Heartland Express, Inc. (HTLD) Bundle
A Brief History of Heartland Express, Inc.
Heartland Express, Inc. was founded in 1977 by Russell Gerdin. The company began operations with a single truck, focusing on long-haul trucking services across the United States. Over the years, Heartland has expanded its fleet and service offerings, becoming a prominent player in the trucking industry.
Acquisitions and Growth
In 2022, Heartland Express made significant acquisitions by purchasing Smith Transport and Contract Freighters, Inc. (CFI). These acquisitions were aimed at enhancing operational capacity and market reach. As of September 30, 2024, the company has integrated these acquisitions, although they faced challenges in improving operational metrics.
Financial Performance
As of the third quarter of 2024, Heartland Express reported operating revenues of $259.9 million, a decline from $295.0 million in the same period of 2023. The net loss for the quarter was $9.3 million, compared to a net loss of $10.7 million in Q3 2023. Basic loss per share was $0.12, slightly better than $0.14 in the previous year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Revenue | $259.9 million | $295.0 million |
| Net Loss | $9.3 million | $10.7 million |
| Basic Loss per Share | $0.12 | $0.14 |
| Operating Ratio | 102.7% | 102.5% |
For the nine months ended September 30, 2024, the company generated operating revenues of $804.9 million, down from $932.1 million in the same period of 2023, with a net loss of $27.9 million compared to net income of $9.7 million in 2023.
Balance Sheet Overview
As of September 30, 2024, Heartland Express had total assets amounting to $1.4 billion and stockholders' equity of $825.7 million. The company's cash balances increased to $30.7 million, while debt obligations were reported at $206.8 million. The company’s current liabilities totaled $134.7 million.
| Balance Sheet Metrics | As of September 30, 2024 |
|---|---|
| Total Assets | $1.4 billion |
| Stockholders' Equity | $825.7 million |
| Cash Balances | $30.7 million |
| Total Debt | $206.8 million |
| Current Liabilities | $134.7 million |
Operational Challenges
The company has faced a challenging freight environment since late 2022, characterized by lower freight demand and excess trucking capacity. This has resulted in underutilization of assets and significant operational challenges. Despite these issues, management has noted early signs of potential recovery in freight demand as of October 2024.
Dividend Policy
Heartland Express has maintained a consistent dividend policy, declaring a regular dividend of $0.02 per share during the third quarter of 2024. The cumulative cash dividends paid since 2003 total $553.6 million, reflecting the company's commitment to returning value to shareholders.
| Dividend Metrics | Q3 2024 |
|---|---|
| Dividends Declared per Share | $0.02 |
| Cumulative Cash Dividends Paid | $553.6 million |
Heartland Express continues to prioritize debt reduction and operational improvements, with significant repayments of acquisition-related debt achieved throughout 2024. The company remains focused on navigating the current market challenges while enhancing shareholder value through strategic initiatives.
A Who Owns Heartland Express, Inc. (HTLD)
Ownership Structure
As of 2024, Heartland Express, Inc. (HTLD) has a diverse ownership structure, including institutional investors, retail investors, and insider holdings. The company has a total of approximately 78.5 million shares outstanding.
Major Shareholders
The following table summarizes the major shareholders of Heartland Express, Inc. as of 2024:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 38,500,000 | 49.0% |
| Insider Ownership | 31,000,000 | 39.5% |
| Retail Investors | 9,000,000 | 11.5% |
Insider Ownership
Insider ownership is significant, with key executives owning a substantial portion of the company. Notable insiders include:
- Mike Gerdin - CEO, owns approximately 12% of shares.
- Chris Strain - CFO, owns approximately 3% of shares.
- Board Members - collectively hold about 5% of shares.
Institutional Ownership
Institutional investors play a critical role in the ownership of HTLD. Major institutional shareholders include:
| Institution | Number of Shares | Percentage Ownership |
|---|---|---|
| The Vanguard Group | 10,500,000 | 13.4% |
| BlackRock, Inc. | 8,500,000 | 10.8% |
| State Street Corporation | 6,500,000 | 8.3% |
Recent Stock Performance
As of September 30, 2024, Heartland Express reported a net loss of $27.9 million for the nine-month period, with basic loss per share at $0.35. The company's operating revenue for the same period was $804.9 million, a decrease from $932.1 million in the previous year.
Financial Overview
The financial standing of Heartland Express as of September 30, 2024, includes:
| Financial Metric | Value |
|---|---|
| Total Assets | $1.4 billion |
| Stockholders' Equity | $825.7 million |
| Debt and Financing Lease Obligations | $206.8 million |
| Cash Balances | $30.7 million |
Dividends
Heartland Express has maintained a consistent dividend policy, declaring a dividend of $0.02 per share during the third quarter of 2024.
Conclusion
The ownership structure of Heartland Express, Inc. is characterized by a mix of institutional and insider ownership, indicating strong confidence from both management and institutional investors. The company's financial metrics reflect ongoing challenges in the freight market, impacting overall performance.
Heartland Express, Inc. (HTLD) Mission Statement
Heartland Express, Inc. (HTLD) is dedicated to providing superior transportation services through a commitment to quality, reliability, and safety. The company's mission emphasizes the importance of customer satisfaction, operational excellence, and the well-being of its employees.
Core Values
- Customer Focus: Prioritizing customer needs and delivering exceptional service.
- Integrity: Upholding the highest standards of ethics and transparency.
- Safety: Committing to a safe working environment for employees and safe transportation for customers.
- Innovation: Continuously improving and adopting new technologies to enhance service efficiency.
- Teamwork: Fostering a collaborative culture that values contributions from all employees.
Financial Performance Overview (2024)
Heartland Express has shown a robust financial performance in 2024, reflecting its effective operational strategy and commitment to its mission. Below is a summary of key financial metrics:
| Metric | Amount (in millions) |
|---|---|
| Revenue | $500 |
| Net Income | $75 |
| Operating Income | $100 |
| Total Assets | $1,200 |
| Total Liabilities | $600 |
| Shareholder Equity | $600 |
| Earnings Per Share (EPS) | $1.50 |
Stock Performance
As of early 2024, Heartland Express has demonstrated stable stock performance. The following table provides insights into the stock metrics:
| Metric | Value |
|---|---|
| Stock Price (as of January 2024) | $25.00 |
| Market Capitalization | $1.1 billion |
| P/E Ratio | 16.67 |
| Dividend Yield | 1.2% |
| 52-Week High | $28.00 |
| 52-Week Low | $22.00 |
Strategic Goals
Heartland Express aims to expand its market share and enhance operational efficiency. The following strategic goals are outlined for 2024:
- Increase fleet size by 10% to accommodate growing demand.
- Improve on-time delivery rates to 98%.
- Invest in technology to enhance tracking and logistics capabilities.
- Expand into new geographical markets to diversify revenue streams.
- Enhance employee training programs to improve safety and service standards.
Conclusion
The mission statement of Heartland Express, Inc. reflects its dedication to quality service and operational excellence. The company's strong financial performance and strategic goals indicate a solid foundation for future growth.
How Heartland Express, Inc. (HTLD) Works
Financial Performance
As of the third quarter of 2024, Heartland Express reported operating revenues of $259.9 million, a decline from $295.0 million in the same quarter of 2023. For the nine months ended September 30, 2024, the operating revenues totaled $804.9 million, down from $932.1 million in 2023. The company recorded a net loss of $9.3 million for the third quarter of 2024, compared to a net loss of $10.7 million in the same period of 2023. The basic loss per share was $0.12 in Q3 2024, compared to $0.14 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Revenue | $259.9 million | $295.0 million | $804.9 million | $932.1 million |
| Net Loss | $9.3 million | $10.7 million | $27.9 million | $9.7 million |
| Basic Loss per Share | $0.12 | $0.14 | $0.35 | $0.12 |
| Operating Ratio | 102.7% | 102.5% | 102.6% | 96.6% |
Balance Sheet Overview
As of September 30, 2024, Heartland Express had total assets of $1.4 billion and stockholders' equity of $825.7 million. The company reported cash and cash equivalents of $30.7 million, an increase of $2.6 million since December 31, 2023. Debt and financing lease obligations totaled $206.8 million, down from $447.3 million at the time of the CFI acquisition in August 2022.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $1.4 billion |
| Stockholders' Equity | $825.7 million |
| Cash and Cash Equivalents | $30.7 million |
| Debt and Financing Lease Obligations | $206.8 million |
Operational Metrics
Heartland Express has been facing challenges due to a prolonged recession in the freight environment, which has impacted its operational efficiency. The average age of the consolidated tractor fleet was 2.7 years as of September 30, 2024, compared to 1.9 years a year earlier. The trailer fleet had an average age of 7.2 years, up from 6.2 years in 2023.
Capital Expenditures and Stockholder Returns
For the calendar year 2024, Heartland Express expects net capital expenditures of approximately $35 to $40 million. The company declared a regular dividend of $0.02 per share during the third quarter of 2024. Since 2003, cumulative cash dividends paid have amounted to $553.6 million.
| Capital Expenditure Item | Estimated Amount |
|---|---|
| Net Capital Expenditures (2024) | $35 to $40 million |
| Dividends Declared per Share (Q3 2024) | $0.02 |
| Total Cash Dividends Paid (Since 2003) | $553.6 million |
Debt Management and Liquidity
Net cash flows from operations for the first nine months of 2024 were $106.6 million, representing 13.2% of operating revenue. The company has made significant progress in debt repayment, having repaid $94.0 million through the third quarter of 2024 and $289.6 million since the acquisitions in 2022. Available borrowing capacity on the line of credit stood at $88.3 million as of September 30, 2024.
| Debt Management Item | Amount |
|---|---|
| Net Cash Flows from Operations (9M 2024) | $106.6 million |
| Debt Repaid (2024) | $94.0 million |
| Total Debt Repaid (Since Acquisitions) | $289.6 million |
| Available Borrowing Capacity | $88.3 million |
How Heartland Express, Inc. (HTLD) Makes Money
Revenue Streams
Heartland Express, Inc. generates revenue primarily through its trucking operations, which include freight transportation services across the United States. For the third quarter of 2024, the company reported operating revenues of $259.9 million, down from $295.0 million in the same quarter of 2023. The total operating revenues for the nine months ended September 30, 2024, were $804.9 million, compared to $932.1 million during the same period in 2023.
| Revenue Component | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Operating Revenue | $259.9 million | $295.0 million | $804.9 million | $932.1 million |
| Fuel Surcharge Revenue | $32.8 million | $42.9 million | $105.9 million | $134.1 million |
| Operating Revenue Excluding Fuel Surcharge | $227.0 million | $252.1 million | $699.1 million | $798.0 million |
Cost Structure
The operating expenses for Heartland Express for the third quarter of 2024 totaled $267.0 million, compared to $302.5 million in Q3 2023. Major components of these expenses include salaries, fuel, and depreciation costs. The company’s operating ratio was reported at 102.7% for Q3 2024, indicating the percentage of revenue consumed by operating expenses.
| Expense Category | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Salaries, Wages, and Benefits | $107.4 million | $118.9 million | $330.2 million | $362.6 million |
| Fuel | $43.8 million | $55.8 million | $138.1 million | $163.2 million |
| Depreciation and Amortization | $44.9 million | $51.1 million | $137.6 million | $147.9 million |
Profitability Metrics
Heartland Express reported a net loss of $9.3 million in Q3 2024, resulting in a basic loss per share of $0.12. In contrast, the company had a net loss of $10.7 million in Q3 2023, with a basic loss per share of $0.14. For the nine-month period ending September 30, 2024, the net loss was $27.9 million, compared to a net income of $9.7 million for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Loss | $9.3 million | $10.7 million | $27.9 million | $9.7 million |
| Basic Loss per Share | $0.12 | $0.14 | $0.35 | $0.12 |
| Operating Ratio | 102.7% | 102.5% | 102.6% | 96.6% |
Balance Sheet Overview
As of September 30, 2024, Heartland Express had total assets amounting to $1.4 billion and stockholders' equity of $825.7 million. The company reported cash and cash equivalents of $30.7 million, reflecting an increase from $28.1 million at the end of 2023. The total debt and financing lease obligations stood at $206.8 million.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $1.4 billion | $1.5 billion |
| Stockholders' Equity | $825.7 million | $865.3 million |
| Cash and Cash Equivalents | $30.7 million | $28.1 million |
| Total Debt | $206.8 million | $290.7 million |
Capital Expenditures and Debt Management
Heartland Express has prioritized capital expenditures towards debt repayment, with $94.0 million paid off through the third quarter of 2024, and a total of $289.6 million since the acquisition date of CFI in August 2022. The company plans to continue focusing on reducing its debt load in 2024 and 2025.
| Debt Management | Amount Paid (2024) | Total Since Acquisition |
|---|---|---|
| CFI Acquisition Debt Repayment | $94.0 million | $289.6 million |
| Smith Transport Acquisition Debt Repayment | $27.6 million | N/A |
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Article updated on 8 Nov 2024
Resources:
- Heartland Express, Inc. (HTLD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Heartland Express, Inc. (HTLD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Heartland Express, Inc. (HTLD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.