Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2003
CORALVILLE, Iowa--July 16, 2003--Heartland Express, Inc. announced today financial results for the second quarter ended June 30, 2003. Gross revenues for the quarter increased 21.9% to $102.8 million from $84.4 million in the second quarter of 2002. Net income increased 14.6% to $12.6 million from $11.0 million in the 2002 period. Basic earnings per share were $0.25 compared to $0.22 for the second quarter of 2002. Gross revenues for the second quarter of 2003 were increased by fuel surcharge revenues.For the six months, revenue increased 25.4% to $197.6 from $157.6 during the same period in 2002. Net income increased 15.2% to $23.7 million from $20.6 million in the 2002 period. Basic earnings per share were $0.47 compared with $0.41 for the 2002 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 81.9% and a 12.3% net margin. The Company ended the six months ended June 30, 2003 with an operating ratio of 82.4% and a 12.0% net margin.
The Company ended the second quarter with cash, cash equivalents, and investments of $163.5 million, a $9.6 million increase from the $153.9 million reported on December 31, 2002. The Company's balance sheet continues to be debt-free.
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 Six months ended
June 30, June 30,
2003 2002 2003 2002
---- ---- ---- ----
OPERATING
REVENUE $102,799,789 $84,359,840 $197,639,524 $157,630,082
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OPERATING
EXPENSES:
Salaries,
wages,
benefits $ 35,190,604 $26,315,038 $ 67,502,911 $ 49,589,663
Rent and
purchased
transportation 13,151,043 16,738,604 27,104,114 31,663,264
Operations and
maintenance 18,141,646 13,651,365 37,451,826 25,079,284
Taxes and
licenses 2,125,293 1,689,400 3,998,699 3,296,508
Insurance and
claims 4,164,378 2,895,068 6,535,371 4,737,143
Communications
and utilities 923,038 659,332 1,816,883 1,329,326
Depreciation 6,926,441 4,461,581 12,293,984 8,361,710
Other operating
expenses 3,551,159 1,866,942 6,105,931 3,790,747
(Gain) loss on
disposal of
fixed assets (27,110) 99,390 (30,771) 106,006
------------- ------------ ------------- -------------
$ 84,146,492 $68,376,720 $162,778,948 $127,953,651
------------- ------------ ------------- -------------
Operating
income $ 18,653,297 $15,983,120 $ 34,860,576 $ 29,676,431
Interest
income 492,404 722,163 1,031,021 1,480,272
------------- ------------ ------------- -------------
Income before
income taxes $ 19,145,701 $16,705,283 $ 35,891,597 $ 31,156,703
Federal and
state income
taxes 6,509,537 5,679,795 12,203,141 10,593,278
------------- ------------ ------------- -------------
Net income $ 12,636,164 $11,025,488 $ 23,688,456 $ 20,563,425
============= ============ ============= =============
Earnings per
common share:
Basic earnings
per share $ 0.25 $ 0.22 $ 0.47 $ 0.41
============= ============ ============= =============
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,
2003 2002
------------- -------------
(unaudited)
CURRENT ASSETS
Cash and short term investments $163,465,665 $153,861,422
Trade receivables 37,477,718 33,012,394
Prepaid tires 3,820,940 4,757,850
Deferred income taxes 23,028,000 21,134,000
Other current assets 3,510,420 620,344
------------- -------------
Total current assets $231,302,743 $213,386,010
------------- -------------
PROPERTY AND EQUIPMENT $223,223,601 $191,116,893
Less accumulated depreciation 48,896,595 39,715,307
------------- -------------
$174,327,006 $151,401,586
------------- -------------
OTHER ASSETS $ 8,621,190 $ 8,320,593
------------- -------------
$414,250,939 $373,108,189
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 9,759,451 $ 8,632,810
Accrued expenses 57,409,527 52,386,322
Income taxes payable 12,464,206 6,070,318
------------- -------------
Total current liabilities $ 79,633,184 $ 67,089,450
------------- -------------
DEFERRED INCOME TAXES $ 34,800,000 $ 30,089,000
------------- -------------
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 8,603,762
Retained earnings 292,177,427 268,488,971
------------- -------------
$301,281,189 $277,592,733
Less unearned compensation (1,463,434) (1,662,994)
------------- -------------
$299,817,755 $275,929,739
------------- -------------
$414,250,939 $373,108,189
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