8-K 1 eightk033109.txt FIRST QUARTER 2009 8K 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 15, 2009 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, NORTH LIBERTY, IA 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 April 15, 2009 with respect to the Company's financial results for the quarter ended March 31, 2009. Item 2.02. Results of Operations and Financial Condition. On April 15, 2009 Heartland Express, Inc. announced its financial results for the quarter ended March 31, 2009. 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 17, 2009 BY: /s/John P. Cosaert JOHN P. COSAERT Vice-President Finance and Treasurer Exhibit No. 99.1 Wednesday, April 15, 2009 For Immediate Release Press Release Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2009 NORTH LIBERTY, IOWA - April 15, 2009 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended March 31, 2009. As previously announced the quarter started with negative freight trends from the fourth quarter of 2008. Freight demand remained depressed throughout the first quarter of 2009. However, for the quarter ended March 31, 2009, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 83.4% and a 12.3% net margin (net income as a percentage of operating revenues) both significant improvements over the prior year comparative period. The Company reported an operating ratio of 86.7% and a 9.8% net margin for the quarter ended March 31, 2008. Operating revenues for the quarter decreased 22.8% to $115.0 million from $149.0 million in the first quarter of 2008. The significant reduction in fuel prices period over period translated into lower fuel surcharge revenue which accounted for approximately half of the decline in total operating revenues. Lower miles driven by lower load counts attributed to overall general economic conditions accounted for the other half of the reduction in operating revenues. Net income for 2009 was $14.1 million compared to $14.7 million in the 2008 period. Earnings per share were unchanged at $0.15 for both periods. There continues to be excess capacity in the market and this combined with declines in overall freight demand continued to place extreme pressure on freight rates throughout the quarter. Further, the Company has not seen any strong indicators of improvements in the demand for freight services that would affect our levels of business in the near future. Although the Company experienced depressed freight demand volumes during the quarter that affected the financial results, the Company remains opportunistic about the steps the Company took during the first quarter to position itself for future growth and opportunities when freight demand returns. Heartland opened its tenth regional operation near Dallas, Texas in the first quarter of 2009. During the quarter ended March 31, 2009 the Company experienced a 51.4% decrease in fuel expense mainly driven by a decrease in average fuel cost rates and further by less miles driven. During the quarter ended March 31, 2009 the U.S. average cost of fuel was $2.18 per gallon compared to $3.52 for the same period of 2008. The Company's continued focus on idle hour reductions, terminal fuel purchases as well as overall increased fuel efficiency of tractors provided further contributing factors to the reduction of fuel expense period over period. The Company continues to increase its intensity of controlling fuel costs as well as all other operating expenses and is exploring other cost saving opportunities and operating efficiencies to make the Company better prepared for an economic recovery. During the current turbulent economic conditions, the Company continues to demonstrate its confidence in the financial strength of the Company and its future prospects through its continued investment in the Company through its share repurchase program. The Company purchased approximately 3.5 million shares of its outstanding common stock during the quarter ended March 31, 2009 for a cost of approximately $45.4 million. Another indication of our confidence was reflected in our continued tractor fleet upgrade program that began in 2008 and is expected to be completed by the 2009 year end. The Company took delivery of 45 new tractors in the first quarter of 2009 which brings the total purchases under the current upgrade program to 620 tractors. Management believes the Company has adequate liquidity to meet the capital requirements of the current fleet upgrade through cash generated from operations and existing cash and cash equivalents. The fleet upgrade is another example of how the Company is positioning itself for the future. During the first quarter of 2009 the Company achieved the highest level of environmental performance by the U.S. Environmental Protection Agency through the SmartWay(sm) program. Heartland's 1.25 score given by SmartWay(sm) is a testament to our commitment to being environmentally responsible and an industry leader in fuel saving strategies. Despite spending $45.4 million on repurchasing stock, the Company ended the quarter with cash, cash equivalents, short-term and long-term investments of $216.2 million, an $11.8 million decrease from the $228.0 million reported at December 31, 2008. 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 approximately $1.8 million at the rate of $0.02 per share was paid on April 2, 2009 to shareholders of record at the close of business on March 20, 2009. The Company has now paid cash dividends of $234.1 million over the past twenty-three consecutive quarters. The Company continues to focus on customer service as one of our core building blocks. Heartland Express has most recently been awarded eight service awards evidencing the Company's continued ability to deliver the highest quality of service to our customers. Such awards included, 2008 LXP Carrier of the Year - Tier One Carriers, LXP Carrier of the Year - Promotional Events, 2008 Lowes Silver Carrier Award, Kelloggs Komplete Carrier of the Year 2008, Nestle Waters - Tennessee Region Carrier of the Year 2008, Nestle Waters - Southeast Region World Class Customer Service 2008, Eastman - Supplier Excellence Award for the Year 2008, Quaker Oats - National Carrier of the Year 2008. 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 (in thousands, except per share amounts) Three months ended March 31, 2009 2008 ---------------- ---------------- OPERATING REVENUE $ 114,979 $ 149,049 ---------------- ---------------- OPERATING EXPENSES: Salaries, wages, and benefits $ 44,059 $ 48,592 Rent and purchased transportation 2,938 5,106 Fuel 24,558 50,499 Operations and maintenance 4,040 3,963 Operating taxes and licenses 2,284 2,243 Insurance and claims 3,514 3,782 Communications and utilities 996 1,005 Depreciation 11,814 10,412 Other operating expenses 3,403 4,332 Gain on disposal of property & equipment (1,667) (644) ---------------- ---------------- 95,939 129,290 ---------------- ---------------- Operating income 19,040 19,759 Interest income 871 2,863 ---------------- ---------------- Income before income taxes 19,911 22,622 Federal and state income taxes 5,770 7,959 ---------------- ---------------- Net Income $ 14,141 $ 14,663 ================ ================ Earnings per share $ 0.15 $ 0.15 ================ ================ Weighted average shares outstanding 92,485 96,215 ================ ================ Dividends declared per share $ 0.020 $ 0.020 ================ ================
HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) March 31, December 31, ASSETS 2009 2008 CURRENT ASSETS ---------------- ---------------- Cash and cash equivalents $ 46,601 $ 56,651 Short-term investments 133 241 Trade receivables, net 34,487 36,803 Prepaid tires 5,732 6,449 Other current assets 5,001 2,834 Deferred income taxes 36,331 35,650 ---------------- ---------------- Total current assets 128,285 138,628 ---------------- ---------------- PROPERTY AND EQUIPMENT 385,641 389,561 Less accumulated depreciation 158,605 151,881 ---------------- ---------------- 227,036 237,680 LONG TERM INVESTMENTS 169,472 171,122 OTHER ASSETS 10,191 10,284 ---------------- ---------------- $ 534,984 $ 557,714 ================ ================ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 14,626 $ 10,338 Compensation & benefits 15,190 15,862 Income taxes payable 7,899 452 Insurance accruals 71,699 70,546 Other accruals 7,182 7,498 ---------------- ---------------- Total current liabilities 116,596 104,696 ---------------- ---------------- LONG-TERM LIABILITIES Income taxes payable 34,319 35,264 Deferred income taxes 56,938 57,715 ---------------- ---------------- 91,257 92,979 ---------------- ---------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock, $0.01 par value; authorized 5,000 shares, none issued - - Capital stock; common, $0.01 par value; authorized 395,000 shares; issued and outstanding 90,689 in 2009 and 94,229 in 2008 907 942 Additional paid-in capital 439 439 Retained earnings 334,283 367,281 Accumulated other comprehensive loss (8,498) (8,623) ---------------- ---------------- 327,131 360,039 ---------------- ---------------- $ 534,984 $ 557,714 ================ ================