Heartland Express, Inc. Reports Revenues and Earnings for the Third Quarter of 2009 and Named to Forbes 200 Best Small Companies

Earnings per share for the nine months ended September 30, 2009 decreased 3.8% to $0.51 from $0.53 in the compared 2008 period. Net income decreased 8.6% to $46.3 million from $50.6 million in the 2008 period. Operating revenues for the nine months ended September 30, 2009 decreased 28.6% to $345.3 million from $483.6 million in the first nine months of 2008. Operating income for this year's nine month period was favorably impacted by a $10.6 million, $0.08 per share, increase in gains on disposal of property and equipment related to the Company's fleet upgrade.

Heartland Express, Inc. posted an operating ratio (operating expenses as a percentage of operating revenues) of 80.2% and a 12.8% net margin (net income as a percentage of operating revenues) in the third quarter of 2009 both improvements over the same period of the prior year. The Company reported an operating ratio of 83.2% and an 11.0% net margin for the quarter ended September 30, 2008. The Company reported an operating ratio of 81.7% and a 13.4% net margin for the nine months ended September 30, 2009 compared to 85.7% and 10.5%, respectively, for the comparative 2008 period. The Company ended the third quarter of 2009 with cash, cash equivalents, short-term and long-term investments of $202.9 million, a $25.1 million decrease from the $228.0 million reported at December 31, 2008. This reduction is primarily attributable to the use of $45.4 million for repurchases of our stock and $50.7 million for capital expenditures. Since the first auction failure of our auction rate securities in February 2008 the Company has received approximately $41.0 million in calls of auction rate securities at par, of which $22.5 million has been received in 2009 including $9.0 million, received post September 30, 2009. The Company continues to be involved with efforts to bring liquidity to our remaining long-term auction rate securities portfolio. The Company's balance sheet continues to be debt-free.

The Company took delivery of 690 new tractors in the third quarter of 2009 for a total of 1,151 new International Pro Star tractors in 2009. The current fleet upgrade is expected to be completed in the fourth quarter of 2009 with the additional purchase of 449 tractors. These tractors continue to achieve positive results through advanced aerodynamics, speed management, and idle controls. Our depreciation expense for the three and nine months ended September 30, 2009 increased by $4.0 million and $7.9 million, respectively, primarily as a result of adding new tractors and disposing of older units and an approximate 22% increase in the cost of new tractors primarily associated with new engine emission requirements.

The current recession and extended economic downturn continues to impact our nation. Excess capacity in our industry continues to exist resulting in downward pressure on freight rates and reduced demand for freight services from shippers. The Company still has not seen any strong indicators of improvements in the demand for freight services that would increase our levels of business in the near future. In spite of continued depressed freight demand volumes, the Company remains in an opportunistic position. Efforts continue to be focused on customer service, cost controls, and challenging ourselves to improve each department during this period of economic downturn and preparing the Company to be even better after the end of the current recession.

Fuel prices have remained relatively stable throughout the current year. During the quarter ended September 30, 2009, the U.S. average cost of fuel was $2.60 per gallon compared to $4.32 for the compared 2008 period, a 39.8% decrease. Efforts continue to effectively control the Company's fuel cost. The primary focus is on idle hour reductions, strategic fueling decisions, and the purchase of state-of-the-art International Pro Star trucks with increased fuel economy features and idle control technology. Our fuel cost per mile decreased 42.7% and 46.2% for the three and nine months ended September 30, 2009, respectively, as compared to the same 2008 periods.

On October 14, 2009, Forbes magazine named Heartland Express one of the "Best 200 Small Companies in America." The Company has been recognized eighteen times during its twenty three years as a public company, and has made the list the past eight consecutive years. In addition, the Company has now been awarded nineteen service awards thus far this year for its ability to deliver the highest quality of customer service. Customer service awards received during the quarter include the Federal Express Carrier of the Year for our third consecutive year, Federal Express Platinum Service, Schneider Logistics Carrier of the Year, Kelloggs Komplete Carrier of the Year 2008, and the United Sugars Corporation Achievement of Excellence. Also, for the seventh consecutive year the Company received the dry van Quest for Quality award from Logistics Management.

Heartland Express continues to pay a regular quarterly cash dividend. The most recent dividend of approximately $1.8 million at the rate of $0.02 per share was paid on October 2, 2009 to shareholders of record at the close of business on September 21, 2009. The Company has now paid cash dividends of $237.7 million over the past twenty-five consecutive quarters.

This press release may contain statements that might be considered as forward-looking statements or predictions of future operations. Such statements are based on management's belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties. Actual events may differ from these expectations as specified from time to time in filings with the Securities and Exchange Commission.

HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
                                           Three months ended              Nine months ended
                                           September 30,                   September 30,
                                           2009            2008            2009            2008
                                           (unaudited)                     (unaudited)
OPERATING REVENUE                          $  113,390      $  169,935      $  345,343      $  483,577
OPERATING EXPENSES:
Salaries, wages, and benefits              $  41,755       $  51,462       $  128,752      $  148,646
Rent and purchased transportation             2,766           4,725           8,510           14,975
Fuel                                          26,454          58,393          76,098          169,386
Operations and maintenance                    3,618           4,051           11,972          12,367
Operating taxes and licenses                  1,958           2,323           6,675           6,908
Insurance and claims                          3,658           6,443           11,797          17,237
Communications and utilities                  881             856             2,783           2,792
Deprecation                                   15,468          11,504          40,443          32,580
Other operating expenses                      2,743           4,456           9,332           12,928
Gain on disposal of property & equipment      (8,321  )       (2,899  )       (14,178 )       (3,533  )
                                              90,980          141,314         282,184         414,286
Operating Income                              22,410          28,621          63,159          69,291
Interest Income                               489             1,943           1,922           7,042
Income before income taxes                    22,899          30,564          65,081          76,333
Federal and state income taxes                8,392           11,841          18,818          25,715
Net income                                 $  14,507       $  18,723       $  46,263       $  50,618
Earnings per share                         $  0.16         $  0.19         $  0.51         $  0.53
Weighted average shares outstanding           90,689          96,158          91,281          96,177
Dividends declared per share               $  0.02         $  0.02         $  0.06         $  0.06

HEARTLAND EXPRESS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
                                                                  September 30,       December 31,
ASSETS                                                            2009                2008
CURRENT ASSETS                                                    (unaudited)
Cash and cash equivalents                                         $    41,341         $    56,651
Short-term investments                                                 14,065              241
Trade receivables, net                                                 38,063              36,803
Prepaid tires                                                          6,800               6,449
Other current assets                                                   4,820               2,834
Income tax receivable                                                  3,841               -
Deferred income taxes                                                  35,499              35,650
Total current assets                                                   144,429             138,628
PROPERTY AND EQUIPMENT                                                 407,134             389,561
Less accumulated depreciation                                          140,959             151,881
                                                                       266,175             237,680
LONG-TERM INVESTMENTS                                                  147,489             171,122
OTHER ASSETS                                                           10,533              10,284
                                                                  $    568,626        $    557,714
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities                          $    15,526         $    10,338
Compensation & benefits                                                15,946              15,862
Income taxes payable                                                   -                   452
Insurance accruals                                                     72,810              70,546
Other accruals                                                         6,826               7,498
Total current assets                                                   111,108             104,696
LONG-TERM LIABILITIES
Income taxes payable                                                   30,944              35,264
Deferred income taxes                                                  67,777              57,715
                                                                       98,721              92,979
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value; authorized 5,000 shares, none        -                   -
issued
Capital stock; common, $0.01 par value;
Authorized 395,000 shares; issued and
Outstanding 90,689 in 2009 and 94,229 in 2008                          907                 942
Additional paid-in capital                                             439                 439
Retained earnings                                                      362,777             367,281
Accumulated other comprehensive loss                                   (5,326  )           (8,623  )
                                                                       358,797             360,039
                                                                  $    568,626        $    557,714

SOURCE: Heartland Express, Inc.

Heartland Express, Inc. 
Mike Gerdin, President, 319-626-3600 
or 
John Cosaert, Chief Financial Officer, 319-626-3600