SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarter ended September 30, 1998 Commission File No. 0-15087
HEARTLAND EXPRESS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Nevada 93-0926999
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
2777 Heartland Drive, Coralville, Iowa 52241
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code (319) 645-2728
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No .
At September 30, 1998, there were 30,000,000 shares of the Company's $.01 par
value common stock outstanding.
<PAGE>
PART I
FINANCIAL INFORMATION
Page
Number
Item 1. Financial statements
Consolidated balance sheets
September 30, 1998 (unaudited) and
December 31, 1997 2-3
Consolidated statements of income
(unaudited) for the three and nine month
periods ended September 30, 1998 and 1997 4
Consolidated statements of cash flows
(unaudited) for the nine months ended
September 30, 1998 and 1997 5
Notes to financial statements 6
Item 2. Management's discussion and analysis of
financial condition and results of
operations 7-10
PART II
OTHER INFORMATION
Item 1. Legal proceedings 11
Item 2. Changes in securities 11
Item 3. Defaults upon senior securities 11
Item 4. Submission of matters to a vote of 11
security holders
Item 5. Other information 11
Item 6. Exhibits and reports on Form 8-K 11-12
-1-
<PAGE>
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS SEPTEMBER 30, DECEMBER 31,
1998 1997
------------- ------------
(Unaudited) * (Note 1)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents ........ $120,124,076 $ 76,240,422
Trade receivables, less allowance:
1998 $402,812; 1997 $491,971 ..... 23,961,345 24,247,307
Prepaid tires .................... 1,157,908 1,617,464
Municipal bonds .................. 10,912,502 19,769,765
Deferred income taxes ............ 16,539,000 15,841,000
Other current assets ............. 1,704,216 280,243
------------ ------------
Total current assets ........... $174,399,047 $137,996,201
------------ ------------
PROPERTY AND EQUIPMENT
Land and land improvements ....... $ 3,830,779 $ 3,936,843
Buildings ........................ 9,214,397 9,215,477
Furniture and fixtures ........... 2,535,343 1,982,818
Shop and service equipment ....... 1,448,548 1,351,440
Revenue equipment ................ 115,247,207 118,819,981
------------ ------------
$132,276,274 $135,306,559
Less accumulated depreciation
& amortization ................ 59,920,310 54,336,481
------------ ------------
Property and equipment, net ...... $ 72,355,964 $ 80,970,078
------------ ------------
OTHER ASSETS ..................... $ 6,237,939 $ 6,500,395
------------ ------------
$252,992,950 $225,466,674
============ ============
<FN>
* Note: See Note 1 of "Notes to Financial Statements" for information regarding
the December 31, 1997 balance sheet.
</FN>
</TABLE>
-2-
<PAGE>
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, December 31,
1998 1997
------------ --------------
(Unaudited) *(Note 1)
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable & accrued liabilities .........$ 10,672,135 $ 8,857,820
Compensation & benefits ........................ 4,954,931 4,992,714
Income taxes payable ........................... 5,155,644 4,224,150
Insurance accruals ............................. 36,009,865 34,671,707
Other .......................................... 3,109,282 3,080,223
------------ --------------
Total current liabilities ....................$ 59,901,857 $ 55,826,614
DEFERRED INCOME TAXES ............................. 14,598,000 15,901,000
------------ --------------
$ 74,499,857 $ 71,727,614
------------ --------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock:
Preferred, $.01 par value; authorized
5,000,000 share; none issured ...............$ -- $ --
Common, $.01 par value; authorized
395,000,000 shares; issured and
outstanding
30,000,000 shares ........................... 300,000 300,000
Additional paid in capital ..................... 6,608,170 6,608,170
Retained earnings .............................. 171,584,923 146,830,890
------------ --------------
$178,493,093 $153,739,060
------------ --------------
$252,992,950 $225,466,674
============ ==============
<FN>
*Note: See Note 1 of "Notes to Financial Statements" for information
regarding the December 31, 1997 balance sheet
</FN>
</TABLE>
-3-
<PAGE>
HEARTLAND EXPRESS, INC
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, 1998 September 30, 1998
1998 1997 1998 1997
----------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATING REVENUE ............................................... $65,015,412 $ 70,179,846 $ 201,078,225 $ 195,448,551
----------- ------------- ------------- -------------
OPERATING EXPENSES:
Salaries, wages, benefits .................................... $12,386,792 $ 13,478,023 $ 39,354,435 $ 36,071,129
Rent and purchased transportation ............................ 24,963,644 25,946,445 77,194,808 76,602,178
Operations and maintenance ................................... 6,205,900 7,798,257 19,801,564 20,258,428
Taxes and licenses ........................................... 1,531,871 1,645,831 4,592,104 4,401,443
Insurance and claims ......................................... 1,762,395 2,456,295 5,794,102 8,391,392
Communications and utilities ................................. 623,147 751,781 2,057,689 1,905,781
Depreciation ................................................. 4,504,616 4,787,204 13,748,242 11,437,215
Other operating expenses ..................................... 1,362,005 1,238,926 4,262,602 3,491,534
(Gain) on sale of fixed assets ............................... -- (6,739) (332,255) (32,519)
----------- ------------- ------------- -------------
$53,340,370 $ 58,096,023 $ 166,473,291 $ 162,526,581
----------- ------------- ------------- -------------
Operating income .................................... $11,675,042 $ 12,083,823 $ 34,604,934 $ 32,921,970
Interest income .............................................. 1,297,856 908,717 3,480,990 2,860,474
Interest expense ............................................. -- (64,513) -- (64,513)
----------- ------------- ------------- -------------
Income before income taxes ................................... $12,972,898 $ 12,928,027 $ 38,085,924 $ 35,717,931
Federal and state income taxes ............................... 4,542,309 4,525,214 13,331,891 12,957,481
----------- ------------- ------------- -------------
Net income ................................................... $ 8,430,589 8,402,813 $ 24,754,033 $ 22,760,450
=========== ============= ============= =============
Earnings per common share:
Basic earnings per share ................................. $ 0.28 $ 0.28 $ 0.83 $ 0.76
=========== ============= ============= =============
Basic weighted average shares
outstanding ................................................ 30,000,000 30,000,000 30,000,000 30,000,000
=========== ============= ============= =============
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
-4-
<PAGE>
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30,
1998 1997
------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income ................................... $ 24,754,033 $ 22,760,450
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization ............. 14,594,332 11,868,268
Deferred income taxes ..................... (2,001,000) (3,254,500)
Gain on sale of fixed assets .............. (332,255) (22,303)
Changes in certain working capital items:
Trade receivables ...................... 285,962 (4,657,077)
Other current assets ................... (1,778,755) (1,453,934)
Prepaid expenses ....................... 198,569 897,759
Accounts payable and accrued expenses .. 3,727,948 7,279,887
Accrued income tax ..................... 931,494 452,539
------------- -------------
Net cash provided by operating activities $ 40,380,328 $ 33,871,089
------------- -------------
INVESTING ACTIVITIES
Proceeds from sale of prop. and equipment .... $ 473,200 $ 32,519
Capital additions ............................ (5,506,006) (22,598,157)
Net sales of municipal bonds ................. 8,857,263 19,198,983
Other ........................................ (321,131) (655,722)
------------- -------------
Net cash (used in) provided by
investment activities ...................... $ 3,503,326 $ (4,022,377)
------------- -------------
FINANCING ACTIVITIES
Principal payments on long-term notes ........ $ -- $(18,542,135)
------------- -------------
Net cash used in financing activities ...... $ -- $(18,542,135)
------------- -------------
Net increase in cash and cash equivalents .. $ 43,883,654 $ 11,306,577
CASH AND CASH EQUIVALENTS
Beginning of year .......................... 76,240,422 59,593,468
------------- -------------
End of quarter ............................. $120,124,076 $ 70,900,045
============= =============
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
Cash paid during the period for:
Interest ................................... $ -- $ 64,513
Income taxes ............................... 14,401,397 15,587,442
Noncash investing activities:
Book value of revenue equipment traded ..... $ 6,897,781 $ 1,002,703
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
-5-
<PAGE>
HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring and certain nonrecurring accruals) considered necessary for
a fair presentation have been included. Operating results for the nine month
period ended September 30, 1998 are not necessarily indicative of the results
that may be expected for the year ended December 31, 1998. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Heartland Express, Inc. and Subsidiaries ("Heartland" or
the "Company") annual report on Form 10-K for the year ended December 31, 1997.
Note 2. Income Taxes
Income taxes for the three and nine month periods ended September 30, 1998 are
based on the Company's estimated effective tax rates. The rate for the three and
nine month periods ended September 30, 1998 was 35%. The rates for the three and
nine month periods ended September 30, 1997 were 35% and 36%, respectively.
-6-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The following is a discussion of the results of operations of the three and nine
month periods ended September 30, 1998 compared with the same periods in 1997,
and the changes in financial condition through the third quarter of 1998.
Results of Operations:
Three Months Ended September 30, 1998 and 1997
Operating revenue decreased $5.2 million (7.4%), to $65.0 million in the third
quarter of 1998 from $70.2 million in the third quarter of 1997. The revenue
decrease was attributable primarily to a decrease in employee driver and
independent contractor capacity.
Salaries, wages, and benefits decreased $1.1 million (8.1%), to $12.4 million in
the third quarter of 1998 from $13.5 million in the third quarter of 1997. As a
percentage of revenue, salaries, wages and benefits decreased to 19.1% in 1998
from 19.2% in 1997. This decrease is attributable to a decrease in capacity of
employee drivers operating the Company's tractor fleet.
During the third quarter of 1998, employee drivers accounted for 44% and
independent contractors 56% of the total fleet miles, compared with 46% and 54%,
respectively, in the third quarter of 1997. Rent and purchased transportation
decreased $1.0 million (3.8%), to $25.0 million in the third quarter of 1998
from $26.0 million in the third quarter of 1997. As a percentage of revenue,
rent and purchased transportation increased to 38.4% in the third quarter of
1998 from 37.0% in the third quarter of 1997. This reflected the Company's
increased reliance upon independent contractors and a decrease in capacity.
Operations and maintenance decreased $1.6 million (20.4%) to $6.2 million in the
third quarter of 1998 from $7.8 million in the third quarter of 1997. As a
percentage of revenue, operations and maintenance decreased to 9.5% in 1998 from
11.1% 1997. This decrease is attributable to the aforementioned decrease in
capacity of employee drivers operating the Company's tractor fleet. Operations
and maintenance costs were also impacted by a decrease in fuel prices compared
to those experienced in the third quarter of 1997.
Taxes and licenses decreased $0.1 million (6.9%), to $1.5 million in the third
quarter of 1998 from $1.6 million in the third quarter of 1997. As a percentage
of revenue, taxes and licenses increased to 2.4% in 1998 from 2.3% in 1997. The
cost decrease was primarily attributable to the decrease in fleet capacity.
Insurance and claims decreased $0.7 million (28.2%), to $1.8 million in the
third quarter of 1998 from $2.5 million in the third quarter of 1997. As a
percentage of revenue, insurance and claims decreased to 2.7% in the third
quarter of 1998 from 3.5% in the third quarter of 1997. Insurance and claims
expense will vary as a percentage of operating revenue from period to period
based on the frequency and severity of claims incurred in a given period as well
as changes in claims development trends. The decrease in the third quarter 1998
expense reflects the lessor severity of claims incurred.
Depreciation decreased $0.3 million (5.9%) to $4.5 million during the third
quarter of 1998 from $4.8 million in the third quarter of 1997. As a percentage
of revenue, depreciation increased to 6.9% of revenue during the third quarter
of 1998 from 6.8% during the third quarter of 1997. The decrease resulted from
the decrease in the size of the Company owned tractor fleet.
Other operating expenses increased $0.1 million (9.9%) to $1.3 million during
the third quarter of 1998 from $1.2 million during the third quarter of 1997. As
a percentage of revenue, other operating expenses increased to 2.1% in the third
quarter of 1998 from 1.8% in the third quarter of 1997. Other operating expenses
consists primarily of pallet cost, driver recruiting expense, and administrative
costs.
-7-
<PAGE>
Interest income increased $0.4 (42.8%) to $1.3 million in the third quarter of
1998 from $0.9 million in the third quarter of 1997. This increase is primarily
attributable to the increase in cash, cash equivalents, and municipal bonds.
The Company's effective tax rate was 35.0% in both compared quarters.
As a result of the foregoing, the Company's operating ratio (operating expenses
as a percentage of operating revenue) was 82.0% during the third quarter of 1998
compared with 82.8% during the third quarter of 1997. Net income $8.4 million
for both compared quarters.
Nine Months Ended September 30, 1998 and 1997
Operating revenue increased $5.6 million (2.9%), to $201.0 million in the nine
months ended September 30, 1998 from $195.4 million in the compared 1997 period.
The revenue increase was attributable primarily to the Company's acquisition of
A & M Express, Inc., expansion of the customer base, and increased volume from
existing customers.
Salaries, wages, and benefits increased $3.3 million (9.1%), to $39.4 million in
the nine months ended September 30, 1998 from $36.1 million in the compared 1997
period. As a percentage of revenue, salaries, wages and benefits increased to
19.6% in 1998 from 18.5% in 1997. An increase in the percentage of employee
drivers operating the Company's tractor fleet and a corresponding decrease in
the percentage of the fleet being provided by independent contractors was the
primary cause. This increase in employee driver miles was attributable to
increased utilization and the acquisition of A & M Express which relies
primarily on employee drivers. During the nine months ended September 30, 1998,
employee drivers accounted for 45% and independent contractors 55% of the total
fleet miles, compared with 42% and 58%, respectively, in the 1997 period. Rent
and purchased transportation increased $0.6 million (0.8%), to $77.2 million in
the nine months ended September 30, 1998 from $76.6 million in the compared 1997
period. As a percentage of revenue, rent and purchased transportation decreased
to 38.4% in the nine months ended September 30, 1998 from 39.2% in the compared
1997 period. This reflected the Company's decreased reliance upon independent
contractors.
Operations and maintenance decreased $0.5 million (2.3%) to $19.8 million in the
nine months ended September 30, 1998 from $20.3 million in the compared 1997
period. As a percentage of revenue, operations and maintenance decreased to 9.8%
of revenue in the nine months ended September 30, 1998 from 10.4% during the
compared 1997 period. The cost decrease was effected by a decrease in fuel
prices and savings associated with the replacement of company-owned tractors
with newer, more efficient tractors.
Taxes and licenses increased $0.2 million (4.3%), to $4.6 million in the nine
months ended September 30, 1998 from $4.4 million in the compared 1997 period.
As a percentage of revenue, taxes and licenses was 2.3% for both periods. The
cost increase was primarily attributable to the increase in fleet size
Insurance and claims decreased $2.6 million (31.0%), to $5.8 million in the nine
months ended September 30, 1998 from $8.4 million in the compared 1997 period.
As a percentage of revenue, insurance and claims decreased to 2.9% in the nine
months ended September 30, 1998 from 4.3% in the compared 1997 period. Insurance
and claims expense will vary as a percentage of operating revenue from period to
period based on the frequency and severity of claims incurred in a given period
as well as changes in claims development trends. The decrease in the first nine
months of 1998 expense reflects the lessor severity of claims incurred.
-8-
<PAGE>
Depreciation increased $2.3 million (20.2%) to $13.7 million during the nine
months ended September 30, 1998 from $11.4 million in the compared 1997 period.
As a percentage of revenue, depreciation increased to 6.8% of revenue during the
nine months ended September 30, 1998 from 5.9% during the compared 1997 period.
The increase resulted from the growth in the Company owned trailer and tractor
fleet.
Other operating expenses increased $0.8 million (22.1%) to $4.3 million during
the nine months ended September 30, 1998 from $3.5 million during the compared
1997 period. As a percentage of revenue, other operating expenses increased to
2.1% in the nine months ended September 30, 1998 from 1.8% in the compared 1997
period. Other operating expenses consists primarily of pallet cost, driver
recruiting expense, and administrative costs.
Interest income increased $0.6 (21.7%) to $3.5 million in the nine months ended
September 30, 1998 from $2.9 million in the compared 1997 period. This increase
is primarily attributable to the increase in cash, cash equivalents, and
municipal bonds.
The Company's effective tax rate was 35.0% and 36.0% for the nine month periods
ended September 30, 1998 and 1997, respectively. This decrease is primarily
attributable to the increase in tax-exempt interest earned.
As a result of the foregoing, the Company's operating ratio (operating expenses
as a percentage of operating revenue) was 82.8% during the nine months ended
September 30, 1998 compared with 83.2% during the compared 1997 period. Net
income increased $2.0 million (8.8%), to $24.8 million during the nine months
ended September 30, 1998 from $22.8 million during the compared 1997 period. The
first nine months of 1998 net income included a $0.3 million gain recognized on
a parcel of land sold.
Liquidity and Capital Resources
The growth of the Company's business has required significant investments in new
revenue equipment. Historically the Company has been debt-free, financing
revenue equipment through cash flow from operations. The Company also obtains
tractor capacity by utilizing independent contractors, who provide a tractor and
bear all associated operating and financing expenses. The Company expects to
finance further growth in its company-owned fleet through cash flow from
operations and cash equivalents currently on hand. Based on the Company's strong
financial position (current ratio of 2.9 and no debt), management foresees no
barrier to obtaining outside financing, if necessary, to continue with its
growth plans.
During the nine months ended September 30, 1998, the Company generated net cash
flow from operations of $40.4 million. Net cash provided by and used in
investing and financing activities included $8.9 million net sales of municipal
bonds and $5.5 million for capital expenditures, primarily revenue equipment.
Working capital at September 30, 1998 was $114.5 million, including $131.0
million in cash, cash equivalents, and municipal bonds. These investments
generated $3.5 million in interest income (primarily tax-exempt) during the nine
months ended September 30, 1998.
The Company's policy is to purchase only investment quality, highly liquid
investments.
Forward Looking Information
Statements by the Company in reports to its stockholders and public filings, as
well as oral public statements by Company representatives may contain certain
forward looking information that is subject of certain risks and uncertainties
that could cause actual results to differ materially from those projected.
-9-
<PAGE>
Without limitation, these risks and uncertainties include economic recessions or
downturns in customer's business cycles, excessive increase in capacity within
truckload markets, decreased demand for transportation services offered by the
Company, rapid inflation and fuel price increases, increases in interest rates,
and the availability and compensation of qualified drivers and owner operators.
Readers should review and consider the various disclosures made by the Company
in its reports to stockholders and periodic reports on Form 10-K and 10Q.
Year 2000 Issue
The Company has completed a comprehensive review of its Year 2000 issues and has
completed its review of internal systems (informational technology ("IT") and
non-IT). The majority of the Company's application software programs are
purchased from and maintained by vendors.
The Company's operational system and software are Year 2000 compliant and is
currently in the testing process. The Company estimates the updates to other
internal systems to be approximately 90% completed. The Company presently
believes that with modifications and updates to existing software, the cost of
which is not material, the Year 2000 problem will not pose significant
operational problems for the Company's internal systems.
As a part of the Company's comprehensive review, it is continuing to verify the
Year 2000 readiness of third parties (vendors and customers) with whom the
Company has material relationships. As the Company continues to monitor the
progress of its material vendors and customers it will formulate a contingency
plan at that point in time when the Company does not believe a material vendor
or customer will be compliant.
-10-
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable
Item 2. Changes in securities
Not applicable
Item 3. Defaults upon senior securities
Not applicable
Item 4. Submission of matters to a vote of security holders
Not applicable
Item 5. Other information
Not applicable
Item 6. Exhibits and reports on Form 8-K
None filed during the third quarter of 1998.
Page of Method of
Exhibit No. Document Filing
3.1 Articles of Incorporation Incorporated by Reference
to the Company's
registration statement on
Form S-1, Registration
No. 33-8165, effective
November 5, 1986.
3.2 Bylaws Incorporated by Reference
to the Company's
registration statement on
form S-1, Registration No.
33-8165, effective
November 5, 1986.
3.3 Certificate of Amendment To Incorporated by Reference
Articles of Incorporation to the Company's form
10-QA, for the quarter
ended June 30, 1997,
dated March 26, 1998.
4.1 Articles of Incorporation Incorporated by Reference
to the Company's
registration statement on
form S-1 Registration No.
33-8165, effective
November 5, 1986.
-11-
<PAGE>
4.2 Bylaws Incorporated by Reference
to the Company's
registration statement on
form S-1, Registration No.
33-8165, effective
November 5, 1986.
4.3 Certificate of Amendment to Incorporated by Reference
Articles of Incorporation to the Company's Form
10-QA, for the quarter
ended June 30, 1997,
dated March 26, 1998.
9.1 Voting Trust Agreement dated Incorporated by Reference
June 6, 1997 among the Gerdin to the Company's
Educational Trusts and Larry Form 10-K for the year
Crouse voting trustee. ended December 31, 1997.
Commission file no.
0-15087.
10.1 Business Property Lease Incorporated by Reference
between Russell A. Gerdin to the Company's Form
as Lessor and the Company 10-K for the year ended
as Lessee, regarding the December 31, 1996.
Company's headquarters at Commission file no.
2777 Heartland Drive 0-15087, dated
Coralville, Iowa 52241 March 27, 1997.
10.2 Form of Independent Contractor Incorporated by Reference
Operating Agreement between the to the Company's Form
Company and its independent 10-K for the year ended
contractor providers of tractors December 31, 1993.
Commission file no.
0-15087.
10.3 Description of Key Management Incorporated by Reference
Deferred Incentive Compensation to the Company's Form
Arrangement 10-K for the year ended
December 31, 1993.
Commission file no.
0-15087.
21 Subsidiaries of the Registrant Incorporated by Reference
to the Company's Form
10-K for the year ended
December 31, 1997.
Commission file no.
0-15087.
27 Financial Data Schedule Filed herewith.
-12-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
HEARTLAND EXPRESS, INC.
BY: /s/ John P. Cosaert
--------------------------
JOHN P. COSAERT
Vice-President
Finance and Treasurer
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000799233
<NAME> HEARTLAND EXPRESS, INC.
<MULTIPLIER> 1
<CURRENCY> 0
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<EXCHANGE-RATE> 1
<CASH> 120,124,076
<SECURITIES> 10,912,502
<RECEIVABLES> 23,961,345
<ALLOWANCES> 402,812
<INVENTORY> 0
<CURRENT-ASSETS> 174,399,047
<PP&E> 132,276,274
<DEPRECIATION> 59,920,310
<TOTAL-ASSETS> 252,992,950
<CURRENT-LIABILITIES> 59,901,857
<BONDS> 0
0
0
<COMMON> 300,000
<OTHER-SE> 178,193,093
<TOTAL-LIABILITY-AND-EQUITY> 252,992,950
<SALES> 201,078,225
<TOTAL-REVENUES> 201,078,225
<CGS> 0
<TOTAL-COSTS> 166,473,291
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 38,085,924
<INCOME-TAX> 13,331,891
<INCOME-CONTINUING> 24,754,033
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 24,754,033
<EPS-PRIMARY> 0.83
<EPS-DILUTED> 0.83
</TABLE>
