8-K 1 eightk063005.txt 2ND QTR 2005 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): July 18, 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 July 18, 2005 with respect to the Company's financial results for the quarter ended June 30, 2005. Item 2.02. Results of Operations and Financial Condition. On July 18, 2005, Heartland Express, Inc. announced its financial results for the quarter ended June 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: July 18, 2005 BY: /s/ John P. Cosaert ----------------------- JOHN P. COSAERT Vice-President Finance and Treasurer Exhibit No. 99.1 Monday, July 18, 2005, For Immediate Release Press Release Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2005. CORALVILLE, IOWA - July 18, 2005 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended June 30, 2005. Gross revenues for the quarter increased 13.5% to $128.9 million from $113.5 million in the second quarter of 2004. Net income increased 12.3% to $17.6 million from $15.7 million in the 2004 period. Basic earnings per share were $0.24 compared to $0.21 for the second quarter of 2004. For the six months, revenue increased 12.3% to $247.5 from $220.3 during the same period in 2004. Net income increased 13.5% to $32.7 million from $28.8 million in the 2004 period. Basic earnings per share were $0.44 compared with $0.38 for the 2004 period. For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 80.4% and a 13.7% net margin. The Company reported an operating ratio of 80.9% and a 13.2% net margin for the six months ended June 30, 2005. The Company ended the second quarter with cash and short-investments of $265.3 million, a $7.0 million increase from the $258.3 million reported on December 31, 2004. The Company's balance sheet continues to be debt-free. 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 400 new Internationals this year. The delivery of new trucks and the trade-in of the current fleet are scheduled to be completed by December 31, 2006. In addition, the Company purchased 500 new Wabash trailers during the second quarter of 2005. 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 July 1, 2005 to shareholders of record at the close of business on June 20, 2005. The Company has now paid eight consecutive quarterly cash dividends. In addition, the Company declared a 3-for-2 stock split, paid as a 50% stock dividend in the third quarter of 2004. This stock split increased the Company's outstanding common stock from 50.0 million to 75.0 million shares. As a result, the Company's annual cash dividend has increased to approximately $5.9 million from $4.0 million because of the additional shares outstanding. All earnings per share data presented have been adjusted retroactively to reflect the effect of the stock split. 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 319-545-2728 HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three months ended Six months ended June 30, June 30, 2005 2004 2005 2004 ------------ ------------ ------------ ------------ OPERATING REVENUE ......................... $128,851,347 $113,511,541 $247,528,819 $220,348,453 ------------ ------------ ------------ ------------ Salaries, wages, benefits .............. $ 43,447,096 $ 39,091,825 $ 86,163,937 $ 78,857,921 Rent and purchased transportation ...... 7,829,721 9,522,915 15,541,933 20,041,540 Operations and maintenance ............. 32,276,024 22,710,926 60,409,972 43,656,478 Taxes and licenses ..................... 2,180,645 2,204,958 4,255,935 4,495,240 Insurance and claims ................... 3,969,431 5,395,577 6,801,696 7,892,218 Communications and utilities ........... 928,039 980,349 1,626,916 1,942,532 Depreciation ........................... 8,932,713 6,692,119 17,140,055 13,269,572 Other operating expenses ............... 4,006,623 3,411,410 8,241,017 6,915,444 ------------ ------------ ------------ ------------ 103,570,292 90,010,079 200,181,461 177,070,945 ------------ ------------ ------------ ------------ Operating income .................. 25,281,055 23,501,462 47,347,358 43,277,508 Interest income ........................ 2,052,068 651,871 3,387,293 1,219,387 ------------ ------------ ------------ ------------ Income before income taxes ............. 27,333,123 24,153,333 50,734,651 44,496,895 Federal and state income taxes ......... 9,703,258 8,453,664 18,010,801 15,675,629 ------------ ------------ ------------ ------------ Net income ............................. $ 17,629,865 $ 15,699,669 $ 32,723,850 $ 28,821,266 ============ ============ ============ ============ Earnings per common share: Basic earnings per share ........... $ 0.24 $ 0.21 $ 0.44 $ 0.38 ============ ============ ============ ============ Basic weighted average shares outstanding ............................ 74,751,459 75,000,000 74,875,043 75,000,000 ============ ============ ============ ============ Dividends declared per share ........... $ 0.020 $ 0.013 $ 0.040 $ 0.027 ============ ============ ============ ============
HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS
June 30, December 31, 2005 2004 ------------- ------------- (unaudited) CURRENT ASSETS Cash ....................................... $ 5,450,670 $ 1,610,543 Short-term investments ..................... 259,897,769 256,727,782 Trade receivable ........................... 39,324,840 37,102,813 Prepaid tires .............................. 3,334,620 2,692,090 Deferred income taxes ...................... 25,897,000 24,964,000 Other prepaid expenses ..................... 3,970,018 158,267 ------------- ------------- Total current assets ..................... 337,874,917 323,255,495 ------------- ------------- PROPERTY AND EQUIPMENT ....................... 260,617,429 253,648,785 Less accumulated depreciation ............ 74,950,010 68,973,751 ------------- ------------- 185,667,419 184,675,034 ------------- ------------- OTHER ASSETS ............................. 8,947,547 9,081,322 ------------- ------------- $ 532,489,883 $ 517,011,851 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable & accrued liabilities ..... $ 11,907,394 $ 9,722,099 Accrued expenses ........................... 70,343,067 63,142,908 Income taxes payable ....................... 7,780,478 7,918,914 ------------- ------------- Total current liabilities ................ 90,030,939 80,783,921 ------------- ------------- DEFERRED INCOME TAXES ........................ 44,753,000 46,885,000 ------------- ------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Capital stock: Common, $.01 par value; authorized 395,000,000 shares; issued and outstanding 73,866,000 and 75,000,000 ...... 738,660 750,000 Additional paid-in capital ................. -- 8,510,305 Retained earnings .......................... 397,595,465 380,906,884 ------------- ------------- 398,334,125 390,167,189 Less unearned compensation ................. (628,181) (824,259) ------------- ------------- 397,705,944 389,342,930 ------------- ------------- $ 532,489,883 $ 517,011,851 ============= =============
End of Report