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, 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 July 18,
2006 with respect to the Company's financial results for the quarter ended June
30, 2006.
Item 2.02. Results of Operations and Financial Condition.
On July 18, 2006, Heartland Express, Inc. announced its financial
results for the quarter ended June 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: July 18, 2006 BY:/s/ John P. Cosaert
----------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Tuesday, July 18, 2006, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of
2006.
CORALVILLE, IOWA - July 18, 2006 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended June 30, 2006. Operating
revenues for the quarter increased 11.0% to $143.1 million from $128.9 million
in the second quarter of 2005. Net income increased 40.5% to $24.8 million from
$17.6 million in the 2005 period. Earnings per share were $0.25 compared to
$0.18 for the second quarter of 2005.
For the six months ended June 30, 2006, operating revenues increased 12.3% to
$278.1 from $247.5 during the same period in 2005. Net income increased 36.0% to
$44.5 million from $32.7 million in the 2005 period. Earnings per share were
$0.45 compared with $0.33 for the 2005 period.
For the quarter, Heartland Express, Inc. posted an operating ratio (operating
expenses as a percentage of operating revenues) of 75.2% and a 17.3% net margin.
The Company reported an operating ratio of 77.1% and a 16.0% net margin for the
six months ended June 30, 2006. The Company ended the second quarter with cash,
cash equivalents, and short-term investments of $321.3 million, a $33.7 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 six 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 six
month periods ended June 30, 2006 were favorably impacted by $8.7 million and
$11.3 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 $0.06 per share
for the quarter ended June 30, 2006 and $0.07 for the six months ended June 30,
2006.
The Company has continued to upgrade its tractor and trailer fleet during the
quarter. The Company took delivery of 354 new International tractors and 914 new
Wabash trailers during the period. The average age of the Company's tractor
fleet was 1.4 years at June 30, 2006, with 85% of the fleet comprised of 2005 or
newer model year Internationals. The tractor fleet replacement will continue
throughout the year and is scheduled to be completed by December 31, 2006. The
Company will complete the upgrade of its trailer fleet in the third quarter. The
average age of the Company's trailer fleet was 2.8 years at June 30, 2006.
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 July 3, 2006 to shareholders of record at the close
of business on June 22, 2006. The Company has now paid twelve 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 stock split increased the Company's outstanding common stock from 73.8
million to 98.4 million shares. This was the Company's ninth stock split since
going public in 1986. The Company's annual cash dividend will increase
approximately $2.0 million per year, a 33% increase, as a result of the recent
stock split. All 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, Chief Financial Officer
Mike Gerdin, President
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
---- ---- ---- ----
OPERATING REVENUE $143,058,628 $128,851,347 $ 278,057,927 $247,528,818
------------ ------------ ------------- ------------
OPERATING EXPENSES:
Salaries, wages, benefits $ 46,040,770 $ 43,447,096 $ 92,411,352 $ 86,163,937
Rent and purchased transportation 6,772,305 7,829,721 12,971,977 15,541,933
Fuel 37,789,391 28,498,868 70,750,409 54,060,506
Operations and maintenance 3,358,967 3,777,156 6,305,700 6,349,466
Operating taxes and licenses 2,203,726 2,180,646 4,270,893 4,255,936
Insurance and claims 4,835,933 3,969,432 8,922,782 6,801,697
Communications and utilities 943,092 928,039 1,895,431 1,626,916
Depreciation 11,181,612 9,053,013 21,359,271 17,441,697
Other operating expenses 4,158,378 4,006,619 8,356,007 8,241,012
Gain on disposal of property
& equipment (9,724,303) (120,299) (12,783,540) (301,641)
------------ ------------ ------------- ------------
107,559,871 103,570,291 214,460,282 200,181,459
------------ ------------ ------------- ------------
Operating income 35,498,757 25,281,056 63,597,645 47,347,359
Interest income 2,906,972 2,052,067 5,412,919 3,387,292
------------ ------------ ------------- ------------
Income before income taxes 38,405,729 27,333,123 69,010,564 50,734,651
Federal and state income taxes 13,634,068 9,703,258 24,498,752 18,010,801
------------ ------------ ------------- ------------
Net income $ 24,771,661 $ 17,629,865 $ 44,511,812 $ 32,723,850
============ ============ ============= ============
Earnings per share $ 0.25 $ 0.18 $ 0.45 $ 0.33
============ ============ ============= ============
Weighted average shares
outstanding 98,428,589 99,668,612 98,428,589 99,833,391
============ ============ ============= ============
Dividends declared per share $ 0.020 $ 0.015 $ 0.035 $ 0.030
============ ============ ============= ============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, December 31,
2006 2005
--------------- ---------------
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 4,773,300 $ 5,366,929
Short-term investments 316,494,007 282,255,377
Trade receivables 44,029,867 42,860,411
Prepaid tires 4,994,120 3,998,430
Other prepaid expenses 4,748,165 304,667
Deferred income taxes 28,632,000 28,721,000
--------------- ---------------
Total current assets $ 403,671,459 $ 363,506,814
--------------- ---------------
PROPERTY AND EQUIPMENT $ 301,688,322 $ 281,710,956
Less accumulated depreciation 85,204,755 81,204,416
--------------- ---------------
$ 216,483,567 $ 200,506,540
--------------- ---------------
OTHER ASSETS $ 9,431,586 $ 9,494,571
--------------- ---------------
$ 629,586,612 $ 573,507,925
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued
liabilities $ 18,953,611 $ 10,572,525
Compensation & benefits 13,952,389 12,629,831
Income taxes payable 9,152,164 8,064,947
Insurance accruals 55,218,404 53,631,471
Other accruals 7,376,127 7,345,499
--------------- ---------------
Total current liabilities $ 104,652,695 $ 92,244,273
--------------- ---------------
DEFERRED INCOME TAXES $ 50,427,000 $ 48,012,000
--------------- ---------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: common, $.01 par
value; authorized 395,000,000
shares; issued and outstanding
98,428,589 in 2006 and
73,821,500 in 2005 $ 984,286 $ 738,215
Additional paid-in capital 188,454 - -
Retained earnings 473,334,177 432,952,138
--------------- ---------------
$ 474,506,917 $ 433,690,353
Less unearned compensation - - (438,701)
--------------- ---------------
$ 474,506,917 $ 433,251,652
--------------- ---------------
$ 629,586,612 $ 573,507,925
=============== ===============