Heartland Express shakes up operations with CFI rebrand

Core Insights - Heartland Express is integrating and rebranding the domestic operations of Contract Freighters, Inc. (CFI), which was acquired in 2022, due to ongoing heavy losses [1] Company Operations - CFI's headquarters will remain in Joplin, Missouri, with additional locations in West Memphis, Arkansas, and Laredo, Texas. Current CFI employees will have the opportunity to continue their employment at Heartland or its other brands [2] - CFI driver compensation and benefits will be aligned with Heartland's legacy operations, resulting in increased pay for CFI drivers. They will have the option to operate under any of Heartland's brands while retaining their current trucks [3] Financial Performance - Heartland has experienced nine consecutive quarterly losses (excluding one-time real estate gains). However, Smith returned to profitability, while Millis and Heartland's legacy fleet operated at low-90% operating ratios. CFI was the only fleet that was unprofitable in the third quarter, although improvements have been noted [4] - CEO Mike Gerdin stated that the integration and rebranding of CFI is a logical step to enhance consolidated operating and financial performance. The company has completed a telematics conversion and a TMS upgrade, which were challenges this year [5]