Heartland Express Q2 Revenue Dips Slightly, Net Income Holds Steady

Ticker: HTLD · Form: 10-Q · Filed: Aug 9, 2024 · CIK: 799233

Sentiment: neutral

Topics: earnings, revenue, financials

TL;DR

HTLD Q2 revenue down slightly to $197.1M, net income $23.1M. Still profitable.

AI Summary

Heartland Express Inc. reported its second quarter 2024 results, with total operating revenues for the three months ended June 30, 2024, reaching $197.1 million, a slight decrease from $198.5 million in the same period of 2023. Net income for the quarter was $23.1 million, or $0.30 per diluted share, compared to $24.2 million, or $0.31 per diluted share, in the prior year's second quarter. The company's balance sheet as of June 30, 2024, shows total assets of $1.5 billion.

Why It Matters

This filing provides insight into Heartland Express's financial performance in the trucking sector, indicating a stable but slightly contracting revenue environment for the company.

Risk Assessment

Risk Level: low — The filing indicates a stable financial performance with no significant negative trends or unexpected events.

Key Numbers

Key Players & Entities

FAQ

What were Heartland Express's total operating revenues for the three months ended June 30, 2024?

Total operating revenues for the three months ended June 30, 2024, were $197.1 million.

How did net income for the second quarter of 2024 compare to the second quarter of 2023?

Net income for the second quarter of 2024 was $23.1 million, or $0.30 per diluted share, compared to $24.2 million, or $0.31 per diluted share, in the second quarter of 2023.

What was the company's total asset value as of June 30, 2024?

The company's total assets as of June 30, 2024, were $1.5 billion.

What is the company's fiscal year end?

The company's fiscal year ends on December 31.

What is the filing date of this 10-Q report?

This 10-Q report was filed on August 9, 2024.

Filing Stats: 4,682 words · 19 min read · ~16 pages · Grade level 11.7 · Accepted 2024-08-08 18:28:11

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets as of June 30 , 2024 and December 31, 2023 (unaudited) 3 Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30 , 2024 and 2023 (unaudited) 4 Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30 , 2024 and 2023 (unaudited) 5 Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2024 and 2023 (unaudited) 6

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 7

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 15

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 25

Controls and Procedures

Item 4. Controls and Procedures 26

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 27

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 27

Other Information

Item 5. Other Information 27

Exhibits

Item 6. Exhibits 28

Signatures

Signatures 29 2 PART I HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) ASSETS June 30, 2024 December 31, 2023 CURRENT ASSETS Cash and cash equivalents $ 23,861 $ 28,123 Trade receivables, net of $2.3 and $2.7 million allowance in 2024 and 2023, respectively 108,913 102,740 Prepaid tires 9,488 10,650 Other current assets 17,178 17,602 Income tax receivable 4,678 10,157 Total current assets 164,118 169,272 PROPERTY AND EQUIPMENT Land and land improvements 119,217 118,682 Buildings 151,715 149,780 Furniture and fixtures 6,825 6,835 Shop and service equipment 22,165 20,822 Revenue equipment 1,016,035 1,021,208 Construction in progress 1,434 2,582 Property and equipment, gross 1,317,391 1,319,909 Less accumulated depreciation 514,644 434,558 Property and equipment, net 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 Accident and work comp accruals less current portion 30,634 26,640 Total long-term liabilities 442,831 520,910 COMMITMENTS AND CONTINGENCIES (Note 14) STOCKHOLDERS' EQUITY Preferred stock, par value $.01; authorized 5,000 shares; none issued — — Ca

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1. Basis of Presentation and New Accounting Pronouncements 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 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") with 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. The accompanying consolidated financial statements include the parent company, Heartland Express, Inc., and its subsidiaries, all of which are wholly owned. All material intercompany items and transactions have been eliminated in consolidation. The accompanying unaudited

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