Heartland Express(HTLD) - 2019 Q1 - Quarterly Report

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].