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):
January 24, 2008
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)
901 NORTH KANSAS AVE, NORTH LIBERTY, IA 52317
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number (including area code):
319-626-3600
Item 9.01. Financial Statements and Exhibits
Exhibit 99.1 - Heartland Express, Inc. press release dated January 24, 2008
with respect to the Company's financial results for the quarter ended December
31, 2007.
Item 2.02. Results of Operations and Financial Condition.
On January 24, 2008, Heartland Express, Inc. announced its financial
results for the quarter ended December 31, 2007. 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: January 24, 2008 BY:/s/ John P Cosaert
-------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Thursday, January 24, 2008, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of
2007.
NORTH LIBERTY, IOWA - January 24, 2008 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter and year ended December 31,
2007. Operating revenues for the quarter increased 4.1% to $152.8 million from
$146.8 million in the fourth quarter of 2006. Net income decreased 15.4% to
$16.6 million from $19.6 million in the 2006 period. Earnings per share were
$0.17 compared to $0.20 for the fourth quarter of 2006. Operating income during
the fourth quarter of 2007 was negatively impacted approximately $4.6 million or
$0.03 per share due to an increase in fuel cost, net of fuel surcharge revenue.
For the year ended December 31, 2007, operating revenues increased 3.5% to
$591.9 million from $571.9 million during the same period in 2006. Net income
decreased 12.6% to $76.2 million from $87.2 million in the 2006 period. Earnings
per share were $0.78 compared with $0.89 for the 2006 period. Operating income
for the year was negatively impacted by an $8.0 million decrease in gains on
disposal of property and equipment. In addition, operating income for the year
ended December 31, 2007 was negatively impacted approximately $10.5 million or
$0.07 per share due to an increase in fuel cost, net of fuel surcharge revenue.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating
expenses as a percentage of operating revenues) of 83.9% and a 10.9% net margin
(net income as a percentage of operating revenues). The Company reported an
operating ratio of 81.3% and a 12.9% net margin for the year ended December 31,
2007. The Company ended the year with cash, cash equivalents, and short-term
investments of $196.6 million, a $134.7 million decrease from the $331.3 million
reported on December 31, 2006 due to the special $196.5 million dividend paid in
2007. The Company's balance sheet continues to be debt-free.
The average age of the Company's tractor fleet was 2.1 years at December 31,
2007 with the entire tractor fleet consisting of 2005 or newer model year
International tractors. The average age of the Company's trailer fleet was 3.8
years at December 31, 2007 with the entire trailer fleet consisting of 2002 or
newer model year Wabash trailers.
During the quarter, Heartland Express declared a regular quarterly cash
dividend. The quarterly dividend of approximately $1.9 million at the rate of
$0.02 per share was paid on January 3, 2008 to shareholders of record at the
close of business on December 21, 2007. The Company has now paid cash dividends
of $224.6 million over the past eighteen consecutive quarters. Interest income
decreased in the fourth quarter of 2007 and for the year ended December 31, 2007
primarily due to the payment of the special dividend.
The Company purchased 1.3 million shares of its outstanding common stock during
the year. 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.
On October 11, 2007, Forbes magazine named Heartland Express one of the "Best
200 Small Companies in America." The Company has been recognized sixteen times
during its twenty one years as a public company, and has made the list the past
six consecutive 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.
Contact: Heartland Express, Inc.
Mike Gerdin, President
John Cosaert, Chief Financial Officer
319-626-3600
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
--------- --------- --------- ---------
OPERATING REVENUE $ 152,786 $ 146,804 $ 591,893 $ 571,919
--------- --------- --------- ---------
OPERATING EXPENSES:
Salaries, wages, benefits $ 49,243 $ 48,842 $ 196,303 $ 189,179
Rent and purchased
transportation 5,304 5,322 21,421 24,388
Fuel 47,029 36,519 164,285 146,240
Operations and maintenance 2,357 3,017 12,314 12,647
Operating taxes and licenses 2,283 2,613 9,454 9,143
Insurance and claims 4,006 5,077 18,110 16,621
Communications and utilities 992 913 3,857 3,721
Depreciation 12,532 13,546 48,478 47,351
Other operating expenses 4,344 4,243 17,380 17,357
Loss (gain) on disposal
of property & equipment 113 (572) (10,159) (18,144)
--------- --------- --------- ---------
128,203 119,520 481,443 448,503
--------- --------- --------- ---------
Operating income 24,583 27,284 110,450 123,416
Interest income 2,322 3,178 10,285 11,732
--------- --------- --------- ---------
Income before income taxes 26,905 30,462 120,735 135,148
Federal and state income taxes 10,274 10,814 44,565 47,978
--------- --------- --------- ---------
Net Income $ 16,631 $ 19,648 $ 76,170 $ 87,170
========= ========= ========= =========
Earnings per share $ 0.17 $ 0.20 $ 0.78 $ 0.89
========= ========= ========= =========
Weighted average shares
outstanding 96,953 98,252 97,735 98,359
========= ========= ========= =========
Dividends declared per share $ 0.020 $ 0.020 $ 2.080 $ 0.075
========= ========= ========= =========
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
December 31, December 31,
ASSETS 2007 2006
------------ ------------
CURRENT ASSETS
Cash and cash equivalents $ 7,960 $ 8,459
Short-term investments 188,643 322,829
Trade receivables 44,359 43,499
Prepaid tires 4,764 5,076
Other prepaid expenses 1,692 1,635
Income tax receivable 57 --
Deferred income taxes 30,443 29,177
------------ -----------
Total current assets $ 277,918 $ 410,675
------------ -----------
PROPERTY AND EQUIPMENT $ 370,358 $ 344,324
Less accumulated depreciation 132,545 96,293
------------ -----------
$ 237,813 $ 248,031
------------ -----------
OTHER ASSETS $ 10,563 $ 10,364
------------ -----------
$ 526,294 $ 669,070
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 12,747 $ 15,076
Compensation & benefits 15,024 15,028
Income taxes payable -- 21,419
Insurance accruals 60,882 56,652
Other accruals 6,719 8,248
------------ -----------
Total current liabilities $ 95,372 $ 116,423
------------ -----------
LONG-TERM LIABILITIES
Income taxes payable $ 37,593 $ --
Deferred income taxes 50,570 57,623
------------ -----------
$ 88,163 $ 57,623
------------ -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock; common, $.01 par value;
authorized 395,000 shares; issued and
outstanding 96,949 in 2007 and 98,252
in 2006 $ 969 $ 983
Additional paid-in capital 439 376
Retained earnings 341,351 493,665
------------ -----------
$ 342,759 $ 495,024
------------ -----------
$ 526,294 $ 669,070
============ ===========
END OF REPORT