Heartland Express Inc 10-Q for FY2024 Q1

Heartland Express Inc (HTLD)

10-Q 2024-05-10 For: 2024-03-31

Added on April 07, 2026

About this 10-Q

Heartland Express Inc filed this 10-Q on May 10, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $270.32M; down 18.3% from $330.92M a year earlier
Net loss: $15.11M; compared with net income of $12.61M a year earlier
Diluted EPS: -$0.19; compared with $0.16 a year earlier

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	HTLD	NASDAQ


Large accelerated filer [X]						Accelerated filer [ ]
Non-accelerated filer [ ]						Smaller reporting company [ ]
						Emerging growth company [ ]




			Page
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements
Consolidated Balance Sheets as of Mar ch 31 , 202 4 and December 31, 202 3 (unaudited)			3
Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31 , 202 4 and 202 3 (unaudited)			4
Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31 , 202 4 and 202 3 (unaudited)			5
Consolidated Statements of Cash Flows for the Three Months Ended Ma rch 31 , 202 4 and 202 3 (unaudited)			6
Notes to Consolidated Financial Statements (unaudited)			7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			14
Item 3. Quantitative and Qualitative Disclosures about Market Risk			22
Item 4. Controls and Procedures			23

PART II - OTHER INFORMATION

Item 1. Legal Proceedings			24
Item 1A. Risk Factors			24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			25
Item 3. Defaults Upon Senior Securities			25
Item 4. Mine Safety Disclosures			25
Item 5. Other Information			25
Item 6. Exhibits			26

Signatures			27


HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited)
ASSETS	March 31, 2024		December 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$	23,823	$	28,123
Trade receivables, net of $2.8 and $2.7 million allowance in 2024 and 2023, respectively	107,932		102,740
Prepaid tires	9,417		10,650
Other current assets	13,842		17,602
Income tax receivable	5,128		10,157
Total current assets	160,142		169,272
PROPERTY AND EQUIPMENT
Land and land improvements	118,690		118,682
Buildings	149,788		149,780
Furniture and fixtures	6,835		6,835
Shop and service equipment	20,815		20,822
Revenue equipment	1,016,102		1,021,208
Construction in progress	4,161		2,582
Property and equipment, gross	1,316,391		1,319,909
Less accumulated depreciation	474,940		434,558
Property and equipment, net	841,451		885,351
GOODWILL	322,597		322,597
OTHER INTANGIBLES, NET	97,283		98,537
OTHER ASSETS	15,467		14,953
DEFERRED INCOME TAXES, NET	1,401		1,494
OPERATING LEASE RIGHT OF USE ASSETS	14,144		17,442
	$	1,452,485	$	1,509,646
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	35,704	$	37,777
Compensation and benefits	29,739		28,492
Insurance accruals	24,153		21,507
Long-term debt and finance lease liabilities - current portion	8,986		9,303
Operating lease liabilities - current portion	7,740		9,259
Other accruals	21,146		17,138
Total current liabilities	127,468		123,476
LONG-TERM LIABILITIES
Income taxes payable	6,238		6,270
Long-term debt and finance lease liabilities less current portion	254,616		290,696
Operating lease liabilities less current portion	6,404		8,183
Deferred income taxes, net	179,850		189,121
Accident and work comp accruals less current portion	29,119		26,640
Total long-term liabilities	476,227		520,910
COMMITMENTS AND CONTINGENCIES (Note 14)
STOCKHOLDERS' EQUITY
Preferred stock, par value $.01; authorized 5,000 shares; none issued	—		—
Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2024 and 2023; outstanding 79,051 and 79,039 in 2024 and 2023, respectively	907		907
Additional paid-in capital	4,518		4,527
Retained earnings	1,043,404		1,060,094
Treasury stock, at cost; 11,638 and 11,650 shares in 2024 and 2023, respectively	(200,039)		(200,268)
	848,790		865,260
	$	1,452,485	$	1,509,646


HEARTLAND EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share amounts)
(unaudited)
	Three Months Ended March 31,
	2024		2023

OPERATING REVENUE	$	270,320	$	330,916

OPERATING EXPENSES
Salaries, wages, and benefits	112,697		123,333
Rent and purchased transportation	23,863		33,144
Fuel	47,321		57,528
Operations and maintenance	16,264		15,026
Operating taxes and licenses	5,315		5,543
Insurance and claims	14,584		11,002
Communications and utilities	2,440		2,876
Depreciation and amortization	46,504		48,469
Other operating expenses	15,626		17,891
Loss (gain) on disposal of property and equipment	89		(6,786)
	284,703		308,026

Operating (loss) income	(14,383)		22,890

Interest income	366		484
Interest expense	(5,302)		(6,075)

(Loss) income before income taxes	(19,319)		17,299

Federal and state income taxes	(4,211)		4,687

Net (loss) income	$	(15,108)	$	12,612
Other comprehensive income, net of tax	—		—
Comprehensive (loss) income	$	(15,108)	$	12,612

Net (loss) income per share
Basic	$	(0.19)	$	0.16
Diluted	$	(0.19)	$	0.16

Weighted average shares outstanding
Basic	79,044		78,987
Diluted	79,122		79,022

Dividends declared per share	$	0.02	$	0.02


HEARTLAND EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except per share amounts)
(unaudited)

	Capital		Additional
	Stock,		Paid-In		Retained		Treasury
	Common		Capital		Earnings		Stock		Total
Balance, December 31, 2023	$	907	$	4,527	$	1,060,094	$	(200,268)	$	865,260
Net loss	—		—		(15,108)		—		(15,108)
Dividends on common stock, $0.02 per share	—		—		(1,582)		—		(1,582)
Stock-based compensation, net of tax	—		(9)		—		229		220
Balance, March 31, 2024	$	907	$	4,518	$	1,043,404	$	(200,039)	$	848,790

	Capital		Additional
	Stock,		Paid-In		Retained		Treasury
	Common		Capital		Earnings		Stock		Total
Balance, December 31, 2022	$	907	$	4,165	$	1,051,641	$	(201,236)	$	855,477
Net income	—		—		12,612		—		12,612
Dividends on common stock, $0.02 per share	—		—		(1,581)		—		(1,581)
Stock-based compensation, net of tax	—		32		—		79		111
Balance, March 31, 2023	$	907	$	4,197	$	1,062,672	$	(201,157)	$	866,619


HEARTLAND EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
	Three Months Ended March 31,
	2024		2023
OPERATING ACTIVITIES
Net (loss) income	$	(15,108)	$	12,612
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	46,504		48,469
Deferred income taxes	(9,178)		(8,659)
Stock-based compensation expense	283		152
Debt-related amortization	263		269
Loss (gain) on disposal of property and equipment	89		(6,786)
Changes in certain working capital items:
Trade receivables	(5,192)		13,649
Prepaid expenses and other current assets	2,586		4,864
Accounts payable, accrued liabilities, and accrued expenses	5,732		(10,978)
Accrued income taxes	4,997		12,850
Net cash provided by operating activities	30,976		66,442
INVESTING ACTIVITIES
Proceeds from sale of property and equipment	6,649		28,859
Purchases of property and equipment	(4,697)		(42,149)
Change in other assets	—		489
Net cash provided by (used in) investing activities	1,952		(12,801)
FINANCING ACTIVITIES
Shares withheld for employee taxes related to stock-based compensation	(63)		(41)
Repayments of finance leases and debt	(36,660)		(47,325)
Net cash used in financing activities	(36,723)		(47,366)
Net (decrease) increase in cash, cash equivalents and restricted cash	(3,795)		6,275
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Beginning of period	41,188		64,478
End of period	$	37,393	$	70,753
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for interest expense	$	5,289	$	6,121
Cash paid during the period for income taxes, net of refunds	$	(77)	$	232
Noncash investing and financing activities:
Purchased property and equipment in accounts payable	$	4,812	$	2,059
Sold revenue equipment and property in other current assets	$	—	$	232
Common stock dividends declared in accounts payable	$	1,582	$	1,581
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents	$	23,823	$	55,506
Restricted cash included in other current assets	323		746
Restricted cash included in other assets	13,247		14,501
Total cash, cash equivalents and restricted cash	$	37,393	$	70,753


	Amortization period (years)	Gross Amount		Accumulated Amortization		Net finite intangible assets
		(in thousands)
Customer relationships	15-20	$	75,836	$	13,716	$	62,120
Trade name	0.5-10	12,900		10,300		2,600
Covenants not to compete	1-10	5,839		4,900		939
		$	94,575	$	28,916	$	65,659


	Three months ended March 31, 2024
	Net Loss (numerator)		Shares (denominator)	Per Share Amount
Basic loss per share	$	(15,108)	79,044	$	(0.19)
Effect of restricted stock	—		78
Diluted loss per share	$	(15,108)	79,122	$	(0.19)


	Three months ended March 31, 2023
	Net Income (numerator)		Shares (denominator)	Per Share Amount
Basic earnings per share	$	12,612	78,987	$	0.16
Effect of restricted stock	—		35
Diluted earnings per share	$	12,612	79,022	$	0.16


	Three Months Ended March 31, 2024
	Number of Shares of Restricted Stock Awards (in thousands)	Weighted Average Grant Date Fair Value
Unvested at beginning of period	85.8	$	14.84
Granted	5.0	11.65
Vested	(17.0)	14.67
Forfeited	—	—
Outstanding (unvested) at end of period	73.8	$	14.67


(in thousands)	Operating		Finance
2024 (remaining)	$	6,457	$	6,773
2025	6,609		7,557
2026	1,587		3,840
2027	320		—
2028	—		—
Thereafter	—		—
Total minimum lease payments	$	14,973	$	18,170
Less: future payment amount for interest	829		836
Present value of minimum lease payments	$	14,144	$	17,334
Less: current portion	7,740		7,216
Lease obligations, long-term	$	6,404	$	10,118


	2024
	(in thousands)
Balance at December 31, 2023	$	5,522
Reductions due to lapse of applicable statute of limitations	(66)
Balance at March 31, 2024	$	5,456


GAAP to Non-GAAP Reconciliation Schedule:
Operating revenue excluding fuel surcharge revenue, adjusted operating income, and adjusted operating ratio reconciliation (a)

	Three months ended March 31,
	2024			2023
	(Unaudited, in thousands)

Operating revenue	$	270,320		$	330,916
Less: Fuel surcharge revenue	36,212			49,647
Operating revenue, excluding fuel surcharge revenue	234,108			281,269

Operating expenses	284,703			308,026
Less: Fuel surcharge revenue	36,212			49,647
Less: Amortization of intangibles	1,254			1,291
Adjusted operating expenses	247,237			257,088

Operating (loss) income	(14,383)			22,890
Adjusted operating (loss) income	$	(13,129)		$	24,181

Operating ratio	105.3		%	93.1		%
Adjusted operating ratio	105.6		%	91.4		%


			3.1						Articles of Incorporation, as amended. Incorporated by reference to Exhibit 3.1 of the Company's Form 10-Q for the quarter ended September 30, 2017, dated November 9, 2017.
			3.2						Amended and Restated Bylaws. Incorporated by reference to Exhibit 3.2 of the Company's Form 10-Q for the quarter ended September 30, 2017, dated November 9, 2017.
			31.1*						Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
			31.2*						Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
			32.1**						Certification of Principal Executive Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
			32.2**						Certification of the Principal Financial Officer Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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Yes			[X]			No [ ]


Yes			[X]			No [ ]


Yes [ ]			No [ X ]


		HEARTLAND EXPRESS, INC.

Date:	May 10, 2024	By: /s/ Christopher A. Strain
		Christopher A. Strain
		Vice President of Finance
		and Chief Financial Officer
		(Principal Accounting and Financial Officer)


1.	I have reviewed this quarterly report on Form 10-Q of Heartland Express Inc. (the “Registrant”);

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.	Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this quarterly report;

4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the Registrant and we have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

	d)	Disclosed in this quarterly report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.	The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s independent registered public accounting firm and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.


In connection with the Quarterly Report of Heartland Express, Inc. (the "Company"), on Form 10-Q for the period ended March 31, 2024 (the "Report"), filed with the Securities and Exchange Commission, I, Michael J. Gerdin, Chairman, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1.			The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
2.			The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.