Heartland Express Inc., Coralville, Iowa, said gross revenues for the quarter ended Sept. 30, 2005 increased 16.1 percent to $136.2 million from $117.3 million in the third quarter of 2004.

Net income increased 2.8 percent to $17.5 million from $17.1 million in the 2004 period. Basic earnings per share were $0.24 compared to $0.23 for the third quarter of 2004.
For the nine months, gross revenues increased 13.7 percent to $383.7 from $337.6 during the same period in 2004. Net income increased 9.5 percent to $50.3 million from $45.9 million in the 2004 period. Basic earnings per share were $0.67 compared with $0.61 for the 2004 period.
For the quarter, Heartland Express posted an operating ratio (operating expenses as a percentage of gross revenues) of 81.4 percent and a 12.9 percent net margin. The company reported an operating ratio of 81.1 percent and a 13.1 percent net margin for the nine months ended September 30, 2005. The third quarter operating ratio was favorably impacted by a $2.0 million gain from the trade of revenue equipment. These gains are now being recognized in compliance with Statement of Financial Accounting Standards No. 153, "Accounting for Non-monetary Transactions", which became effective July 1, 2005. Gains were previously deferred as a reduction of the basis of new revenue equipment. The company's third quarter operating ratio was 82.8 percent prior to the recognition of the aforementioned gain. Gains on sales of assets are reflected as a reduction of Other Operating Expenses in the company's consolidated statements of income. In addition, the third quarter operating ratio and net income were negatively impacted by record high diesel prices, which have continued into the fourth quarter.
The company ended the third quarter with cash, cash equivalents, and short-term investments of $276.5 million, an $18.2 million increase from the $258.3 million reported on Dec. 31, 2004. The company's balance sheet continues to be debt-free.