Company Quick10K Filing
Heartland Express
Price21.27 EPS1
Shares82 P/E21
MCap1,745 P/FCF16
Net Debt-131 EBIT103
TEV1,614 TEV/EBIT16
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-05
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-02-25
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-02-21
10-Q 2018-09-30 Filed 2018-11-06
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-02-28
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-06-30 Filed 2015-08-10
10-Q 2015-03-31 Filed 2015-05-11
10-K 2014-12-31 Filed 2015-03-02
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-11
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-03
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-09
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-01
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-02-28
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-08
10-Q 2011-03-31 Filed 2011-05-06
10-K 2010-12-31 Filed 2011-02-23
10-Q 2010-09-30 Filed 2010-11-05
10-Q 2010-06-30 Filed 2010-08-06
10-Q 2010-03-31 Filed 2010-05-07
10-K 2010-02-18 Filed 2010-02-24
8-K 2020-07-21 Other Events, Exhibits
8-K 2020-07-16 Earnings, Other Events, Exhibits
8-K 2020-06-09
8-K 2020-05-14
8-K 2020-04-21
8-K 2020-03-10
8-K 2020-01-23
8-K 2019-11-25
8-K 2019-10-30
8-K 2019-10-14
8-K 2019-09-10
8-K 2019-08-26
8-K 2019-07-18
8-K 2019-06-11
8-K 2019-05-16
8-K 2019-05-16
8-K 2019-04-18
8-K 2019-03-12
8-K 2019-01-22
8-K 2018-10-17
8-K 2018-10-16
8-K 2018-09-11
8-K 2018-08-31
8-K 2018-07-19
8-K 2018-06-12
8-K 2018-05-10
8-K 2018-05-10
8-K 2018-04-25
8-K 2018-03-13
8-K 2018-03-07
8-K 2018-02-12

HTLD 10Q Quarterly Report

Part I
Note 1. Basis of Presentation and New Accounting Pronouncements
Note 2. Use of Estimates
Note 3. Segment Information
Note 4. Revenue Recognition
Note 5. Cash and Cash Equivalents
Note 6. Prepaid Tires, Property, Equipment, and Depreciation
Note 7. Other Intangibles, Net and Goodwill
Note 8. Earnings per Share
Note 9. Equity
Note 10. Stock - Based Compensation
Note 11. Long - Term Debt
Note 12. Income Taxes
Note 13. Commitments and Contingencies
Note 14. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II
Item 1. Legal Proceedings
Item 4. Mine Safety Disclosures
Item 5. Other Information
EX-31.1 exhibit3112020q2.htm
EX-31.2 exhibit3122020q2.htm
EX-32.1 exhibit3212020q2.htm
EX-32.2 exhibit3222020q2.htm

Heartland Express Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.00.80.60.40.20.02012201420172020
Assets, Equity
0.40.30.20.20.10.02012201420172020
Rev, G Profit, Net Income
0.10.0-0.0-0.1-0.1-0.22012201420172020
Ops, Inv, Fin

htld-20200630
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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)
Nevada93-0926999
(State or Other Jurisdiction(I.R.S. Employer
of Incorporation or organization)Identification No.)
901 North Kansas Avenue,North Liberty,Iowa52317
(Address of Principal Executive Offices)(Zip Code)
319-626-3600
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueHTLDNASDAQ

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes [X]
No [  ]

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes [X]
No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer [X]Accelerated filer [ ]
Non-accelerated filer [ ]Smaller reporting company [ ]
Emerging growth company [ ]




If an emerging company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ]No [ X ]


As of July 31, 2020 there were 81,370,525 shares of the registrant’s common stock ($0.01 par value) outstanding.
1



HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES

TABLE OF CONTENTS
  
  
 Page
PART I - FINANCIAL INFORMATION 
Item 1. Financial Statements
PART II - OTHER INFORMATION
 
 
 
  
  
  
  
  
  

2



PART I

HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)
ASSETSJune 30,
2020
December 31,
2019
CURRENT ASSETS
Cash and cash equivalents$82,457  $76,684  
Trade receivables, net of $1.1 million allowance in 2020 and 2019, respectively64,133  56,753  
Prepaid tires7,893  9,107  
Other current assets15,162  8,947  
Income tax receivable  323  
Total current assets169,645  151,814  
PROPERTY AND EQUIPMENT 
Land and land improvements75,569  60,637  
Buildings83,324  70,603  
Leasehold improvements  437  
Furniture and fixtures4,546  4,255  
Shop and service equipment14,127  13,726  
Revenue equipment617,670  583,134  
Construction in progress2,454  6,351  
Property and equipment, gross797,690  739,143  
Less accumulated depreciation254,198  212,856  
Property and equipment, net543,492  526,287  
GOODWILL168,295  168,295  
OTHER INTANGIBLES, NET25,940  27,136  
DEFERRED INCOME TAXES, NET5,298  6,006  
OTHER ASSETS17,829  19,393  
 $930,499  $898,931  
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES 
Accounts payable and accrued liabilities$15,914  $11,060  
Compensation and benefits24,256  24,712  
Insurance accruals16,566  17,584  
Other accruals14,263  10,051  
Income tax payable531    
Total current liabilities71,530  63,407  
LONG-TERM LIABILITIES 
Income taxes payable5,669  5,956  
Deferred income taxes, net102,294  93,698  
Insurance accruals less current portion48,391  51,211  
Total long-term liabilities156,354  150,865  
COMMITMENTS AND CONTINGENCIES (Note 13)
STOCKHOLDERS' EQUITY 
Preferred stock, par value $.01; authorized 5,000 shares; none issued    
Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2020 and 2019; outstanding 81,356 and 82,028 in 2020 and 2019, respectively907  907  
Additional paid-in capital4,606  4,141  
Retained earnings855,830  826,666  
Treasury stock, at cost; 9,333 and 8,661 in 2020 and 2019, respectively(158,728) (147,055) 
 702,615  684,659  
 $930,499  $898,931  
The accompanying notes are an integral part of these consolidated financial statements.
3




HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended June 30,Six Months Ended 
 June 30,
2020201920202019
OPERATING REVENUE$160,873  $142,144  $327,191  $281,681  
OPERATING EXPENSES
Salaries, wages, and benefits68,147  53,432  $138,401  107,228  
Rent and purchased transportation1,028  1,868  2,636  4,280  
Fuel18,287  23,339  44,228  46,519  
Operations and maintenance7,597  5,626  14,398  11,471  
Operating taxes and licenses3,724  3,500  7,566  7,391  
Insurance and claims5,852  3,985  11,206  8,774  
Communications and utilities1,272  1,104  2,692  2,327  
Depreciation and amortization27,168  22,615  53,803  44,842  
Other operating expenses6,056  5,187  12,965  10,358  
Gain on disposal of property and equipment(3,247) (7,542) (3,018) (11,383) 
 135,884  113,114  284,877  231,807  
Operating income24,989  29,030  42,314  49,874  
Interest income157  1,229  534  2,374  
Income before income taxes25,146  30,259  42,848  52,248  
Federal and state income taxes5,964  7,898  10,428  12,569  
Net income$19,182  $22,361  $32,420  $39,679  
Other comprehensive income, net of tax        
Comprehensive income$19,182  $22,361  $32,420  $39,679  
Net income per share
Basic$0.24  $0.27  $0.40  $0.48  
Diluted$0.24  $0.27  $0.40  $0.48  
Weighted average shares outstanding
Basic81,351  81,968  81,611  81,952  
Diluted81,415  82,027  81,680  81,991  
Dividends declared per share$0.02  $0.02  $0.04  $0.04  

The accompanying notes are an integral part of these consolidated financial statements.
4




HEARTLAND EXPRESS, INC
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except per share amounts)
(unaudited)
     
 CapitalAdditional  
 Stock,Paid-InRetainedTreasury 
 CommonCapitalEarningsStockTotal
Balance, December 31, 2019$907  $4,141  $826,666  $(147,055) $684,659  
Net income    13,238    13,238  
Dividends on common stock, $0.02 per share    (1,628)   (1,628) 
Repurchases of common stock      (12,278) (12,278) 
Stock-based compensation, net of tax  291    406  697  
Balance, March 31, 2020907  4,432  838,276  (158,927) 684,688  
Net income    19,182    19,182  
Dividends on common stock, $0.02 per share    (1,628)   (1,628) 
Stock-based compensation, net of tax  174    199  373  
Balance, June 30, 2020$907  $4,606  $855,830  $(158,728) $702,615  
CapitalAdditional  
Stock,Paid-InRetainedTreasury 
CommonCapitalEarningsStockTotal
Balance, December 31, 2018$907  $3,454  $760,262  $(148,651) $615,972  
Net income    17,318    17,318  
Dividends on common stock, $0.02 per share    (1,640)   (1,640) 
Stock-based compensation, net of tax  (30)   207  177  
Balance, March 31, 2019$907  $3,424  $775,940  $(148,444) $631,827  
Net income    22,361    22,361  
Dividends on common stock, $0.02 per share    (1,640)   (1,640) 
Stock-based compensation, net of tax  375    406  781  
Balance, June 30, 2019$907  $3,799  $796,661  $(148,038) $653,329  

The accompanying notes are an integral part of these consolidated financial statements.

5




HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended 
 June 30,
 20202019
OPERATING ACTIVITIES  
Net income$32,420  $39,679  
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization54,048  45,297  
Deferred income taxes9,304  4,421  
Stock-based compensation expense1,357  1,279  
Gain on disposal of property and equipment(3,018) (11,383) 
Changes in certain working capital items:
Trade receivables(7,380) (4,688) 
Prepaid expenses and other current assets(3,318) (1,148) 
Accounts payable, accrued liabilities, and accrued expenses(222) (2,727) 
Accrued income taxes567  946  
Net cash provided by operating activities83,758  71,676  
INVESTING ACTIVITIES  
Proceeds from sale of property and equipment18,838  38,752  
Purchases of property and equipment(82,769) (66,483) 
Change in other assets 43  7  
Net cash used in investing activities(63,888) (27,724) 
FINANCING ACTIVITIES  
Payment of cash dividends(3,256) (1,640) 
Shares withheld for employee taxes related to stock-based compensation(287) (321) 
Repurchases of common stock(12,278)   
Net cash used in financing activities(15,821) (1,961) 
Net increase in cash, cash equivalents and restricted cash4,049  41,991  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH  
Beginning of period96,076  182,938  
End of period$100,125  $224,929  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION  
Cash paid during the period for income taxes, net of refunds$557  $7,202  
Noncash investing and financing activities:  
Purchased property and equipment in accounts payable$5,731  $13,118  
Sold revenue equipment and property in other current assets$2,017  $2,448  
Common stock dividends declared in accounts payable$  $1,640  
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents$82,457  $205,642  
Restricted cash included in other current assets1,391  2,404  
Restricted cash included in other assets16,277  16,883  
Total cash, cash equivalents and restricted cash$100,125  $224,929  
The accompanying notes are an integral part of these consolidated financial statements.
6



HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

Note 1.  Basis of Presentation and New Accounting Pronouncements

Heartland Express, Inc. is a holding company incorporated in Nevada, which owns all of the stock of Heartland Express, Inc. of Iowa, Heartland Express Services, Inc., Heartland Express Maintenance Services, Inc., Midwest Holding Group, LLC and Millis Transfer, LLC. On August 26, 2019, Heartland Express, Inc. of Iowa acquired Midwest Holding Group, Inc. and Millis Real Estate Leasing, LLC (together, "Millis Transfer"), a truckload carrier headquartered in Black River Falls, Wisconsin. Effective December 31, 2019, Millis Transfer, Inc. and Midwest Holding Group, Inc. were converted to Millis Transfer, LLC and Midwest Holding Group, LLC, respectively. Further, effective December 31, 2019, Millis Real Estate Leasing, LLC, Rivera Real Estate, LLC, and Great River Leasing, LLC were merged into Millis Transfer, LLC. We, together with our subsidiaries, are a short-to-medium haul truckload carrier (predominately 500 miles or less per load). We primarily provide nationwide asset-based dry van truckload service for major shippers from Washington to Florida and New England to California.

The accompanying consolidated financial statements include the parent company, Heartland Express, Inc., and its subsidiaries, all of which are wholly owned. The consolidated financial results for the three and six months ended June 30, 2020 include the results of Millis Transfer while the three and six months ended June 30, 2019 do not. All material intercompany items and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and notes to the financial statements required by U.S. GAAP for complete financial statements. In the opinion of management, all normal, recurring adjustments considered necessary for a fair presentation have been included. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2019 included in the Annual Report on Form 10-K of the Company filed with the Securities and Exchange Commission (the "SEC") on February 25, 2020, as amended on July 21, 2020. Interim results of operations are not necessarily indicative of the results to be expected for the full year or any other interim periods. There were no changes to the Company's significant accounting policies during the six month period ended June 30, 2020.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". This update requires measurement and recognition of expected versus incurred credit losses for financial assets held. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. We have adopted this standard effective January 1, 2020 and the impact of adoption of the standard did not have a material impact on our financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): "Simplifying the Accounting for Income Taxes". The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within that reporting period; however, early adoption is permitted. We expect to adopt in the period beginning January 1, 2021 and expect the impact to be immaterial to our financial statements.

Note 2.  Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates. There were no significant changes in estimates and assumptions used by management related to our critical accounting policies during the three and six months ended June 30, 2020.

Note 3. Segment Information

We provide truckload services across the United States (U.S.) and parts of Canada. These truckload services are primarily asset-based transportation services in the dry van truckload market, and we also offer truckload temperature-controlled transportation services to select dedicated customers, which are not significant to our operations. Our Chief Operating Decision Maker
7



oversees and manages all of our transportation services, on a combined basis, including previously acquired entities. As a result of the foregoing, we have determined that we have one segment, consistent with the authoritative accounting guidance on disclosures about segments of an enterprise and related information.

Note 4. Revenue Recognition

The Company recognizes revenue over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The delivery of the shipment and completion of the performance obligation allows for the collection of payment generally within 30 days after the delivery date of the shipment for the majority of our customers.

The Company's operations are consistent with those in the trucking industry where freight is hauled twenty-four hours a day and seven days a week, subject to hours of service rules. The Company’s average length of haul is 400-500 miles per trip and each individual shipment accepted by the Company is considered a separate contract with the performance obligation being the delivery of the freight. Our average length of haul for each load of freight generally equals less than one day of continuous transit time. The Company estimates revenue for multiple-stop loads based on miles run and estimates revenue for single stop loads based on transit time, as the customer simultaneously receives and consumes the benefit provided. The Company hauls freight and earns revenue on a consistent basis throughout the periods presented. A corresponding contract asset existed for the estimated revenue of these in-process loads for $1.4 million and $1.2 million at June 30, 2020 and December 31, 2019, respectively. Recorded contract assets are included in the accounts receivable line item of the balance sheet. Corresponding liabilities are recorded in the accounts payable and accrued liabilities and compensation and benefits line items for the estimated expenses on these same in-process loads. The Company had no contract liabilities associated with our operations as of June 30, 2020 and December 31, 2019, respectively.

Total revenues recorded were $160.9 million and $142.1 million for the three months ended June 30, 2020 and 2019, respectively. Fuel surcharge revenues were $14.0 million and $18.1 million for the three months ended June 30, 2020 and 2019, respectively. Accessorial and other revenues recorded in the consolidated statements of comprehensive income collectively represented $3.4 million and $2.7 million for the three months ended June 30, 2020 and 2019, respectively.

Total revenues recorded were $327.2 million and $281.7 million for the six months ended June 30, 2020 and 2019, respectively. Fuel surcharge revenues were $33.4 million and $35.1 million for the six months ended June 30, 2020 and 2019, respectively. Accessorial and other revenues recorded in the consolidated statements of comprehensive income collectively represented $6.9 million and $5.5 million for the six months ended June 30, 2020 and 2019, respectively.

Note 5. Cash and Cash Equivalents

Cash equivalents are short-term, highly liquid investments with insignificant interest rate risk and original maturities of three months or less at acquisition. At June 30, 2020, restricted and designated cash and investments totaled $17.7 million, of which $1.4 million was included in other current assets and $16.3 million was included in other non-current assets in the consolidated balance sheet. Restricted and designated cash and investments totaled $19.4 million at December 31, 2019, of which $1.6 million was included in other current assets and $17.8 million was included in other non-current assets in the consolidated balance sheet.  The restricted funds represent deposits required by state agencies for self-insurance purposes and designated funds that are earmarked for a specific purpose and not for general business use.

Note 6. Prepaid Tires, Property, Equipment, and Depreciation

Property and equipment are reported at cost, net of accumulated depreciation. Maintenance and repairs are charged to operations as incurred.  New tires are capitalized separately from revenue equipment and are reported separately as “Prepaid tires” in the consolidated balance sheets and amortized over two years. Depreciation for financial statement purposes is computed by the straight-line method for all assets other than tractors.  We recognize depreciation expense on new tractors using the 125% declining balance method. New tractors are depreciated to salvage values of $15,000 while new trailers are depreciated to salvage values of $4,000. At June 30, 2020, there were no amounts receivable related to equipment sales recorded in other current assets compared to $1.3 million at December 31, 2019.

Note 7. Other Intangibles, Net and Goodwill

All intangible assets determined to have finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. There was no change in the gross amount of identifiable intangible assets during the three and six months ended June 30, 2020.
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Amortization expense of $0.6 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, was included in depreciation and amortization in the consolidated statements of comprehensive income. Amortization expense of $1.2 million and $1.2 million for the six months ended June 30, 2020 and 2019, respectively, was included in depreciation and amortization in the consolidated statements of comprehensive income. Intangible assets subject to amortization consisted of the following at June 30, 2020:

Amortization period (years)Gross AmountAccumulated AmortizationNet intangible assets
(in thousands)
Customer relationships15-20$23,000  $3,877  $19,123  
Tradename0.5-1012,900  8,500  4,400  
Covenants not to compete1-105,300  2,883  2,417  
$41,200  $15,260  $25,940  

The carrying amount of goodwill was $168.3 million at June 30, 2020 and December 31, 2019, respectively.

Note 8. Earnings per Share

Basic earnings per share is based upon the weighted average common shares outstanding during each year.  Diluted earnings per share is based on the basic weighted earnings per share with additional weighted common shares for common stock equivalents. During the three and six months ended June 30, 2020 and June 30, 2019, we had outstanding restricted shares of common stock to certain of our employees under the Company's 2011 Restricted Stock Award Plan (the "Plan"). A reconciliation of the numerator (net income) and denominator (weighted average number of shares outstanding of the basic and diluted earnings per share ("EPS")) for the three and six months ended June 30, 2020 and June 30, 2019 is as follows (in thousands, except per share data):

Three months ended June 30, 2020
Net Income (numerator)Shares (denominator)Per Share Amount
Basic EPS$19,182  81,351  $0.24  
Effect of restricted stock  64  
Diluted EPS$19,182  81,415  $0.24  

Three months ended June 30, 2019
Net Income (numerator)Shares (denominator)Per Share Amount
Basic EPS$22,361  81,968  $0.27  
Effect of restricted stock  59  
Diluted EPS$22,361  82,027  $0.27  

Six Months Ended June 30, 2020
Net Income (numerator)Shares (denominator)Per Share Amount
Basic EPS$32,420  81,611  $0.40  
Effect of restricted stock  69  
Diluted EPS$32,420  81,680  $0.40  

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Six Months Ended June 30, 2019
Net Income (numerator)Shares (denominator)Per Share Amount
Basic EPS$39,679  81,952  $0.48  
Effect of restricted stock  39  
Diluted EPS$39,679  81,991  $0.48  




Note 9. Equity

We have a stock repurchase program with 6.2 million shares remaining authorized for repurchase as of June 30, 2020. There were no shares repurchased in the open market during the three months ended June 30, 2020 and 2019 respectively. There were 0.7 million shares repurchased in the open market for $12.3 million during the six months ended June 30, 2020 and there were no shares repurchased during the six months ended June 30, 2019. Repurchases are expected to continue from time to time, as determined by market conditions, cash flow requirements, securities law limitations, and other factors, until the number of shares authorized have been repurchased, or until the authorization is terminated. The share repurchase authorization is discretionary and has no expiration date.

During the three months ended June 30, 2020 and 2019, our Board of Directors declared regular quarterly dividends totaling $1.6 million and $1.6 million, respectively.  During the six months ended June 30, 2020 and 2019, our Board of Directors declared regular quarterly dividends totaling $3.3 million and $3.3 million, respectively. Future payment of cash dividends and the amount of such dividends will depend upon our financial conditions, our results of operations, our cash requirements, our tax treatment, and certain corporate law requirements, as well as factors deemed relevant by our Board of Directors.

Note 10. Stock-Based Compensation

In July 2011, a Special Meeting of Stockholders of Heartland Express, Inc. was held, at which meeting the approval of the Heartland Express, Inc. 2011 Restricted Stock Award Plan (the "Plan") was ratified. The Plan made available up to 0.9 million shares for the purpose of making restricted stock grants to our eligible officers and employees. There were no shares that were issued during the period 2011 to 2016 that remain unvested at June 30, 2020. Shares granted in 2017 through 2020 have various vesting terms that range from immediate to four years from the date of grant. Compensation expense associated with these awards is based on the market value of our stock on the grant date. Compensation expense associated with restricted stock awards is included in salaries, wages and benefits in the consolidated statements of comprehensive income. There were no significant assumptions made in determining fair value. Compensation expense associated with restricted stock awards was $0.4 million and $1.4 million respectively, for the three and six months ended June 30, 2020. Compensation expense associated with restricted stock awards was $1.0 million and $1.3 million respectively, for the three and six months ended June 30, 2019. Unrecognized compensation expense was $0.5 million at June 30, 2020 which will be recognized over a weighted average period of 0.6 years.

The following tables summarize our restricted stock award activity for the three and six months ended June 30, 2020 and 2019.

Three Months Ended June 30, 2020
Number of Shares of Restricted Stock Awards (in thousands)Weighted Average Grant Date Fair Value
Unvested at beginning of period73.8  $20.66  
Granted    
Vested(14.5) 19.84  
Forfeited    
Outstanding (unvested) at end of period59.3  $20.87  

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Three Months Ended June 30, 2019
Number of Shares of Restricted Stock Awards (in thousands)Weighted Average Grant Date Fair Value
Unvested at beginning of period20.0  $20.82  
Granted75.0  19.32  
Vested(36.5) 19.32  
Forfeited    
Outstanding (unvested) at end of period58.5  $19.83  


Six Months Ended June 30, 2020
Number of Shares of Restricted Stock Awards (in thousands)Weighted Average Grant Date Fair Value
Unvested at beginning of period52.1  $20.55  
Granted60.2  20.84  
Vested(52.5) 20.58