Heartland Express, Inc. Reports Operating Results for the Third Quarter of 2024
Heartland Express reported challenging Q3 2024 financial results with operating revenue of $259.9 million and a net loss of $9.3 million ($0.12 per share). The company's operating ratio was 102.7%. For the nine months ended September 30, 2024, operating revenue was $804.9 million with a net loss of $27.9 million ($0.35 per share). CEO Mike Gerdin attributed the poor performance to a prolonged recessionary period marked by lower freight demand and excess truck capacity. The company has reduced acquisition-related debt by $94.0 million through Q3 2024. While legacy brands performed better with a 92.3% operating ratio, recently acquired entities showed improvement, with Smith Transport and CFI improving operating ratios by 6 and 5 percentage points respectively.
Heartland Express ha riportato risultati finanziari sfavorevoli per il terzo trimestre del 2024, con un fatturato operativo di 259,9 milioni di dollari e una perdita netta di 9,3 milioni di dollari (0,12 dollari per azione). Il rapporto operativo dell'azienda era del 102,7%. Nei nove mesi conclusisi il 30 settembre 2024, il fatturato operativo è stato di 804,9 milioni di dollari, con una perdita netta di 27,9 milioni di dollari (0,35 dollari per azione). Il CEO Mike Gerdin ha attribuito la scarsa performance a un prolungato periodo di recessione caratterizzato da una minore domanda di spedizioni e da un eccesso di capacità di trasporto. L’azienda ha ridotto il debito legato alle acquisizioni di 94,0 milioni di dollari fino al terzo trimestre del 2024. Mentre i marchi storici hanno ottenuto prestazioni migliori con un rapporto operativo del 92,3%, le entità recentemente acquisite hanno mostrato miglioramenti, con Smith Transport e CFI che hanno migliorato i rapporti operativi rispettivamente di 6 e 5 punti percentuali.
Heartland Express informó resultados financieros desafiantes para el tercer trimestre de 2024, con ingresos operativos de 259.9 millones de dólares y una pérdida neta de 9.3 millones de dólares (0.12 dólares por acción). La relación operativa de la empresa fue del 102.7%. Para los nueve meses que terminaron el 30 de septiembre de 2024, los ingresos operativos fueron de 804.9 millones de dólares con una pérdida neta de 27.9 millones de dólares (0.35 dólares por acción). El CEO Mike Gerdin atribuyó el pobre desempeño a un prolongado período de recesión marcado por una menor demanda de carga y exceso de capacidad de camiones. La empresa ha reducido la deuda relacionada con adquisiciones en 94.0 millones de dólares hasta el tercer trimestre de 2024. Mientras que las marcas tradicionales tuvieron un mejor desempeño con una relación operativa del 92.3%, las entidades recientemente adquiridas mostraron mejoras, con Smith Transport y CFI mejorando sus relaciones operativas en 6 y 5 puntos porcentuales, respectivamente.
Heartland Express는 2024년 3분기에 운영 수익이 2억 5천 9백만 달러, 순손실이 930만 달러(주당 0.12달러)로 도전적인 재무 결과를 보고했습니다. 회사의 운영 비율은 102.7%였습니다. 2024년 9월 30일 종료된 9개월 동안 운영 수익은 8억 4백만 달러였으며 순손실은 2790만 달러(주당 0.35달러)였습니다. CEO 마이크 거딘은 낮은 화물 수요와 과잉 트럭 용량으로 특징 지어지는 장기적인 경기 침체 기간이 성적 부진의 원인이라고 밝혔습니다. 회사는 2024년 3분기까지 인수 관련 부채를 9천4백만 달러 줄였습니다. 전통적인 브랜드는 92.3%의 운영 비율로 더 나은 성과를 보인 반면, 최근 인수된 기업들은 각각 6%와 5% 포인트 개선된 운영 비율을 보였습니다.
Heartland Express a publié des résultats financiers difficiles pour le troisième trimestre 2024, avec un chiffre d'affaires opérationnel de 259,9 millions de dollars et une perte nette de 9,3 millions de dollars (0,12 dollar par action). Le ratio opérationnel de l'entreprise était de 102,7 %. Pour les neuf mois se terminant le 30 septembre 2024, le chiffre d'affaires opérationnel s'élevait à 804,9 millions de dollars avec une perte nette de 27,9 millions de dollars (0,35 dollar par action). Le PDG Mike Gerdin a attribué cette mauvaise performance à une période de récession prolongée caractérisée par une demande de fret plus faible et une capacité de camionnage excédentaire. L'entreprise a réduit sa dette liée aux acquisitions de 94,0 millions de dollars jusqu'au troisième trimestre 2024. Alors que les marques historiques ont obtenu de meilleurs résultats avec un ratio opérationnel de 92,3 %, les entités récemment acquises ont montré des améliorations, Smith Transport et CFI ayant amélioré leurs ratios opérationnels de 6 et 5 points de pourcentage respectivement.
Heartland Express hat für das dritte Quartal 2024 herausfordernde finanzielle Ergebnisse gemeldet, mit einem Betriebsumsatz von 259,9 Millionen Dollar und einem Nettoverlust von 9,3 Millionen Dollar (0,12 Dollar pro Aktie). Das Betriebsergebnis des Unternehmens lag bei 102,7 %. Für die neun Monate bis zum 30. September 2024 betrug der Betriebsumsatz 804,9 Millionen Dollar mit einem Nettoverlust von 27,9 Millionen Dollar (0,35 Dollar pro Aktie). CEO Mike Gerdin führte die schwache Leistung auf eine verlängerte Rezessionsphase zurück, die durch eine geringere Fracht-Nachfrage und einen Überschuss an Lkw-Kapazität gekennzeichnet war. Das Unternehmen hat die akquisitionsbedingte Verschuldung bis zum dritten Quartal 2024 um 94,0 Millionen Dollar reduziert. Während die Traditionsmarken mit einem Betriebsverhältnis von 92,3 % besser abschnitten, zeigten kürzlich erworbene Unternehmen Verbesserungen, wobei Smith Transport und CFI die Betriebsergebnisse jeweils um 6 und 5 Prozentpunkte verbesserten.
- Debt reduction of $94.0 million through Q3 2024
- Legacy brands maintain strong 92.3% operating ratio
- Smith Transport and CFI improved operating ratios by 6 and 5 percentage points respectively
- Strong cash position with $30.7 million in cash balances
- Operating cash flow of $106.6 million (13.2% of operating revenue)
- Q3 2024 net loss of $9.3 million ($0.12 per share)
- Nine-month net loss of $27.9 million ($0.35 per share)
- Operating revenue declined to $259.9M from $295.0M YoY
- Poor operating ratio of 102.7%
- Underutilized trucking assets due to weak freight demand
Insights
The Q3 2024 results reveal significant challenges for Heartland Express, with
The company's integration of Smith Transport and CFI acquisitions amid a severe freight recession has strained resources, though debt reduction of
The
NORTH LIBERTY, Iowa, Oct. 29, 2024 (GLOBE NEWSWIRE) -- 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% and102.6% 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% and102.5% 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 (
Financial Results
Heartland Express ended the third quarter of 2024 with operating revenues of
For the nine months ended September 30, 2024, Heartland Express delivered operating revenues of
Balance Sheet, Liquidity, and Capital Expenditures
As of September 30, 2024, the Company had
Net cash flows from operations for the first nine months of 2024 were
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
The Company continues its commitment to stockholders through the payment of cash dividends. A regular dividend of
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 Officer Chris 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.
FAQ
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