Financial Performance - For the nine months ended September 30, 2020, the company reported operating revenues of $489.5 million, a 13.9% increase from $429.6 million in the same period of 2019[70]. - The net income for the same period was $53.1 million, resulting in a basic net income per share of $0.65, compared to $60.2 million and $0.73 per share in 2019[70]. - Operating revenue increased by $59.9 million (13.9%), reaching $489.5 million compared to $429.6 million in the same period of 2019[91]. - Net income for the nine months ended September 30, 2020 was $53.1 million, a decrease of 11.7% from $60.2 million in the same period of 2019[90]. - Operating revenue increased by $14.4 million (9.7%), reaching $162.3 million for the three months ended September 30, 2020, compared to $147.9 million in the same period of 2019[76]. - Net income for the three months ended September 30, 2020 was $20.7 million, a slight increase of 1.0% from $20.5 million in the same period of 2019[75]. Operating Efficiency - The operating ratio for the nine months ended September 30, 2020, was 85.8%, an increase from 82.2% in the same period of 2019[70]. - The operating ratio for the three months ended September 30, 2020 was 83.2%, compared to 81.9% in the prior year[75]. Cash Flow and Liquidity - Cash flow from operating activities for the nine months ended September 30, 2020, was $133.0 million, representing 27.2% of operating revenues, compared to $109.4 million and 25.5% in 2019[70]. - The company ended the third quarter of 2020 with cash, cash equivalents, and restricted cash of $99.2 million, with cash and cash equivalents (excluding restricted cash) at $81.9 million[70]. - Cash used in investing activities decreased by $4.0 million to $112.3 million during the nine months ended September 30, 2020, compared to $116.3 million in 2019[108]. - Cash used in financing activities decreased by $27.6 million during the nine months ended September 30, 2020, primarily due to $39.9 million less repayments on acquired debt[109]. - The company had $81.9 million in cash and cash equivalents and no outstanding debt as of September 30, 2020, with $88.5 million available borrowing capacity[103]. Expenses and Costs - Salaries, wages, and benefits increased by $6.3 million (10.3%), totaling $67.2 million for the three months ended September 30, 2020, primarily due to the addition of Millis Transfer drivers[79]. - Fuel expenses decreased by $4.0 million (15.8%), totaling $21.2 million for the three months ended September 30, 2020, attributed to lower average diesel prices[81]. - Depreciation and amortization increased by $11.0 million (15.6%), totaling $81.4 million during the nine months ended September 30, 2020, mainly due to the addition of the Millis Transfer fleet[96]. - Operating taxes and licenses expense increased by $0.4 million (3.9%) to $11.2 million for the nine months ended September 30, 2020, compared to $10.8 million in 2019[98]. - Insurance and claims expense rose by $4.0 million (33.3%) to $16.0 million for the nine months ended September 30, 2020, up from $12.0 million in 2019[99]. - Other operating expenses increased by $3.2 million (19.8%) to $19.6 million during the nine months ended September 30, 2020, compared to $16.4 million in 2019[100]. - Gains on the disposal of property and equipment decreased by $15.3 million (64.0%) to $8.7 million for the nine months ended September 30, 2020, down from $24.0 million in 2019[101]. Market Conditions and Challenges - Average DOE diesel fuel prices per gallon were $2.43 for the three months ended September 30, 2020, compared to $3.02 in 2019[68]. - The company continues to face challenges in attracting and retaining qualified drivers, exacerbated by COVID-19 safety measures[66]. - A 10% increase in tire prices would raise tire purchase expenses by $1.3 million, leading to a corresponding decrease in income before income taxes[117]. - The company expects to spend approximately $6 to $9 million in net capital expenditures during the remainder of 2020[108].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-15087 HEARTLAND EXPRESS INC. (Exact Name of Registrant as Specified in Its Charter) | Nevada | 93-0926999 | | --- | --- | | (Stat ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The consolidated financial statements reflect the Millis Transfer acquisition's impact on revenue and profitability [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $913.3 million due to increased equipment, while cash decreased and liabilities rose slightly Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $64,183 | $76,684 | | Total current assets | $149,260 | $151,814 | | Property and equipment, net | $545,716 | $526,287 | | Goodwill | $168,295 | $168,295 | | **Total Assets** | **$913,291** | **$898,931** | | **Liabilities & Equity** | | | | Total current liabilities | $71,719 | $63,407 | | Total long-term liabilities | $156,884 | $150,865 | | **Total Liabilities** | **$228,603** | **$214,272** | | **Total Stockholders' Equity** | **$684,688** | **$684,659** | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Revenue increased to $166.3 million post-acquisition, but net income and EPS declined from the prior year Q1 2020 vs. Q1 2019 Performance (in thousands, except per share data) | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Operating Revenue | $166,318 | $139,536 | | Operating Income | $17,326 | $20,843 | | Net Income | $13,238 | $17,318 | | Diluted EPS | $0.16 | $0.21 | | Dividends Declared per Share | $0.02 | $0.02 | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity remained stable as net income was offset by dividends and significant stock repurchases - Key equity changes in Q1 2020 included **+$13.2 million in net income**, offset by **-$1.6 million in dividends** and **-$12.3 million in stock repurchases**[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased, but higher investing and financing outflows led to a net decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $40,057 | $35,769 | | Net cash used in investing activities | ($39,632) | ($20,452) | | Net cash used in financing activities | ($14,145) | ($1,747) | | Net (decrease) increase in cash | ($13,720) | $13,570 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes clarify the acquisition's impact, single-segment structure, debt-free status, and higher tax rate - The Q1 2020 results include the **Millis Transfer acquisition**, which was not in the Q1 2019 results[25](index=25&type=chunk) - The company operates as a **single reportable segment** in truckload services[30](index=30&type=chunk) - The company had **zero outstanding debt** as of March 31, 2020, with **$89.7 million available credit**[48](index=48&type=chunk) - The effective tax rate **rose to 25.2%** from 21.2% year-over-year due to less favorable tax adjustments[49](index=49&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes a revenue increase and profit decrease to the Millis acquisition and lower equipment gains [Overview](index=20&type=section&id=Overview) The company operates as a short-haul carrier, navigating a volatile freight market post-acquisition - The company is a short-to-medium haul truckload carrier, with loads **predominately 500 miles or less**[62](index=62&type=chunk) - Freight demand softened in early 2020 but **increased in March** due to the COVID-19 pandemic[63](index=63&type=chunk) - The August 2019 **acquisition of Millis Transfer** added dry van capacity and a driver training school[66](index=66&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Revenue grew 19.2% post-acquisition, but a deteriorating operating ratio led to a 23.6% net income decline - The **operating ratio deteriorated to 89.6%** in Q1 2020 from 85.1% in Q1 2019[76](index=76&type=chunk) - The decrease in net income was primarily due to **lower gains on the sale of revenue equipment** in Q1 2020[76](index=76&type=chunk)[89](index=89&type=chunk) - Operating revenue **increased by $26.8 million (19.2%)** due to higher total miles from the Millis Transfer addition[77](index=77&type=chunk) - Salaries, wages, and benefits **increased by $16.5 million (30.6%)** due to the expanded workforce from the acquisition[81](index=81&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with no debt, positive operating cash flow, and significant share repurchases - As of March 31, 2020, the company had **$64.2 million in cash**, no outstanding debt, and **$89.7 million available borrowing capacity**[91](index=91&type=chunk) - Cash flow from operating activities was **$40.1 million for Q1 2020**, up from $35.8 million in Q1 2019[94](index=94&type=chunk) - The company **repurchased 0.7 million shares for $12.3 million** during Q1 2020[96](index=96&type=chunk)[97](index=97&type=chunk) - The company expects to spend approximately **$85 to $95 million in net capital expenditures** during the remainder of 2020[95](index=95&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risks stem from fuel and tire commodity prices, with no derivative hedging instruments in use - The company is exposed to commodity price risk from fuel and tires, as **fuel surcharges do not fully offset cost increases**[104](index=104&type=chunk) - A hypothetical **$1.00 increase in fuel price** per gallon would decrease pre-tax income by approximately **$7.2 million**[104](index=104&type=chunk) - A **10% increase in tire prices** would increase tire purchase expense by **$1.3 million**[104](index=104&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures with no material changes during the quarter - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2020[106](index=106&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter[108](index=108&type=chunk) [PART II - OTHER INFORMATION](index=30&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation that is not expected to have a material financial impact - The company is involved in routine litigation primarily involving claims for personal injury, property damage, and cargo[111](index=111&type=chunk) - Management believes the resolution of open claims is **not likely to have a materially adverse effect** on its financial statements[111](index=111&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The COVID-19 pandemic presents significant, uncertain risks to operations, demand, and financial condition - The **COVID-19 pandemic could have a materially adverse effect** on the company's financial condition and results of operations[113](index=113&type=chunk) - Risks include government containment measures, personnel absences, and **significant economic and demand uncertainty**[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 710,376 shares for $12.3 million in Q1 2020 under its ongoing buyback program Share Repurchases for Quarter Ended March 31, 2020 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | February 2020 | 64,000 | $17.85 | | March 2020 | 646,376 | $17.23 | | **Total** | **710,376** | **-** | - As of March 31, 2020, **6,187,085 shares may yet be purchased** under the company's share repurchase plan[118](index=118&type=chunk) [Defaults upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[119](index=119&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[120](index=120&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[121](index=121&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and corporate documents - A list of exhibits filed with the report is provided, including **CEO and CFO certifications** and XBRL data files[122](index=122&type=chunk)

Revenue and Growth - Heartland Express, Inc. has grown its revenues from $21.6 million in 1986 to $596.8 million in 2019, with net income increasing from $3.0 million to $73.0 million during the same period[18]. - The company generated approximately 75% of its operating revenue from its top 25 customers in both 2019 and 2018, with some individual customers accounting for over 5% and one exceeding 10% of operating revenue[87]. - The company completed the acquisition of Millis Transfer on August 26, 2019, which contributed to increased revenues and operating costs[164]. - The company plans to continue evaluating acquisition candidates, focusing on safe operations and high-quality professional truck drivers to support future growth[172]. - The company has completed eight acquisitions since 1986, with the most recent being Millis Transfer in 2019, which has helped expand its operating regions and customer relationships[19]. Customer and Market Dependence - The company's 25 largest customers accounted for approximately 75% of operating revenues in 2019, with Walmart Inc. being the only customer exceeding 10% of revenues at 10.9%[28]. - The company is highly dependent on a few major customers, and the loss of any could have a materially adverse effect on its business[87]. - The company currently faces a customer in bankruptcy, seeking the return of approximately $8.0 million in payments, which could adversely impact profitability and operations[90]. Operational Performance - The operating ratio improved to 84.2% in 2019 from 85.3% in 2018, indicating better cost management relative to revenues[165]. - The company maintains a disciplined approach to cost controls, focusing on enhancing driver experience and customer service[162]. - Operating income increased to $94.3 million for 2019, resulting in an operating ratio of 84.2%, compared to 85.3% in 2018[181]. - Cash flow from operating activities for 2019 was $146.4 million, representing 24.5% of operating revenues, slightly up from 24.0% in 2018[168]. Fleet and Equipment - The company operates 28 terminal facilities throughout the contiguous U.S., strategically located to support regional freight movements within a 500-mile radius[24]. - The average age of the tractor fleet was 1.8 years, and the trailer fleet was 3.6 years as of December 31, 2019, with expectations for slight increases in age for trailers in 2020[176]. - The company maintains a modern fleet of tractors and trailers, with a focus on late-model equipment to enhance operational performance and driver retention[35]. - The company anticipates net capital expenditures of approximately $120.0 million to $140.0 million for 2020, mainly for tractor and trailer purchases and terminal development projects[199]. Financial Performance - For the year ended December 31, 2019, the company generated operating revenues of $596.8 million, a decrease from $610.8 million in 2018[165]. - The net income for 2019 was $73.0 million, compared to $72.7 million in 2018, resulting in a basic net income per share of $0.89 on 82.0 million shares[165]. - The company achieved a return on assets of 8.2% and a return on equity of 11.0% for 2019, down from 9.0% and 12.2% respectively in 2018[165]. - Total assets increased to $898.9 million as of December 31, 2019, compared to $806.2 million in 2018[165]. Regulatory and Compliance Issues - The FMCSA proposed changes to hours-of-service rules in August 2019, which could impact operations and profitability[52]. - California's AB5 law presumes workers are employees unless the hiring company meets all three criteria of the "ABC Test," impacting independent contractor classification[63]. - Environmental regulations may increase costs related to compliance and could adversely affect operating results and profitability[65]. - Compliance with environmental laws may increase operational costs and result in substantial fines for non-compliance[112]. Driver and Labor Challenges - The shortage of qualified drivers in the truckload industry may necessitate increased compensation, impacting profitability and fleet growth[102]. - The company has implemented two driver pay increases in the past three years to attract and retain qualified drivers[46]. - Rising costs, including fuel prices and driver wages, could materially reduce profitability if the company cannot increase rates sufficiently[79]. Economic and Market Conditions - Economic conditions, including shipping demand and supply chain disruptions, could materially affect the company's operating results and profitability[78]. - Demand for freight services was significantly lower in 2019 compared to 2018, with winter weather affecting freight volumes[46]. - The truckload industry is highly competitive, with competition based on freight rates, qualified drivers, service, and equipment availability[45]. Risks and Uncertainties - Cybersecurity breaches pose significant risks to operations and could lead to reputational damage and financial losses[124]. - The company is subject to litigation risks, including class action lawsuits related to wage and hour laws, which may result in substantial settlements[134]. - The company maintains insurance for liabilities arising from freight transportation, but not all claims are covered, which could lead to significant expenses[135]. Shareholder and Governance - The Gerdin family, directors, and executive officers collectively own approximately 44% of the common stock, which may influence stockholder decisions and discourage changes in control[126]. - The company has a stock repurchase program with 6.9 million shares remaining authorized for repurchase as of December 31, 2019, with no shares repurchased in 2019[201].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For the quarterly period ended September 30, 2019 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-15087 HEARTLAND EXPRESS INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction (I.R.S. Employer of Incorporation or organization) Identification No.) (Mark One) [X] QUARTERLY REPORT PURSUANT TO ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-15087 HEARTLAND EXPRESS INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction (I.R.S. Employer ...

Financial Performance - Operating revenues for Q1 2019 were $139.5 million, a decrease of $17.2 million (11.0%) from $156.7 million in Q1 2018[75]. - Net income for Q1 2019 was $17.3 million, with basic net income per share of $0.21, compared to $13.4 million and $0.16 per share in Q1 2018[75]. - Net income increased by 29.5%, from $13.4 million in Q1 2018 to $17.3 million in Q1 2019[84]. Operating Efficiency - The operating ratio improved to 85.1% in Q1 2019 from 91.7% in Q1 2018, with a non-GAAP adjusted operating ratio of 83.0% compared to 90.4% in the prior year[75][83]. - Cash flow from operating activities for Q1 2019 was $35.8 million, representing 25.6% of operating revenues, up from $32.2 million (20.6%) in Q1 2018[76]. - Cash flow from operating activities increased to $35.8 million in Q1 2019, compared to $32.2 million in Q1 2018, representing 25.6% of operating revenues[99]. Revenue Sources - The company experienced a decrease in trucking and accessorial revenues of $12.7 million (9.4%) and a $4.5 million (21.0%) decrease in fuel surcharge revenue[81]. - Average DOE diesel fuel prices per gallon remained stable at $3.02 for Q1 2019, the same as in Q1 2018[73]. Cost Management - Salaries, wages, and benefits decreased by $8.2 million (13.2%) to $53.8 million in Q1 2019, primarily due to reductions in drivers and related costs[85]. - Rent and purchased transportation expenses decreased by $3.7 million (60.6%) to $2.4 million in Q1 2019, attributed to reduced leased revenue equipment and fewer independent contractors[86]. - Fuel expenses decreased by $5.7 million (19.8%) to $23.2 million in Q1 2019, due to decreased miles driven and improved fuel economy[87]. - Depreciation and amortization decreased by $3.4 million (13.2%) to $22.2 million in Q1 2019, mainly due to fewer tractors being depreciated[88]. Investments and Cash Position - Cash used in investing activities increased by $15.0 million to $20.5 million in Q1 2019, primarily for property and equipment purchases[100]. - The company had $176.3 million in cash and cash equivalents and no outstanding debt as of March 31, 2019[95]. Strategic Focus - The company completed seven acquisitions since 1987, with the most recent on July 6, 2017, aimed at expanding into new operating regions[74]. - The company is focused on attracting and retaining qualified drivers, having implemented two pay increases in the past two years[72]. - Future growth is expected to depend on economic conditions, customer demand, and the ability to attract and retain experienced drivers[74]. Tax and Gains - The effective tax rate increased to 21.2% in Q1 2019 from (0.7)% in Q1 2018, due to larger favorable adjustments recorded in the prior year[94]. - Gains on the disposal of property and equipment increased by $0.9 million (33.1%) to $3.8 million in Q1 2019, driven by higher gains on tractor and trailer sales[93]. Fleet Information - The average age of the tractor fleet was 1.4 years and the trailer fleet was 3.5 years as of March 31, 2019[73].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-15087 HEARTLAND EXPRESS, INC. (Exact Name of Registrant as Specified in Its Charter) | Nevada | 93-0926999 | | --- | --- | | (State or ...