NORTH LIBERTY, Iowa, July 19, 2013 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (Nasdaq: HTLD ) announced today financial results for the quarter ended June 30, 2013. For the quarter, net income increased $0.9 million to $19.1 million compared to $18.2 million in the 2012 period, a 5.0% increase. Basic earnings per share increased 9.5% to $0.23 from $0.21 reported in the second quarter of 2012. For the six months ended June 30, 2013 net income increased $4.1 million to $38.9 million compared to $34.8 million for the same period of 2012, an 11.7% increase. Basic earnings per share increased 15.0% to $0.46 from $0.40 reported in the six months ended June 30, 2012.
Operating revenues for the quarter decreased to $134.0 million from $139.7 million in the second quarter 2012. Operating revenues were negatively impacted by lower fuel surcharge revenues which were $27.3 million for the quarter, a 6.7% decline from $29.2 million in the same period of 2012. Operating revenues for the six month period ended June 30, 2013 decreased to $268.3 million from $274.5 million in the 2012 period. Operating revenues were negatively impacted by lower fuel surcharge revenues which were $55.2 million, a 3.5% decline from $57.3 million in the six month period ended June 30, 2012. Operating income for the three and six month periods was positively impacted by $5.1 million and $12.1 million, respectively, of increases in gains on disposal of property and equipment as the Company continues its fleet upgrade program.
For the quarter, Heartland Express, Inc. (the "Company") posted an operating ratio (operating expenses as a percentage of operating revenues) of 78.1% and a 14.3% net margin (net income as a percentage of operating revenues) compared to 80.9% and 13.0%, respectively, in the second quarter of 2012. The Company posted an operating ratio of 77.8% and a 14.5% net margin for the six month period ended June 30, 2013 compared to an 81.6% operating ratio and a 12.7% net margin for the same period of 2012.
Fuel expense decreased for both the quarterly period and year to date periods compared to the respective periods of 2012. Fuel expense decreased 6.0% or $2.5 million for the quarter ended June 30, 2013 and 2.6% or $2.2 million for the six months ended June 30, 2013. The U.S. average cost of fuel was $3.87 per gallon during the second quarter of 2013, a 1.3% decrease over the second quarter of the prior year. The U.S. average cost of fuel for the first six months of 2013 was $3.95 per gallon, a 0.2% decline from an average price of $3.96 for the comparable period of 2012.
The average age of the Company's tractor fleet was 2.0 years as of June 30, 2013 compared to 2.2 years as of June 30, 2012. The Company took delivery of 190 new trucks during the second quarter which included International ProStar Plus and Freightliner Cascadia models. The tractor fleet upgrade will continue through the second half of 2013 with the scheduled purchase of an additional 800 units. The average age of the Company's trailer fleet was 3.2 years at June 30, 2013 compared to 3.5 years at June 30, 2012, with 98% of our trailers being 2007 models and newer at the end of the quarter.
The Company ended the quarter with cash, cash equivalents, and long-term investments totaling $152.3 million, a $12.4 million increase from the $139.9 million reported at December 31, 2012 despite spending $36.8 million for fleet equipment upgrades during the first six months of the year. The Company received calls on auction rate securities, at par, of $9.8 million which reduced the auction rate security investment balance to $11.5 million, at par, at June 30, 2013. Net cash flows from operations increased to 18.8% of operating revenues during the six months ended June 30, 2013 compared with 15.9% for the same period of June 30, 2012. The Company continues to maintain a debt-free balance sheet with total assets of $507.5 million. The Company ended the trailing twelve months as of June 30, 2013 with a return on total assets of 12.9% and a 20.2% return on equity compared to 12.4% and 19.0%, respectively, during the trailing twelve months as of June 30, 2012.
Commitment to our shareholders continues through the payment of cash dividends and the repurchase of common stock. A dividend of $0.02 per share was declared during the quarter and was paid on July 2, 2013. The Company has now paid cumulative cash dividends of $440.0 million, including three special dividends, over the past forty consecutive quarters. We did not purchase any shares of our common stock during the quarter and approximately 3.2 million shares remain authorized for purchase.
Service for Success, including partnering and building long-term relationships with our customers, along with maintaining a focus on safety, is part of our core business model. We have been recognized by several customers with service awards as well as a safety award during 2013. These awards include the Walmart Transportation 2012 General Merchandise Platinum Carrier of the Year Award as well as the 2012 Sam's Carrier of the Year Award, 2012 Supplier Excellence Award from Eastman Chemical for the seventeenth consecutive year, Unyson Logistics 2012 Carrier of the Year, Winegard 2012 Truckload Carrier of the Year, Lowe's 2012 Gold Carrier Award, and the BP Drivers Safety Standards 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 Ended June 30, | Six Months Ended June 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| OPERATING REVENUE | $ 133,992 | $ 139,710 | $ 268,265 | $ 274,543 |
| OPERATING EXPENSES: | ||||
| Salaries, wages, and benefits | $ 40,939 | $ 42,962 | $ 81,537 | $ 84,958 |
| Rent and purchased transportation | 1,325 | 1,596 | 2,623 | 3,257 |
| Fuel | 38,637 | 41,111 | 81,615 | 83,816 |
| Operations and maintenance | 3,828 | 6,251 | 9,269 | 11,903 |
| Operating taxes and licenses | 2,468 | 2,248 | 4,884 | 4,323 |
| Insurance and claims | 4,744 | 3,952 | 7,604 | 6,466 |
| Communications and utilities | 699 | 746 | 1,472 | 1,493 |
| Depreciation | 16,930 | 13,995 | 31,995 | 27,934 |
| Other operating expenses | 3,691 | 3,647 | 7,506 | 7,626 |
| Gain on disposal of property and equipment | (8,644) | (3,546) | (19,823) | (7,760) |
| 104,617 | 112,962 | 208,682 | 224,016 | |
| Operating income | 29,375 | 26,748 | 59,583 | 50,527 |
| Interest income | 129 | 167 | 253 | 309 |
| Income before income taxes | 29,504 | 26,915 | 59,836 | 50,836 |
| Federal and state income taxes | 10,366 | 8,688 | 20,962 | 16,020 |
| Net income | $ 19,138 | $ 18,227 | $ 38,874 | $ 34,816 |
| Earnings per share | ||||
| Basic | $ 0.23 | $ 0.21 | $ 0.46 | $ 0.40 |
| Diluted | $ 0.23 | $ 0.21 | $ 0.46 | $ 0.40 |
| Weighted average shares outstanding | ||||
| Basic | 84,789 | 86,451 | 84,780 | 86,463 |
| Diluted | 85,039 | 86,779 | 85,042 | 86,802 |
| Dividends declared per share | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.04 |
| HEARTLAND EXPRESS, INC. | ||
| AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (in thousands, except per share amounts) | ||
| (unaudited) | ||
| June 30, | December 31, | |
| ASSETS | 2013 | 2012 |
| CURRENT ASSETS | ||
| Cash and cash equivalents | $ 141,554 | $ 119,838 |
| Trade receivables, net | 49,602 | 46,555 |
| Prepaid tires | 4,811 | 6,603 |
| Other current assets | 6,695 | 2,281 |
| Income tax receivable | 1,424 | 2,351 |
| Deferred income taxes, net | 12,584 | 13,797 |
| Total current assets | 216,670 | 191,425 |
| PROPERTY AND EQUIPMENT | 440,389 | 432,330 |
| Less accumulated depreciation | 174,253 | 189,959 |
| 266,136 | 242,371 | |
| LONG-TERM INVESTMENTS | 10,791 | 20,016 |
| OTHER ASSETS | 13,914 | 13,925 |
| $ 507,511 | $ 467,737 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued liabilities | $ 8,818 | $ 7,583 |
| Compensation and benefits | 17,463 | 16,409 |
| Insurance accruals | 12,596 | 13,924 |
| Other accruals | 8,159 | 7,439 |
| Total current liabilities | 47,036 | 45,355 |
| LONG-TERM LIABILITIES | ||
| Income taxes payable | 21,146 | 23,122 |
| Deferred income taxes, net | 54,803 | 51,306 |
| Insurance accruals less current portion | 57,468 | 57,590 |
| Total long-term liabilities | 133,417 | 132,018 |
| COMMITMENTS AND CONTINGENCIES | ||
| STOCKHOLDERS' EQUITY | ||
| Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2013 and 2012; outstanding 84,837 in 2013 and 84,770 in 2012 | 907 | 907 |
| Additional paid-in capital | 3,590 | 2,968 |
| Retained earnings | 403,785 | 368,313 |
| Treasury stock, at cost; 5,852 in 2013 and 5,919 in 2012 | (80,540) | (80,540) |
| Accumulated other comprehensive loss | (684) | (1,284) |
| 327,058 | 290,364 | |
| $ 507,511 | $ 467,737 | |
Heartland Express, Inc. Mike Gerdin, Chief Executive Officer John Cosaert, Chief Financial Officer 319-626-3600
