Attached files
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| 8-K - Q2 2012 EARNINGS RELEASE 8K - HEARTLAND EXPRESS INC | earningsrelease8k2012q2.htm |
Exhibit 99.1
July 19, 2012 for Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the Second Quarter of 2012
NORTH LIBERTY, IOWA - July 19, 2012 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended June 30, 2012. Operating revenues for the quarter increased 1.8% to $139.7 million from $137.2 million in the second quarter of 2011. Operating revenues for the six month period increased 3.6% to $274.5 million from $264.9 million in the 2011 period. Operating income for the six month period was negatively impacted by a $7.8 million decrease in gains on disposal of property and equipment. Net income was $18.2 million compared to $22.5 million in the 2011 quarter period, a 19.1% decrease. Net income was $34.8 million compared to $37.4 million in the six month period ended June 30, 2011, a 6.9% decrease. Earnings per diluted share decreased 16.0% to $0.21 from $0.25 reported in the second quarter of 2011. Earnings per diluted share decreased 2.4% to $0.40 from $0.41 reported in the first six months of 2011.
Fuel surcharge revenues for the quarter decreased 1.5% to $29.2 million from $29.7 million in the second quarter of 2011. Fuel surcharge revenues for the six month period increased 6.3% to $57.3 million from $53.8 million in the 2011 six month period. For the quarter, we posted an operating ratio (operating expenses as a percentage of operating revenues) of 80.9% and a 13.0% net margin (net income as a percentage of operating revenues). For the six month period, the Company posted an operating ratio of 81.6% and a 12.7% net margin.
We achieved fleet growth in the second quarter of 2012 compared to the second quarter of 2011 and the first quarter of this year despite the current driver market challenges. The Company continues to aggressively manage its fuel cost. Fuel expense decreased $1.2 million or 2.8% during the quarter. The U.S. average cost of fuel was $3.925 per gallon during the second quarter of 2012 compared to $4.007 per gallon in the second quarter of 2011, a 2.0% decrease.
The average age of our tractor fleet was 2.2 years as of June 30, 2012 with all of the fleet being 2010 models and newer. The average age of our trailer fleet has improved to 3.5 years at June 30, 2012 compared to 4.8 years at June 30, 2011. The market for used trailers continues to be strong. We will take advantage of the favorable used trailer market in 2012 and continue to upgrade our trailer fleet. We will take delivery of 1,000 new Wabash trailers during the year as we sell our remaining 2003 and 2004 models. We took delivery of 442 of the new trailers during the second quarter. By the end of the third quarter of 2012, 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 $231.8 million, a $41.5 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, including $31.3 million received during the second quarter of 2012. Net cash flows from operations continue to be strong at 15.9% of operating revenues. The Company's balance sheet continues to be debt-free with total assets of $551.7 million. The Company ended the past twelve month period with a return on total assets of 12.4% and a 19.0% return on equity.
Commitment to our shareholders continues through the payment of cash dividends. A dividend of $0.02 per share was declared during the quarter and was paid on July 3, 2012. The Company has now paid cumulative cash dividends of $348.1 million, including two special dividends, over the past thirty-six consecutive quarters. Also, we repurchased 363,456 shares of our common stock during the quarter for approximately $5.0 million further providing an increase in shareholder value. At June 30, 2012, we had 4.6 million remaining shares under our share repurchase program.
Operational excellence and an outstanding driving force have allowed us to build long-term partnerships with exceptional customers. We were recently recognized with several 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 Service Award, the Walmart Transportation 2011 Sam's Carrier of the Year Award, and the Nestle Waters 2011 Southeast Region World Class Customer Service Award. In addition, we were recognized by the Fleet Owner magazine as their 2011 For-Hire Fleet of 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.
Mike Gerdin, Chief Executive Officer
John Cosaert, Chief Financial Officer
319-626-3600
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, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
OPERATING REVENUE | $ | 139,710 | $ | 137,192 | $ | 274,543 | $ | 264,884 | |||||||
OPERATING EXPENSES: | |||||||||||||||
Salaries, wages, and benefits | $ | 42,962 | $ | 41,728 | $ | 84,958 | $ | 83,929 | |||||||
Rent and purchased transportation | 1,596 | 1,998 | 3,257 | 3,936 | |||||||||||
Fuel | 41,111 | 42,308 | 83,816 | 81,455 | |||||||||||
Operations and maintenance | 6,251 | 6,150 | 11,903 | 11,246 | |||||||||||
Operating taxes and licenses | 2,248 | 2,244 | 4,323 | 4,552 | |||||||||||
Insurance and claims | 3,952 | 3,958 | 6,466 | 6,452 | |||||||||||
Communications and utilities | 746 | 728 | 1,493 | 1,371 | |||||||||||
Depreciation | 13,995 | 13,664 | 27,934 | 26,042 | |||||||||||
Other operating expenses | 3,647 | 3,389 | 7,626 | 6,872 | |||||||||||
Gain on disposal of property and equipment | (3,546 | ) | (11,662 | ) | (7,760 | ) | (15,530 | ) | |||||||
112,962 | 104,505 | 224,016 | 210,325 | ||||||||||||
Operating income | 26,748 | 32,687 | 50,527 | 54,559 | |||||||||||
Interest income | 167 | 208 | 309 | 446 | |||||||||||
Income before income taxes | 26,915 | 32,895 | 50,836 | 55,005 | |||||||||||
Federal and state income taxes | 8,688 | 10,363 | 16,020 | 17,593 | |||||||||||
Net income | $ | 18,227 | $ | 22,532 | $ | 34,816 | $ | 37,412 | |||||||
Earnings per share | |||||||||||||||
Basic | $ | 0.21 | $ | 0.25 | $ | 0.40 | $ | 0.41 | |||||||
Diluted | $ | 0.21 | $ | 0.25 | $ | 0.40 | $ | 0.41 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 86,451 | 90,689 | 86,463 | 90,689 | |||||||||||
Diluted | 86,779 | 90,689 | 86,802 | 90,689 | |||||||||||
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) | ||||||||
June 30, | December 31, | |||||||
ASSETS | 2012 | 2011 | ||||||
CURRENT ASSETS | (Unaudited) | |||||||
Cash and cash equivalents | $ | 210,739 | $ | 139,770 | ||||
Trade receivables, net | 49,825 | 44,198 | ||||||
Prepaid tires | 9,538 | 12,820 | ||||||
Other current assets | 5,673 | 1,932 | ||||||
Income tax receivable | 1,726 | 314 | ||||||
Deferred income taxes, net | 13,532 | 14,401 | ||||||
Total current assets | 291,033 | 213,435 | ||||||
PROPERTY AND EQUIPMENT | 402,855 | 409,710 | ||||||
Less accumulated depreciation | 176,325 | 161,269 | ||||||
226,530 | 248,441 | |||||||
LONG-TERM INVESTMENTS | 21,041 | 50,569 | ||||||
OTHER ASSETS | 13,118 | 13,221 | ||||||
$ | 551,722 | $ | 525,666 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 12,561 | $ | 9,088 | ||||
Compensation and benefits | 16,781 | 15,493 | ||||||
Insurance accruals | 13,686 | 13,997 | ||||||
Other accruals | 8,076 | 7,085 | ||||||
Total current liabilities | 51,104 | 45,663 | ||||||
LONG-TERM LIABILITIES | ||||||||
Income taxes payable | 21,267 | 24,077 | ||||||
Deferred income taxes, net | 52,291 | 57,661 | ||||||
Insurance accruals less current portion | 56,502 | 57,494 | ||||||
Total long-term liabilities | 130,060 | 139,232 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2012 and 2011; outstanding 86,181 in 2012 and 86,475 in 2011 | 907 | 907 | ||||||
Additional paid-in capital | 2,220 | 589 | ||||||
Retained earnings | 430,049 | 398,706 | ||||||
Treasury stock, at cost; 4,508 shares in 2012 and 4,214 shares in 2011 | (61,334 | ) | (56,350 | ) | ||||
Accumulated other comprehensive loss | (1,284 | ) | (3,081 | ) | ||||
370,558 | 340,771 | |||||||
$ | 551,722 | $ | 525,666 | |||||