UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported):
July 18, 2005
HEARTLAND EXPRESS, INC.
(Exact name of registrant as specified in its charter)
Commission File Number - 0-15087
NEVADA 93-0926999
(State of other Jurisdiction (IRS Employer ID No.)
of Incorporation)
2777 HEARTLAND DRIVE, CORALVILLE, IOWA 52241
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number (including area code): 319-545-2728
Item 9.01. Financial Statements and Exhibits
Exhibit 99.1 - Heartland Express, Inc. press release dated July 18, 2005
with respect to the Company's financial results for the quarter ended June 30,
2005.
Item 2.02. Results of Operations and Financial Condition.
On July 18, 2005, Heartland Express, Inc. announced its financial results
for the quarter ended June 30, 2005. The press release is attached as Exhibit
99.1 to this Form 8-K and is incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf by the undersigned
thereunto duly authorized.
HEARTLAND EXPRESS, INC.
Date: July 18, 2005 BY: /s/ John P. Cosaert
-----------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Monday, July 18, 2005, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of
2005.
CORALVILLE, IOWA - July 18, 2005 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended June 30, 2005. Gross
revenues for the quarter increased 13.5% to $128.9 million from $113.5 million
in the second quarter of 2004. Net income increased 12.3% to $17.6 million from
$15.7 million in the 2004 period. Basic earnings per share were $0.24 compared
to $0.21 for the second quarter of 2004.
For the six months, revenue increased 12.3% to $247.5 from $220.3 during the
same period in 2004. Net income increased 13.5% to $32.7 million from $28.8
million in the 2004 period. Basic earnings per share were $0.44 compared with
$0.38 for the 2004 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating
expenses as a percentage of gross revenues) of 80.4% and a 13.7% net margin. The
Company reported an operating ratio of 80.9% and a 13.2% net margin for the six
months ended June 30, 2005.
The Company ended the second quarter with cash and short-investments of $265.3
million, a $7.0 million increase from the $258.3 million reported on December
31, 2004. The Company's balance sheet continues to be debt-free.
The Company has purchased approximately 1.2 million shares of its outstanding
common stock this year under a 5.0 million share repurchase program approved in
September 2001 by its Board of Directors. Our strong cash position has allowed
us to improve shareholder return with share repurchases and cash dividends
without effecting growth opportunities. This repurchase of shares demonstrates
the Board of Director's confidence in the Company's performance and future
prospects.
The Company is continuing the replacement of its entire tractor fleet. The
Company has taken delivery of 400 new Internationals this year. The delivery of
new trucks and the trade-in of the current fleet are scheduled to be completed
by December 31, 2006. In addition, the Company purchased 500 new Wabash trailers
during the second quarter of 2005.
During the quarter, Heartland Express declared a regular quarterly cash
dividend. The quarterly dividend of approximately $1.5 million at the rate of
$0.02 per share was paid on July 1, 2005 to shareholders of record at the close
of business on June 20, 2005. The Company has now paid eight consecutive
quarterly cash dividends. In addition, the Company declared a 3-for-2 stock
split, paid as a 50% stock dividend in the third quarter of 2004. This stock
split increased the Company's outstanding common stock from 50.0 million to 75.0
million shares. As a result, the Company's annual cash dividend has increased to
approximately $5.9 million from $4.0 million because of the additional shares
outstanding. All earnings per share data presented have been adjusted
retroactively to reflect the effect of the stock split.
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.
Contact: Heartland Express, Inc.
John Cosaert
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
------------ ------------ ------------ ------------
OPERATING REVENUE ......................... $128,851,347 $113,511,541 $247,528,819 $220,348,453
------------ ------------ ------------ ------------
Salaries, wages, benefits .............. $ 43,447,096 $ 39,091,825 $ 86,163,937 $ 78,857,921
Rent and purchased transportation ...... 7,829,721 9,522,915 15,541,933 20,041,540
Operations and maintenance ............. 32,276,024 22,710,926 60,409,972 43,656,478
Taxes and licenses ..................... 2,180,645 2,204,958 4,255,935 4,495,240
Insurance and claims ................... 3,969,431 5,395,577 6,801,696 7,892,218
Communications and utilities ........... 928,039 980,349 1,626,916 1,942,532
Depreciation ........................... 8,932,713 6,692,119 17,140,055 13,269,572
Other operating expenses ............... 4,006,623 3,411,410 8,241,017 6,915,444
------------ ------------ ------------ ------------
103,570,292 90,010,079 200,181,461 177,070,945
------------ ------------ ------------ ------------
Operating income .................. 25,281,055 23,501,462 47,347,358 43,277,508
Interest income ........................ 2,052,068 651,871 3,387,293 1,219,387
------------ ------------ ------------ ------------
Income before income taxes ............. 27,333,123 24,153,333 50,734,651 44,496,895
Federal and state income taxes ......... 9,703,258 8,453,664 18,010,801 15,675,629
------------ ------------ ------------ ------------
Net income ............................. $ 17,629,865 $ 15,699,669 $ 32,723,850 $ 28,821,266
============ ============ ============ ============
Earnings per common share:
Basic earnings per share ........... $ 0.24 $ 0.21 $ 0.44 $ 0.38
============ ============ ============ ============
Basic weighted average shares
outstanding ............................ 74,751,459 75,000,000 74,875,043 75,000,000
============ ============ ============ ============
Dividends declared per share ........... $ 0.020 $ 0.013 $ 0.040 $ 0.027
============ ============ ============ ============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, December 31,
2005 2004
------------- -------------
(unaudited)
CURRENT ASSETS
Cash ....................................... $ 5,450,670 $ 1,610,543
Short-term investments ..................... 259,897,769 256,727,782
Trade receivable ........................... 39,324,840 37,102,813
Prepaid tires .............................. 3,334,620 2,692,090
Deferred income taxes ...................... 25,897,000 24,964,000
Other prepaid expenses ..................... 3,970,018 158,267
------------- -------------
Total current assets ..................... 337,874,917 323,255,495
------------- -------------
PROPERTY AND EQUIPMENT ....................... 260,617,429 253,648,785
Less accumulated depreciation ............ 74,950,010 68,973,751
------------- -------------
185,667,419 184,675,034
------------- -------------
OTHER ASSETS ............................. 8,947,547 9,081,322
------------- -------------
$ 532,489,883 $ 517,011,851
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities ..... $ 11,907,394 $ 9,722,099
Accrued expenses ........................... 70,343,067 63,142,908
Income taxes payable ....................... 7,780,478 7,918,914
------------- -------------
Total current liabilities ................ 90,030,939 80,783,921
------------- -------------
DEFERRED INCOME TAXES ........................ 44,753,000 46,885,000
------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: Common, $.01 par value;
authorized 395,000,000 shares; issued and
outstanding 73,866,000 and 75,000,000 ...... 738,660 750,000
Additional paid-in capital ................. -- 8,510,305
Retained earnings .......................... 397,595,465 380,906,884
------------- -------------
398,334,125 390,167,189
Less unearned compensation ................. (628,181) (824,259)
------------- -------------
397,705,944 389,342,930
------------- -------------
$ 532,489,883 $ 517,011,851
============= =============
End of Report