Other current assets 673,101 620,344 -------------- -------------- Total current assets $ 263,778,564 $ 213,386,010 -------------- -------------- PROPERTY AND EQUIPMENT $ 232,650,992 $ 191,116,893 Less accumulated depreciation 56,951,186 39,715,307 -------------- -------------- $ 175,699,806 $ 151,401,586 -------------- -------------- OTHER ASSETS $ 8,928,186 $ 8,320,593 -------------- -------------- $ 448,406,556 $ 373,108,189 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable & accrued liabilities $ 15,684,826 $ 8,632,810 Accrued expenses 53,724,940 52,386,322 Income taxes payable 7,720,875 6,070,318 -------------- -------------- Total current liabilities $ 77,130,641 $ 67,089,450 -------------- -------------- DEFERRED INCOME TAXES $ 39,760,000 $ 30,089,000 -------------- -------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Capital stock: Common, $.01 par value; authorized 395,000,000 shares; issued and outstanding 50,000,000 $ 500,000 $ 500,000 Additional paid-in capital 8,510,305 8,603,762 Retained earnings 323,710,296 268,488,971 -------------- -------------- $ 332,720,601 $ 277,592,733 Less unearned compensation (1,204,686) (1,662,994) -------------- -------------- $ 331,515,915 $ 275,929,739 -------------- -------------- $ 448,406,556 $ 373,108,189 ============== ==============
END OF REPORT