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Heartland Express posts profit after equipment sale gains in Q2
Net income totaled $10.6 million, and management said it plans to keep disposing of excess trailers as the used equipment market improves.
Truckload carrier Heartland Express returned to profitability in the second quarter, helped by gains from equipment sales, according to Yahoo Finance and the company’s earnings release.
Heartland (NASDAQ: HTLD) reported net income of $10.6 million, or 14 cents per share, compared with a net loss of 14 cents per share in the year-ago quarter. The improvement was tied to a $22 million year-over-year increase in gains from equipment sales, described as a 22-cent-per-share tailwind at a normalized tax rate, as the company disposed of underutilized fleet equipment.
For the quarter, revenue totaled $184 million, down 13% year over year, and down 18% excluding fuel surcharges. The company reported an 88.3% adjusted operating ratio, noting it was closer to 103% without the outsized gains.
Heartland said it expects to continue disposing of excess trailers within its fleet as used equipment market conditions improve. The firm reported operating cash flows of $36 million in the first half and reduced net debt by $33 million to $73 million, ending the quarter with $89 million available on an untapped revolving credit facility and in compliance with financial covenants.
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