Heartland Express, Inc. Reports Revenues and Earnings for Q3 of 2001
CORALVILLE, Iowa--Oct. 16, 2001--Heartland Express, Inc. announced today financial results for the third quarter ended September 30, 2001. For the third quarter revenue increased 8.5% to $73.9 million from $68.1 million in the third quarter of 2000. Net income increased 9.8% to $9.2 million from $8.4 million in the 2000 period. Basic earnings per share were $0.29 compared to $0.26 for the third quarter of 2000.For the nine months, revenue increased 8.1% to $221.1 from $204.6 during the same period in 2000. Net income increased 5.3% to $27.8 million from $26.4 million in the 2000 period. Basic earnings per share were $0.88 compared with $0.82 for the 2000 period. Net income and earnings per share for the 2000 period were positively impacted by a $1.5 million gain from the sale of real estate.
The industry continues to be challenged by a weakening economy, depressed equipment values, increasing costs, and a shortage of independent contractors. Despite these challenges Heartland reported an operating ratio (operating expenses as a percentage of gross revenues) of 82.5% for the quarter and 82.6% for the nine months ending September 30, 2001. When asked to comment on Heartland's performance a spokesman stated, "we have a tradition of operating in the low 80's, but in view of the tough operating environment we have to be proud of our people's effort to continue managing at these levels."
"Our long-term success is attributable to a culture of taking care of our customers and managing cost, while remaining debt free. We are not wavering from our belief in our business model and believe the current operating results testify to our ability to execute on our plan."
Despite the tough operating environment Heartland grew its tractor and trailer fleet and progressed with the organization's planned fleet update. This quarter the Company took delivery of 100 tractors and 350 trailers. The percentage of miles generated by company-owned tractors increased to 68%, an increase from the 65% reported in the first quarter of 2001. The increase reflects a need by the Company to compensate for the shortage of available independent contractors.
The equipment purchases are being made from cash on hand and cash flow. The Company ended the quarter with no debt and near $153 million in cash and short-term investments as compared to $125 million on September 30, 2000.
Although the Company's cash and short-term investments increased over 22% since September 30, 2000, third quarter interest income decreased 35.8% to $1.0 million from $1.6 million in the third quarter of 2000 due to declining interest rates. However, the Company's reported return on sales of 12.5% compares favorably to 12.3% for the third quarter of 2000.
With no debt, a newer fleet (the average age of company tractors 18 months) and it's strong cash position, the Company believes itself to be one of the better positioned companies to meet the current industry challenges and well positioned to benefit from any strengthening of the economy.
This press release may contain statements that might be considered forward-looking statements of predictions of future operations. Such statements are based on management's belief of 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.
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
---- ---- ---- ----
OPERATING REVENUE $73,917,920 $68,107,430 $221,092,616 $204,558,697
----------- ----------- ------------ ------------
OPERATING EXPENSES:
Salaries, wages,
benefits $21,969,335 $18,722,396 $65,188,099 $53,705,524
Rent and purchased
transportation 16,474,914 18,013,117 50,664,406 58,246,522
Operations and
maintenance 12,405,409 10,565,512 36,714,887 30,175,800
Taxes and licenses 1,586,127 1,516,106 4,489,242 4,276,661
Insurance and
claims 1,726,834 1,591,330 5,382,925 5,090,063
Communications and
utilities 698,956 774,854 2,320,610 2,169,272
Depreciation 4,279,356 4,143,218 12,723,996 11,902,708
Other operating
expenses 1,785,209 1,685,214 5,036,289 4,740,272
(Gain)/loss on
sale of fixed
assets 52,371 (23,235) 16,913 (1,516,913)
----------- ----------- ------------ ------------
$60,978,511 $56,988,512 $182,537,367 $168,789,909
----------- ----------- ------------ ------------
Operating income $12,939,409 $11,118,918 $38,555,249 $35,768,788
Interest income 1,022,472 1,592,934 3,569,134 $4,244,938
----------- ----------- ------------ ------------
Income before
income taxes $13,961,881 $12,711,852 $42,124,383 $40,013,726
Federal and state
income taxes 4,746,965 4,322,021 14,322,216 13,604,658
----------- ----------- ------------ ------------
Net income $9,214,916 $8,389,831 $27,802,167 $26,409,068
=========== =========== ============ ============
Earnings per
common share:
Basic earnings
per share $0.29 $0.26 $0.88 $0.82
=========== =========== ============ ============
Basic weighted
average shares
outstanding 31,708,131 31,708,131 31,708,131 31,997,534
=========== =========== ============ ============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS September 30, December 31,
2001 2000
------------- ------------
(Unaudited)
CURRENT ASSETS
Cash and short term investments $152,940,024 $128,027,076
Trade Receivables 27,364,115 24,954,681
Prepaid tires 4,168,816 3,780,644
Deferred income taxes 17,101,000 16,846,000
Other current assets 1,150,836 328,273
------------ ------------
Total current assets $202,724,791 $173,936,674
------------ ------------
PROPERTY AND EQUIPMENT $147,135,918 $145,407,075
Less accumulated depreciation 48,873,067 56,329,103
------------ ------------
$98,262,851 $89,077,972
------------ ------------
OTHER ASSETS $4,357,928 $5,040,358
------------ ------------
$305,345,570 $268,055,004
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $9,920,905 $6,712,053
Accrued expenses 46,142,702 44,099,458
Income taxes payable 7,003,185 4,618,882
------------ ------------
Total current liabilities $63,066,792 $55,430,393
------------ ------------
DEFERRED INCOME TAXES $19,343,000 $17,491,000
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: Common, $.01 par value;
authorized 395,000,000 shares; issued
and outstanding 31,708,131 and
25,366,582, respectively $317,081 $253,666
Additional paid-in capital 6,608,170 6,608,170
Retained earnings 216,010,527 188,271,775
------------ ------------
$222,935,778 $195,133,611
------------ ------------
$305,345,570 $268,055,004
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