Heartland Express sees drop in net income, revenues

The North Liberty, Iowa-based trucking company posted net income of $15.1 million on revenues of $182.5 million for the third quarter of 2015.    Heartland Express, Inc. posted net income of $15.1 million for the third quarter of 2015 and $56 million for the first nine months of the year, a year-over-year decline of 33.5 percent and 11.5 percent, respectively, according to the company’s most recent unaudited financial statements.
   The North Liberty, Iowa-based trucking and logistics company reported basic earnings per share for the third quarter of $0.17 per share compared to $0.26 for the third quarter of 2014. For the first nine months of the year, Heartland Express’s basic EPS stood at $0.64 per share compared to $0.72 for the same period last year.
   Operating revenues fell 15.9 percent to $182.5 million for the third quarter of 2015 compared to last year’s third quarter. Excluding the impact of fuel surcharge revenues, operating revenues dropped 8.1 percent.
   For the first nine months of the year, operating revenues fell 16 percent to $561.7 million compared to the same period in 2014. Excluding the impact of fuel surcharge revenues, operating revenues dropped 8.6 percent.
   Heartland Express’s operating result for the third quarter was hindered by a $3.9 million decrease in gains on sales of equipment and a $2.2 million increase in insurance and claims activity, the company said. The third quarter was also impacted by lower than expected freight volumes compared to the first two quarters of the year.
   Heartland Express took delivery of approximately 380 new tractors and around 250 new trailers during the third quarter. In addition, the company has approximately 600 new tractors and 50 new trailers scheduled for delivery prior to the end of 2015.
   “While driver attrition has slowed, since implementation of our updated pay package in late 2014 and early 2015, attracting and retaining professional drivers that meet our high standards of safety continues to be an ongoing challenge,” Heartland Express said. “Driver challenges coupled with our yield management efforts and current freight demand has resulted in lower revenues and earnings period over period compared to 2014 although our operating ratio and net margin continue to show good improvement for the year ended September 30, 2015.”