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):
October 18, 2006
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 October 18, 2006
with respect to the Company's financial results for the quarter ended September
30, 2006.
Item 2.02. Results of Operations and Financial Condition.
On October 18, 2006, Heartland Express, Inc. announced its financial
results for the quarter ended September 30, 2006. 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: October 18, 2006 BY:/s/ John P. Cosaert
----------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Wednesday, October 18, 2006, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Third Quarter of
2006.
CORALVILLE, IOWA - October 18, 2006 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended September 30, 2006.
Operating revenues for the quarter increased 8.0% to $147.1 million from $136.2
million in the third quarter of 2005. Net income increased 31.2% to $23.0
million from $17.5 million in the 2005 period. Earnings per share were $0.23
compared to $0.18 for the third quarter of 2005.
For the nine months ended September 30, 2006, operating revenues increased 10.8%
to $425.1 from $383.7 during the same period in 2005. Net income increased 34.3%
to $67.5 million from $50.3 million in the 2005 period. Earnings per share were
$0.69 compared with $0.51 for the 2005 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating
expenses as a percentage of operating revenues) of 77.9% and a 15.6% net margin.
The Company reported an operating ratio of 77.4% and a 15.9% net margin for the
nine months ended September 30, 2006. The Company ended the third quarter with
cash, cash equivalents, and short-term investments of $321.9 million, a $34.3
million increase from the $287.6 million reported on December 31, 2005. The
Company's balance sheet continues to be debt-free.
Operating results for the nine month period are favorably impacted by gains
primarily from the trade of revenue equipment. Effective July 1, 2005 gains from
the trade of revenue equipment are being recognized in operating income in
compliance with Statement of Financial Accounting Standards No. 153, "Accounting
for Non-monetary Transactions". Prior to July 1, 2005 gains from the trade-in of
revenue equipment were deferred and presented as a reduction of the depreciable
basis of new revenue equipment. Operating income for the three month and nine
month periods ended September 30, 2006 were favorably impacted by $3.6 million
and $14.9 million, respectively, from gains on the trade-in of revenue
equipment, net of the associated increase in depreciation expense as a result of
the higher depreciable basis of traded revenue equipment acquired since July 1,
2005. As a result of these gains earnings per share was positively impacted
$0.02 per share for the quarter ended September 30, 2006 and $0.10 for the nine
months ended September 30, 2006.
The Company has continued to upgrade its tractor and trailer fleet during the
quarter. The Company took delivery of 475 new International tractors and
completed its trailer fleet upgrade with the delivery of 252 new Wabash trailers
during the period. The average age of the Company's tractor fleet was 1.2 years
at September 30, 2006, with 97% of the fleet comprised of 2005 or newer model
year Internationals. The tractor fleet replacement will continue throughout the
fourth quarter and will be completed by December 31, 2006. The average age of
the Company's trailer fleet was 2.9 years at September 30, 2006 with primarily
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 $2.0 million at the rate of
$0.02 per share was paid on October 2, 2006 to shareholders of record at the
close of business on September 20, 2006. The Company has now paid thirteen
consecutive quarterly cash dividends. In addition, the Company declared a
4-for-3 stock split, paid as a 33% stock dividend in the second quarter of 2006.
This was the Company's ninth stock split since going public in 1986. The
Company's annual cash dividend increased approximately $2.0 million per year, a
33% increase, as a result of the recent stock split. All share and per share
data presented have been adjusted retroactively to reflect the effect of the
stock split.
The Company purchased 176,700 shares of its outstanding common stock during the
quarter. There are 4.9 million shares remaining under the 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.
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, Chief Financial Officer
Mike Gerdin, President
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
---- ---- ---- ----
OPERATING REVENUE $147,057,490 $136,209,698 $425,115,417 $383,738,516
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Salaries, wages, benefits $ 47,925,921 $ 45,028,528 $140,337,273 $131,192,465
Rent and purchased transportation 6,093,688 7,462,499 19,065,665 23,004,432
Fuel 38,971,250 33,987,534 109,721,659 88,048,040
Operations and maintenance 3,324,150 4,068,028 9,629,850 10,417,494
Operating taxes and licenses 2,259,229 2,249,347 6,530,122 6,505,283
Insurance and claims 2,620,921 5,015,569 11,543,703 11,817,266
Communications and utilities 912,515 969,344 2,807,946 2,596,260
Depreciation 12,446,340 9,819,033 33,805,611 27,260,730
Other operating expenses 4,757,332 4,238,891 13,113,339 12,479,903
Gain on disposal of
property & equipment (4,788,227) (1,961,023) (17,571,767) (2,262,664)
------------ ------------ ------------ ------------
114,523,119 110,877,750 328,983,401 311,059,209
------------ ------------ ------------ ------------
Operating income 32,534,371 25,331,948 96,132,016 72,679,307
Interest income 3,141,022 1,865,656 8,553,941 5,252,948
------------ ------------ ------------ ------------
Income before income taxes 35,675,393 27,197,604 104,685,957 77,932,255
Federal and state income taxes 12,664,763 9,655,150 37,163,515 27,665,951
------------ ------------ ------------ ------------
Net income $ 23,010,630 $ 17,542,454 $ 67,522,442 $ 50,266,304
============ ============ ============ ============
Earnings per share $ 0.23 $ 0.18 $ 0.69 $ 0.51
============ ============ ============ ============
Weighted average shares
outstanding 98,330,636 98,428,737 98,395,579 99,360,028
============ ============ ============ ============
Dividends declared per share $ 0.020 $ 0.015 $ 0.055 $ 0.045
============ ============ ============ ============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, December 31,
2006 2005
------------ ------------
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 23,066,640 $ 5,366,929
Short-term investments 298,853,453 282,255,377
Trade receivables 46,404,543 42,860,411
Prepaid tires 5,238,531 3,998,430
Other prepaid expenses 4,034,919 304,667
Deferred income taxes 28,416,000 28,721,000
------------ ------------
Total current assets $406,014,086 $363,506,814
------------ ------------
PROPERTY AND EQUIPMENT $319,102,748 $281,710,956
Less accumulated depreciation 85,595,291 81,204,416
------------ ------------
$233,507,457 $200,506,540
------------ ------------
OTHER ASSETS $ 10,244,495 $ 9,494,571
------------ ------------
$649,766,038 $573,507,925
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities $ 16,615,312 $ 10,572,525
Compensation & benefits 15,025,171 12,629,831
Income taxes payable 10,092,332 8,064,947
Insurance accruals 55,814,578 53,631,471
Other accruals 7,244,932 7,345,499
------------ ------------
Total current liabilities $104,792,325 $ 92,244,273
------------ ------------
DEFERRED INCOME TAXES $ 51,873,000 $ 48,012,000
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: common, $.01 par value;
authorized 395,000,000 shares;
issued and outstanding 98,251,889
in 2006 and 98,428,589 in 2005 $ 982,519 $ 738,215
Additional paid-in capital 282,022 - -
Retained earnings 491,836,172 432,952,138
------------ ------------
$493,100,713 $433,690,353
Less unearned compensation - - (438,701)
------------ ------------
$493,100,713 $433,251,652
------------ ------------
$649,766,038 $573,507,925
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END OF REPORT