8-K 1 eightk033107.txt 1ST QUARTER 2007 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 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) 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 April 19, 2007 with respect to the Company's financial results for the quarter ended March 31, 2007 Item 2.02. Results of Operations and Financial Condition. On April 19, 2007, Heartland Express, Inc. announced its financial results for the quarter ended March 31, 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: April 19, 2007 BY:/s/John P. Cosaert --------------------- JOHN P. COSAERT Vice-President Finance and Treasurer Exhibit No. 99.1 Thursday, April 19, 2007, For Immediate Release Press Release Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2007. CORALVILLE, IOWA - April 19, 2007 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended March 31, 2007. Operating revenues for the quarter increased 6.2% to $143.4 million from $135.0 million in the first quarter of 2006. Net income increased 14.3% to $22.6 million from $19.7 million in the 2006 period. Earnings per share were $0.23 compared to $0.20 for the first quarter of 2006, a 15.0% increase. For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 78.2% and a 15.7% net margin. The Company ended the first quarter with cash, cash equivalents, and short-term investments of $365.1 million, a $33.8 million increase from the $331.3 million reported on December 31, 2006. The first quarter net cash flow from operations of $34.1 million was 23.8% of our operating revenues. The Company's balance sheet continues to be debt-free with total assets of $700.7 million. The Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes (an interpretation of FASB No. 109)" (FIN 48) effective January 1, 2007. The cumulative effect of adopting FIN 48 of $4.7 million has been recognized as a charge against retained earnings. The average age of the Company's tractor fleet was 1.5 years at March 31, 2007, with the entire fleet comprised of 2005 or newer model year Internationals. The average age of the Company's trailer fleet was 3.3 years at March 31, 2007. The Company also began the upgrade of its trailer fleet in the first quarter with the purchase of 2008 Wabash trailers. The Company took delivery of 35 new tractors and 100 new trailers during the quarter. 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 April 2, 2007 to shareholders of record at the close of business on March 22, 2007. The Company has now paid cash dividends of $22.3 million over the past fifteen consecutive quarters. 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 319-545-2728 HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three months ended March 31, 2007 2006 ------------ ------------ OPERATING REVENUE ........................... $143,429,027 $134,999,299 ------------ ------------ OPERATING EXPENSES: Salaries, wages, benefits ................. $ 48,013,729 $ 46,370,582 Rent and purchased transportation ......... 5,221,764 6,199,672 Operations and maintenance ................ 3,204,050 2,946,733 Fuel....................................... 36,813,297 32,961,018 Taxes and licenses ........................ 2,280,358 2,067,167 Insurance and claims ...................... 5,589,831 4,086,849 Communications and utilities .............. 855,918 952,339 Depreciation .............................. 11,703,756 10,177,659 Other operating expenses .................. 4,125,123 4,197,629 Gain on disposal of property and equipment (5,666,241) (3,059,237) ------------ ------------ $112,141,585 $106,900,411 ------------ ------------ Operating income ..................... $ 31,287,442 $ 28,098,888 Interest income ........................... 3,316,063 2,505,947 ------------ ------------ Income before income taxes ................ $ 34,603,505 $ 30,604,835 Federal and state income taxes ............ 12,050,204 10,864,684 ------------ ------------ Net income ................................ $ 22,553,301 $ 19,740,151 ============ ============ Earnings per share ........................ $ 0.23 $ 0.20 ============ ============ Weighted average shares outstanding ....... 98,251,889 98,428,589 ============ ============ Dividends declared per share .............. $ 0.20 $ 0.015 ============ ============ HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, ASSETS 2007 2006 ------------ ------------ (unaudited) CURRENT ASSETS Cash and cash equivalents .................... $ 11,417,039 $ 8,458,882 Short-term investments ....................... 353,689,572 322,829,306 Trade receivables ............................ 45,504,423 43,499,482 Prepaid tires ................................ 4,582,010 5,075,566 Other prepaid expenses ....................... 6,811,936 1,635,077 Deferred income taxes ........................ 28,614,000 29,177,000 ------------ ------------ Total current assets .................... $450,618,980 $410,675,313 ------------ ------------ PROPERTY AND EQUIPMENT .......................... $344,732,728 $344,323,852 Less accumulated depreciation ................ 104,987,360 96,293,111 ------------ ------------ $239,745,368 $248,030,741 ------------ ------------ OTHER ASSETS .................................... $ 10,343,595 $ 10,363,658 ------------ ------------ $700,707,943 $669,069,712 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable & accrued liabilities ....... $ 15,887,364 $ 15,075,647 Compensation & benefits ...................... 14,128,288 15,028,378 Income taxes payable ......................... 8,836,953 21,418,610 Insurance accruals ........................... 57,107,383 56,651,853 Other accruals ............................... 8,076,648 8,248,415 ------------ ------------ Total current liabilities ............... $104,036,636 $116,422,903 ------------ ------------ LONG-TERM LIABILITIES Income taxes payable ......................... $ 35,779,158 $ -- Deferred income taxes ........................ 49,881,000 57,623,000 ------------ ------------ $ 85,660,158 $ 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 ............................ 509,589,929 493,665,261 ------------ ------------ $511,011,149 $495,023,809 ------------ ------------ $700,707,943 $669,069,712 ============ ============ END OF REPORT