The trucking and logistics company’s operating revenues for the first quarter of 2018 surged 20.6 percent year-over-year to $156.7 million.
Heartland Express posted a net income of $13.4 million for the first quarter of 2018, and despite the favorable impacts related to the Tax Cuts and Job Act of 2017, this was still a 4.7 percent drop from the corresponding period in 2017.
The North Liberty, Iowa-based trucking and logistics company reported operating revenues for the quarter surged 20.6 percent year-over-year to $156.7 million.
The operating ratio for the quarter stood at 91.7 percent, compared to 85.1 percent for the first quarter of 2017. However, the company delivered its lowest quarterly operating ratio as compared to the last two quarters following its $113 million acquisition of trucking company Interstate Distributor in July 2017.
The transaction was funded through $94 million of Heartland Express’ existing cash; assumption of about $23 million of IDC’s debt, which Heartland Express paid off during the third quarter; and the acquisition of $4 million in cash on IDC’s balance sheet.
By the end of the third quarter, Heartland Express completed a full system integration with IDC that included operations, maintenance and back-office systems.
Just this Wednesday Heartland Express CEO Michael Gerdin said the company has been working on eliminating or lowering unnecessary or unproductive costs following the acquisition and that it anticipates it will continue to do so in the months ahead. In the coming quarters, Heartland Express expects to make progress in returning to an operating ratio in the low 80s, he said.
The average age of Heartland Express’ tractor fleet was 1.5 years at the close of the first quarter of 2018, while the average age of its trailer fleet was 4.9 years. For the full year of 2018, Heartland Express expects its net capital expenditures will total about $85 million to $95 million.
Heartland Express drives up revenues
