Attached files
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| 8-K - Q1 2012 EARNINGS RELEASE 8K - HEARTLAND EXPRESS INC | earningsrelease8k2012q1.htm |
Exhibit 99.1
April 17, 2012 for Immediate Release
Press Release
Heartland Express, Inc. Reports Revenues and Earnings for the First Quarter of 2012
NORTH LIBERTY, IOWA - April 17, 2012 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter ended March 31, 2012. Operating revenues for the quarter increased 5.6% to $134.8 million from $127.7 million in the first quarter of 2011. Net income was $16.6 million compared to $14.9 million in the 2011 period, an 11.5% increase. Earnings per diluted share increased 18.8% to $0.19 from $0.16 reported in the first quarter of 2011. Fuel surcharge revenues for the quarter increased 15.9% to $28.0 million from $24.2 million in the first quarter of 2011. For the quarter, we posted an operating ratio (operating expenses as a percentage of operating revenues) of 82.4% and a 12.3% net margin (net income as a percentage of operating revenues) compared to 82.9% and 11.7%, respectively, in the first quarter of last year.
Operating income increased $1.9 million or 8.7% from a year ago despite increasing fuel prices and a sluggish economy. This increase is attributed to improved utilization in the first quarter. Average miles per driver increased by 3.2% over the first quarter of 2011. Fuel expense increased $3.6 million or 9.1% during the quarter. The U.S. average cost of fuel was $3.988 per gallon during the first quarter of 2012 compared to $3.657 per gallon in the first quarter of 2011, a 9.1%0.0% increase. Recruiting and retaining safe and experienced drivers is a primary focus of our organization. We achieved fleet growth in the first quarter for the first time in the past five quarters.
The average age of our tractor fleet was 1.9 years as of March 31, 2012 with all of the fleet being 2010 models and newer. We took delivery of 27 new ProStar Plus Internationals during the quarter to complete our most recent tractor fleet upgrade. The average age of our trailer fleet has improved to 4.1 years at March 31, 2012 compared to 5.7 years at March 31, 2011, with 83% of our trailers being 2007 models and newer. 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 2002 through 2006 models. We took delivery of 36 of the new trailers in March. By the end 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 $222.9 million, a $32.6 million increase from the $190.3 million reported at December 31, 2011. Long-term investments include $53.6 million of illiquid auction rate securities, at par. Since February 2008, the Company has received $144.8 million in calls, all at par, including $25,000 received during the first quarter. Net cash flows from operations continue to be strong at 21.0% of operating revenues. The Company's balance sheet continues to be debt-free with total assets of $550.7 million. The Company ended the past twelve month period with a return on total assets of 13.2% and a 20.2% return on equity compared to 11.8% and 18.7%, respectively, at the end of the first quarter of last year.
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 April 3, 2012. The Company has now paid cumulative cash dividends of $346.4 million, including two special dividends, over the past thirty-five consecutive quarters. We did not purchase any shares of our common stock
during the quarter. At March 31, 2012, we had 5.0 million remaining 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 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
(In thousands, except per share amounts)
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(unaudited) | (unaudited) | ||||||
OPERATING REVENUE | $ | 134,833 | $ | 127,692 | |||
OPERATING EXPENSES: | |||||||
Salaries, wages, and benefits | $ | 41,996 | $ | 42,201 | |||
Rent and purchased transportation | 1,662 | 1,937 | |||||
Fuel | 42,705 | 39,147 | |||||
Operations and maintenance | 5,652 | 5,097 | |||||
Operating taxes and licenses | 2,075 | 2,307 | |||||
Insurance and claims | 2,514 | 2,494 | |||||
Communications and utilities | 747 | 644 | |||||
Depreciation | 13,939 | 12,378 | |||||
Other operating expenses | 3,979 | 3,482 | |||||
Gain on disposal of property and equipment | (4,214 | ) | (3,868 | ) | |||
111,055 | 105,819 | ||||||
Operating income | 23,778 | 21,873 | |||||
Interest income | 142 | 237 | |||||
Income before income taxes | 23,920 | 22,110 | |||||
Federal and state income taxes | 7,332 | 7,231 | |||||
Net income | $ | 16,588 | $ | 14,879 | |||
Earnings per share | |||||||
Basic | $ | 0.19 | $ | 0.16 | |||
Diluted | $ | 0.19 | $ | 0.16 | |||
Weighted average shares outstanding | |||||||
Basic | 86,474 | 90,689 | |||||
Diluted | 86,825 | 90,689 | |||||
Dividends declared per share | $ | 0.02 | $ | 0.02 | |||
HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) | ||||||||
March 31, | December 31, | |||||||
ASSETS | 2012 | 2011 | ||||||
CURRENT ASSETS | (Unaudited) | |||||||
Cash and cash equivalents | $ | 172,312 | $ | 139,770 | ||||
Trade receivables, net | 50,119 | 44,198 | ||||||
Prepaid tires | 11,931 | 12,820 | ||||||
Other current assets | 3,631 | 1,932 | ||||||
Income tax receivable | — | 314 | ||||||
Deferred income taxes, net | 15,211 | 14,401 | ||||||
Total current assets | 253,204 | 213,435 | ||||||
PROPERTY AND EQUIPMENT | 402,028 | 409,710 | ||||||
Less accumulated depreciation | 168,381 | 161,269 | ||||||
233,647 | 248,441 | |||||||
LONG-TERM INVESTMENTS | 50,544 | 50,569 | ||||||
OTHER ASSETS | 13,272 | 13,221 | ||||||
$ | 550,667 | $ | 525,666 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | $ | 11,297 | $ | 9,088 | ||||
Compensation and benefits | 16,312 | 15,493 | ||||||
Insurance accruals | 13,751 | 13,997 | ||||||
Income taxes payable | 10,491 | — | ||||||
Other accruals | 8,028 | 7,085 | ||||||
Total current liabilities | 59,879 | 45,663 | ||||||
LONG-TERM LIABILITIES | ||||||||
Income taxes payable | 22,395 | 24,077 | ||||||
Deferred income taxes, net | 55,417 | 57,661 | ||||||
Insurance accruals less current portion | 56,451 | 57,494 | ||||||
Total long-term liabilities | 134,263 | 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 86,475 in 2012 and 2011 | 907 | 907 | ||||||
Additional paid-in capital | 1,491 | 589 | ||||||
Retained earnings | 413,558 | 398,706 | ||||||
Treasury stock, at cost; 4,214 shares in 2012 and 2011 | (56,350 | ) | (56,350 | ) | ||||
Accumulated other comprehensive loss | (3,081 | ) | (3,081 | ) | ||||
356,525 | 340,771 | |||||||
$ | 550,667 | $ | 525,666 | |||||