Heartland Expr Stock Price, News & Analysis
Company Description
Heartland Express, Inc. (NASDAQ: HTLD) is a truckload carrier in the general freight trucking industry. According to available information, the company is engaged in providing asset-based transportation services in the dry van truckload market and offers truckload temperature-controlled transportation services and Mexico logistics services. Its operations are associated with the Transportation and Warehousing sector and the general freight trucking, local industry classification.
Heartland Express is based in North Liberty, Iowa. In a company description included in a recent conference announcement, Heartland Express is described as an irregular route truckload carrier serving customers with shipping lanes throughout the United States and Mexico. The company states that it focuses primarily on regional freight and emphasizes on-time service for shippers.
According to prior business descriptions, a majority of Heartland Express customers represent the consumer goods, appliances, food products, and automotive industries. The company’s truckload services are described as asset-based transportation services in the dry van truckload market, which means the carrier uses its own tractors and trailers rather than acting solely as a broker. The company also notes that it offers Mexico logistics services, which are tied to its cross-border and Mexico-related freight activities.
Business model and operations
Based on the information provided, Heartland Express operates as a truckload carrier that moves general freight in dry van trailers, with additional capabilities in temperature-controlled truckload transportation. The company’s business model centers on truckload transportation services where freight generally moves as full truckload shipments. Its operations include regional freight with irregular routes, which can involve varying lanes and schedules rather than fixed, dedicated routes.
The company identifies itself as focusing on industry-leading on-time service for shippers so they can pursue their own service goals for their customers. This focus on on-time performance is reinforced by multiple customer and industry awards cited in recent news releases, where Heartland Express and its operating brands received recognition from shippers and industry organizations for carrier of the year, fleet safety, and on-time delivery performance.
Operating brands and network
In recent financial news releases, Heartland Express discusses a family of operating brands that includes:
- Heartland Express
- Millis Transfer
- Smith Transport
- Contract Freighters, Inc. (CFI)
The company reports that these brands operate within a legacy operating model and that they have been integrating onto a common transportation management system. Heartland Express has stated that all four operating brands are now on this common system, which it believes will support better driver utilization, operational collaboration, and reduced unproductive miles.
Across its brands, Heartland Express reports operating results in terms of operating revenue, operating ratio, net income or loss, and non-GAAP adjusted operating ratio. The company also highlights the average age of its tractor and trailer fleets and describes its ongoing investments in property and equipment, including tractors and trailers.
Customer base and industry recognition
Heartland Express states that a significant portion of its customers are in the consumer goods, appliances, food products, and automotive industries. In multiple news releases, the company lists awards from shippers and industry groups recognizing performance in areas such as on-time service, fleet safety, and carrier of the year honors. These awards include recognition from large brand-name shippers and industry associations, as well as listings such as Newsweek's Most Trustworthy Companies and SmartWay High Performer TL/Dry Van Truck Carrier in the all metrics category.
The company also notes that it has been recognized for fleet safety by organizations such as the Truckload Carriers Association and state trucking associations. These awards are presented as evidence of the performance of its professional drivers and support teams, and of the company’s focus on safety and service.
Capital structure, dividends, and share repurchases
Heartland Express is incorporated in Nevada and its common stock trades on the NASDAQ under the ticker symbol HTLD, as noted in multiple press releases and Form 8-K filings. The company regularly reports its total assets, stockholders’ equity, debt and finance lease obligations, and cash balances in its earnings releases and SEC filings.
Heartland Express has an established cash dividend program. In several dividend announcements, the company reports that it has paid regular quarterly cash dividends for dozens of consecutive quarters since the dividend program was implemented in the third quarter of 2003. It also notes that it has paid four special dividends over that period. The company discloses the per-share amount of each regular dividend, the approximate total dividend amount, and the number of shares of common stock used in those calculations.
In addition to dividends, Heartland Express reports that it has engaged in share repurchases under an authorized repurchase program. The company periodically discloses the number of shares repurchased, the total cost of those repurchases, and the remaining authorization in terms of shares that could still be repurchased.
Financial reporting and non-GAAP measures
Heartland Express regularly issues earnings press releases and files Current Reports on Form 8-K to furnish its quarterly and annual financial results. These releases include consolidated statements of income and condensed consolidated balance sheets. The company presents operating revenue, operating expenses, operating income or loss, interest income, interest expense, income taxes, and net income or loss, along with basic and diluted earnings or loss per share.
Heartland Express also uses certain non-GAAP financial measures, including:
- Operating revenue excluding fuel surcharge revenue
- Adjusted operating income (or loss)
- Adjusted operating ratio
In its releases, the company explains that these non-GAAP measures are based on operating revenue minus fuel surcharge revenue, and operating expenses net of fuel surcharge revenue and non-cash amortization of intangible assets. It states that these measures are intended to provide a basis for comparing results of operations from period to period by excluding the volatility of fuel prices and certain non-cash items. The company provides reconciliations from GAAP to non-GAAP measures in tables accompanying its releases.
Corporate governance and SEC reporting
Heartland Express files reports with the U.S. Securities and Exchange Commission under its Commission File Number 000-15087 and IRS Employer Identification Number 93-0926999. Recent Form 8-K filings include:
- Item 2.02 reports furnishing unaudited financial results for specific quarters, with the related press releases attached as Exhibit 99.1.
- Item 8.01 reports announcing the declaration of quarterly cash dividends.
- Item 5.02 reporting a compensatory equity grant under the company’s 2021 Restricted Stock Award Plan for a named executive officer.
These filings confirm that Heartland Express continues to operate as a reporting company and to provide periodic financial and corporate updates.
Geographic scope
Based on the descriptions provided, Heartland Express provides truckload services across the United States and Mexico, and in earlier descriptions, across the United States, Mexico, and Canada. The company’s operating model includes irregular route truckload operations with shipping lanes throughout the United States and Mexico, and it offers Mexico logistics services for cross-border or Mexico-related freight.
Summary
In summary, Heartland Express, Inc. (NASDAQ: HTLD) is a truckload carrier in the general freight trucking segment of the Transportation and Warehousing sector. The company focuses on asset-based dry van truckload services, truckload temperature-controlled transportation, and Mexico logistics services, with a customer base that includes the consumer goods, appliances, food products, and automotive industries. It operates through a family of brands, uses a common transportation management system, and emphasizes on-time service and fleet safety. Heartland Express is based in North Liberty, Iowa, incorporated in Nevada, and maintains a long-standing program of regular quarterly cash dividends and periodic share repurchases, while reporting its financial results and corporate events through SEC filings and press releases.