Heartland Express, Inc. (Nasdaq: HTLD) announced today financial
results for the three and nine months ended September 30,
2024.
Three months ended September 30, 2024:
- Operating Revenue of $259.9 million,
- Net Loss of $9.3 million,
- Basic Loss per Share of $0.12,
- Operating Ratio of 102.7% and 102.6% Non-GAAP Adjusted
Operating Ratio(1),
- Total Assets of $1.4 billion,
- Stockholders' Equity of $825.7 million.
Nine months ended September 30, 2024:
- Operating Revenue of $804.9 million,
- Net Loss of $27.9 million,
- Basic Loss per Share of $0.35,
- 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 nine months ended September 30, 2024, continue
to be hampered by a challenging freight environment. This prolonged
recessionary period continues to be driven by a combination of
lower freight demand and excess truck capacity in the marketplace.
This significant imbalance of supply and demand for trucking
services began in the back half of 2022, continued in 2023, and
through September 30, 2024 we did not see meaningful or sustained
improvements in the freight environment. We believe that the last
four quarters of this current freight cycle are arguably the worst
four consecutive quarters experienced in the trucking industry over
the Company’s 45+ year history. As a result, our trucking assets
have been underutilized. However, in October we have begun to see
encouraging signs pointing to the early stages of a potential
recovery in freight demand, but we do not expect impactful
improvement until 2025."
Mr. Gerdin continued, “During this same period,
we have worked to integrate two acquisitions completed in 2022
(Smith Transport and Contract Freighters "CFI"). We have been able
to make operational improvements and reduce the acquisition-related
debt ($94.0 million paid through the third quarter of 2024 and
$289.6 million paid since the acquisition date). During this same
period of time, our legacy businesses (Heartland Express and Millis
Transfer) have also underperformed as compared to our long-term
historical expectations but have performed significantly better
than the two most recently-acquired entities. For the trailing 4
quarters ending September 30, 2024, our two legacy brands of
Heartland Express and Millis Transfer have delivered an operating
ratio of 92.3%. This remains above our long-term expected operating
ratio target in the low 80’s, but reflects an operating model that
we believe is among the best in our industry during current market
conditions. For the trailing six months ending September 30, 2024
compared to the previous six months ending March 31, 2024, Smith
Transport has improved its operating ratio by 6 percentage points
and CFI has improved its operating ratio by 5 percentage points. We
have accomplished these results solely by cost measures and
business alignment initiatives with no additional assistance from
freight market demand improvements. We believe that we will need a
meaningful turnaround in the freight environment, and the
associated increase in demand for our on-time freight service, in
order to improve the utilization of our assets and lower our
consolidated operating ratio back to our long-term
expectations.”
Financial Results
Heartland Express ended the third quarter of
2024 with operating revenues of $259.9 million, compared to $295.0
million in the third quarter of 2023. Operating revenues for the
quarter included fuel surcharge revenues of $32.8 million, compared
to $42.9 million in the same period of 2023. Net loss was $9.3
million, as compared to a net loss of $10.7 million in the third
quarter of 2023. Basic loss per share was $0.12 during the quarter,
as compared to basic loss per share of $0.14 in the same period of
2023. The Company posted an operating ratio of 102.7%, non-GAAP
adjusted operating ratio(1) of 102.6%, and net loss as a percentage
of operating revenues of 3.6% in the third quarter of 2024 compared
to 102.5%, 102.4%, and 3.6% respectively, in the third quarter of
2023.
For the nine months ended September 30,
2024, Heartland Express delivered operating revenues of $804.9
million, compared to $932.1 million in the same period of 2023.
Operating revenues for the period included fuel surcharge revenues
of $105.9 million, compared to $134.1 million in the same period of
2023. Net loss was $27.9 million, compared to net income of $9.7
million in the same period of the prior year. Basic loss per share
was $0.35 during the nine-month period as compared to $0.12 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 3.5% for the nine months ended September 30, 2024
compared to 96.6%, 95.5%, and 1.0% (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 September 30, 2024, the Company had
$30.7 million in cash balances, an increase of $2.6 million since
December 31, 2023. Debt and financing lease obligations of $206.8
million remain at September 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
September 30, 2024. The Company had $88.3 million in available
borrowing capacity on the line of credit as of September 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 $825.7
million.
Net cash flows from operations for the first
nine months of 2024 were $106.6 million, 13.2% of operating
revenue. The primary uses of cash were $94.0 million used for
repayment of debt and financing leases, $7.3 million for
repurchases of our common stock, and $3.2 million for dividends
paid. Since the acquisitions completed in 2022, the Company has
repaid $262.0 million of variable rate term debt (CFI acquisition)
and $27.6 million of fixed rate equipment financing liabilities
(Smith Transport acquisition). We intend to continue to prioritize
our capital towards further debt reductions throughout 2024 and
2025.
The average age of the Company's consolidated
tractor fleet was 2.7 years as of September 30, 2024 compared
to 1.9 years on September 30, 2023. The average age of the
Company's consolidated trailer fleet was 7.2 years as of
September 30, 2024 compared to 6.2 years as of
September 30, 2023. During the calendar year of 2024, we
currently expect net capital expenditures of approximately $35 to
$40 million and $5 to $10 million of gains on disposal of property
and equipment.
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 third quarter
of 2024 and paid on October 7, 2024. The Company has now paid
cumulative cash dividends of $553.6 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-five consecutive quarters since 2003.
Our outstanding shares at September 30, 2024 were
78.5 million. The Company purchased no shares of our common
stock during the third quarter of 2024 or 2023. We purchased 0.6
million shares of our common stock for $7.3 million during the nine
months ended September 30, 2024 compared to no shares purchased
during 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 third quarter of 2024, our family of
operating brands continued to deliver award-winning service and
environmental stewardship as evidenced by the following awards for
our company and our employees:
- FedEx Express National Carrier of the Year (13 years in a
row)
- FedEx Express Platinum Award (99.98% On-Time Delivery)
- Shaw Floors Outbound "Class B" Carrier of the Year
- J.M. Smucker Transportation Award Best On Time National Asset
Carrier
- SmartWay - High Performer TL/Dry Van Truck Carrier "All
Metrics" Category
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, 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 utilization, 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 September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
OPERATING REVENUE |
|
$ |
259,861 |
|
|
$ |
295,026 |
|
|
$ |
804,935 |
|
|
$ |
932,111 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Salaries, wages, and
benefits |
|
$ |
107,392 |
|
|
$ |
118,923 |
|
|
$ |
330,205 |
|
|
$ |
362,566 |
|
Rent and purchased
transportation |
|
|
18,343 |
|
|
|
26,674 |
|
|
|
63,893 |
|
|
|
88,285 |
|
Fuel |
|
|
43,793 |
|
|
|
55,809 |
|
|
|
138,125 |
|
|
|
163,205 |
|
Operations and
maintenance |
|
|
19,338 |
|
|
|
16,596 |
|
|
|
52,334 |
|
|
|
47,669 |
|
Operating taxes and
licenses |
|
|
5,010 |
|
|
|
5,400 |
|
|
|
15,580 |
|
|
|
16,400 |
|
Insurance and claims |
|
|
11,341 |
|
|
|
9,330 |
|
|
|
38,898 |
|
|
|
30,766 |
|
Communications and
utilities |
|
|
2,765 |
|
|
|
2,496 |
|
|
|
7,475 |
|
|
|
8,051 |
|
Depreciation and
amortization |
|
|
44,955 |
|
|
|
51,113 |
|
|
|
137,596 |
|
|
|
147,919 |
|
Other operating expenses |
|
|
14,539 |
|
|
|
17,190 |
|
|
|
43,596 |
|
|
|
51,443 |
|
Gain on disposal of property
and equipment |
|
|
(476 |
) |
|
|
(1,065 |
) |
|
|
(1,510 |
) |
|
|
(15,873 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
267,000 |
|
|
|
302,466 |
|
|
|
826,192 |
|
|
|
900,431 |
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
(7,139 |
) |
|
|
(7,440 |
) |
|
|
(21,257 |
) |
|
|
31,680 |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
258 |
|
|
|
276 |
|
|
|
911 |
|
|
|
1,352 |
|
Interest expense |
|
|
(4,243 |
) |
|
|
(6,067 |
) |
|
|
(14,119 |
) |
|
|
(18,254 |
) |
|
|
|
|
|
|
|
|
|
(Loss) income before income
taxes |
|
|
(11,124 |
) |
|
|
(13,231 |
) |
|
|
(34,465 |
) |
|
|
14,778 |
|
|
|
|
|
|
|
|
|
|
Federal and state income
taxes |
|
|
(1,841 |
) |
|
|
(2,528 |
) |
|
|
(6,596 |
) |
|
|
5,098 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(9,283 |
) |
|
$ |
(10,703 |
) |
|
$ |
(27,869 |
) |
|
$ |
9,680 |
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.12 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.35 |
) |
|
$ |
0.12 |
|
Diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.35 |
) |
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
78,489 |
|
|
|
79,021 |
|
|
|
78,814 |
|
|
|
79,003 |
|
Diluted |
|
|
78,500 |
|
|
|
79,103 |
|
|
|
78,866 |
|
|
|
79,069 |
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
|
HEARTLAND EXPRESS, INC.AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands, except per share
amounts)(unaudited) |
|
|
September 30, |
|
December 31, |
ASSETS |
|
|
2024 |
|
|
|
2023 |
|
CURRENT
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
30,739 |
|
|
$ |
28,123 |
|
Trade receivables, net |
|
|
100,017 |
|
|
|
102,740 |
|
Prepaid tires |
|
|
9,372 |
|
|
|
10,650 |
|
Other current assets |
|
|
15,772 |
|
|
|
17,602 |
|
Income taxes receivable |
|
|
1,228 |
|
|
|
10,157 |
|
Total current assets |
|
|
157,128 |
|
|
|
169,272 |
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT |
|
|
1,297,585 |
|
|
|
1,319,909 |
|
Less accumulated depreciation |
|
|
536,948 |
|
|
|
434,558 |
|
|
|
|
760,637 |
|
|
|
885,351 |
|
GOODWILL |
|
|
322,597 |
|
|
|
322,597 |
|
OTHER INTANGIBLES,
NET |
|
|
94,774 |
|
|
|
98,537 |
|
OTHER
ASSETS |
|
|
15,570 |
|
|
|
14,953 |
|
DEFERRED INCOME TAXES,
NET |
|
|
1,158 |
|
|
|
1,494 |
|
OPERATING LEASE RIGHT
OF USE ASSETS |
|
|
9,589 |
|
|
|
17,442 |
|
|
|
$ |
1,361,453 |
|
|
$ |
1,509,646 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
41,618 |
|
|
$ |
37,777 |
|
Compensation and benefits |
|
|
29,294 |
|
|
|
28,492 |
|
Insurance accruals |
|
|
24,561 |
|
|
|
21,507 |
|
Long-term debt and finance lease liabilities - current portion |
|
|
8,734 |
|
|
|
9,303 |
|
Operating lease liabilities - current portion |
|
|
6,790 |
|
|
|
9,259 |
|
Other accruals |
|
|
23,728 |
|
|
|
17,138 |
|
Total current liabilities |
|
|
134,725 |
|
|
|
123,476 |
|
LONG-TERM
LIABILITIES |
|
|
|
|
Income taxes payable |
|
|
6,119 |
|
|
|
6,270 |
|
Long-term debt and finance lease liabilities less current
portion |
|
|
198,053 |
|
|
|
290,696 |
|
Operating lease liabilities less current portion |
|
|
2,799 |
|
|
|
8,183 |
|
Deferred income taxes, net |
|
|
163,769 |
|
|
|
189,121 |
|
Insurance accruals less current portion |
|
|
30,239 |
|
|
|
26,640 |
|
Total long-term liabilities |
|
|
400,979 |
|
|
|
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 78,495 and 79,039 in
2024 and 2023, respectively |
|
|
907 |
|
|
|
907 |
|
Additional paid-in capital |
|
|
3,315 |
|
|
|
4,527 |
|
Retained earnings |
|
|
1,027,505 |
|
|
|
1,060,094 |
|
Treasury stock, at cost; 12,194 and 11,650 in 2024 and 2023,
respectively |
|
|
(205,978 |
) |
|
|
(200,268 |
) |
|
|
|
825,749 |
|
|
|
865,260 |
|
|
|
$ |
1,361,453 |
|
|
$ |
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 September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Unaudited, in thousands) |
|
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
Operating revenue |
|
$ |
259,861 |
|
|
$ |
295,026 |
|
|
$ |
804,935 |
|
|
$ |
932,111 |
|
Less: Fuel surcharge
revenue |
|
|
32,820 |
|
|
|
42,928 |
|
|
|
105,859 |
|
|
|
134,077 |
|
Operating revenue, excluding
fuel surcharge revenue |
|
|
227,041 |
|
|
|
252,098 |
|
|
|
699,076 |
|
|
|
798,034 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
267,000 |
|
|
|
302,466 |
|
|
|
826,192 |
|
|
|
900,431 |
|
Less: Fuel surcharge
revenue |
|
|
32,820 |
|
|
|
42,928 |
|
|
|
105,859 |
|
|
|
134,077 |
|
Less: Amortization of
intangibles |
|
|
1,254 |
|
|
|
1,301 |
|
|
|
3,763 |
|
|
|
3,902 |
|
Adjusted operating
expenses |
|
|
232,926 |
|
|
|
258,237 |
|
|
|
716,570 |
|
|
|
762,452 |
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
(7,139 |
) |
|
|
(7,440 |
) |
|
|
(21,257 |
) |
|
|
31,680 |
|
Adjusted operating (loss)
income |
|
$ |
(5,885 |
) |
|
$ |
(6,139 |
) |
|
$ |
(17,494 |
) |
|
$ |
35,582 |
|
|
|
|
|
|
|
|
|
|
Operating ratio |
|
|
102.7 |
% |
|
|
102.5 |
% |
|
|
102.6 |
% |
|
|
96.6 |
% |
Adjusted operating ratio |
|
|
102.6 |
% |
|
|
102.4 |
% |
|
|
102.5 |
% |
|
|
95.5 |
% |
|
(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