Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2004
CORALVILLE, Iowa--April 15, 2004--Heartland Express, Inc. announced today financial results for the first quarter ended March 31, 2004. Gross revenues for the quarter increased 12.6% to $106.8 million from $94.8 million in the first quarter of 2003. Net income increased 18.7% to $13.1 million from $11.0 million in the 2003 period. Basic earnings per share were $0.26 compared to $0.22 for the first quarter of 2003.For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of gross revenues) of 81.5% and a 12.3% net margin. These operating results were achieved in spite of surging fuel prices. In addition, the Company increased driver pay during the first quarter by $0.03 per mile (incrementally over the three month period) in response to the continued tightness in the market for qualified drivers. Also, our operations and safety personnel expended efforts towards the management of federally mandated changes to driver hours of service regulations. These efforts were primarily aimed at the education of our customer and driver base to continue the level of service for which we are known.
The Company ended the first quarter with cash, cash equivalents, and investments of $221.8 million, a $19.4 million increase from the $202.4 million reported on December 31, 2003. During the quarter the Company generated $25.6 million net cash from operations, a 23.3% increase over the first quarter of 2003. The Company's balance sheet continues to be debt-free. The Company expects to open its newly acquired (December, 2003) Carlisle, Pennsylvania facility in the second quarter. This location is much larger than the current leased facility and will provide a solid base of operations in the Northeast.
During the quarter, Heartland Express declared a regular quarterly cash dividend. The quarterly dividend of $1,000,000 at the rate of $0.02 per share was paid on April 2, 2004 to shareholders of record at the close of business on March 22, 2004.
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,
2004 2003
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OPERATING REVENUE $106,836,912 $94,839,735
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OPERATING EXPENSES:
Salaries, wages, benefits $39,766,096 $32,312,307
Rent and purchased transportation 10,518,625 13,953,071
Operations and maintenance 20,945,552 19,310,180
Taxes and licenses 2,290,282 1,873,406
Insurance and claims 2,496,641 2,370,993
Communications and utilities 962,183 893,845
Depreciation 6,613,704 5,367,543
Other operating expenses 3,504,034 2,554,772
(Gain)/loss on disposal of fixed assets (36,251) (3,661)
------------- ------------
$87,060,866 $78,632,456
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Operating income $19,776,046 $16,207,279
Interest income 567,516 538,617
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Income before income taxes $20,343,562 $16,745,896
Federal and state income taxes 7,221,965 5,693,604
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Net income $13,121,597 $11,052,292
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Basic earnings per share $0.26 $0.22
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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,
2004 2003
------------- -------------
(unaudited)
CURRENT ASSETS
Cash and short term investments $221,750,905 $202,431,155
Trade receivables 39,129,263 36,836,728
Prepaid tires 1,741,230 2,529,580
Deferred income taxes 22,903,000 21,308,000
Other current assets 3,122,647 673,101
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Total current assets $288,647,045 $263,778,564
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PROPERTY AND EQUIPMENT $233,320,053 $232,650,992
Less accumulated depreciation 63,411,691 56,951,186
------------- -------------
$169,908,362 $175,699,806
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OTHER ASSETS $8,851,467 $8,928,186
------------- -------------
$467,406,874 $448,406,556
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $10,269,009 $15,684,826
Accrued expenses 57,754,413 53,724,940
Income taxes payable 16,083,833 7,720,875
------------- -------------
Total current liabilities $84,107,255 $77,130,641
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DEFERRED INCOME TAXES $39,567,000 $39,760,000
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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 8,510,305 8,510,305
Retained earnings 335,831,893 323,710,296
------------- -------------
$344,842,198 $332,720,601
Less unearned compensation (1,109,579) (1,204,686)
------------- -------------
$343,732,619 $331,515,915
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$467,406,874 $448,406,556
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