Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of 2002
CORALVILLE, Iowa--Jan. 22, 2003--Heartland Express, Inc. announced today financial results for the fourth quarter ended December 31, 2002. For the fourth quarter revenue increased 25.1% to $92.0 million from $73.5 million in the fourth quarter of 2001. Net income increased 13.4% to $11.2 million from $9.9 million in the fourth quarter of 2001. Basic earnings per share were $0.22 compared to $0.20 for the fourth quarter of 2001.For the twelve months, revenue increased 15.7% to $340.7 million from $294.6 million during the same period in 2001. Net income increased 13.7% to $42.8 million from $37.7 million in the 2001 period. Basic earnings per share were $0.86 compared with $0.75 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 12.1% net margin. The operating ratio for the twelve months ended December 31, 2002 was 81.8% with a 12.6% net margin.
The Company ended the fourth quarter with cash, cash equivalents, and investments of $153.9 million, a $7.2 million decrease from the $161.1 million reported on December 31, 2001. Total assets increased to $373.1 million from $314.2 million at 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
Three months ended Twelve months ended
December 31, December 31,
2002 2001 2002 2001
---- ---- ---- ----
OPERATING
REVENUE $91,991,577 $73,524,647 $340,745,026 $294,617,263
------------ ------------ ------------- -------------
OPERATING
EXPENSES:
Salaries,
wages,
benefits $31,028,763 $22,455,088 $109,959,772 $87,643,187
Rent and
purchased
trans-
portation 15,325,211 15,247,419 64,159,365 65,911,825
Operations
and
maintenance 16,334,060 11,188,612 56,334,769 47,903,499
Taxes and
licenses 1,894,192 1,699,386 7,144,078 6,188,628
Insurance and
claims 1,963,259 2,270,623 9,336,763 7,775,224
Communi-
cations and
utilities 716,308 581,886 2,956,810 2,902,496
Depreciation 6,350,883 4,276,931 20,378,720 17,000,927
Other
operating
expenses 2,591,462 1,778,110 8,843,137 6,814,399
(Gain) loss
on disposal
of fixed
assets (455,952) (37,100) (417,680) (141,863)
------------ ------------ ------------- -------------
$75,748,186 $59,460,955 $278,695,734 $241,998,322
------------ ------------ ------------- -------------
Operating
income $16,243,391 $14,063,692 $62,049,292 $52,618,941
Interest
income 682,550 865,780 2,811,181 4,434,914
------------ ------------ ------------- -------------
Income before
income taxes $16,925,941 $14,929,472 $64,860,473 $57,053,855
Federal and
state income
taxes 5,754,818 5,076,023 22,052,559 19,398,239
------------ ------------ ------------- -------------
Net income $11,171,123 $9,853,449 $42,807,914 $37,655,616
============ ============ ============= =============
Earnings per
common
share:
Basic
earnings
per share $0.22 $0.20 $0.86 $0.75
============ ============ ============= =============
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 December 31, December 31,
2002 2001
------------- -------------
CURRENT ASSETS
Cash and short term investments $153,861,422 $161,076,122
Trade receivables 33,012,394 25,700,435
Prepaid tires 4,757,850 4,077,276
Deferred income taxes 21,134,000 17,358,000
Other current assets 620,344 144,890
------------- -------------
Total current
assets $213,386,010 $208,356,723
------------- -------------
PROPERTY AND EQUIPMENT $191,116,893 $149,592,138
Less accumulated depreciation 39,715,307 47,473,283
------------- -------------
$151,401,586 $102,118,855
------------- -------------
OTHER ASSETS $8,320,593 $3,762,832
------------- -------------
$373,108,189 $314,238,410
============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable & accrued
liabilities $8,632,810 $7,073,957
Accrued expenses 52,386,322 46,685,828
Income taxes payable 6,070,318 6,693,398
------------- -------------
Total current liabilities $67,089,450 $60,453,183
------------- -------------
DEFERRED INCOME TAXES $30,089,000 $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 268,488,971 225,681,057
------------- -------------
$277,592,733 $232,789,227
Less unearned compensation (1,662,994) 0
------------- -------------
$275,929,739 $232,789,227
------------- -------------
$373,108,189 $314,238,410
============= =============