Trucking company Heartland Express saw its second quarter net income increase 38.7% compared to the same time a year ago, while revenue skyrocketed 69.3% during the same time.
Operating revenues totaled $226.8 million, with net income of $26.5 million, and earnings of 30 cents per share in the most recent quarter, compared to operating revenues $134 million, net income of $19.1 million, and earnings of 23 cents per share for the second quarter of 2013.
For the six month period ended June 30, Heartland had operating revenues of $451.3 million, net income of $40.6 million, and earnings of 46 cents per share, compared to operating revenues of $268.3 million, net income of $38.9 million, earnings of 46 cents per share for the same six month period a year earlier.
The increases were due to the company’s November purchase of Gordon Trucking.
Since the acquisition Gordon Trucking the Iowa-based company said it has been working on the integration of the two companies but without the combination of their information technology platforms in the first and second quarters. “The company expects to gain additional synergies upon the next step in the integration process which is expected to be achieved in the third quarter of 2014 when the two companies will be brought together on a single information technology platform,” Heartland said in a release.
Heatland also said the trucking industry continues to be challenged with reductions in the availability of qualified drivers as well as by various regulations that increasingly reduce drivers' availability. “The regulations, including the 34-hour restart and a 30-minute break within the first eight hours of driving that were effective July 1, 2013, will continue to reduce driver utilization,” Heartland said. “The company will continue to look at all of our alternatives to enhance our drivers' utilization as well as compensation of our drivers for their time spent away from home while on the road.”
During the second quarter of 2014 Heartland took delivery of 511 new tractors and has approximately 800 tractors scheduled for delivery prior to the end of the year. The average age of the company's trailer fleet was 4.6 years on June 30 compared to 3.2 years a year earlier. It also continues its process of updating its trailer fleet exiting model years 2007 and prior. During the second quarter of 2014 Heartland took delivery of 574 trailers and has approximately 650 trailers scheduled for delivery prior to the end of 2014. By the end of 2014 the company currently anticipates that its trailer fleet will be 88% 2008 and newer model years.
More details are available via MarketWatch.