Heartland Express Inc. (HTLD, Financial) filed Annual Report for the period ended 2010-12-31.
Heartland Express Inc. has a market cap of $1.54 billion; its shares were traded at around $17.01 with a P/E ratio of 25 and P/S ratio of 3.1. The dividend yield of Heartland Express Inc. stocks is 0.5%. Heartland Express Inc. had an annual average earning growth of 8.3% over the past 10 years.Hedge Fund Gurus that owns HTLD: Joel Greenblatt of Gotham Capital, Manning & Napier Advisors, Inc, Tom Russo of Gardner Russo & Gardner, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns HTLD: First Pacific Advisors of First Pacific Advisors, LLC, Richard Aster Jr of Meridian Fund, Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Heartland relies on its workforce in achieving its business objectives. As of December 31, 2010, Heartland employed 2,990 people compared to 2,781 people as of December 31, 2009. The increase was directly attributable to an increase in freight demand which strengthened in 2010 compared to 2009. The Company also contracted with independent contractors to provide and operate tractors. Independent contractors own their own tractors and are responsible for all associated expenses, including financing costs, fuel, maintenance, insurance, and highway use taxes. The Company historically has operated a combined fleet of company and independent contractor tractors. For the year ended December 31, 2010 independent contractors accounted for approximately 2.7% of the Company’s total miles compared to 3.6% in 2009.
A uniform fleet of tractors and trailers are utilized to minimize maintenance costs and to standardize the Company’s maintenance program. In the second half of 2008, the Company began a tractor fleet upgrade with ProStar International trucks manufactured by Navistar International Corporation. We have seen positive results through advanced aerodynamics, speed management, and idle controls. As of December 31, 2010 89.5% of the Company's tractor fleet was 2009 or newer models which is expected to grow to approximately 95% by the end of the first quarter of 2011. At December 31, 2010, primarily all the Company’s tractors are manufactured by Navistar International Corporation. In addition, during 2008 the Company acquired 400 new Wabash National Corporation trailers and in 2010, 600 new Great Dane trailers. Primarily all of the Company’s trailers are manufactured by Wabash National Corporation. The Company has entered into further commitments to upgrade the Company's trailer fleet. The average age of our tractor and trailer fleet was 1.8 years and 6.0 years, respectively, at December 31, 2010. The Company operates the majority of its tractors while under warranty to minimize repair and maintenance cost and reduce service interruptions caused by breakdowns. In addition, the Company’s preventive maintenance program is designed to minimize equipment downtime, facilitate customer service, and enhance trade value when equipment is replaced. Factors considered when purchasing new equipment include fuel economy, price, technology, warranty terms, manufacturer support, driver comfort, and resale value. Independent contractor tractors are periodically inspected by the Company for compliance with operational and safety requirements of the Company and the DOT.
increase in the cost of new tractors and higher maintenance costs. The Company has experienced an approximate 20% increase in tractor costs comparing tractors with pre 2007 engine emission requirements and tractors with post 2007 engine emission requirements. Beginning in 2010 a new set of more restrictive engine emission requirements became effective. As of December 31, 2010, 89.5% of the Company’s tractor fleet was models with post January 2007 engine requirements compared to 73% of the Company’s tractor fleet as of December 31, 2009. The inability to recover tractor cost increases, as a result of new engine emission requirements, with rate increases or cost reduction efforts could adversely affect the Company’s results of operations.
The Company purchases over-the-road fuel through a network of fuel stops throughout the United States at which the Company has negotiated price discounts. In addition, bulk fuel sites are maintained at the twelve Company owned locations which includes the nine regional terminal centers, the Company’s corporate headquarters, plus two service terminal locations in order to take advantage of volume pricing. The Company strategically manages fuel purchase decisions based on pricing of over-the-road fuel prices, bulk fuel prices, and the routing of equipment. Both above ground and underground storage tanks are utilized at the bulk fuel sites. Exposure to environmental cleanup costs is minimized by periodic inspection and monitoring of the tanks. Increases in fuel prices can have an adverse effect on the results of operations. The Company has fuel surcharge agreements with most customers enabling the pass through of long-term price increases. For the years ended December 31, 2010, 2009, and 2008, fuel expense, net of fuel surcharge revenue and fuel stabilization paid to independent contractors along with favorable fuel hedge settlements, was $53.2 million, $52.7 million, and $79.4 million or 15.9%, 16.0%, and 19.7%, respectively, of the Company’s total operating expenses, net of fuel surcharge revenue. During periods of rapidly rising fuel prices, fuel surcharge agreements do not cover 100% of the Company’s incremental fuel expense. During 2008 fuel prices rose rapidly during the first half of the year and declined rapidly over the second half of the year negating the volatile fluctuation in fuel prices during the year. At the peak of the fuel prices in July 2008, fuel expense, net of fuel surcharge revenue, rose to approximately 23% of the Company’s total operating expenses, net of fuel surcharge revenue compared to 15.9% and 16.0% for 2010 and 2009. Fuel consumed by empty and out-of-route miles and by truck engine idling time is not recoverable and therefore any increases or decreases in fuel prices related to empty and out-of-route miles and idling time will directly impact the Company’s operating results.
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Heartland Express Inc. has a market cap of $1.54 billion; its shares were traded at around $17.01 with a P/E ratio of 25 and P/S ratio of 3.1. The dividend yield of Heartland Express Inc. stocks is 0.5%. Heartland Express Inc. had an annual average earning growth of 8.3% over the past 10 years.Hedge Fund Gurus that owns HTLD: Joel Greenblatt of Gotham Capital, Manning & Napier Advisors, Inc, Tom Russo of Gardner Russo & Gardner, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns HTLD: First Pacific Advisors of First Pacific Advisors, LLC, Richard Aster Jr of Meridian Fund, Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Highlight of Business Operations:
The Company’s 25, 10, and 5 largest customers accounted for 73.1%, 51.4%, and 37.7% of gross revenue, respectively, in 2010. The Company’s primary customers include retailers and manufacturers. During 2009 the Company's 25, 10, and 5 largest customers were 71.6%, 53.6%, and 39.5%, of gross revenues respectively. During 2008 the Company's 25, 10, and 5 largest customers were 70%, 51% and 36%, of gross revenues respectively. One customer accounted for 12.6% of gross revenue during 2010, two customers exceeded 10% and collectively accounted for approximately 23.9% of gross revenue in 2009 and one customer accounted for 12% of gross revenue in 2008. No other customer accounted for as much as ten percent of revenue in 2010, 2009, or 2008.Heartland relies on its workforce in achieving its business objectives. As of December 31, 2010, Heartland employed 2,990 people compared to 2,781 people as of December 31, 2009. The increase was directly attributable to an increase in freight demand which strengthened in 2010 compared to 2009. The Company also contracted with independent contractors to provide and operate tractors. Independent contractors own their own tractors and are responsible for all associated expenses, including financing costs, fuel, maintenance, insurance, and highway use taxes. The Company historically has operated a combined fleet of company and independent contractor tractors. For the year ended December 31, 2010 independent contractors accounted for approximately 2.7% of the Company’s total miles compared to 3.6% in 2009.
A uniform fleet of tractors and trailers are utilized to minimize maintenance costs and to standardize the Company’s maintenance program. In the second half of 2008, the Company began a tractor fleet upgrade with ProStar International trucks manufactured by Navistar International Corporation. We have seen positive results through advanced aerodynamics, speed management, and idle controls. As of December 31, 2010 89.5% of the Company's tractor fleet was 2009 or newer models which is expected to grow to approximately 95% by the end of the first quarter of 2011. At December 31, 2010, primarily all the Company’s tractors are manufactured by Navistar International Corporation. In addition, during 2008 the Company acquired 400 new Wabash National Corporation trailers and in 2010, 600 new Great Dane trailers. Primarily all of the Company’s trailers are manufactured by Wabash National Corporation. The Company has entered into further commitments to upgrade the Company's trailer fleet. The average age of our tractor and trailer fleet was 1.8 years and 6.0 years, respectively, at December 31, 2010. The Company operates the majority of its tractors while under warranty to minimize repair and maintenance cost and reduce service interruptions caused by breakdowns. In addition, the Company’s preventive maintenance program is designed to minimize equipment downtime, facilitate customer service, and enhance trade value when equipment is replaced. Factors considered when purchasing new equipment include fuel economy, price, technology, warranty terms, manufacturer support, driver comfort, and resale value. Independent contractor tractors are periodically inspected by the Company for compliance with operational and safety requirements of the Company and the DOT.
increase in the cost of new tractors and higher maintenance costs. The Company has experienced an approximate 20% increase in tractor costs comparing tractors with pre 2007 engine emission requirements and tractors with post 2007 engine emission requirements. Beginning in 2010 a new set of more restrictive engine emission requirements became effective. As of December 31, 2010, 89.5% of the Company’s tractor fleet was models with post January 2007 engine requirements compared to 73% of the Company’s tractor fleet as of December 31, 2009. The inability to recover tractor cost increases, as a result of new engine emission requirements, with rate increases or cost reduction efforts could adversely affect the Company’s results of operations.
The Company purchases over-the-road fuel through a network of fuel stops throughout the United States at which the Company has negotiated price discounts. In addition, bulk fuel sites are maintained at the twelve Company owned locations which includes the nine regional terminal centers, the Company’s corporate headquarters, plus two service terminal locations in order to take advantage of volume pricing. The Company strategically manages fuel purchase decisions based on pricing of over-the-road fuel prices, bulk fuel prices, and the routing of equipment. Both above ground and underground storage tanks are utilized at the bulk fuel sites. Exposure to environmental cleanup costs is minimized by periodic inspection and monitoring of the tanks. Increases in fuel prices can have an adverse effect on the results of operations. The Company has fuel surcharge agreements with most customers enabling the pass through of long-term price increases. For the years ended December 31, 2010, 2009, and 2008, fuel expense, net of fuel surcharge revenue and fuel stabilization paid to independent contractors along with favorable fuel hedge settlements, was $53.2 million, $52.7 million, and $79.4 million or 15.9%, 16.0%, and 19.7%, respectively, of the Company’s total operating expenses, net of fuel surcharge revenue. During periods of rapidly rising fuel prices, fuel surcharge agreements do not cover 100% of the Company’s incremental fuel expense. During 2008 fuel prices rose rapidly during the first half of the year and declined rapidly over the second half of the year negating the volatile fluctuation in fuel prices during the year. At the peak of the fuel prices in July 2008, fuel expense, net of fuel surcharge revenue, rose to approximately 23% of the Company’s total operating expenses, net of fuel surcharge revenue compared to 15.9% and 16.0% for 2010 and 2009. Fuel consumed by empty and out-of-route miles and by truck engine idling time is not recoverable and therefore any increases or decreases in fuel prices related to empty and out-of-route miles and idling time will directly impact the Company’s operating results.
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