Heartland Express Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Heartland Express Inc. filed its 2023 10-K, reporting $460.99 million in revenue and $14,000 in net income.</b>

AI Summary

HEARTLAND EXPRESS INC (HTLD) filed a Annual Report (10-K) with the SEC on February 28, 2024. Heartland Express Inc. reported total assets of $85,768,000 for the fiscal year ending December 31, 2023. The company's total debt was $40,080,000 as of December 31, 2023. Net income for the fiscal year ending December 31, 2023, was $14,000. Revenue for the fiscal year ending December 31, 2023, was $460,992,000. The company's operating margin was 0.5% for the fiscal year ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking HEARTLAND EXPRESS INC, this filing contains several important signals. The filing provides a comprehensive overview of Heartland Express's financial performance and operational status for the fiscal year 2023, including key financial metrics and asset/liability details. Investors and stakeholders can use this report to assess the company's financial health, profitability, and strategic positioning within the trucking industry.

Risk Assessment

Risk Level: medium — HEARTLAND EXPRESS INC shows moderate risk based on this filing. The company reported a net income of $14,000 on revenue of $460,992,000 for the fiscal year 2023, indicating very low profitability.

Analyst Insight

Monitor the company's revenue growth and profitability trends in the next filing to assess its recovery from the low net income reported in 2023.

Financial Highlights

revenue

460,992,000

operating Margin

0.5%

total Assets

85,768,000

total Debt

40,080,000

net Income

14,000

Key Numbers

• 460,992,000 — Revenue (Fiscal year ending December 31, 2023.)
• 14,000 — Net Income (Fiscal year ending December 31, 2023.)
• 85,768,000 — Total Assets (As of December 31, 2023.)
• 40,080,000 — Total Debt (As of December 31, 2023.)
• 0.5 — Operating Margin (Fiscal year ending December 31, 2023.)

Key Players & Entities

• Heartland Express Inc. (company) — Filer of the 10-K report.
• NORTH LIBERTY (location) — Business and mailing address city.
• IA (location) — Business and mailing address state.
• 2023-12-31 (date) — Fiscal year end date.
• 2024-02-28 (date) — Filing date.

FAQ

Industry Context

Heartland Express Inc. operates in the trucking industry, a sector critical for logistics and supply chain management in the United States.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose financial and operational information.

What Investors Should Do

1. Analyze the detailed financial statements for revenue breakdown and cost of goods sold to understand the drivers of the low operating margin.
2. Review management's discussion and analysis (MD&A) for explanations of the financial results and future outlook.
3. Compare key financial metrics (revenue, net income, assets, debt) with the previous fiscal year to identify trends and performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

The provided data does not include comparative figures from the previous filing to assess year-over-year changes.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value HTLD NASDAQ Securities Regi
• $1.2 billion — to 2023, we have grown our revenues to $1.2 billion from $21.6 million. For the five year p
• $21.6 million — grown our revenues to $1.2 billion from $21.6 million. For the five year period 2019 through
• $371.4 million — 3 we had the second highest net income, $371.4 million ($429.3 million in 2018 through 2022),
• $429.3 million — ond highest net income, $371.4 million ($429.3 million in 2018 through 2022), and highest reve
• $4.0 b — 018 through 2022), and highest revenue, $4.0 billion, of any previous five year period

Filing Documents

• htld-20231231.htm (10-K) — 1392KB
• exhibit103formawardnoticeu.htm (EX-10.3) — 48KB
• exhibit212023.htm (EX-21) — 12KB
• exhibit231consentofindepen.htm (EX-23.1) — 2KB
• exhibit3112023q4.htm (EX-31.1) — 14KB
• exhibit3122023q4.htm (EX-31.2) — 14KB
• exhibit3212023q4.htm (EX-32.1) — 6KB
• exhibit3222023q4.htm (EX-32.2) — 7KB
• exhibit97clawbackpolicy.htm (EX-97) — 49KB
• 0000799233-24-000005.txt (&nbsp;) — 6938KB
• htld-20231231.xsd (EX-101.SCH) — 60KB
• htld-20231231_cal.xml (EX-101.CAL) — 71KB
• htld-20231231_def.xml (EX-101.DEF) — 195KB
• htld-20231231_lab.xml (EX-101.LAB) — 693KB
• htld-20231231_pre.xml (EX-101.PRE) — 408KB
• htld-20231231_htm.xml (XML) — 785KB

Page

PART I Page Item 1.

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31 Item 2.

Properties

Properties 33 Item 3.

Legal Proceedings

Legal Proceedings 34 Item 4. Mine Safety Disclosures 34 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 35 Item 6. [Reserved] 35 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 36 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 47 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 48 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 48 Item 9A.

Controls and Procedures

Controls and Procedures 48 Item 9B. Other Information 49 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 49 PART III Item 10. Directors, Executive Officers, and Corporate Governance 50 Item 11.

Executive Compensation

Executive Compensation 50 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 50 Item 13. Certain Relationships and Related Transactions, and Director Independence 51 Item 14. Principal Accounting Fees and Services 51 PART IV Item 15. Exhibits, Financial Statement Schedule 52 Item 16. Form 10-K Summary 53

SIGNATURES

SIGNATURES 54 PART I CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including without limitation: any projections of earnings, revenues, or other financial items; any statement of plans, strategies, and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance, including future inflation, supply chain conditions, interest rates, and key economic indicators; and any statements of belief and any statements of assumptions underlying any of the foregoing. In this Annual Report, statements relating to expected sources of working capital, liquidity and funds for meeting equipment purchase obligations, expected capital expenditures and incurrence of debt, repayments of debt, operating ratio goals, anticipated revenue equipment sales and purchases, including revenue equipment gains, the used equipment market, and the availability of revenue equipment, future trucking capacity, expected freight demand and volumes, future rates and prices, future growth and acquisitions, our ability to attract and retain drivers and non-driver employees, future driver and employee compensation, including possible compensation increases, future customer relationships, future pricing and terms from our vendors and suppliers, future depreciation and amortization, future asset utilization, expected tractor and trailer count, expected fleet age, future

Business

ITEM 1. Business General Heartland Express, Inc. is a holding company incorporated in Nevada, which directly or indirectly owns all of the stock of the following active legal entities: Heartland Express, Inc. of Iowa, Heartland Express Services, Inc., Heartland Express Maintenance Services, Inc. ("Heartland Express"), and Midwest Holding Group, LLC and Millis Transfer, LLC ("Millis Transfer"), and Smith Transport, LLC and Franklin Logistics, LLC ("Smith Transport"), and CFI entities, Transportation Resources, Inc. and Contract Freighters, Inc. (collectively with certain Mexican entities, "CFI"). Effective December 31, 2023, Smith Trucking, Inc. was merged into Smith Transport, Inc. Further, effective December 31, 2023 Smith Transport, Inc. and 1 Franklin Logistics, Inc. were converted to Smith Transport, LLC and Franklin Logistics, LLC, respectively. On May 31, 2022, Heartland Express, Inc. of Iowa acquired Smith Transport, a truckload carrier headquartered in Roaring Spring, Pennsylvania. On August 31, 2022, Heartland Express, Inc. of Iowa acquired CFI's non-dedicated U.S. dry van and temperature-controlled truckload business located in Joplin, Missouri, and certain Mexican entities (collectively "CFI Logistica") operations located in Mexico. We, together with our subsidiaries, are a short, medium, and long-haul truckload carrier and transportation services provider. We primarily provide nationwide asset-based dry van truckload service for major shippers across the United States, along with cross-border freight and other transportation services offered through third party partnerships in Mexico. We, together with our subsidiaries, historically have been a short-to-medium haul truckload carrier and approximately 99.9% of our operating revenue was derived from shipments within the United States with the remainder being Canada and no operations in Mexico. With the acquisition of CFI on August 31, 2022, we significantly expanded our scale and our transportatio

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View this 10-K filing on SEC EDGAR