Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2002
CORALVILLE, Iowa--April 18, 2002--Heartland Express, Inc. announced today financial results for the first quarter ended March 31, 2002. Gross revenues for the quarter increased 1.9% to $73.3 million from $71.9 million in the first quarter of 2001. Net income increased 6.8% to $9.5 million from $8.9 million in the 2001 period. Basic earnings per share were $0.19 compared to $0.18 for the first quarter of 2001. Gross revenues for the first quarter of 2001 were favorably impacted by fuel surcharge revenues.For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 81.3% and a 13.0% net margin. The Company reported an operating ratio of 83.1% and a net margin of 12.4% in the first quarter of 2001.
On February 19, 2002, Heartland effected a 57.68826% stock dividend. This was the seventh stock dividend declared by Heartland Express, Inc. during the past eleven years. The most recent stock dividend increased the total number of shares outstanding to 50.0 million. All share and per share data for all prior periods have been adjusted to reflect the February 19, 2002 stock dividend.
The Company ended the first quarter with cash, cash equivalents, and investments of $171.4 million, a $10.3 million increase over the $161.1 million reported on December 31, 2001. The Company's balance sheet continues to be debt-free.
Heartland Express has built a solid reputation for customer service. The Company is proud to announce that it was recently recognized by its largest customer, Sears, Roebuck and Co., as a "Partner In Progress" award recipient. In addition, the Company was recognized for their exceptional contribution by being named the Sears Support Group 2001 Quality Vendor 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.
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended
March 31,
2002 2001
----------- -----------
OPERATING REVENUE $73,270,242 $71,923,347
----------- -----------
OPERATING EXPENSES:
Salaries, wages, benefits $23,274,625 $21,251,332
Rent and purchased transportation 14,924,660 16,879,169
Operations and maintenance 11,427,919 12,061,535
Taxes and licenses 1,607,108 1,385,155
Insurance and claims 1,842,075 1,681,071
Communications and utilities 669,994 832,184
Depreciation 3,900,129 4,183,579
Other operating expenses 1,923,805 1,534,166
(Gain)/loss on disposal of fixed assets 6,616 (44,881)
----------- -----------
$59,576,931 $59,763,310
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Operating income $13,693,311 $12,160,037
Interest income 758,109 1,368,807
----------- -----------
Income before income taxes $14,451,420 $13,528,844
Federal and state income taxes 4,913,483 4,599,806
----------- -----------
Net income $9,537,937 $8,929,038
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Basic earnings per share $0.19 $0.18
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Basic weighted average shares
outstanding 50,000,000 50,000,000
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HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, December 31,
2002 2001
------------ ------------
(unaudited)
CURRENT ASSETS
Cash and short term investments $171,437,764 $161,076,122
Trade receivables 26,593,701 25,700,435
Prepaid tires 3,558,726 4,077,276
Deferred income taxes 18,032,000 17,358,000
Other current assets 2,215,498 144,890
------------ ------------
Total current assets $221,837,689 $208,356,723
------------ ------------
PROPERTY AND EQUIPMENT $150,585,858 $149,592,138
Less accumulated depreciation 46,564,556 47,473,283
------------ ------------
$104,021,302 $102,118,855
------------ ------------
OTHER ASSETS $3,910,380 $3,762,832
------------ ------------
$329,769,371 $314,238,410
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LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $6,460,814 $7,073,957
Accrued expenses 47,787,772 46,685,828
Income taxes payable 11,620,361 6,693,398
------------ ------------
Total current liabilities $65,868,947 $60,453,183
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DEFERRED INCOME TAXES $21,540,000 $20,996,000
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: Common, $.01 par value;
authorized 395,000,000 shares; issued
and outstanding 50,000,000 $500,000 $500,000
Additional paid-in capital 8,603,762 6,608,170
Retained earnings 235,218,994 225,681,057
------------ ------------
$244,322,756 $232,789,227
Less unearned compensation (1,962,332) 0
------------ ------------
$242,360,424 $232,789,227
------------ ------------
$329,769,371 $314,238,410
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