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 25, 2007
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 January 25, 2007
with respect to the Company's financial results for the quarter ended December
31, 2006.
Item 2.02. Results of Operations and Financial Condition.
On January 25, 2007, Heartland Express, Inc. announced its financial
results for the quarter ended December 31, 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: January 25, 2007 BY:/s/John P. Cosaert
-----------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Thursday, January 25, 2007, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of
2006.
CORALVILLE, IOWA - January 25, 2007 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter and year ended December 31,
2006. Operating revenues for the quarter increased 4.8% to $146.8 million from
$140.1 million in the fourth quarter of 2005. Net income decreased 9.2% to $19.6
million from $21.6 million in the 2005 period. Earnings per share were $0.20
compared to $0.22 for the fourth quarter of 2005.
For the year ended December 31, 2006, operating revenues increased 9.2% to
$571.9 from $523.8 during the same period in 2005. Net income increased 21.2% to
$87.2 million from $71.9 million in the 2005 period. Earnings per share were
$0.89 compared with $0.73 for the 2005 period.
Gains on disposal of revenue equipment decreased to $0.6 million in the
fourth quarter of 2006 compared to $5.8 million in the fourth quarter of 2005
primarily due to fewer trade-ins of revenue equipment. As a result, earnings per
share were negatively impacted $0.03 per share for the quarter ended December
31, 2006. Operating results for the year are 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 ("SFAS") 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. Gains on disposal of revenue equipment increased
to $18.1 million during the year compared to $8.0 million in 2005. As a result,
earnings per share were positively impacted $0.07 per share for the year ended
December 31, 2006. Depreciation expense increased $3.3 million during the year
ended December 31, 2006 as a result of SFAS No. 153, resulting in a decrease of
$0.02 earnings per share.
For the quarter, Heartland Express, Inc. posted an operating ratio
(operating expenses as a percentage of operating revenues) of 81.4% and a 13.4%
net margin. The Company reported an operating ratio of 78.4% and a 15.2% net
margin for the year ended December 31, 2006. The Company ended the year with
cash, cash equivalents, and short-term investments of $331.3 million, a $43.7
million increase from the $287.6 million reported on December 31, 2005. The
Company's balance sheet continues to be debt-free.
The Company completed the upgrade of its tractor fleet during the quarter.
The Company took delivery of 400 new International tractors during the period
and will take delivery of additional units in the first quarter. Federally
mandated engine emission standards are required for all newly-manufactured
engines beginning in January 2007. The Company is taking delivery of additional
new trucks with pre-2007 engines because of the higher costs and untested
technology associated with the new engine. The average age of the Company's
tractor fleet was 1.2 years at December 31, 2006. The average age of the
Company's trailer fleet was 3.1 years at December 31, 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 January 2, 2007 to shareholders of record at the
close of business on December 21, 2006. The Company has now paid cash dividends
of $20.3 million over the past fourteen consecutive quarters. 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. 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 year. 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.
Heartland Express was named to the Forbes Magazine's list of the "200 Best
Small Companies in America" for the fifth consecutive year and the fifteenth
time during its twenty years as a public company.
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
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three months ended Twelve months ended
December 31, December 31,
2006 2005 2006 2005
---- ---- ---- ----
OPERATING REVENUE ......................... $ 146,803,756 $ 140,054,231 $ 571,919,173 $ 523,792,747
------------- ------------- ------------- -------------
OPERATING EXPENSES:
Salaries, wages, benefits .............. $ 48,842,108 $ 42,987,613 $ 189,179,381 $ 174,180,078
Rent and purchased transportation ...... 5,322,346 6,630,550 24,388,010 29,634,982
Fuel ................................... 36,518,430 35,509,621 146,240,090 123,557,662
Operations and maintenance ............. 3,016,657 4,537,916 12,646,506 14,955,409
Operating taxes and licenses ........... 2,612,938 2,463,156 9,143,059 8,968,439
Insurance and claims ................... 5,076,975 6,120,904 16,620,678 17,938,170
Communications and utilities ........... 913,335 958,068 3,721,282 3,554,328
Depreciation ........................... 13,545,636 10,967,604 47,351,247 38,228,334
Other operating expenses ............... 4,243,309 4,216,045 17,356,647 16,695,948
Gain on disposal of property & equipment (572,157) (5,769,251) (18,143,924) (8,031,915)
------------- ------------- ------------- -------------
119,519,577 108,622,226 448,502,976 419,681,435
------------- ------------- ------------- -------------
Operating income .......... 27,284,179 31,432,005 123,416,197 104,111,312
Interest income ........................ 3,178,031 2,119,595 11,731,973 7,372,543
------------- ------------- ------------- -------------
Income before income taxes ............. 30,462,210 33,551,600 135,148,170 111,483,855
Federal and state income taxes .......... 10,814,083 11,912,142 47,977,601 39,578,093
------------- ------------- ------------- -------------
Net income ............................. $ 19,648,127 $ 21,639,458 $ 87,170,569 $ 71,905,762
============= ============= ============= =============
Earnings per share ..................... $ 0.20 $ 0.22 $ 0.89 $ 0.73
============= ============= ============= =============
Weighted average shares
outstanding ............................ 98,251,889 98,428,589 98,359,361 99,125,254
============= ============= ============= =============
Dividends declared per share ........... $ 0.020 $ 0.015 $ 0.075 $ 0.060
============= ============= ============= =============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, December 31,
2006 2005
------------- -------------
CURRENT ASSETS
Cash and cash equivalents ................ $ 8,458,882 $ 5,366,929
Short-term investments ................... 322,829,306 282,255,377
Trade receivables ........................ 43,499,482 42,860,411
Prepaid tires ............................ 5,075,566 3,998,430
Other prepaid expenses ................... 1,635,077 304,667
Deferred income taxes .................... 29,177,000 28,721,000
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Total current assets .................. $ 410,675,313 $ 363,506,814
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PROPERTY AND EQUIPMENT ..................... $ 344,323,852 $ 281,710,956
Less accumulated depreciation ............ 96,293,111 81,204,416
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$ 248,030,741 $ 200,506,540
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OTHER ASSETS ............................... $ 10,363,658 $ 9,494,571
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$ 669,069,712 $ 573,507,925
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities ... $ 15,075,647 $ 10,572,525
Compensation & benefits .................. 15,028,378 12,629,831
Income taxes payable ..................... 11,721,610 8,064,947
Insurance accruals ....................... 56,651,853 53,631,471
Other accruals ........................... 8,248,415 7,345,499
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Total current liabilities ............. $ 106,725,903 $ 92,244,273
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DEFERRED INCOME TAXES ...................... $ 56,408,000 $ 48,012,000
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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 ............... 376,029 --
Retained earnings ........................ 504,577,261 432,952,138
------------- -------------
$ 505,935,809 $ 433,690,353
Less unearned compensation ............... -- (438,701)
------------- -------------
$ 505,935,809 $ 433,251,652
------------- -------------
$ 669,069,712 $ 573,507,925
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