8-K 1 eightk063006.txt 2ND QTR 8-K 2006 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, 2006 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, 2006 with respect to the Company's financial results for the quarter ended June 30, 2006. Item 2.02. Results of Operations and Financial Condition. On July 18, 2006, Heartland Express, Inc. announced its financial results for the quarter ended June 30, 2006. 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, 2006 BY:/s/ John P. Cosaert ---------------------- JOHN P. COSAERT Vice-President Finance and Treasurer Exhibit No. 99.1 Tuesday, July 18, 2006, For Immediate Release Press Release Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2006. CORALVILLE, IOWA - July 18, 2006 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended June 30, 2006. Operating revenues for the quarter increased 11.0% to $143.1 million from $128.9 million in the second quarter of 2005. Net income increased 40.5% to $24.8 million from $17.6 million in the 2005 period. Earnings per share were $0.25 compared to $0.18 for the second quarter of 2005. For the six months ended June 30, 2006, operating revenues increased 12.3% to $278.1 from $247.5 during the same period in 2005. Net income increased 36.0% to $44.5 million from $32.7 million in the 2005 period. Earnings per share were $0.45 compared with $0.33 for the 2005 period. For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 75.2% and a 17.3% net margin. The Company reported an operating ratio of 77.1% and a 16.0% net margin for the six months ended June 30, 2006. The Company ended the second quarter with cash, cash equivalents, and short-term investments of $321.3 million, a $33.7 million increase from the $287.6 million reported on December 31, 2005. The Company's balance sheet continues to be debt-free. Operating results for the six month period are favorably impacted by gains primarily from the trade of revenue equipment. Effective July 1, 2005 gains from the trade of revenue equipment are being recognized in operating income in compliance with Statement of Financial Accounting Standards No. 153, "Accounting for Non-monetary Transactions". Prior to July 1, 2005 gains from the trade-in of revenue equipment were deferred and presented as a reduction of the depreciable basis of new revenue equipment. Operating income for the three month and six month periods ended June 30, 2006 were favorably impacted by $8.7 million and $11.3 million, respectively, from gains on the trade-in of revenue equipment, net of the associated increase in depreciation expense as a result of the higher depreciable basis of traded revenue equipment acquired since July 1, 2005. As a result of these gains earnings per share was positively impacted $0.06 per share for the quarter ended June 30, 2006 and $0.07 for the six months ended June 30, 2006. The Company has continued to upgrade its tractor and trailer fleet during the quarter. The Company took delivery of 354 new International tractors and 914 new Wabash trailers during the period. The average age of the Company's tractor fleet was 1.4 years at June 30, 2006, with 85% of the fleet comprised of 2005 or newer model year Internationals. The tractor fleet replacement will continue throughout the year and is scheduled to be completed by December 31, 2006. The Company will complete the upgrade of its trailer fleet in the third quarter. The average age of the Company's trailer fleet was 2.8 years at June 30, 2006. During the quarter, Heartland Express declared a regular quarterly cash dividend. The quarterly dividend of approximately $2.0 million at the rate of $0.02 per share was paid on July 3, 2006 to shareholders of record at the close of business on June 22, 2006. The Company has now paid twelve consecutive quarterly cash dividends. In addition, the Company declared a 4-for-3 stock split, paid as a 33% stock dividend in the second quarter of 2006. This stock split increased the Company's outstanding common stock from 73.8 million to 98.4 million shares. This was the Company's ninth stock split since going public in 1986. The Company's annual cash dividend will increase approximately $2.0 million per year, a 33% increase, as a result of the recent stock split. All 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, Chief Financial Officer Mike Gerdin, President 319-545-2728 HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three months ended Six months ended June 30, June 30, 2006 2005 2006 2005 ---- ---- ---- ---- OPERATING REVENUE $143,058,628 $128,851,347 $ 278,057,927 $247,528,818 ------------ ------------ ------------- ------------ OPERATING EXPENSES: Salaries, wages, benefits $ 46,040,770 $ 43,447,096 $ 92,411,352 $ 86,163,937 Rent and purchased transportation 6,772,305 7,829,721 12,971,977 15,541,933 Fuel 37,789,391 28,498,868 70,750,409 54,060,506 Operations and maintenance 3,358,967 3,777,156 6,305,700 6,349,466 Operating taxes and licenses 2,203,726 2,180,646 4,270,893 4,255,936 Insurance and claims 4,835,933 3,969,432 8,922,782 6,801,697 Communications and utilities 943,092 928,039 1,895,431 1,626,916 Depreciation 11,181,612 9,053,013 21,359,271 17,441,697 Other operating expenses 4,158,378 4,006,619 8,356,007 8,241,012 Gain on disposal of property & equipment (9,724,303) (120,299) (12,783,540) (301,641) ------------ ------------ ------------- ------------ 107,559,871 103,570,291 214,460,282 200,181,459 ------------ ------------ ------------- ------------ Operating income 35,498,757 25,281,056 63,597,645 47,347,359 Interest income 2,906,972 2,052,067 5,412,919 3,387,292 ------------ ------------ ------------- ------------ Income before income taxes 38,405,729 27,333,123 69,010,564 50,734,651 Federal and state income taxes 13,634,068 9,703,258 24,498,752 18,010,801 ------------ ------------ ------------- ------------ Net income $ 24,771,661 $ 17,629,865 $ 44,511,812 $ 32,723,850 ============ ============ ============= ============ Earnings per share $ 0.25 $ 0.18 $ 0.45 $ 0.33 ============ ============ ============= ============ Weighted average shares outstanding 98,428,589 99,668,612 98,428,589 99,833,391 ============ ============ ============= ============ Dividends declared per share $ 0.020 $ 0.015 $ 0.035 $ 0.030 ============ ============ ============= ============
HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, December 31, 2006 2005 --------------- --------------- (unaudited) CURRENT ASSETS Cash and cash equivalents $ 4,773,300 $ 5,366,929 Short-term investments 316,494,007 282,255,377 Trade receivables 44,029,867 42,860,411 Prepaid tires 4,994,120 3,998,430 Other prepaid expenses 4,748,165 304,667 Deferred income taxes 28,632,000 28,721,000 --------------- --------------- Total current assets $ 403,671,459 $ 363,506,814 --------------- --------------- PROPERTY AND EQUIPMENT $ 301,688,322 $ 281,710,956 Less accumulated depreciation 85,204,755 81,204,416 --------------- --------------- $ 216,483,567 $ 200,506,540 --------------- --------------- OTHER ASSETS $ 9,431,586 $ 9,494,571 --------------- --------------- $ 629,586,612 $ 573,507,925 =============== =============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable & accrued liabilities $ 18,953,611 $ 10,572,525 Compensation & benefits 13,952,389 12,629,831 Income taxes payable 9,152,164 8,064,947 Insurance accruals 55,218,404 53,631,471 Other accruals 7,376,127 7,345,499 --------------- --------------- Total current liabilities $ 104,652,695 $ 92,244,273 --------------- --------------- DEFERRED INCOME TAXES $ 50,427,000 $ 48,012,000 --------------- --------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Capital stock: common, $.01 par value; authorized 395,000,000 shares; issued and outstanding 98,428,589 in 2006 and 73,821,500 in 2005 $ 984,286 $ 738,215 Additional paid-in capital 188,454 - - Retained earnings 473,334,177 432,952,138 --------------- --------------- $ 474,506,917 $ 433,690,353 Less unearned compensation - - (438,701) --------------- --------------- $ 474,506,917 $ 433,251,652 --------------- --------------- $ 629,586,612 $ 573,507,925 =============== ===============