8-K 1 eightk2q09.txt 2ND QUARTER 2009 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 14, 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 July 14, 2009 with respect to the Company's financial results for the quarter ended June 30, 2009. Item 2.02. Results of Operations and Financial Condition. On July 14, 2009 Heartland Express, Inc. announced its financial results for the quarter ended June 30, 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: July 15, 2009 BY: /s/John P. Cosaert JOHN P. COSAERT Vice-President Finance and Treasurer Exhibit No. 99.1 Tuesday, July 14, 2009, For Immediate Release Press Release Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2009. NORTH LIBERTY, IOWA - July 14, 2009 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter and six months ended June 30, 2009. Earnings per share increased 5.6% to $0.19 from $0.18 in the second quarter of 2008. Net income increased 2.2% to $17.6 million from $17.2 million in the 2008 period. Operating revenues for the quarter decreased 28.9% to $117.0 million from $164.6 million in the second quarter of 2008. Operating revenues for the quarter and the six month period were impacted by a reduction in fuel surcharge revenues associated with lower fuel costs, and the continued economic downturn and the related downward pressure on freight rates. Operating income for the second quarter of 2009 was favorably impacted by $4.2 million or $0.03 per share due to an increase in gains on disposal of property and equipment. Earnings per share for the six months ended June 30, 2009 increased 6.1% to $0.35 from $0.33 in the compared 2008 period. Net income decreased 0.4% to $31.8 million from $31.9 million in the 2008 period. Operating revenues for the six months ended June 30, 2009 decreased 26.0% to $232.0 million from $313.6 million in the first six months of 2008. Operating income for this year's six month period was favorably impacted by $5.2 million or $0.04 per share due to an increase in gains on disposal of property and equipment. Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 81.4% and a 15.1% net margin (net income as a percentage of operating revenues) in the second quarter of 2009, both significant improvements over the comparative 2008 period. The Company reported an operating ratio of 87.3% and a 10.5% net margin for the quarter ended June 30, 2008. The Company reported an operating ratio of 82.4% and a 13.7% net margin for the six months ended June 30, 2009 compared to 87.0% and 10.2%, respectively, for the comparative 2008 period. The Company ended the second quarter of 2009 with cash, cash equivalents, short-term and long-term investments of $205.0 million, a $23.0 million decrease from the $228.0 million reported at December 31, 2008. Our quarter end cash position was impacted by the purchase of new tractors and the repurchase of common stock as discussed below. The Company's balance sheet continues to be debt-free. This extended economic downturn is the worst experienced in the history of our company. There continues to be excess capacity in our industry combined with the continued decline in available freight resulting in extreme pressure on freight rates. The Company has not seen any strong indicators of improvements in the demand for freight services that would increase our levels of business in the near future. In spite of depressed freight demand volumes, the Company remains in an opportunistic position. Efforts are focused on customer service, cost controls, and challenging ourselves to improve each department during this period of economic downturn. Heartland opened its tenth regional operation near Dallas, Texas in January of 2009. This strengthens the Company's presence in Texas and the surrounding marketplace. The industry continued to benefit from a reduction in fuel prices during the quarter ended June 30, 2009, although fuel prices began trending upwards at quarter end. During the quarter ended June 30, 2009, the U.S. average cost of fuel was $2.34 per gallon compared to $4.42 for the compared 2008 period. Accordingly, the Company's fuel cost per mile decreased 48.1% and 47.5% for the three and six month periods ended June 30, 2009, respectively. Efforts continue to effectively control the Company's fuel cost. The primary focus is on idle hour reductions, terminal fuel purchases, strategic over-the-road purchases, and the purchase of state-of-the-art International Pro Star trucks with increased fuel economy features. The Company took delivery of 416 new tractors in the second quarter of 2009 in addition to 45 new tractors in the first quarter of this year. This fleet upgrade now includes the purchase of 1,036 International Pro Star tractors. These tractors are achieving positive results through advanced aerodynamics, speed management, and idle controls. Heartland Express continues to pay a regular quarterly cash dividend. The most recent dividend of approximately $1.8 million at the rate of $0.02 per share was paid on July 2, 2009 to shareholders of record at the close of business on June 19, 2009. The Company has now paid cash dividends of $235.9 million over the past twenty-four consecutive quarters. In addition, the Company continues to demonstrate its confidence in the strength of the organization through the repurchase of its common stock. The Company has purchased approximately 3.5 million shares of its outstanding common stock during the first six months of 2009 at a cost of approximately $45.4 million. Customer service continues to be the core foundation of our company. The Company has now been awarded eleven service awards thus far this year for its ability to deliver the highest quality of customer service. During the quarter Heartland Express was recognized by Alcoa as a Tier One Core Carrier for its outstanding commitment to customer service. In addition, the Company was named to the Transplace 2008 Carrier Merit Program for the best on-time service provider. Awards previously received in 2009 include: 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, Pella Windows and Doors - 2008 Gettysburg Carrier of the Year. 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 Six months ended June 30, June 30, 2009 2008 2009 2008 -------------------- -------------------- (unaudited) (unaudited) OPERATING REVENUE $ 116,974 $ 164,592 $ 231,953 $ 313,641 --------- --------- --------- --------- OPERATING EXPENSES: Salaries, wages, benefits $ 42,938 $ 48,591 $ 86,997 $ 97,183 Rent and purchased transportation 2,806 5,144 5,744 10,250 Fuel 25,086 60,495 49,644 110,993 Operations and maintenance 4,314 4,353 8,354 8,316 Operating taxes and licenses 2,433 2,343 4,716 4,585 Insurance and claims 4,625 7,012 8,139 10,795 Communications and utilities 906 931 1,902 1,936 Depreciation 13,160 10,663 24,974 21,076 Other operating expenses 3,188 4,139 6,591 8,471 (Gain) loss on disposal of property & equipment (4,190) 11 (5,857) (633) -------- -------- -------- -------- 95,266 143,682 191,204 272,972 -------- -------- -------- -------- Operating income 21,708 20,910 40,749 40,669 Interest income 563 2,236 1,434 5,099 -------- -------- -------- -------- Income before income taxes 22,271 23,146 42,183 45,768 Federal and state income taxes 4,656 5,915 10,427 13,874 -------- -------- -------- -------- Net income $ 17,615 $ 17,231 $ 31,756 $ 31,894 ======== ======== ======== ======== Earnings per share $ 0.19 $ 0.18 $ 0.35 $ 0.33 ======== ======== ======== ======== Weighted average shares outstanding 90,689 96,158 91,582 96,186 ======== ======== ======== ======== Dividends declared per share $ 0.02 $ 0.02 $ 0.04 $ 0.04 ======== ======== ======== ========
HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)
June 30, December 31, ASSETS 2009 2008 --------- --------- CURRENT ASSETS (unaudited) Cash and cash equivalents $ 44,580 $ 56,651 Short-term investments 140 241 Trade receivables, net 36,884 36,803 Prepaid tires 6,051 6,449 Other current assets 6,205 2,834 Income tax receivable 2,025 -- Deferred income taxes 36,118 35,650 --------- --------- Total current assets 132,003 138,628 --------- --------- PROPERTY AND EQUIPMENT 397,069 389,561 Less accumulated depreciation 156,695 151,881 --------- --------- 240,374 237,680 LONG-TERM INVESTMENTS 160,322 171,122 OTHER ASSETS 10,329 10,284 --------- --------- $ 543,028 $ 557,714 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 14,139 $ 10,338 Compensation & benefits 15,540 15,862 Income taxes payable -- 452 Insurance accruals 71,804 70,546 Other accruals 7,215 7,498 --------- --------- Total current liabilities 108,698 104,696 --------- --------- LONG-TERM LIABILITIES Income taxes payable 30,558 35,264 Deferred income taxes 60,966 57,715 --------- --------- 91,524 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 350,083 367,281 Accumulated other comprehensive loss (8,623) (8,623) --------- --------- 342,806 360,039 --------- --------- $ 543,028 $ 557,714 ========= =========