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 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 January 18, 2006
with respect to the Company's financial results for the quarter ended December
31, 2005.
Item 2.02. Results of Operations and Financial Condition.
On January 18, 2006, Heartland Express, Inc. announced its financial
results for the quarter ended December 31, 2005. 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 18, 2006 BY:/s/ John P. Cosaert
----------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
Exhibit No. 99.1
Wednesday, January 18, 2006, For Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of
2005.
CORALVILLE, IOWA - January 18, 2006 - Heartland Express, Inc. (Nasdaq: HTLD)
announced today financial results for the quarter ended December 31, 2005.
Operating revenues for the quarter increased 17.3% to $140.1 million from $119.4
million in the fourth quarter of 2004. Net income increased 30.7% to $21.6
million from $16.6 million in the 2004 period. Earnings per share were $0.29
compared to $0.22 for the fourth quarter of 2004.
For the twelve month period, operating revenues increased 14.6% to $523.8
million from $457.1 million during the same period in 2004. Net income increased
15.1% to $71.9 million from $62.4 million in the 2004 period. Earnings per share
were $0.97 compared with $0.83 for the 2004 period.
Heartland Express, Inc. posted an operating ratio (operating expenses as a
percentage of operating revenues) of 77.6% and a 15.5% net margin in the fourth
quarter of 2005 and an 80.1% operating ratio and a 13.7% net margin for the
twelve months ended December 31, 2005. Operating results for the fourth quarter
were favorably impacted by gains primarily from the trade of revenue equipment.
Gains from the trade of revenue equipment are being recognized in compliance
with Statement of Financial Accounting Standards No. 153, "Accounting for
Non-monetary Transactions", which became effective July 1, 2005. In addition,
the fourth quarter operating results were negatively impacted by record high
diesel prices which have continued throughout the quarter.
The Company ended the year with cash, cash equivalents, and short-term
investments of $287.6 million, a $29.3 million increase from the $258.3 million
reported on December 31, 2004. Total assets increased to $573.5 million in 2005
from $517.0 million reported in 2004. The Company's balance sheet continues to
be debt-free.
The limited availability of experienced drivers continues to challenge the
trucking industry. The Company recently announced a driver pay increase for the
third consecutive year. Our most senior and experienced company drivers will be
earning $0.50 per mile while our owner-operators will be earning a base rate of
$0.95 per mile by the end of 2006 with the implementation of the latest pay
increase. Heartland Express hires only safe, experienced drivers who understand
the importance of customer service and is committed to compensating them
accordingly.
The Company is continuing the replacement of its entire tractor fleet. The
Company took delivery of 1,000 new Internationals this year including 400 in the
fourth quarter. The fleet replacement is approximately 70% completed and is
scheduled to be completed by December 31, 2006. In addition, the Company took
delivery of 1,000 new Wabash trailers during this year including 300 in the
fourth quarter.
During the quarter, Heartland Express declared a regular quarterly cash
dividend. The quarterly dividend of approximately $1.5 million at the rate of
$0.02 per share was paid on January 3, 2006 to shareholders of record at the
close of business on December 22, 2005. The Company has now paid quarterly
dividends of $12.9 million over the past ten consecutive quarters.
The Company's outstanding common stock has decreased to 73.8 million shares from
75.0 million at the end of 2004 as a result of the repurchase of approximately
1.2 million shares of its outstanding common stock during the year.
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 or Mike Gerdin
319-545-2728
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three months ended Twelve months ended
December 31, December 31,
2005 2004 2005 2004
---- ---- ---- ----
OPERATING REVENUE ....................... $ 140,054,233 $ 119,438,580 $ 523,792,749 $ 457,086,311
------------- ------------- ------------- -------------
OPERATING EXPENSES:
Salaries, wages, benefits ............ $ 42,987,612 $ 38,341,494 $ 174,180,077 $ 157,505,082
Rent and purchased transportation .... 6,630,551 8,137,147 29,634,983 36,757,494
Operations and maintenance ........... 40,047,536 27,248,171 138,513,070 96,202,224
Taxes and licenses ................... 2,463,155 2,357,922 8,968,438 8,996,380
Insurance and claims ................. 6,120,903 6,089,455 17,938,169 16,544,050
Communications and utilities ......... 958,068 839,546 3,554,328 3,668,494
Depreciation ......................... 10,967,602 8,413,915 38,228,332 29,628,157
Other operating expenses (income), net (1,553,200) 3,390,173 8,664,039 14,226,244
------------- ------------- ------------- -------------
108,622,227 94,817,823 419,681,436 363,528,125
------------- ------------- ------------- -------------
Operating income ......... 31,432,006 24,620,757 104,111,313 93,558,186
Interest income ...................... 2,119,595 1,046,434 7,372,543 3,070,956
------------- ------------- ------------- -------------
Income before income taxes ........... 33,551,601 25,667,191 111,483,856 96,629,142
Federal and state income taxes ....... 11,912,143 9,111,854 39,578,094 34,182,554
------------- ------------- ------------- -------------
Net income ........................... $ 21,639,458 $ 16,555,337 $ 71,905,762 $ 62,446,588
============= ============= ============= =============
Earnings per common share:
Earnings per share ............... $ 0.29 $ 0.22 $ 0.97 $ 0.83
============= ============= ============= =============
Weighted average shares
outstanding .......................... 73,821,500 75,000,000 74,343,969 75,000,000
============= ============= ============= =============
Dividends declared per share ......... $ 0.020 $ 0.020 $ 0.080 $ 0.067
============= ============= ============= =============
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, December 31,
2005 2004
------------- -------------
CURRENT ASSETS
Cash and cash equivalents ............... $ 5,366,929 $ 1,610,543
Short-term investments .................. 282,255,377 256,727,782
Trade receivables ....................... 42,860,411 37,102,813
Prepaid tires ........................... 3,998,430 2,692,090
Deferred income taxes ................... 28,721,000 24,964,000
Other prepaid expenses .................. 304,666 158,267
------------- -------------
Total current assets ....... 363,506,813 323,255,495
------------- -------------
PROPERTY AND EQUIPMENT ....................... 281,710,956 253,648,785
Less accumulated depreciation ........... 81,204,416 68,973,751
------------- -------------
200,506,540 184,675,034
------------- -------------
OTHER ASSETS ................................. 9,494,572 9,081,322
------------- -------------
$ 573,507,925 $ 517,011,851
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable & accrued liabilities .. $ 10,572,525 $ 9,722,099
Accrued expenses ........................ 73,606,801 63,142,908
Income taxes payable .................... 8,064,947 7,918,914
------------- -------------
Total current liabilities ....... 92,244,273 80,783,921
------------- -------------
DEFERRED INCOME TAXES ........................ 48,012,000 46,885,000
------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock: Common, $.01 par value;
authorized 395,000,000 shares; issued and
outstanding 73,821,500 and 75,000,000 ... 738,215 750,000
Additional paid-in capital .............. -- 8,510,305
Retained earnings ....................... 432,952,138 380,906,884
------------- -------------
433,690,353 390,167,189
Less unearned compensation .............. (438,701) (824,259)
------------- -------------
433,251,652 389,342,930
------------- -------------
$ 573,507,925 $ 517,011,851
============= =============