Heartland Express, Inc. Reports Revenues and Earnings for the Third Quarter of 2003
CORALVILLE, Iowa--Oct. 2, 20031, 2003--Heartland Express, Inc. announced today financial results for the third quarter ended September 30, 2003. Gross revenues for the quarter increased 14.6% to $104.5 million from $91.1 million in the third quarter of 2002. Net income increased 30.9% to $14.5 million from $11.1 million in the 2002 period. This is our tenth consecutive quarter of reporting year-over-year growth of revenues and net income. Basic earnings per share were $0.29 compared to $0.22 for the third quarter of 2002.For the nine months, revenue increased 21.4% to $302.1 from $248.8 during the same period in 2002. Net income increased 20.7% to $38.2 million from $31.6 million in the 2002 period. Basic earnings per share were $0.76 compared with $0.63 for the 2002 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 79.4% and a 13.9% net margin. The Company ended the nine months ended September 30, 2003 with an operating ratio of 81.3% and a 12.6% net margin.
The Company ended the third quarter with cash, cash equivalents, and investments of $186.5 million, a $32.6 million increase from the $153.9 million reported on December 31, 2002. The Company's balance sheet continues to be debt-free.
During the quarter, Heartland Express declared its first ever cash dividend. The quarterly dividend rate is $0.02 per share with the first dividend paid on October 2, 2003.
This past week Heartland Express was named to the Forbes magazine list of the "200 Best Small Companies in America." The Company has achieved this ranking twelve times in the past seventeen years.
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 Nine months ended
September 30, September 30,
2003 2002 2003 2002
------------ ----------- ------------ ------------
OPERATING
REVENUE $104,460,615 $91,123,367 $302,100,139 $248,753,449
------------ ----------- ------------ ------------
OPERATING
EXPENSES:
Salaries,
wages,
benefits $ 34,949,275 $29,341,346 $102,452,186 $ 78,931,009
Rent and
purchased
transportation 12,090,171 17,170,890 39,194,285 48,834,154
Operations and
maintenance 19,094,695 14,921,425 56,546,521 40,000,709
Taxes and
licenses 2,265,221 1,953,378 6,263,920 5,249,886
Insurance and
claims 3,384,300 2,526,170 9,919,671 7,263,313
Communications
and utilities 946,331 911,176 2,763,214 2,240,502
Depreciation 7,139,016 5,666,127 19,433,000 14,027,837
Other operating
expenses 3,080,052 2,460,928 9,185,983 6,251,675
(Gain) loss on
disposal of
fixed assets 23,802 42,457 (6,969) 148,463
------------ ----------- ------------ ------------
$ 82,972,863 $74,993,897 $245,751,811 $202,947,548
------------ ----------- ------------ ------------
Operating
income $ 21,487,752 $16,129,470 $ 56,348,328 $ 45,805,901
Interest income 470,972 648,359 1,501,993 2,128,631
------------ ----------- ------------ ------------
Income before
income taxes $ 21,958,724 $16,777,829 $ 57,850,321 $ 47,934,532
Federal and
state income
taxes 7,465,967 5,704,463 19,669,108 16,297,741
------------ ----------- ------------ ------------
Net income $ 14,492,757 $11,073,366 $ 38,181,213 $ 31,636,791
============ =========== ============ ============
Earnings per
common share:
Basic
earnings
per share $ 0.29 $ 0.22 $ 0.76 $ 0.63
============ =========== ============ ============
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,
2003 2002
------------- -------------
(unaudited)
CURRENT ASSETS
Cash and short term investments $186,497,073 $153,861,422
Trade receivables 37,599,129 33,012,394
Prepaid tires 2,890,810 4,757,850
Deferred income taxes 23,760,000 21,134,000
Other current assets 2,805,209 620,344
------------- -------------
Total current assets $253,552,221 $213,386,010
------------- -------------
PROPERTY AND EQUIPMENT $227,886,599 $191,116,893
Less accumulated depreciation 55,923,089 39,715,307
------------- -------------
$171,963,510 $151,401,586
------------- -------------
OTHER ASSETS $ 8,929,116 $ 8,320,593
------------- -------------
$434,444,847 $373,108,189
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 11,729,106 $ 8,632,810
Accrued expenses 59,987,318 52,386,322
Income taxes payable 11,977,132 6,070,318
------------- -------------
Total current liabilities $ 83,693,556 $ 67,089,450
------------- -------------
DEFERRED INCOME TAXES $ 36,341,000 $ 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 306,670,184 268,488,971
------------- -------------
$315,773,946 $277,592,733
Less unearned compensation (1,363,655) (1,662,994)
------------- -------------
$314,410,291 $275,929,739
------------- -------------
$434,444,847 $373,108,189
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