Heartland Express earnings increase

Heartland Express posted a 25.1 percent increase in first-quarter profit, but operating revenues fell 16.5 percent on lower fuel surcharge revenue.

The North Liberty-based truckload carrier reported net income of $17.6 million, or 20 cents per share, for the quarter that ended March 31, compared with $14.1 million, or 16 cents per share, in the first quarter of 2014.

Analysts surveyed by Seeking Alpha had expected first-quarter earnings of 22 cents per share.

Operating revenues were $187.5 million, down 16.5 percent from $224.5 million in the first quarter of 2014. Operating revenues for the quarter included fuel surcharge revenues of $26.1 million, compared with $45.9 million in the same period of 2014, a $19.8 million decrease. Analysts were forecasting operating revenues of $211.4 million.

Heartland Express said first-quarter operating income was positively affected by an $8.1 million increase in gains on the disposal of property and equipment and a $9.6 million decrease in net fuel expense.

The company's debt balance declined $24.6 million from Dec. 31 due to repayments during the most recent quarter. Since the high point of the company's debt borrowings of $76.7 million in December 2013, Heartland Express has repaid the loans in full and returned to a balance sheet without long-term debt.

The company ended the first quarter with assets of $780.5 million.

During the first quarter, Heartland Express took delivery of approximately 250 new tractors and has approximately 1,300 new tractors scheduled for delivery before the end of the year. The average age of tractors is expected to decrease throughout the remainder of this year.