Earnings Report-Fourth Quarter, 1998

Business Wire, Jan 26, 1999

CORALVILLE, Iowa--(BUSINESS WIRE)--Jan. 26, 1999--Heartland Express, Inc.,(Nasdaq: HTLD) announced today fourth quarter operating results as follows:

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Three Months ended December 31:
                                        1998                1997
                                        ----                ----

Revenues                             $62,410,931          $67,055,605

Net Income                           $ 8,354,820          $ 7,312,443

Earnings per share                   $      0.28          $      0.24

Average number of share               30,000,000           30,000,000
outstanding

Twelve Months ended December 31:
                                        1998                1997
                                        ----                ----

Revenue                              $263,489,156        $262,504,156

Net Income                           $ 33,108,853        $ 30,072,893

Earnings per share                   $       1.10        $       1.00

Average number of shares               30,000,000          30,000,000
outstanding

Balance Sheet Data December 31:
                                        1998               1997
                                        ----               ----

Working Capital                      $127,989,252        $ 82,169,587

Total Assets                         $256,828,008        $225,466,674

Stockholders Equity                  $186,847,913        $153,739,060

Heartland's fourth quarter net income was $8,354,820 or $0.28 per share, compared to $7,312,443 or $0.24 per share for the fourth quarter of 1997. Heartland's net income for the year ended December 31, 1998 was $33,108,853 or $1.10 per share, compared to $30,072,893 or $1.00 per share for the year ended December 31,1997. The Company ended the fourth quarter with gross revenues of $62,410,931, compared to $67,055,605 for the fourth quarter of 1997. Gross revenues for the year ended December 31, 1998 were $263,489,156, compared to $262,504,156 for the year ended December 31, 1997.

Commenting on the shortfall in gross revenues a Company spokesman stated that the current difficulty in attracting experienced Company drivers and owner operators has impacted the top line. The Company has made a number of operational adjustments throughout 1998 which has helped stabilize the Company owned fleet. The Company continues to be confronted with an abnormal industry demand for owner operators which has negated a competitive advantage previously enjoyed by the Company.

Heartland's operating ratio (operating expenses as a percentage of gross revenues) continues to reflect the Company's success in managing cost and in operating efficiency. The Company ended the fourth quarter with an 81.7% operating ratio, compared to 84.7% in the fourth quarter of 1997. The year to date operating ratio of 82.5% is down from the 83.5% operating ratio reported for the year ended December 31, 1997.

The Company further strengthened its balance sheet, ending the quarter with $143 million in cash, cash equivalents, and municipal bonds as compared to $96 million at December 31, 1997.