Truckload carrier Heartland Express posted a $10.6 million net income, reversing a year-ago loss, driven by $22 million in equipment sale gains.
Heartland Express (NASDAQ: HTLD) reported a second-quarter net income of $10.6 million, or 14 cents per share, compared with a 14-cent-per-share loss in the same period last year. The turnaround was fueled by a $22 million year-over-year increase in gains from equipment sales, equating to a 22-cent-per-share benefit after taxes.
Revenue fell 13% year-over-year to $184 million, or 18% excluding fuel surcharges. The company’s adjusted operating ratio improved to 88.3%, though it would have been near 103% without the equipment sale gains. Heartland reduced its fleet size by selling underutilized assets and cut net debt by $33 million in the first half.
Operating cash flows reached $36 million in the first six months. CEO Mike Gerdin attributed the results to stronger freight volumes, improved pricing, and cost reductions amid industry capacity cuts.