EX-99.1 2 a2013q2earningsrelease.htm Q2 2013 EARNINGS RELEASE 2013 Q2 Earnings Release


Exhibit 99.1

July 19, 2013 For Immediate Release

Press Release

Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2013

NORTH LIBERTY, IOWA - July 19, 2013 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended June 30, 2013. For the quarter, net income increased $0.9 million to $19.1 million compared to $18.2 million in the 2012 period, a 5.0% increase. Basic earnings per share increased 9.5% to $0.23 from $0.21 reported in the second quarter of 2012. For the six months ended June 30, 2013 net income increased $4.1 million to $38.9 million compared to $34.8 million for the same period of 2012, an 11.7% increase. Basic earnings per share increased 15.0% to $0.46 from $0.40 reported in the six months ended June 30, 2012.

Operating revenues for the quarter decreased to $134.0 million from $139.7 million in the second quarter 2012. Operating revenues were negatively impacted by lower fuel surcharge revenues which were $27.3 million for the quarter, a 6.7% decline from $29.2 million in the same period of 2012. Operating revenues for the six month period ended June 30, 2013 decreased to $268.3 million from $274.5 million in the 2012 period. Operating revenues were negatively impacted by lower fuel surcharge revenues which were $55.2 million, a 3.5% decline from $57.3 million in the six month period ended June 30, 2012. Operating income for the three and six month periods was positively impacted by $5.1 million and $12.1 million, respectively, of increases in gains on disposal of property and equipment as the Company continues its fleet upgrade program.

For the quarter, Heartland Express, Inc. (the “Company”) posted an operating ratio (operating expenses as a percentage of operating revenues) of 78.1% and a 14.3% net margin (net income as a percentage of operating revenues) compared to 80.9% and 13.0%, respectively, in the second quarter of 2012. The Company posted an operating ratio of 77.8% and a 14.5% net margin for the six month period ended June 30, 2013 compared to an 81.6% operating ratio and a 12.7% net margin for the same period of 2012.

Fuel expense decreased for both the quarterly period and year to date periods compared to the respective periods of 2012. Fuel expense decreased 6.0% or $2.5 million for the quarter ended June 30, 2013 and 2.6% or $2.2 million for the six months ended June 30, 2013. The U.S. average cost of fuel was $3.87 per gallon during the second quarter of 2013, a 1.3% decrease over the second quarter of the prior year. The U.S. average cost of fuel for the first six months of 2013 was $3.95 per gallon, a 0.2% decline from an average price of $3.96 for the comparable period of 2012.
 
The average age of the Company's tractor fleet was 2.0 years as of June 30, 2013 compared to 2.2 years as of June 30, 2012. The Company took delivery of 190 new trucks during the second quarter which included International ProStar Plus and Freightliner Cascadia models. The tractor fleet upgrade will continue through the second half of 2013 with the scheduled purchase of an additional 800 units. The average age of the Company's trailer fleet was 3.2 years at June 30, 2013 compared to 3.5 years at June 30, 2012, with 98% of our trailers being 2007 models and newer at the end of the quarter.
 
The Company ended the quarter with cash, cash equivalents, and long-term investments totaling $152.3 million, a $12.4 million increase from the $139.9 million reported at December 31, 2012





despite spending $36.8 million for fleet equipment upgrades during the first six months of the year. The Company received calls on auction rate securities, at par, of $9.8 million which reduced the auction rate security investment balance to $11.5 million, at par, at June 30, 2013. Net cash flows from operations increased to 18.8% of operating revenues during the six months ended June 30, 2013 compared with 15.9% for the same period of June 30, 2012. The Company continues to maintain a debt-free balance sheet with total assets of $507.5 million. The Company ended the trailing twelve months as of June 30, 2013 with a return on total assets of 12.9% and a 20.2% return on equity compared to 12.4% and 19.0%, respectively, during the trailing twelve months as of June 30, 2012.
 
Commitment to our shareholders continues through the payment of cash dividends and the repurchase of common stock. A dividend of $0.02 per share was declared during the quarter and was paid on July 2, 2013. The Company has now paid cumulative cash dividends of $440.0 million, including three special dividends, over the past forty consecutive quarters. We did not purchase any shares of our common stock during the quarter and approximately 3.2 million shares remain authorized for purchase.

Service for Success, including partnering and building long-term relationships with our customers, along with maintaining a focus on safety, is part of our core business model. We have been recognized by several customers with service awards as well as a safety award during 2013. These awards include the Walmart Transportation 2012 General Merchandise Platinum Carrier of the Year Award as well as the 2012 Sam's Carrier of the Year Award, 2012 Supplier Excellence Award from Eastman Chemical for the seventeenth consecutive year, Unyson Logistics 2012 Carrier of the Year, Winegard 2012 Truckload Carrier of the Year, Lowe's 2012 Gold Carrier Award, and the BP Drivers Safety Standards Award.

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, Chief Executive Officer
John Cosaert, Chief Financial Officer
319-626-3600







HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share amounts)

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
OPERATING REVENUE
$
133,992

 
$
139,710

 
$
268,265

 
$
274,543

 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
 
 
 
Salaries, wages, and benefits
$
40,939

 
$
42,962

 
$
81,537

 
$
84,958

Rent and purchased transportation
1,325

 
1,596

 
2,623

 
3,257

Fuel
38,637

 
41,111

 
81,615

 
83,816

Operations and maintenance
3,828

 
6,251

 
9,269

 
11,903

Operating taxes and licenses
2,468

 
2,248

 
4,884

 
4,323

Insurance and claims
4,744

 
3,952

 
7,604

 
6,466

Communications and utilities
699

 
746

 
1,472

 
1,493

Depreciation
16,930

 
13,995

 
31,995

 
27,934

Other operating expenses
3,691

 
3,647

 
7,506

 
7,626

Gain on disposal of property and equipment
(8,644
)
 
(3,546
)
 
(19,823
)
 
(7,760
)
 
 
 
 
 
 
 
 
 
104,617

 
112,962

 
208,682

 
224,016

 
 
 
 
 
 
 
 
Operating income
29,375

 
26,748

 
59,583

 
50,527

 
 
 
 
 
 
 
 
Interest income
129

 
167

 
253

 
309

 
 
 
 
 
 
 
 
Income before income taxes
29,504

 
26,915

 
59,836

 
50,836

 
 
 
 
 
 
 
 
Federal and state income taxes
10,366

 
8,688

 
20,962

 
16,020

 
 
 
 
 
 
 
 
Net income
$
19,138

 
$
18,227

 
$
38,874

 
$
34,816

 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
Basic
$
0.23

 
$
0.21

 
$
0.46

 
$
0.40

Diluted
$
0.23

 
$
0.21

 
$
0.46

 
$
0.40

 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
Basic
84,789

 
86,451

 
84,780

 
86,463

Diluted
85,039

 
86,779

 
85,042

 
86,802

 
 
 
 
 
 
 
 
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)
(unaudited)
 
 
June 30,
 
December 31,
ASSETS
 
2013
 
2012
CURRENT ASSETS
 
 
 
 
Cash and cash equivalents
 
$
141,554

 
$
119,838

Trade receivables, net
 
49,602

 
46,555

Prepaid tires
 
4,811

 
6,603

Other current assets
 
6,695

 
2,281

Income tax receivable
 
1,424

 
2,351

Deferred income taxes, net
 
12,584

 
13,797

Total current assets
 
216,670

 
191,425

 
 
 
 
 
PROPERTY AND EQUIPMENT
 
440,389

 
432,330

Less accumulated depreciation
 
174,253

 
189,959

 
 
266,136

 
242,371

LONG-TERM INVESTMENTS
 
10,791

 
20,016

OTHER ASSETS
 
13,914

 
13,925

 
 
$
507,511

 
$
467,737

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
Accounts payable and accrued liabilities
 
$
8,818

 
$
7,583

Compensation and benefits
 
17,463

 
16,409

Insurance accruals
 
12,596

 
13,924

Other accruals
 
8,159

 
7,439

Total current liabilities
 
47,036

 
45,355

LONG-TERM LIABILITIES
 
 
 
 
Income taxes payable
 
21,146

 
23,122

Deferred income taxes, net
 
54,803

 
51,306

Insurance accruals less current portion
 
57,468

 
57,590

Total long-term liabilities
 
133,417

 
132,018

COMMITMENTS AND CONTINGENCIES
 
 
 
 
STOCKHOLDERS' EQUITY
 
 
 
 
Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2013 and 2012; outstanding 84,837 in 2013 and 84,770 in 2012
 
907

 
907

Additional paid-in capital
 
3,590

 
2,968

Retained earnings
 
403,785

 
368,313

Treasury stock, at cost; 5,852 in 2013 and 5,919 in 2012
 
(80,540
)
 
(80,540
)
Accumulated other comprehensive loss
 
(684
)
 
(1,284
)
 
 
327,058

 
290,364

 
 
$
507,511

 
$
467,737