Heartland Express, Inc. Reports Revenues and Earnings for the Third Quarter of 2012
NORTH LIBERTY, Iowa, Oct 11, 2012 (Menafn - GlobeNewswire via COMTEX) --Heartland Express, Inc. HTLD announced today financial results for the quarter ended September 30, 2012. Operating revenues for the quarter increased 1.9% to 135.0 million from 132.5 million in the third quarter of 2011. Operating revenues for the nine month period increased 3.1% to 409.6 million from 397.4 million in the 2011 period. Operating income for the three and nine month periods of 2012 were negatively impacted by a 5.1 million and 12.9 million decrease in gains on disposal of property and equipment, respectively. Net income was 12.4 million in the 2012 quarter period compared to 15.4 million in the 2011 quarter period, a 19.3% decrease. Net income was 47.2 million in the nine month period ended September 30, 2012 compared to 52.8 million in the same nine month period in 2011, a 10.5% decrease. Basic earnings per share decreased 11.8% to 0.15 from 0.17 reported in the third quarter of 2011. Basic earnings per share decreased 5.2% to 0.55 from 0.58 reported in the first nine months of 2011.
Fuel surcharge revenues for the quarter decreased 1.0% to 27.1 million from 27.4 million in the third quarter of 2011. Fuel surcharge revenues for the nine month period increased 3.9% to 84.4 million from 81.3 million in the 2011 nine month period. For the quarter, we posted an operating ratio (operating expenses as a percentage of operating revenues) of 85.4% and a 9.2% net margin (net income as a percentage of operating revenues). For the nine month period, the Company posted an operating ratio of 82.9% and an 11.5% net margin.
The industry continues to be challenged by the shortage of qualified drivers and erratic fuel prices. We achieved minimal fleet growth in the 3rd quarter of 2012 compared to the third quarter of 2011. We continue to aggressively manage our fuel cost through newer model revenue equipment and strategic fuel purchasing decisions. Fuel expense increased 1.5 million or 3.6% during the quarter. The U.S. average cost of diesel fuel was 3.957 per gallon during the third quarter of 2012 compared to 3.859 per gallon in the third quarter of 2011, a 2.5% increase. The average cost of diesel fuel increased approximately 0.40 per gallon during the 3rd quarter of 2012 and the spread between the highest price and lowest price during the quarter was 0.45 per gallon. Fuel price swings of this nature will continue to have negative impacts to our earnings.
The average age of our tractor fleet was 2.4 years as of September 30, 2012 with all of the fleet being 2010 models and newer. The average age of our trailer fleet has improved to 3.3 years at September 30, 2012 compared to 4.2 years at September 30, 2011. We will continue to take advantage of the favorable used trailer market throughout the 4th quarter to upgrade our trailer fleet. As of September 30, 2012 we had taken delivery of 974 new Wabash trailers during 2012 including delivery of 496 during the 3rd quarter. We anticipate delivery of an additional 26 trailers in October. By the end of the year, 100% of our trailer fleet will be 2007 models or newer.
Our financial position continues to be strong. We ended the quarter with cash, cash equivalents, and long-term investments totaling 233.8 million, a 43.5 million increase from the 190.3 million reported at December 31, 2011. Long-term investments include 22.3 million of illiquid auction rate securities, at par. Since February 2008, the Company has received 176.1 million in calls, all at par. No calls were received during the third quarter of 2012. Net cash flows from operations continue to be strong at 16.5% of operating revenues. The Company's balance sheet continues to be debt-free with total assets of 546.3 million. The Company ended the past twelve month period with a return on total assets of 11.8% and a 17.9% return on equity.
Commitment to our shareholders continues through the payment of cash dividends and the purchase of our common stock. A dividend of 0.02 per share was declared during the quarter and was paid on October 2, 2012. The Company has now paid cumulative cash dividends of 349.8 million, including two special dividends, over the past thirty-seven consecutive quarters. Also, we repurchased 690,906 shares of our common stock during the quarter for approximately 9.5 million. At September 30, 2012, we had 3.9 million remaining shares under our share repurchase program.
Award winning on-time service is the foundation of our organization. This year we have been recognized with several customer service awards. These awards include the Eastman Chemical 2011 Supplier Excellence Award for the sixteenth consecutive year, the 2011 Winegard Company Truckload Carrier of the Year Award, the Cost Plus World Market 2011 Premier Carrier Partner Award, the Lowe's 2011 Gold Carrier Award, the Walmart Transportation 2011 Sam's Carrier of the Year Award, the Nestle Waters Madison 2011 World Class Customer Service Award, the FedEx SmartPost Carrier of the Year award for the fifth time, the FedEx Gold Service Award for 99.87% on time service, the Dupont 2011 Outstanding Service Award, TransFreight Certificate of Appreciation for dedication to exceptional performance, the United Sugars 2012 Service in Excellence Award, the Sonoco 2012 Prospector Award, the Schneider Logistics Carrier of the Year Award, the 2011 BP Safety Award, and the LXP Managed Freight Elite Fleet Member Award. In addition, we received the Fleet Owner magazine 2011 For-Hire Fleet of the Year and the Logistics Management magazine Dry-Freight Carriers Quest for Quality Award for the tenth consecutive year as well as the Environmental Protection Agency's SmartWay Excellence Award.
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, in thousands, except per share amounts)
Three Months EndedNine Months Ended
September 30,September 30,
2012201120122011
OPERATING REVENUE 135,010 132,529 409,552 397,413
------------------------------------
OPERATING EXPENSES:
Salaries, wages, and benefits 40,899 40,903 125,857 124,832
Rent and purchased
transportation1,4951,8324,7525,767
Fuel42,44340,966126,259122,421
Operations and maintenance6,4685,25718,37116,504
Operating taxes and licenses2,1222,4006,4456,952
Insurance and claims4,8323,92011,29710,373
Communications and utilities7567702,2492,141
Depreciation14,25014,90042,18440,942
Other operating expenses3,7523,24811,37910,119
Gain on disposal of property
and equipment(1,674)(6,799)(9,433)(22,329)
------------------------------------
115,343107,397339,360317,722
------------------------------------
Operating income19,66725,13270,19279,691
Interest income191174500620
------------------------------------
Income before income taxes19,85825,30670,69280,311
Federal and state income
taxes7,4249,90723,44327,501
Net income 12,434 15,399 47,249 52,810
====================================
Earnings per share
Basic 0.15 0.17 0.55 0.58
====================================
Diluted 0.14 0.17 0.55 0.58
====================================
Weighted average shares
outstanding
Basic85,64690,12986,18990,500
====================================
Diluted85,92590,12986,50890,500
====================================
Dividends declared per share 0.02 0.02 0.06 0.06
====================================
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
SeptemberDecember
30,31,
ASSETS20122011
--------------------
CURRENT ASSETS(Unaudited)
Cash and cash equivalents 212,741 139,770
Trade receivables, net50,75644,198
Prepaid tires7,14612,820
Other current assets4,5501,932
Income tax receivable1,828314
Deferred income taxes, net13,06914,401
Total current assets290,090213,435
--------------------
PROPERTY AND EQUIPMENT410,268409,710
Less accumulated
depreciation188,280161,269
221,988248,441
--------------------
LONG-TERM INVESTMENTS21,04150,569
OTHER ASSETS13,22513,221
546,344 525,666
====================
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued liabilities 9,258 9,088
Compensation and benefits16,92815,493
Insurance accruals13,91613,997
Other accruals7,3847,085
Total current liabilities47,48645,663
--------------------
LONG-TERM LIABILITIES
Income taxes payable21,85524,077
Deferred income taxes, net47,26357,661
Insurance accruals less
current portion57,58257,494
Total long-term liabilities126,700139,232
--------------------
COMMITMENTS AND
CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock, common, .01
par value; authorized
395,000 shares; issued
90,689 in 2012 and 2011;
outstanding 85,490 in 2012
and 86,475 in 2011907907
Additional paid-in capital2,589589
Retained earnings440,768398,706
Treasury stock, at cost;
5,199 shares in 2012 and
4,214 shares in 2011(70,822)(56,350)
Accumulated other
comprehensive loss(1,284)(3,081)
372,158340,771
546,344 525,666
====================
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SOURCE: Heartland Express, Inc.
CONTACT: Heartland Express, Inc.
Mike Gerdin, Chief Executive Officer
John Cosaert, Chief Financial Officer
319-626-3600
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