Heartland Express, Inc. (Nasdaq: HTLD) announced today financial
results for the three and six months ended June 30, 2024.
Three months ended
June 30, 2024:
- Operating Revenue of $274.8 million,
- Operating Income of $0.3 million,
- Net Loss of $3.5 million,
- Basic Loss per Share of $0.04,
- Operating Ratio of 99.9% and 99.4% Non-GAAP Adjusted Operating
Ratio(1),
- Total Assets of $1.4 billion,
- Stockholders' Equity of $836.8 million.
Six months ended
June 30, 2024:
- Operating Revenue of $545.1 million,
- Net Loss of $18.6 million,
- Basic Loss per Share of $0.24,
- Operating Ratio of 102.6% and 102.5% Non-GAAP Adjusted
Operating Ratio(1).
Heartland Express Chief Executive Officer Mike
Gerdin commented on the quarterly operating results and ongoing
initiatives of the Company, "Our consolidated operating results for
the three and six months ended June 30, 2024 reflect the
combination of an extended and significant period of weak freight
demand, driven by excess capacity in the industry and ongoing
operating cost inflation. While I am pleased with our operating
improvements sequentially as an organization, we have more work to
do and will need freight demand improvements in order to reach our
historical operating results target of an operating ratio of 85% or
lower within the next two years. Specifically, our second quarter
2024 operating results showed sequential improvement to the first
quarter of 2024 where operating revenue increased $4.4 million and
our consolidated operating ratio improved from 105.3% in the first
quarter to 99.9% in the second quarter of 2024. We point to
continued internal efforts at Smith Transport and Contract
Freighters, Inc. ("CFI"), our two most recent acquisitions
completed in 2022, to improve our operating results. Our efforts
continue to focus on further cost reductions and information system
consolidation projects that will help us achieve future asset
utilization improvements. Further, we utilized the cash generated
from our operations to continue paying down the debt assumed and
initiated to acquire these two organizations. We have repaid $63.4
million of debt, year to date, in 2024 and $258.9 million has been
paid in total since the acquisitions were completed in 2022."
Mr. Gerdin continued, "We continue to believe
that the freight market will improve as more capacity exits the
market so the industry as a whole can return to more disciplined
operating decisions and improved financial results. But, our
current expectation of the timing of that favorable change likely
extends into 2025. We believe in the long-term strength of our
organization as we repurchased shares of our common stock for $7.3
million during the second quarter of 2024 in addition to debt
repayments. I am pleased that we are currently at approximately
half of the debt balances we undertook with the 2022 acquisitions.
We have been able to accomplish this despite the underlying
challenges in the freight environment over the same period of time.
We thank and celebrate our professional drivers and our teams that
support them and we look forward to future freight market
improvements."
Financial Results
Heartland Express ended the second quarter of
2024 with operating revenues of $274.8 million, compared to $306.2
million in the second quarter of 2023. Operating revenues for the
quarter included fuel surcharge revenues of $36.8 million, compared
to $41.5 million in the same period of 2023. Operating income for
the three-month period ended June 30, 2024 was $0.3 million as
compared to $16.2 million in the 2023 period. Net loss was $3.5
million, as compared to a net income of $7.8 million in the second
quarter of 2023. Basic loss per share was $0.04 during the quarter,
as compared to basic earnings per share of $0.10 in the same period
of 2023. The Company posted an operating ratio of 99.9%, non-GAAP
adjusted operating ratio(1) of 99.4%, and net loss as a percentage
of operating revenues of 1.3% in the second quarter of 2024
compared to 94.7%, 93.4%, and 2.5% (net income as a percentage of
operating revenues) respectively, in the second quarter of
2023.
For the six months ended June 30, 2024,
Heartland Express delivered operating revenues of $545.1 million,
compared to $637.1 million in the same period of 2023. Operating
revenues for the period included fuel surcharge revenues of $73.0
million, compared to $91.1 million in the same period of 2023.
Operating loss for the six-month period ended June 30, 2024
was $14.1 million, compared to operating income of
$39.1 million in the same period of the prior year. Net loss
was $18.6 million, compared to net income of $20.4 million in the
same period of the prior year. Basic loss per share was $0.24
during the six-month period as compared to $0.26 basic earnings per
share during the same period of 2023. The Company posted an
operating ratio of 102.6%, non-GAAP adjusted operating ratio(1) of
102.5%, and net loss as a percentage of operating revenues of 3.4%
for the six months ended June 30, 2024 compared to 93.9%,
92.4%, and 3.2% (net income as a percentage of operating revenues)
respectively, in the same period of the prior year.
Balance Sheet, Liquidity, and Capital
Expenditures
As of June 30, 2024, the Company had $23.9
million in cash balances, a decrease of $4.3 million since December
31, 2023. Debt and financing lease obligations of $237.2 million
remain at June 30, 2024, down from the initial $447.3 million
borrowings less associated fees for the CFI acquisition in August
2022 and $46.8 million debt and finance lease obligations assumed
from the Smith acquisition in May 2022. There were no borrowings
under the Company's unsecured line of credit at June 30, 2024.
The Company had $88.3 million in available borrowing capacity on
the line of credit as of June 30, 2024 after consideration of
$11.7 million of outstanding letters of credit. The Company
continues to be in compliance with associated financial covenants.
The Company ended the quarter with total assets of $1.4 billion and
stockholders' equity of $836.8 million.
Net cash flows from operations for the first six
months of 2024 were $71.0 million, 13.0% of operating revenue. The
primary uses of cash were $63.4 million used for repayments of debt
and financing leases, $7.3 million for repurchases of our common
stock, and $1.6 million for dividends paid. Since the acquisitions
completed in 2022, the Company has repaid $235.0 million of
variable rate term debt (CFI acquisition) and $23.9 million of
fixed rate equipment financing liabilities (Smith Transport
acquisition). We intend to continue to prioritize our capital
towards further debt reductions throughout 2024.
The average age of the Company's consolidated
tractor fleet was 2.6 years as of June 30, 2024 compared to
2.1 years on June 30, 2023. The average age of the Company's
consolidated trailer fleet was 6.9 years as of June 30, 2024
compared to 6.1 years as of June 30, 2023. During the calendar
year of 2024, we currently expect net capital expenditures of
approximately $15 to $20 million and do not expect gains on
disposition of equipment to be significant.
The Company continues its commitment to
stockholders through the payment of cash dividends. A regular
dividend of $0.02 per share was declared during the second quarter
of 2024 and paid on July 5, 2024. The Company has now paid
cumulative cash dividends of $552.1 million, including four special
dividends, ($2.00 in 2007, $1.00 in 2010, $1.00 in 2012, and $0.50
in 2021) over the past eighty-four consecutive quarters since 2003.
Our outstanding shares at June 30, 2024 were
78.5 million. The Company purchased 0.6 million shares of
our common stock for $7.3 million during the second quarter of
2024, with no shares purchased during the second quarter of 2023. A
total of 3.9 million shares of common stock have been
repurchased for $65.0 million over the past five years. The Company
has the ability to repurchase an additional 6.0 million shares
under the current authorization which would result in 72.5 million
outstanding shares if fully executed.
Other Information
During the second quarter of 2024, our family of
operating brands continued to deliver award-winning service and
safety as evidenced by the following awards for our company and our
employees:
- DHL Truckload Carrier of the Year
- Uber Freight Award National Truckload Carrier of the Year
- WEX Circle of Excellence
- Henkel Consumer Brands Logistics Award - Asset Excellence
Operating revenue excluding fuel surcharge
revenue, adjusted operating income, and adjusted operating ratio
are non-GAAP financial measures and are not intended to replace
financial measures calculated in accordance with GAAP. These
non-GAAP financial measures supplement our GAAP results. We believe
that using these measures affords a more consistent basis for
comparing our results of operations from period to period. The
information required by Item 10(e) of Regulation S-K under the
Securities Act of 1933 and the Securities Exchange Act of 1934 and
Regulation G under the Securities Exchange Act of 1934, including a
reconciliation to the most directly comparable financial measure
calculated in accordance with GAAP, is included in the table at the
end of this press release.
This press release may contain statements that
might be considered as forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. Such statements may be identified by their use of terms or
phrases such as “seek,” “expects,” “estimates,” “anticipates,”
“projects,” “believes,” “hopes,” “plans,” “goals,” “intends,”
“may,” “might,” “likely,” “will,” “should,” “would,” “could,”
“potential,” “predict,” “continue,” “strategy,” “future,” “ensure,”
“outlook,” and similar terms and phrases. In this press release,
the statements relating to freight supply and demand, future cost
inflation, our ability to react to and capitalize on changing
market conditions, the expected impact of operational improvements
and strategic changes, progress toward our goals, deployment of
cash reserves, future capital expenditures, future dispositions of
revenue equipment and gains therefrom, future operating ratio, and
future stock repurchases, dividends, and debt repayment are
forward-looking statements. Such statements are based on
management's belief or interpretation of information currently
available. These statements and assumptions involve certain risks
and uncertainties, and undue reliance should not be placed on such
statements. Actual events may differ materially from those set
forth in, contemplated by, or underlying such statements as a
result of numerous factors, including, without limitation, those
specified in the Company's Annual Report on Form 10-K for the year
ended December 31, 2023 and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024. The Company assumes no obligation to
update any forward-looking statements, which speak as of their
respective dates.
Contact: Heartland Express, Inc. (319-645-7060)Mike Gerdin, Chief
Executive OfficerChris Strain, Chief Financial Officer |
HEARTLAND EXPRESS, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF
INCOME(In thousands, except per share
amounts)(unaudited) |
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
OPERATING REVENUE |
|
$ |
274,754 |
|
|
$ |
306,169 |
|
|
$ |
545,074 |
|
|
$ |
637,085 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Salaries, wages, and
benefits |
|
$ |
110,116 |
|
|
$ |
120,311 |
|
|
$ |
222,813 |
|
|
$ |
243,643 |
|
Rent and purchased
transportation |
|
|
21,688 |
|
|
|
28,468 |
|
|
|
45,551 |
|
|
|
61,611 |
|
Fuel |
|
|
47,011 |
|
|
|
49,867 |
|
|
|
94,332 |
|
|
|
107,396 |
|
Operations and
maintenance |
|
|
16,732 |
|
|
|
16,047 |
|
|
|
32,996 |
|
|
|
31,073 |
|
Operating taxes and
licenses |
|
|
5,255 |
|
|
|
5,457 |
|
|
|
10,570 |
|
|
|
11,001 |
|
Insurance and claims |
|
|
12,972 |
|
|
|
10,433 |
|
|
|
27,556 |
|
|
|
21,435 |
|
Communications and
utilities |
|
|
2,270 |
|
|
|
2,679 |
|
|
|
4,710 |
|
|
|
5,555 |
|
Depreciation and
amortization |
|
|
46,138 |
|
|
|
48,337 |
|
|
|
92,642 |
|
|
|
96,806 |
|
Other operating expenses |
|
|
13,431 |
|
|
|
16,362 |
|
|
|
29,058 |
|
|
|
34,253 |
|
Gain on disposal of property
and equipment |
|
|
(1,123 |
) |
|
|
(8,022 |
) |
|
|
(1,034 |
) |
|
|
(14,809 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
274,490 |
|
|
|
289,939 |
|
|
|
559,194 |
|
|
|
597,964 |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
264 |
|
|
|
16,230 |
|
|
|
(14,120 |
) |
|
|
39,121 |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
288 |
|
|
|
592 |
|
|
|
654 |
|
|
|
1,076 |
|
Interest expense |
|
|
(4,574 |
) |
|
|
(6,111 |
) |
|
|
(9,875 |
) |
|
|
(12,187 |
) |
|
|
|
|
|
|
|
|
|
(Loss) Income before income
taxes |
|
|
(4,022 |
) |
|
|
10,711 |
|
|
|
(23,341 |
) |
|
|
28,010 |
|
|
|
|
|
|
|
|
|
|
Federal and state income
taxes |
|
|
(544 |
) |
|
|
2,940 |
|
|
|
(4,755 |
) |
|
|
7,627 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(3,478 |
) |
|
$ |
7,771 |
|
|
$ |
(18,586 |
) |
|
$ |
20,383 |
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.04 |
) |
|
$ |
0.10 |
|
|
$ |
(0.24 |
) |
|
$ |
0.26 |
|
Diluted |
|
$ |
(0.04 |
) |
|
$ |
0.10 |
|
|
$ |
(0.24 |
) |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
78,913 |
|
|
|
78,999 |
|
|
|
78,979 |
|
|
|
78,993 |
|
Diluted |
|
|
78,981 |
|
|
|
79,081 |
|
|
|
79,051 |
|
|
|
79,052 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2024 |
|
|
|
2023 |
|
CURRENT
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
23,861 |
|
|
$ |
28,123 |
|
Trade receivables, net |
|
|
108,913 |
|
|
|
102,740 |
|
Prepaid tires |
|
|
9,488 |
|
|
|
10,650 |
|
Other current assets |
|
|
17,178 |
|
|
|
17,602 |
|
Income taxes receivable |
|
|
4,678 |
|
|
|
10,157 |
|
Total current assets |
|
|
164,118 |
|
|
|
169,272 |
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT |
|
|
1,317,391 |
|
|
|
1,319,909 |
|
Less accumulated depreciation |
|
|
514,644 |
|
|
|
434,558 |
|
|
|
|
802,747 |
|
|
|
885,351 |
|
GOODWILL |
|
|
322,597 |
|
|
|
322,597 |
|
OTHER INTANGIBLES,
NET |
|
|
96,029 |
|
|
|
98,537 |
|
OTHER
ASSETS |
|
|
15,156 |
|
|
|
14,953 |
|
DEFERRED INCOME TAXES,
NET |
|
|
1,304 |
|
|
|
1,494 |
|
OPERATING LEASE RIGHT
OF USE ASSETS |
|
|
11,483 |
|
|
|
17,442 |
|
|
|
$ |
1,413,434 |
|
|
$ |
1,509,646 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
40,017 |
|
|
$ |
37,777 |
|
Compensation and benefits |
|
|
28,417 |
|
|
|
28,492 |
|
Insurance accruals |
|
|
25,678 |
|
|
|
21,507 |
|
Long-term debt and finance lease liabilities - current portion |
|
|
8,644 |
|
|
|
9,303 |
|
Operating lease liabilities - current portion |
|
|
7,018 |
|
|
|
9,259 |
|
Other accruals |
|
|
24,063 |
|
|
|
17,138 |
|
Total current liabilities |
|
|
133,837 |
|
|
|
123,476 |
|
LONG-TERM
LIABILITIES |
|
|
|
|
Income taxes payable |
|
|
6,012 |
|
|
|
6,270 |
|
Long-term debt and finance lease liabilities less current
portion |
|
|
228,522 |
|
|
|
290,696 |
|
Operating lease liabilities less current portion |
|
|
4,465 |
|
|
|
8,183 |
|
Deferred income taxes, net |
|
|
173,198 |
|
|
|
189,121 |
|
Insurance accruals less current portion |
|
|
30,634 |
|
|
|
26,640 |
|
Total long-term liabilities |
|
|
442,831 |
|
|
|
520,910 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
Capital stock, common, $.01 par value; authorized 395,000 shares;
issued 90,689 in 2024 and 2023; outstanding 78,452 and 79,039 in
2024 and 2023, respectively |
|
|
907 |
|
|
|
907 |
|
Additional paid-in capital |
|
|
4,333 |
|
|
|
4,527 |
|
Retained earnings |
|
|
1,038,357 |
|
|
|
1,060,094 |
|
Treasury stock, at cost; 12,237 and 11,650 in 2024 and 2023,
respectively |
|
|
(206,831 |
) |
|
|
(200,268 |
) |
|
|
|
836,766 |
|
|
|
865,260 |
|
|
|
$ |
1,413,434 |
|
|
$ |
1,509,646 |
|
|
|
|
|
|
|
|
|
|
(1)
GAAP to
Non-GAAP Reconciliation Schedule: |
|
|
|
|
Operating revenue
excluding fuel surcharge revenue, adjusted operating income, and
adjusted operating ratio reconciliation (a) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited, in thousands) |
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
Operating revenue |
|
$ |
274,754 |
|
|
$ |
306,169 |
|
|
$ |
545,074 |
|
|
$ |
637,085 |
|
Less: Fuel surcharge
revenue |
|
|
36,828 |
|
|
|
41,501 |
|
|
|
73,039 |
|
|
|
91,148 |
|
Operating revenue, excluding
fuel surcharge revenue |
|
|
237,926 |
|
|
|
264,668 |
|
|
|
472,035 |
|
|
|
545,937 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
274,490 |
|
|
|
289,939 |
|
|
|
559,194 |
|
|
|
597,964 |
|
Less: Fuel surcharge
revenue |
|
|
36,828 |
|
|
|
41,501 |
|
|
|
73,039 |
|
|
|
91,148 |
|
Less: Amortization of
intangibles |
|
|
1,254 |
|
|
|
1,310 |
|
|
|
2,509 |
|
|
|
2,601 |
|
Adjusted operating
expenses |
|
|
236,408 |
|
|
|
247,128 |
|
|
|
483,646 |
|
|
|
504,215 |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
264 |
|
|
|
16,230 |
|
|
|
(14,120 |
) |
|
|
39,121 |
|
Adjusted operating income
(loss) |
|
$ |
1,518 |
|
|
$ |
17,540 |
|
|
$ |
(11,611 |
) |
|
$ |
41,722 |
|
|
|
|
|
|
|
|
|
|
Operating ratio |
|
|
99.9 |
% |
|
|
94.7 |
% |
|
|
102.6 |
% |
|
|
93.9 |
% |
Adjusted operating ratio |
|
|
99.4 |
% |
|
|
93.4 |
% |
|
|
102.5 |
% |
|
|
92.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Operating revenue excluding fuel surcharge
revenue, as reported in this press release is based upon operating
revenue minus fuel surcharge revenue. Adjusted operating income as
reported in this press release is based upon operating revenue
excluding fuel surcharge revenue, less operating expenses, net of
fuel surcharge revenue, and non-cash amortization expense related
to intangible assets. Adjusted operating ratio as reported in this
press release is based upon operating expenses, net of fuel
surcharge revenue, and amortization of intangibles, as a percentage
of operating revenue excluding fuel surcharge revenue. We believe
that operating revenue excluding fuel surcharge revenue, adjusted
operating income, and adjusted operating ratio are more
representative of our underlying operations by excluding the
volatility of fuel prices, which we cannot control. Operating
revenue excluding fuel surcharge revenue, adjusted operating
income, and adjusted operating ratio are not substitutes for
operating revenue, operating income, or operating ratio measured in
accordance with GAAP. There are limitations to using non-GAAP
financial measures. Although we believe that operating revenue
excluding fuel surcharge revenue, adjusted operating income, and
adjusted operating ratio improve comparability in analyzing our
period-to-period performance, they could limit comparability to
other companies in our industry if those companies define such
measures differently. Because of these limitations, operating
revenue excluding fuel surcharge revenue, adjusted operating
income, and adjusted operating ratio should not be considered
measures of income generated by our business or discretionary cash
available to us to invest in the growth of our business. Management
compensates for these limitations by primarily relying on GAAP
results and using non-GAAP financial measures on a supplemental
basis.
Heartland Express (NASDAQ:HTLD)
過去 株価チャート
から 11 2024 まで 12 2024
Heartland Express (NASDAQ:HTLD)
過去 株価チャート
から 12 2023 まで 12 2024