Heartland Express profit, revenue fall

NORTH LIBERTY - Lower fuel surcharges and reduced freight volumes translated to less revenue and profit in the fourth quarter for Heartland Express, the North Liberty-based truckload carrier.

Heartland's net profit dropped to $17 million, or 20 cents per share, for the quarter that ended on Dec. 31, down 20.9 percent from $21.5 million, or 25 cents per share, in the final quarter of 2014. Operating revenue dipped 14 percent to $174.6 million from $202.9 million in the fourth quarter of 2014.

For all of 2015, Heartland recorded a profit of $73 million, or 84 cents per share, down 13.8 percent from $84.8 million, or 97 cents per share, in 2014. Operating revenue fell 15.5 percent to $736.3 million in 2015 from $871.4 million the previous year.

Michael Gerdin, Heartland chief executive officer, said the company took steps in 2015 to invest for the future.

'At the end of 2015 we completed a two-year capital investment campaign equating to approximately $182 million net capital reinvestment,” Gerdin said in a news release. 'We successfully took advantage of a strong used equipment market that has subsequently weakened, to solidify one of our core operating principals of providing late-model revenue equipment to our drivers and customers.

'Our ability to make significant investments in our fleet of revenue equipment, significantly increase driver pay, and repurchase $74 million of our common stock, while paying off remaining debt, is a testament to the company's financial strength and historical strong cash flows.”

The average age of the Heartland's tractor fleet was 1.25 years on Dec. 31, 2015, compared with two years on Dec. 31, 2014. During 2015, the company took delivery of approximately 1,500 new tractors.

The company updated its pay package in late 2014 and early 2015, slowing driver attrition.