Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2003
CORALVILLE, Iowa--April 17, 2003--Heartland Express, Inc. announced today financial results for the first quarter ended March 31, 2003. Gross revenues for the quarter increased 29.4% to $94.8 million from $73.3 million in the first quarter of 2002. Net income increased 15.9% to $11.0 million from $9.5 million in the 2002 period. Basic earnings per share were $0.22 compared to $0.19 for the first quarter of 2002. Gross revenues for the first quarter of 2003 were increased by fuel surcharge revenues.For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 82.9% and an 11.7% net margin. These operating results were achieved in spite of record high fuel prices, adverse weather conditions in the East, and an uncertain economy.
The Company ended the first quarter with cash, cash equivalents, and investments of $150.7 million, a $3.2 million decrease from the $153.9 million reported on December 31, 2002. The Company's balance sheet continues to be debt-free.
During the quarter the Company acquired facilities in Columbus, Ohio and Olive Branch, Mississippi. The acquisition of these facilities resulted from the growth of our regional operations. The Columbus facility replaces our former terminal location and positions us for continued growth in the East Central region of the United States. The purchase of the Olive Branch location is a result of our expansion into the Memphis, Tennessee and Southern United States regional market.
The Company renegotiated its personal injury, property damage, and workers' compensation insurance policies effective April 1, 2003. The Company's self-insurance exposure increased to $2.0 million from $500,000 for each occurrence involving personal injury or property damage. The Company's self-insurance for workers' compensation continues to be a maximum of $500,000 per occurrence.
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,
2003 2002
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OPERATING REVENUE $94,839,735 $73,270,242
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OPERATING EXPENSES:
Salaries, wages, benefits $32,312,307 $23,274,625
Rent and purchased transportation 13,953,071 14,924,660
Operations and maintenance 19,310,180 11,427,919
Taxes and licenses 1,873,406 1,607,108
Insurance and claims 2,370,993 1,842,075
Communications and utilities 893,845 669,994
Depreciation 5,367,543 3,900,129
Other operating expenses 2,554,772 1,923,805
(Gain)/loss on disposal of fixed assets (3,661) 6,616
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$78,632,456 $59,576,931
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Operating income $16,207,279 $13,693,311
Interest income 538,617 758,109
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Income before income taxes $16,745,896 $14,451,420
Federal and state income taxes 5,693,604 4,913,483
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Net income $11,052,292 $ 9,537,937
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Basic earnings per share $ 0.22 $ 0.19
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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,
2003 2002
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(unaudited)
CURRENT ASSETS
Cash and short term investments $150,702,250 $153,861,422
Trade receivables 36,747,277 33,012,394
Prepaid tires 4,369,630 4,757,850
Deferred income taxes 23,096,000 21,134,000
Other current assets 5,316,104 620,344
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Total current assets $220,231,261 $213,386,010
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PROPERTY AND EQUIPMENT $215,764,221 $191,116,893
Less accumulated depreciation 44,111,066 39,715,307
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$171,653,155 $151,401,586
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OTHER ASSETS $ 8,244,731 $ 8,320,593
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$400,129,147 $373,108,189
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued
liabilities $ 11,399,482 $ 8,632,810
Accrued expenses 54,146,869 52,386,322
Income taxes payable 14,423,985 6,070,318
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Total current liabilities $ 79,970,336 $ 67,089,450
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DEFERRED INCOME TAXES $ 33,077,000 $ 30,089,000
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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 8,603,762
Retained earnings 279,541,263 268,488,971
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$288,645,025 $277,592,733
Less unearned compensation (1,563,214) (1,662,994)
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$287,081,811 $275,929,739
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$400,129,147 $373,108,189
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