Heartland Express, Inc. Reports Revenues and Earnings for the Third Quarter of 2002
CORALVILLE, Iowa--Oct. 16, 2002--Heartland Express, Inc. announced today financial results for the third quarter ended September 30, 2002. For the third quarter revenue increased 23.3% to $91.1 million from $73.9 million in the third quarter of 2001. Net income increased 20.2% to $11.1 million from $9.2 million in the 2001 period. Basic earnings per share were $0.22 compared to $0.18 for the third quarter of 2001.For the nine months, revenue increased 12.5% to $248.8 from $221.1 during the same period in 2001. Net income increased 13.8% to $31.6 million from $27.8 million in the 2001 period. Basic earnings per share were $0.63 compared with $0.56 for the 2001 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 82.3% and a 12.2% net margin. The Company reported an operating ratio of 82.5% and a net margin of 12.5% in the third quarter of 2001. The operating ratio for the nine months ended September 30, 2002 was 81.6% with a 12.7% net margin.
The Company ended the third quarter with cash, cash equivalents, and investments of $156.3 million, a $4.8 million decrease from 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.
This press release may contain statements that might be considered 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 Nine months ended
September 30, September 30,
2002 2001 2002 2001
---- ---- ---- ----
OPERATING REVENUE $91,123,367 $73,917,920 $248,753,449 $221,092,616
----------- ----------- ------------ ------------
OPERATING EXPENSES:
Salaries, wages,
benefits $29,341,346 $21,969,335 $ 78,931,009 $ 65,188,099
Rent and purchased
transportation 17,170,890 16,474,914 48,834,154 50,664,406
Operations and
maintenance 14,921,425 12,405,409 40,000,709 36,714,887
Taxes and licenses 1,953,378 1,586,127 5,249,886 4,489,242
Insurance and
claims 2,530,868 1,779,205 7,373,504 5,504,601
Communications and
utilities 911,176 698,956 2,240,502 2,320,610
Depreciation 5,666,127 4,279,356 14,027,837 12,723,996
Other operating
expenses 2,460,928 1,785,209 6,251,675 5,036,289
(Gain) loss on
disposal of
fixed assets 37,759 - 38,272 (104,763)
----------- ----------- ------------ ------------
$74,993,897 $60,978,511 $202,947,548 $182,537,367
----------- ----------- ------------ ------------
Operating
income $16,129,470 $12,939,409 $ 45,805,901 $ 38,555,249
Interest income 648,359 1,022,472 2,128,631 3,569,134
----------- ----------- ------------ ------------
Income before
income taxes $16,777,829 $13,961,881 $ 47,934,532 $ 42,124,383
Federal and state
income taxes 5,704,463 4,746,965 16,297,741 14,322,216
----------- ----------- ------------ ------------
Net income $11,073,366 $ 9,214,916 $ 31,636,791 $ 27,802,167
=========== =========== ============ ============
Earnings per common
share:
Basic earnings per
share $ 0.22 $ 0.18 $ 0.63 $ 0.56
=========== =========== ============ ============
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 September 30, December 31,
2002 2001
-------------- --------------
(Unaudited)
CURRENT ASSETS
Cash and short term investments $ 156,256,217 $ 161,076,122
Trade receivables 37,509,731 25,700,435
Prepaid tires 4,245,680 4,077,276
Deferred income taxes 19,582,000 17,358,000
Other current assets 1,184,640 144,890
-------------- --------------
Total current assets $ 218,778,268 $ 208,356,723
-------------- --------------
PROPERTY AND EQUIPMENT $ 178,686,012 $ 149,592,138
Less accumulated depreciation 42,848,275 47,473,283
-------------- --------------
$ 135,837,737 $ 102,118,855
-------------- --------------
OTHER ASSETS $ 8,654,022 $ 3,762,832
-------------- --------------
$ 363,270,027 $ 314,238,410
============== ==============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable & accrued
liabilities $ 14,105,393 $ 7,073,957
Accrued expenses 51,912,583 46,685,828
Income taxes payable 6,716,214 6,693,398
-------------- --------------
Total current liabilities $ 72,734,190 $ 60,453,183
-------------- --------------
DEFERRED INCOME TAXES $ 25,877,000 $ 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 257,317,848 225,681,057
-------------- --------------
$ 266,421,610 $ 232,789,227
Less unearned compensation (1,762,773) 0
-------------- --------------
$ 264,658,837 $ 232,789,227
-------------- --------------
$ 363,270,027 $ 314,238,410
============== ==============