Heartland Express net income drives downhill in Q1

The North Liberty, Iowa-based trucking and logistics company posted a net income of $14 million and operating revenues of $130 million for the first quarter of 2017.    Heartland Express reported a net income of $14 million, earnings per share (EPS) of $0.17, and operating revenues of $130 million for the first quarter of 2017.
   These numbers compare to a net income of $14.4 million, EPS of $0.17, and operating revenues of $162.8 million for the first quarter of 2016.
   The North Liberty, Iowa-based trucking and logistics company had an operating ratio of 85.1 percent and a cash balance of $159.2 million, a $30.7 million increase since December 2016. 
   Operating revenues for the first quarter of 2017 included fuel surcharge revenues of $14.9 million compared to $13.1 million for the first quarter of 2016.
   Excluding the impact of fuel surcharge revenues, operating revenues fell 23.2 percent year-over-year, primarily due to lower miles driven during the first quarter compared to the same period in 2016.
   Operating income for the first quarter of 2017 totaled $19.4 million, falling just $0.9 million from the prior year, the company said.
   “The results achieved during the quarter were a result of operating through a challenging freight environment coupled with unfavorable weather conditions in the western United States during the first two months of the quarter followed by stronger freight volumes in March,” Heartland Express CEO Michael Gerdin said. “Our operating ratio and the cash generated from our operations has allowed us to continue to build our cash reserves during the quarter to nearly $160 million. We also increased our fleet activity as evidenced by more equipment purchases and sales completed during the quarter which resulted in an increase in gains on sale of equipment as compared to the same period in 2016.
   “We expect to continue to own and operate a fleet of revenue producing equipment that is relatively young in average age and updated with the latest technology, which we believe leads to lower costs of maintenance and better fuel economy. We remain committed to on-time and just-in-time service for our loyal customers and taking care of our professional drivers. These foundational values of our company are key to our current and expected future results, no matter what the operating environment may hold. I am extremely pleased with the execution of our team and our ability to stay the course and deliver these results during a very difficult environment for the first two months of the quarter,” continued Gerdin.