Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2002
CORALVILLE, Iowa--July 17, 2002--Heartland Express, Inc. announced today financial results for the second quarter ended June 30, 2002. For the second quarter revenue increased 12.1% to $84.4 million from $75.3 million in the second quarter of 2001. Net income increased 14.2% to $11.0 million from $9.7 million in the 2001 period. Basic earnings per share were $0.22 compared to $0.19 for the second quarter of 2001.For the six months, revenue increased 7.1% to $157.6 from $147.2 during the same period in 2001. Net income increased 10.6% to $20.6 million from $18.6 million in the 2001 period. Basic earnings per share were $0.41 compared with $0.37 for the 2001 period.
For the quarter, Heartland Express, Inc. posted an industry-leading operating ratio (operating expenses as a percentage of gross revenues) of 81.1% and a 13.1% net margin. The Company reported an operating ratio of 82.1% and a net margin of 12.8% in the second quarter of 2001.
The Company ended the second quarter with cash, cash equivalents, and investments of $150.6 million, a $10.5 million decrease over the $161.1 million reported on December 31, 2001. The Company's balance sheet continues to be debt-free.
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.
On June 1, 2002, Heartland Express acquired the business and certain trucking assets of Great Coastal Express, Inc., a truckload carrier based near Richmond, Virginia. Great Coastal is being operated as a division of Heartland Express. The Great Coastal division is based in Chester, Virginia with terminal locations in Roanoke, Virginia, Baltimore, Maryland, and Charlotte, North Carolina. The purchase of Great Coastal increases Heartland's presence in the northeast operating region. The second quarter financial results includes one month of the Great Coastal operation.
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 Six months ended
June 30, June 30,
2002 2001 2002 2001
---- ---- ---- ----
OPERATING REVENUE $ 84,359,840 $75,251,349 $157,630,082 $147,174,696
------------ ----------- ------------ -------------
OPERATING EXPENSES:
Salaries, wages,
benefits $ 26,315,038 $21,967,432 $ 49,589,663 $ 43,218,764
Rent and purchased
transportation 16,738,604 17,310,323 31,663,264 34,189,492
Operations and
maintenance 13,651,365 12,247,943 25,079,284 24,309,478
Taxes and licenses 1,689,400 1,517,960 3,296,508 2,903,115
Insurance and
claims 2,983,966 1,984,443 4,842,636 3,725,396
Communications and
utilities 659,332 789,470 1,329,326 1,621,654
Depreciation 4,461,581 4,261,061 8,361,710 8,444,640
Other operating
expenses 1,866,942 1,716,914 3,790,747 3,251,080
(Gain) loss on
disposal of
fixed assets 10,492 0 513 (104,763)
------------ ----------- ------------ -------------
$ 68,376,720 $61,795,546 $127,953,651 $121,558,856
------------ ----------- ------------ -------------
Operating income$ 15,983,120 $13,455,803 $ 29,676,431 $ 25,615,840
Interest income 722,163 1,177,855 1,480,272 2,546,662
------------ ----------- ------------ -------------
Income before
income taxes $ 16,705,283 $14,633,658 $ 31,156,703 $ 28,162,502
Federal and state
income taxes 5,679,795 4,975,445 10,593,278 9,575,251
------------ ----------- ------------ -------------
Net income $ 11,025,488 $ 9,658,213 $ 20,563,425 $ 18,587,251
============ =========== ============ =============
Earnings per
common share:
Basic earnings
per share $ 0.22 $ 0.19 $ 0.41 $ 0.37
============ =========== ============ =============
Basic weighted
average shares
outstanding 50,000,000 50,000,000 50,000,000 50,000,000
============ =========== ============ =============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, December 31,
2002 2001
------------- -------------
(Unaudited)
CURRENT ASSETS
Cash and short term investments $ 150,638,935 $161,076,122
Trade receivables 33,662,693 25,700,435
Prepaid tires 3,648,246 4,077,276
Deferred income taxes 18,949,000 17,358,000
Other current assets 2,229,898 144,890
------------- -------------
Total current assets $ 209,128,772 $208,356,723
------------- -------------
PROPERTY AND EQUIPMENT $ 172,117,399 $149,592,138
Less accumulated depreciation 43,391,716 47,473,283
------------- -------------
$ 128,725,683 $102,118,855
------------- -------------
OTHER ASSETS $ 8,366,450 $ 3,762,832
------------- -------------
$ 346,220,905 $314,238,410
============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 10,983,413 $ 7,073,957
Accrued expenses 50,718,513 46,685,828
Income taxes payable 8,467,288 6,693,398
------------- -------------
Total current liabilities $ 70,165,214 $ 60,453,183
------------- -------------
DEFERRED INCOME TAXES $ 22,570,000 $ 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 246,244,482 225,681,057
------------- -------------
$ 255,348,244 $232,789,227
Less unearned compensation (1,862,553) 0
------------- -------------
$ 253,485,691 $ 232,789,227
------------- -------------
$ 346,220,905 $ 314,238,410
============= =============