In a year when many trucking companies are facing a tide of red ink or going out of business altogether, Heartland Express, Coralville, Iowa, reported record profits for 2001.
For the year, revenue increased 7% to $294.6 million from $274.8 million in 2000. Net income increased 10% to $37.7 million from $34.3 million the previous year.
During the fourth quarter, revenue increased 4.6% to $73.5 million from $70.3 million a year earlier. Net income increased 24.8% to $9.9 million from $7.9 million.
Heartland Express reported an industry-leading operating ratio (operating expenses as a percentage of gross revenues) of 80.9% for the quarter and 82.1% for 2001. In addition, the company reported return on sales of 13.4% for the quarter and 12.8% for the year.
Reasons for the success? Analysts say Heartland has kept a tight control on costs. The company focuses on profitable short- to medium-length hauls. Loads and lanes are analyzed rigorously. Even when the economy was booming, the company has resisted going into debt in order to expand. Falling fuel prices during the year no doubt helped, as well.
Heartland ended the year with no debt and $161 million in cash and short-term investments, compared to $128 million a year earlier. With no debt, a new fleet where the average age of company tractors is 19 months, and its strong cash position, the company says it is well positioned to meet the challenges and opportunities of the new year.
For the year, revenue increased 7% to $294.6 million from $274.8 million in 2000. Net income increased 10% to $37.7 million from $34.3 million the previous year.
During the fourth quarter, revenue increased 4.6% to $73.5 million from $70.3 million a year earlier. Net income increased 24.8% to $9.9 million from $7.9 million.
Heartland Express reported an industry-leading operating ratio (operating expenses as a percentage of gross revenues) of 80.9% for the quarter and 82.1% for 2001. In addition, the company reported return on sales of 13.4% for the quarter and 12.8% for the year.
Reasons for the success? Analysts say Heartland has kept a tight control on costs. The company focuses on profitable short- to medium-length hauls. Loads and lanes are analyzed rigorously. Even when the economy was booming, the company has resisted going into debt in order to expand. Falling fuel prices during the year no doubt helped, as well.
Heartland ended the year with no debt and $161 million in cash and short-term investments, compared to $128 million a year earlier. With no debt, a new fleet where the average age of company tractors is 19 months, and its strong cash position, the company says it is well positioned to meet the challenges and opportunities of the new year.
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