Heartland Reports EPS of $0.25 vs $0.21 Est; Revenues $137.2M vs. $143.5M Est

Heartland Express, Inc. HTLD announced today financial results for the quarter ended June 30, 2011. Operating revenues for the quarter increased 7.7% to $137.2 million from $127.4 million in the second quarter of 2010. Net income was $22.5 million compared to $16.7 million in the 2010 period, a 35.3% increase. Earnings per share increased 38.9% to $0.25 from $0.18 reported in the second quarter of 2010. Fuel surcharge revenues for the quarter increased 50.4% to $29.7 million from $19.7 million in the second quarter of 2010. For the most recent quarter, Heartland Express, Inc. (the "Company") posted an operating ratio (operating expenses as a percentage of operating revenues) of 76.2% and a 16.4% net margin (net income as a percentage of operating revenues). Operating revenues for the six month period increased 9.0% to $264.9 million from $243.0 million in the 2010 period. Net income was $37.4 million compared to $28.5 million in the 2010 period, a 31.1% increase. Earnings per share increased 32.3% to $0.41 from $0.31 reported in the first six months of 2010. Fuel surcharge revenues for the six month period increased 48.7% to $53.8 million from $36.2 million in the 2010 six month period. For the six month period, the Company posted an operating ratio of 79.4% and a 14.1% net margin. The demand for freight services improved due to capacity issues in the industry. However, operating results were negatively impacted by a combination of tight driver availability and escalating fuel prices. The Company is challenged by the shrinking pool of qualified drivers. Fuel expense increased $11.3 million or 36.4% during the quarter primarily due to an increase in average fuel prices. During the quarter ended June 30, 2011, the U.S. average cost of fuel was $4.007 per gallon compared to $3.029 per gallon for the same period of 2010, a 32.3% increase. The Company continues to focus on fuel surcharge pricing, truck idling hours, and fuel purchasing decisions in an effort to lessen the impact of the accelerating fuel costs. Additionally, our new tractor fleet is one of the most fuel-efficient in the industry and is all equipped with idle management controls.