Heartland Express, Inc. Reports Revenues and Earnings for the Fourth Quarter of 2007

Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter and year ended December 31, 2007. Operating revenues for the quarter increased 4.1% to $152.8 million from $146.8 million in the fourth quarter of 2006. Net income decreased 15.4% to $16.6 million from $19.6 million in the 2006 period. Earnings per share were $0.17 compared to $0.20 for the fourth quarter of 2006. Operating income during the fourth quarter of 2007 was negatively impacted approximately $4.6 million or $0.03 per share due to an increase in fuel cost, net of fuel surcharge revenue. For the year ended December 31, 2007, operating revenues increased 3.5% to $591.9 million from $571.9 million during the same period in 2006. Net income decreased 12.6% to $76.2 million from $87.2 million in the 2006 period. Earnings per share were $0.78 compared with $0.89 for the 2006 period. Operating income for the year was negatively impacted by a $8.0 million decrease in gains on disposal of property and equipment. In addition, operating income for the year ended December 31, 2007 was negatively impacted approximately $10.5 million or $0.07 per share due to an increase in fuel cost, net of fuel surcharge revenue. For the quarter, Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 83.9% and a 10.9% net margin (net income as a percentage of operating revenues). The Company reported an operating ratio of 81.3% and a 12.9% net margin for the year ended December 31, 2007. The Company ended the year with cash, cash equivalents, and short-term investments of $196.6 million, a $134.7 million decrease from the $331.3 million reported on December 31, 2006 due to the special $196.5 million dividend paid in 2007. The Company’s balance sheet continues to be debt-free. The average age of the Company’s tractor fleet was 2.1 years at December 31, 2007 with the entire tractor fleet consisting of 2005 or newer model year International tractors. The average age of the Company’s trailer fleet was 3.8 years at December 31, 2007 with the entire trailer fleet consisting of 2002 or newer model year Wabash trailers. During the quarter, Heartland Express declared a regular quarterly cash dividend. The quarterly dividend of approximately $1.9 million at the rate of $0.02 per share was paid on January 3, 2008 to shareholders of record at the close of business on December 21, 2007. The Company has now paid cash dividends of $224.6 million over the past eighteen consecutive quarters. Interest income decreased in the fourth quarter of 2007 and for the year ended December 31, 2007 primarily due to the payment of the special dividend. The Company purchased 1.3 million shares of its outstanding common stock during the year. Our strong cash position has allowed us to improve shareholder return with share repurchases and cash dividends without effecting growth opportunities. This repurchase of shares demonstrates the Board of Director’s confidence in the Company’s performance and future prospects. On October 11, 2007, Forbes magazine named Heartland Express one of the "Best 200 Small Companies in America.” The Company has been recognized sixteen times during its twenty one years as a public company, and has made the list the past six consecutive years. This press release may contain statements that might be considered as forward-looking statements or predictions of future operations. Such statements are based on management’s belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties. Actual events may differ from these expectations as specified from time to time in filings with the Securities and Exchange Commission. HEARTLAND EXPRESS, INC. AND SUBSIDIARIES   CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts)           Twelve months ended Twelve months ended December 31, December 31,   2007 2006 2007 2006   OPERATING REVENUE $ 152,786   $ 146,804   $ 591,893   $ 571,919   OPERATING EXPENSES: Salaries, wages, benefits $ 49,243 $ 48,842 $ 196,303 $ 189,179 Rent and purchased transportation 5,304 5,322 21,421 24,388 Fuel 47,029 36,519 164,285 146,240 Operations and maintenance 2,357 3,017 12,314 12,647 Operating taxes and licenses 2,283 2,613 9,454 9,143 Insurance and claims 4,006 5,077 18,110 16,621 Communications and utilities 992 913 3,857 3,721 Depreciation 12,532 13,546 48,478 47,351 Other operating expenses 4,344 4,243 17,380 17,357 Loss (gain) on disposal of property & equipment   113     (572 )   (10,159 )   (18,144 )   128,203     119,520     481,443     448,503   Operating income 24,583 27,284 110,450 123,416 Interest income   2,322     3,178     10,285     11,732   Income before income taxes 26,905 30,462 120,735 135,148 Federal and state income taxes   10,274     10,814     44,565     47,978   Net Income $ 16,631   $ 19,648   $ 76,170   $ 87,170   Earnings per share $ 0.17   $ 0.20   $ 0.78   $ 0.89   Weighted average shares outstanding   96,953     98,252     97,735     98,359   Dividends declared per share $ 0.020   $ 0.020   $ 2.080   $ 0.075   HEARTLAND EXPRESS, INC. AND SUBSIDIARIES   CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) December 31, December 31, ASSETS 2007 2006 CURRENT ASSETS Cash and cash equivalents $ 7,960 $ 8,459 Short-term investments 188,643 322,829 Trade receivables 44,359 43,499 Prepaid tires 4,764 5,076 Other prepaid expenses 1,692 1,635 Income tax receivable 57 -- Deferred income taxes   30,443   29,177 Total current assets $ 277,918 $ 410,675 PROPERTY AND EQUIPMENT $ 370,358 $ 344,324 Less accumulated depreciation   132,545   96,293 $ 237,813 $ 248,031 OTHER ASSETS $ 10,563 $ 10,364 $ 526,294 $ 669,070 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 12,747 $ 15,076 Compensation & benefits 15,024 15,028 Income taxes payable -- 21,419 Insurance accruals 60,882 56,652 Other accruals   6,719   8,248 Total current liabilities $ 95,372 $ 116,423 LONG-TERM LIABILITIES Income taxes payable $ 37,593 $ -- Deferred income taxes   50,570   57,623 $ 88,163 $ 57,623 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Capital stock; common, $.01 par value; authorized 395,000 shares; issued and outstanding 96,949 in 2007 and 98,252 in 2006 $ 969 $ 983 Additional paid-in capital 439 376 Retained earnings   341,351   493,665 $ 342,759 $ 495,024 $ 526,294 $ 669,070