Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | |||||
Dec. 31, 2019 | Feb. 17, 2020 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Document Information [Line Items] | ||||||
Entity Registrant Name | HEARTLAND EXPRESS, INC. | |||||
Entity Central Index Key | 0000799233 | |||||
Document Type | 10-K | |||||
Document Period End Date | Dec. 31, 2019 | |||||
Document Fiscal Year Focus | 2019 | |||||
Document Fiscal Period Focus | FY | |||||
Current Fiscal Year End Date | --12-31 | |||||
Entity Well-known Seasoned Issuer | Yes | |||||
Entity Voluntary Filers | No | |||||
Entity Shell Company | false | |||||
Entity Current Reporting Status | Yes | |||||
Amendment Flag | false | |||||
Entity Filer Category | Large Accelerated Filer | |||||
Entity Small Business | false | |||||
Entity Emerging Growth Company | false | |||||
Entity Common Stock, Shares Outstanding | 82,054,510 | |||||
Unvested, Number of Restricted Stock Awards (in shares) | 52,150 | 86,275 | 26,500 | 53,700 | 53,000 | |
Entity Public Float | $ 0.8 | |||||
City Area Code | 319 | |||||
Local Phone Number | 626-3600 | |||||
Entity Incorporation, State or Country Code | NV | |||||
Entity File Number | 0-15087 | |||||
Entity Address, Address Line One | 901 North Kansas Avenue | |||||
Entity Address, City or Town | North Liberty | |||||
Entity Address, State or Province | IA | |||||
Security Exchange Name | NASDAQ | |||||
Entity Address, Postal Zip Code | 52317 | |||||
Entity Tax Identification Number | 93-0926999 | |||||
Document Transition Report | false | |||||
Entity Interactive Data Current | Yes | |||||
Trading Symbol | HTLD | |||||
Document Annual Report | true | |||||
Title of 12(g) Security | Common Stock, $0.01 par value |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and Cash Equivalents, at Carrying Value | $ 76,684 | $ 161,448 |
Trade receivables, net | 56,753 | 48,955 |
Prepaid tires | 9,107 | 9,378 |
Other current assets | 8,947 | 12,551 |
Income tax receivable | 323 | 170 |
Total current assets | 151,814 | 232,502 |
PROPERTY AND EQUIPMENT | ||
Land and land improvements | 60,637 | 46,095 |
Buildings | 70,603 | 57,505 |
Leasehold improvements | 437 | 437 |
Furniture and fixtures | 4,255 | 3,057 |
Shop and service equipment | 13,726 | 10,968 |
Revenue equipment | 583,134 | 479,068 |
Construction in progress | 6,351 | 6,540 |
Property and equipment, gross | 739,143 | 603,670 |
Less accumulated depreciation | 212,856 | 200,550 |
Property and equipment, net | 526,287 | 403,120 |
Goodwill | 168,295 | 132,410 |
OTHER INTANGIBLES, NET | 27,136 | 14,494 |
Deferred Income Tax Assets, Net | 6,006 | 4,535 |
OTHER ASSETS | 19,393 | 19,152 |
Assets | 898,931 | 806,213 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 11,060 | 10,552 |
Compensation and benefits | 24,712 | 22,558 |
Insurance accruals | 17,584 | 22,130 |
Other Accrued Liabilities | 10,051 | 9,449 |
Total current liabilities | 63,407 | 64,689 |
LONG-TERM LIABILITIES | ||
Income taxes payable | 5,956 | 5,577 |
Deferred income taxes, net | 93,698 | 71,041 |
Insurance accruals less current portion | 51,211 | 48,934 |
Total long-term liabilities | 150,865 | 125,552 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, par value $.01; authorized 5,000 shares; none issued | 0 | 0 |
Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2019 and 2018; outstanding 82,028 and 81,930 in 2019 and 2018, respectively | 907 | 907 |
Additional paid-in capital | 4,141 | 3,454 |
Retained earnings | 826,666 | 760,262 |
Treasury stock, at cost; 8,661 and 8,759 shares in 2019 and 2018, respectively | (147,055) | (148,651) |
Stockholders' Equity Attributable to Parent | 684,659 | 615,972 |
Liabilities and Stockholders' Equity | $ 898,931 | $ 806,213 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets Parentheticals [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 5,000 | 5,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 395,000 | 395,000 |
Common Stock, Shares, Issued | 90,689 | 90,689 |
Common Stock, Shares, Outstanding | 82,028 | 81,930 |
Treasury Stock, Shares | 8,661 | 8,759 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING REVENUE | $ 596,815 | $ 610,803 | $ 607,336 |
Operating Expenses | |||
Salaries, wages and benefits | 240,139 | 227,872 | 236,872 |
Rent and purchased transportation | 7,984 | 18,700 | 30,002 |
Fuel | 101,871 | 110,536 | 104,381 |
Operations and maintenance | 24,479 | 27,143 | 29,609 |
Operating taxes and licenses | 14,459 | 16,390 | 16,615 |
Insurance and claims | 17,003 | 17,227 | 18,850 |
Communications and utilities | 4,953 | 6,086 | 5,781 |
Depreciation and amortization | 100,212 | 100,519 | 103,690 |
Other operating expenses | 22,781 | 21,506 | 24,666 |
Gain on disposal of property and equipment | (31,341) | (24,963) | (26,674) |
Total operating expenses | 502,540 | 521,016 | 543,792 |
Operating income | 94,275 | 89,787 | 63,544 |
Interest income | 3,955 | 2,130 | 1,129 |
Interest expense | (1,052) | 0 | (175) |
Income before income taxes | 97,178 | 91,917 | 64,498 |
Federal and state income tax (benefit) expense | 24,211 | 19,240 | (10,675) |
Net income | 72,967 | 72,677 | 75,173 |
Other comprehensive income, net of tax | 0 | 0 | 0 |
Comprehensive income | $ 72,967 | $ 72,677 | $ 75,173 |
Net income per share | |||
Basic | $ 0.89 | $ 0.88 | $ 0.90 |
Diluted | $ 0.89 | $ 0.88 | $ 0.90 |
Weighted average shares outstanding | |||
Basic | 81,980 | 82,378 | 83,298 |
Diluted | 82,024 | 82,410 | 83,336 |
Dividends declared per share | $ 0.08 | $ 0.08 | $ 0.08 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Capital Stock, Common | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Balance at Dec. 31, 2016 | $ 505,826 | $ 907 | $ 3,433 | $ 625,668 | $ (124,182) |
Net income | 75,173 | 0 | 0 | 75,173 | 0 |
Dividends on common stock | (6,667) | 0 | 0 | (6,667) | 0 |
Stock-based compensation, net of tax | 313 | 0 | 85 | 0 | 228 |
Balance at Dec. 31, 2017 | 574,645 | 907 | 3,518 | 694,174 | (123,954) |
Net income | 72,677 | 0 | 0 | 72,677 | 0 |
Dividends on common stock | (6,589) | 0 | 0 | (6,589) | 0 |
Stock-based compensation, net of tax | 326 | 0 | (64) | 0 | 390 |
Stock Repurchased During Period, Value | (25,087) | 0 | 0 | 0 | (25,087) |
Balance at Dec. 31, 2018 | 615,972 | 907 | 3,454 | 760,262 | (148,651) |
Net income | 72,967 | 0 | 0 | 72,967 | 0 |
Dividends on common stock | (6,563) | 0 | 0 | (6,563) | 0 |
Stock-based compensation, net of tax | 1,533 | 0 | 574 | 0 | 959 |
Stock Issued During Period, Value | 750 | 0 | 113 | 0 | 637 |
Balance at Dec. 31, 2019 | $ 684,659 | $ 907 | $ 4,141 | $ 826,666 | $ (147,055) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity Parentheticals - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends declared per share | $ 0.08 | $ 0.08 | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
OPERATING ACTIVITIES | |||
Net income | $ 72,967 | $ 72,677 | $ 75,173 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 100,932 | 101,329 | 103,905 |
Deferred income taxes | 4,699 | 2,755 | (27,121) |
Stock-based Compensation | 2,065 | 539 | 511 |
Gain on disposal of property and equipment | (31,341) | (24,963) | (26,674) |
Changes in certain working capital items: | |||
Trade receivables | 6,676 | 15,338 | 15,239 |
Prepaid expenses and other current assets | 509 | 1,227 | 860 |
Accounts payable, accrued liabilities, and accrued expenses | (10,758) | (26,012) | (26,893) |
Accrued income taxes | 623 | 3,653 | (5,462) |
Net cash provided by operating activities | 146,372 | 146,543 | 109,538 |
INVESTING ACTIVITIES | |||
Proceeds from sale of property and equipment | 92,942 | 130,752 | 147,578 |
Purchases of property and equipment, net of trades | (163,780) | (169,276) | (184,114) |
Acquisition of business, net of cash acquired | (61,927) | 0 | (86,728) |
Change in other assets | (26) | 710 | (233) |
Net cash (used in) provided by investing activities | (132,791) | (37,814) | (123,497) |
FINANCING ACTIVITIES | |||
Cash dividends paid | (6,563) | (6,589) | (6,667) |
Shares withheld for employee taxes related to stock-based compensation | (532) | (213) | (198) |
Repayments on acquired debt | (93,348) | 0 | (23,303) |
Repurchases of common stock | 0 | (25,087) | 0 |
Net cash used in financing activities | (100,443) | (31,889) | (30,168) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (86,862) | 76,840 | (44,127) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Beginning of period | 182,938 | 106,098 | 150,225 |
End of Period | 96,076 | 182,938 | 106,098 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Interest Paid | 929 | 0 | 153 |
Cash paid during the period for income taxes, net of refunds | 18,888 | 12,832 | 21,909 |
Noncash investing and financing activities: | |||
Purchased property and equipment in accounts payable | 1,476 | 1,944 | 3,387 |
Sold revenue equipment in other current assets | 1,282 | 3,783 | 869 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and Cash Equivalents | 76,684 | 161,448 | 75,378 |
Restricted Cash included in other current assets | 1,594 | 3,105 | 7,936 |
Restricted Cash included in other assets | 17,798 | 18,385 | 22,784 |
End of Period | $ 96,076 | $ 182,938 | $ 106,098 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Business Heartland Express, Inc. is a holding company incorporated in Nevada, which owns all of the stock of Heartland Express, Inc. of Iowa, Heartland Express Services, Inc., Heartland Express Maintenance Services, Inc., Midwest Holding Group, LLC and Millis Transfer, LLC. On July 6, 2017, Heartland Express, Inc. of Iowa acquired Interstate Distributor Co. ("IDC"), which was subsequently merged into Heartland Express, Inc. of Iowa effective October 1, 2017. On December 31, 2018, A & M Express, Inc. was merged into Heartland Express, Inc. of Iowa. On August 26, 2019, Heartland Express, Inc. of Iowa acquired Midwest Holding Group, Inc. and Millis Real Estate Leasing, LLC (together, "Millis Transfer"), a truckload carrier headquartered in Black River Falls, Wisconsin. Effective December 31, 2019, Millis Transfer, Inc. and Midwest Holding Group, Inc. were converted to Millis Transfer, LLC and Midwest Holding Group, LLC, respectively. Further, effective December 31, 2019, Millis Real Estate Leasing, LLC, Rivera Real Estate, LLC, and Great River Leasing, LLC were merged into Millis Transfer, LLC. We, together with our subsidiaries, are a short-to-medium haul truckload carrier (predominately 500 miles or less per load). We primarily provide nationwide asset-based dry van truckload service for major shippers from Washington to Florida and New England to California. Principles of Consolidation The accompanying consolidated financial statements include the parent company, Heartland Express, Inc., and its subsidiaries, all of which are wholly owned. All material intercompany items and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Segment Information We provide truckload services across the United States (U.S.) and parts of Canada. These truckload services are primarily asset-based transportation services in the dry van truckload market, and we also offer truckload temperature-controlled transportation services to select dedicated customers, which are not significant to our operations. We exited our non-asset-based freight brokerage business in the first quarter of 2017, however due to the acquisition of IDC we acquired and again operated a non-asset-based freight brokerage business from the date of acquisition until the termination of this business during the fourth quarter of 2017. During 2018 and 2019 we did not operate a non-asset-based freight brokerage business. Our Chief Operating Decision Maker oversees and manages all of our transportation services, on a combined basis, including previously acquired entities. As a result of the foregoing, we have determined that we have one segment, consistent with the authoritative accounting guidance on disclosures about segments of an enterprise and related information. Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments with insignificant interest rate risk and original maturities of three months or less at acquisition. At December 31, 2019 and 2018, restricted and designated cash and investments totaled $19.4 million and $21.5 million, respectively. At December 31, 2019, $1.6 million was included in other current assets and $17.8 million was included in other non-current assets in the consolidated balance sheets. At December 31, 2018 $3.1 million was included in other current assets and $18.4 million was included in other non-current assets in the consolidated balance sheets. The restricted and designated funds represent deposits required by state agencies for self-insurance purposes and funds that are earmarked for a specific purpose and not for general business use. Investments Municipal bonds of $1.5 million at December 31, 2019 and 2018, are stated at amortized cost, are classified as held-to-maturity and are included in restricted cash in other non-current assets. Investment income received on held-to-maturity municipal bond investments is generally exempt from federal income taxes and is recognized as earned. Trade Receivables and Allowance for Doubtful Accounts The Company recognizes revenue over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The delivery of the shipment and completion of the performance obligation allows for the collection of payment based on the credit terms for customer accounts which are generally on a net 30 day basis or less. We use our write off history and our knowledge of uncollectible accounts in estimating the allowance for bad debts. We review the adequacy of our allowance for doubtful accounts on a monthly basis. We are aggressive in our collection efforts resulting in a low number of write-offs annually. Conditions that would lead an account to be considered uncollectible include customers filing bankruptcy and the exhaustion of all practical collection efforts. We will use the necessary legal recourse to recover as much of the receivable as is practical under the law. Allowance for doubtful accounts was $1.1 million and $0.9 million at December 31, 2019 and 2018, respectively. Prepaid Tires, Property, Equipment, and Depreciation Property and equipment are reported at cost, net of accumulated depreciation. Maintenance and repairs are charged to operations as incurred. Tires are capitalized separately from revenue equipment and are reported separately as “Prepaid tires” in the consolidated balance sheets and amortized over two years. Depreciation expense of $0.7 million and $0.8 million for the years ended December 31, 2019 and 2018, respectively, has been included in communications and utilities in the consolidated statements of comprehensive income. Depreciation for financial statement purposes is computed by the straight-line method for all assets other than new tractors. We recognize depreciation expense on new tractors (excluded tractors acquired through acquisition) at 125% declining balance method. New tractors are depreciated to salvage values of $15,000, while new trailers are depreciated to salvage values of $4,000. Revenue equipment acquired through acquisitions is generally revalued to current market values as of the acquisition date. These acquired assets are depreciated on a straight-line basis aligned with the remaining period of expected use. As acquired equipment is replaced, our fleet returns to our base methods of declining balance depreciation for tractors and straight-line depreciation for trailers. Lives of the assets are as follows: Years Land improvements and buildings 5-30 Leasehold improvements 5-25 Furniture and fixtures 3-5 Shop and service equipment 3-10 Revenue equipment 5-7 Impairment of Long-Lived Assets We periodically evaluate property and equipment and amortizable intangible assets for impairment upon the occurrence of events or changes in circumstances that indicate the carrying amount of assets may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset group to future net undiscounted cash flows expected to be generated by the group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount over which the carrying amount of the assets exceeds the fair value of the assets. There were no impairment charges recognized during the years ended December 31, 2019, 2018, and 2017. Fair Value of Financial Instruments The fair values of cash and cash equivalents, trade receivables, held-to-maturity investments and accounts payable, which are recorded at cost, approximate fair value based on the short-term nature and high credit quality of these financial instruments. Advertising Costs We expense all advertising costs as incurred. Advertising costs are included in other operating expenses in the consolidated statements of comprehensive income. Advertising expense was $1.9 million, $1.8 million, and $2.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. Goodwill Goodwill is not subject to amortization and is tested for impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. The Company performs its annual impairment test as of September 30. The Company first assesses qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of our reporting unit is less than its carrying amount, including goodwill. If, after assessing qualitative factors, the Company determines that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, then the Company performs a full fair value assessment of identifiable net assets to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. As of September 30, 2019, the Company’s assessment of qualitative factors informed its conclusion that a goodwill impairment did not occur. The significant qualitative factors considered include an increase in the Company’s share price and continued strong cash flow. Our reporting unit had fair value significantly in excess of its carrying value. Management determined that no impairment charge was required for the years ended December 31, 2019, 2018, and 2017. Other Intangibles, Net Other intangibles, net consists of a tradename, covenants not to compete, and customer relationships. All intangible assets determined to have finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. We periodically evaluate amortizable intangible assets for impairment upon occurrence of events or changes in circumstances that indicate the carrying amount of intangible assets may not be recoverable. Management determined that no intangible impairment charge was required for the years ended December 31, 2019, 2018, and 2017. See Note 5 for additional information regarding intangible assets. Insurance Accruals We are self-insured for auto liability, cargo loss and damage, bodily injury and property damage ("BI/PD"), and workers’ compensation. Insurance accruals reflect the estimated cost of claims, including estimated loss and loss adjustment expenses incurred but not reported, and not covered by insurance. Accident and workers’ compensation accruals are based upon individual case estimates, including reserve development, and estimates of incurred-but-not-reported losses based upon our own historical experience and industry claim trends. Insurance accruals are not discounted. In addition to internally developed reserves and estimates, we utilize an actuarial specialist to provide an independent annual assessment of the internally developed accident and workers' compensation accruals. The cost of cargo and BI/PD insurance and claims are included in insurance and claims expense, while the costs of workers’ compensation insurance and claims are included in salaries, wages, and benefits in the consolidated statements of comprehensive income. Insurance accruals are presented as either current or non-current in the consolidated balance sheets based on our expectation of when payment will occur. Health insurance accruals reflect the estimated cost of health related claims, including estimated expenses incurred but not reported. The cost of health insurance and claims are included in salaries, wages and benefits in the consolidated statements of comprehensive income. Health insurance accruals of $6.0 million and $4.9 million are included in other accruals in the consolidated balance sheets as of December 31, 2019 and 2018, respectively. Revenue and Expense Recognition The Company recognizes revenue over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The delivery of the shipment and completion of the performance obligation allows for the collection of payment generally within 30 days after the delivery date of the shipment for the majority of our customers. The Company's operations are consistent with those in the trucking industry where freight is hauled twenty-four hours a day and seven days a week, subject to hours of service rules. The Company’s average length of haul is 400-500 miles per trip and each individual shipment accepted by the Company is considered a separate contract with the performance obligation being the delivery of the freight. Our average length of haul for each load of freight generally equals less than one day of continuous transit time. The Company estimates revenue for multiple-stop loads based on miles run and estimates revenue for single stop loads based on transit time, as the customer simultaneously receives and consumes the benefit provided. The Company hauls freight and earns revenue on a consistent basis throughout the periods presented. A corresponding contract asset existed for the estimated revenue of these in-process loads for $1.2 million and $1.1 million as of December 31, 2019 and 2018, respectively. Recorded contract assets are included in the accounts receivable line item of the balance sheet. Corresponding liabilities are recorded in the accounts payable and accrued liabilities and compensation and benefits line items for the estimated expenses on these same in-process loads. The Company had no contract liabilities associated with our operations as of December 31, 2019 and 2018. Stock-Based Compensation We have a stock-based compensation plan that provides for the grants of restricted stock awards to our employees. We account for restricted stock awards using the fair value method of accounting for stock-based compensation. Issuances of stock upon vesting of restricted stock are made from treasury stock. Compensation expense for restricted stock grants is recognized over the requisite service period of each award and is included in salaries, wages and benefits in the consolidated statements of comprehensive income. Total compensation of $11.2 million related to all awards granted under the program has been amortized over the requisite service period for each separate vesting period as if the award is, in substance, multiple awards between 2011 and 2022. Earnings per Share Basic earnings per share are based upon the weighted average common shares outstanding during each year. Diluted earnings per share is based on the basic weighted earnings per share with additional weighted common shares for common stock equivalents. During the years ended December 31, 2019, 2018, and 2017, we granted restricted shares of common stock to certain of our employees under the Company's 2011 Restricted Stock Award Plan. A reconciliation of the numerator (net income) and denominator (weighted average number of shares outstanding) of the basic and diluted earnings per share (“EPS”) for 2019, 2018, and 2017 is as follows (in thousands, except per share data): 2019 Net Income (numerator) Shares (denominator) Per Share Amount Basic EPS $ 72,967 81,980 $ 0.89 Effect of restricted stock — 44 Diluted EPS $ 72,967 82,024 $ 0.89 2018 Net Income (numerator) Shares (denominator) Per Share Amount Basic EPS $ 72,677 82,378 $ 0.88 Effect of restricted stock — 32 Diluted EPS $ 72,677 82,410 $ 0.88 2017 Net Income (numerator) Shares (denominator) Per Share Amount Basic EPS $ 75,173 83,298 $ 0.90 Effect of restricted stock — 38 Diluted EPS $ 75,173 83,336 $ 0.90 Income Taxes We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amount of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. The effect of a change in tax rates on deferred taxes is recognized in the period that the change is enacted. We have not recorded a valuation allowance against any deferred tax assets at December 31, 2019 and 2018. In management’s opinion, it is more likely than not that we will be able to utilize these deferred tax assets in future periods as a result of our history of profitability, taxable income, and reversal of deferred tax liabilities. Pursuant to the authoritative accounting guidance on income taxes, when establishing a valuation allowance, we consider future sources of taxable income such as “future reversals of existing taxable temporary differences and carry-forwards” and “tax planning strategies”. In the event we determine that the deferred tax assets will not be realized in the future, the valuation adjustment to the deferred tax assets is charged to earnings or accumulated other comprehensive loss based on the nature of the asset giving rise to the deferred tax asset and the facts and circumstances resulting in that conclusion. We calculate our current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. New Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” which continues to require an entity to review indicators for impairment, perform qualitative assessments, and analyze the fair value of a reporting unit as compared to the carrying value of goodwill for potential impairment, but eliminates or replaces additional tests and assessments within the prior guidance. The provisions of this update are effective for fiscal years beginning after December 15, 2019, with early adoption permitted for impairment measurement tests occurring after January 1, 2017. We adopted the provisions of this standard in 2019 as part of our annual impairment test that occurred in September 2019. The adoption of this standard did not have material impact on our impairment analysis. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". This update requires measurement and recognition of expected versus incurred credit losses for financial assets held. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. We have adopted this standard effective January 1, 2020 and the impact of adoption of the standard did not have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This update seeks to increase the transparency and comparability among entities by requiring public entities to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. To satisfy the standard’s objective, a lessee will recognize a right-of-use asset representing its right to use the underlying asset for the lease term and a lease liability for the obligation to make lease payments. Both the right-of-use asset and lease liability will initially be measured at the present value of the lease payments, with subsequent measurement dependent on the classification of the lease as either a finance or an operating lease. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. In July 2018, the FASB issued ASU 2018-10, "Leases (Topic 842) - Codification Improvements" which contains several FASB Codification improvements for ASC Topic 842, including several implementation issues and ASU 2018-11, "Leases (Topic 842) - Targeted Improvements" which provides entities with an additional transition method for implementing ASC Topic 842. Entities have the option to apply the new standard at the adoption date, recognizing a cumulative-effect adjustment to the opening balance of retained earnings along with the modified retrospective approach previously identified, both of which include a number of practical expedients that companies may elect to apply. Under the cumulative-effect adjustment comparative periods would not be restated, and would instead be presented under the legacy ASC Topic 840 guidance. Under the modified retrospective approach leases are recognized and measured under the noted guidance at the beginning of the earliest period presented. The new standard is effective for public companies for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We have adopted this guidance as of January 1, 2019 and the effect of the adoption was not material to our financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes.” The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within that reporting period; |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2019 | |
Concentrations of Credit Risk and Major Customers [Abstract] | |
Concentration of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers Our major customers represent primarily the consumer goods, appliances, food products and automotive industries. Credit is granted to customers on an unsecured basis. Our five largest customers accounted for approximately 36%, 37%, and 38% of operating revenues for the years ended December 31, 2019, 2018, and 2017, respectively. Our five largest customers accounted for approximately 30% and 36% of gross accounts receivable as of December 31, 2019 and 2018, respectively. There was one customer that accounted for more than 10% of operating revenues for the year ended December 31, 2019 at 10.9%. This customer had accounts receivable of $5.8 million and $6.7 million as of December 31, 2019 and 2018, respectively. One customer accounted for more than 10% of operating revenues at 12.5% and 12.6% for the same periods ended 2018 and 2017, respectively. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition The Company recognizes revenue over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The delivery of the shipment and completion of the performance obligation allows for the collection of payment generally within 30 days after the delivery date of the shipment for the majority of our customers. The Company's operations are consistent with those in the trucking industry where freight is hauled twenty-four hours a day and seven days a week, subject to hours of service rules. The Company’s average length of haul is 400-500 miles per trip and each individual shipment accepted by the Company is considered a separate contract with the performance obligation being the delivery of the freight. Our average length of haul for each load of freight generally equals less than one day of continuous transit time. The Company estimates revenue for multiple-stop loads based on miles run and estimates revenue for single stop loads based on transit time, as the customer simultaneously receives and consumes the benefit provided. The Company hauls freight and earns revenue on a consistent basis throughout the periods presented. A corresponding contract asset existed for the estimated revenue of these in-process loads for $1.2 million and $1.1 million as of December 31, 2019 and 2018, respectively. Recorded contract assets are included in the accounts receivable line item of the balance sheet. Corresponding liabilities are recorded in the accounts payable and accrued liabilities and compensation and benefits line items for the estimated expenses on these same in-process loads. The Company had no contract liabilities associated with our operations as of December 31, 2019 and 2018. Total revenues recorded were $596.8 million, $610.8 million, and $607.3 million for the twelve months ended December 31, 2019, 2018, and 2017, respectively. Fuel surcharge revenues were $75.0 million, $85.3 million, and $72.5 million for the twelve months ended December 31, 2019, 2018, and 2017, respectively. Accessorial and other revenues recorded in the consolidated statements of comprehensive income collectively represented $13.5 million, $14.9 million, and $24.3 million for the twelve months ended December 31, 2019, 2018, and 2017, respectively. |
Acquisitions of Millis Transfer
Acquisitions of Millis Transfer and Interstate Distributor Co. (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions of Millis Transfer and Interstate Distributor Co. On August 26, 2019, Heartland Express, Inc. of Iowa (the “Buyer”) and Heartland Express, Inc., as guarantor, entered into an Acquisition and Merger Agreement with Millis Transfer. Millis Transfer is a truckload carrier headquartered in Black River Falls, Wisconsin, providing asset-based dry van truckload transportation services, including local, regional, and dedicated services. On July 6, 2017, Heartland Express Inc., of Iowa, (the "Buyer"), a wholly owned subsidiary of the "Company”, acquired IDC, a Washington corporation. In accordance with Internal Revenue Code Section 1361(b)(3)(C)(ii)(I) and (II), the transaction was treated for tax purposes as a sale of the assets of IDC by the seller to the Buyer, immediately followed by the Buyer’s contribution of such assets to IDC under Internal Revenue Code Section 351. The Stock Purchase Agreement contains customary representations, warranties, covenants, and indemnification provisions. IDC was subsequently merged into the Buyer effective October 1, 2017. Pursuant to the Acquisition and Merger Agreement of the Millis Transfer acquisition, the Buyer acquired all of Millis Transfer’s outstanding equity (the “Transaction”). The Buyer paid $156.0 million of total consideration, including cash (net of working capital adjustment), restricted shares of the Company's common stock, and assumed indebtedness of Millis Transfer. With the Millis Transfer acquisition, total cash paid, net of working capital adjustment, and common stock issued of $62.7 million was funded out of the Company’s available cash and restricted shares of the Company's common stock issued from treasury stock. The transaction included the assumption of $93.3 million of Millis Transfer's indebtedness, of which no debt was outstanding at December 31, 2019. The Acquisition and Merger Agreement contains customary representations, warranties, covenants, escrow, and indemnification provisions. Pursuant to the acquisition of IDC in July of 2017, the company paid $93.0 million in cash, net of approximately $6.3 million of cash acquired. The following unaudited pro forma financial information for the years ended December 31, 2018 and December 31, 2019, assume that the acquisition of Millis occurred as of January 1, 2018. Pro forma adjustments reflected in the financial information below relate to accounting policy changes, such as changes in depreciation expense of revenue equipment, amortization of intangible assets, and accounting for certain operations and maintenance costs, along with other adjustments for terminal rent expense to align Millis results with those of the Company and income tax effects for the periods presented. The net effect of these pro forma adjustments increased net income by $3.0 million and $3.6 million for the periods ended December 31, 2019 and 2018, respectively. Year ended Year ended December 31, 2019 December 31, 2018 (in thousands) Operating revenue $694,672 $760,917 Net income $75,951 $76,259 The Millis pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition had occurred at the beginning of the periods presented or that may be obtained in the future. The following unaudited pro forma financial information for the year ended December 31, 2017, assumes that the acquisition of IDC occurred as of January 1, 2017. Pro forma adjustments reflected in the financial information below relate to accounting policy changes such as changes in depreciation expense of revenue equipment, amortization of intangible assets, and accounting for certain operations and maintenance costs, along with other adjustments for terminal rent expense to align IDC results with those of the Company and income tax effects for the periods presented. The net effect of these pro forma adjustments increased net income by $5.7 million for the year ended December 31, 2017. Year ended December 31, 2017 (in thousands) Operating revenue $ 756,498 Net income $ 72,752 The IDC pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the acquisition had occurred at the beginning of the periods presented or that may be obtained in the future. The results of the acquired businesses have been included in the consolidated financial statements since the date of acquisition. Millis represented 21.1% of consolidated total assets as of December 31, 2019, and represented 8.8% of operating revenue for the twelve months ended December 31, 2019. Millis acquisition related expenses of $0.5 million are included in the consolidated statement of comprehensive income within the other operating expenses line item for the twelve months ended December 31, 2019. IDC acquisition related expenses of $0.9 million are included in the consolidated statement of comprehensive income for the year ended December 31, 2017. The allocation of the Millis purchase price is detailed in the tables below. The final purchase price allocation remains subject to other purchase accounting adjustments which may be identified, such as the final valuation of intangible assets, working capital adjustments, and income taxes, and therefore may differ materially from that reflected below. The goodwill recognized represents expected synergies from combining the operations of the Company with Millis Transfer, as well as other intangible assets that did not meet the criteria for separate recognition. Goodwill and intangible assets recognized in the transaction are not deductible for tax purposes. The assets and liabilities associated with Millis Transfer were recorded at their fair values as of the acquisition date and the amounts are as follows: MILLIS TRANSFER ACQUISITION DATE FAIR MARKET VALUES (in thousands) Trade and other accounts receivable $ 14,474 Other current assets 1,656 Property and equipment 117,060 Other non-current assets 802 Intangible assets 15,300 Goodwill 35,885 Total assets 185,177 Accounts payable, accrued expenses, and current portion of long-term debt (31,737) Insurance accruals (4,371) Long-term debt (70,191) Deferred taxes (16,201) Total cash paid and common stock issued $ 62,677 MILLIS TRANSFER TOTAL PURCHASE PRICE CONSIDERATION (in thousands) Cash paid pursuant to Stock Purchase Agreement $ 61,927 Common stock issued pursuant to the Acquisition and Merger Agreement 750 Total cash paid and common stock issued $ 62,677 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill All intangible assets determined to have finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. There was a $15.3 million change in the gross amount of identifiable intangible assets during the twelve months ended December 31, 2019, related to the acquisition of Millis Transfer. Amortization expense of $2.7 million, $2.5 million and $2.9 million for the twelve months ended December 31, 2019, 2018 and 2017, respectively, was included in depreciation and amortization in the consolidated statements of comprehensive income. Intangible assets subject to amortization consisted of the following at December 31, 2019 and 2018: 2019 Amortization period (years) Gross Amount Accumulated Amortization Net intangible assets (in thousands) Customer relationships 15-20 $ 23,000 $ 3,221 $ 19,779 Tradename 0.5-10 12,900 8,260 4,640 Covenants not to compete 1-10 5,300 2,583 2,717 $ 41,200 $ 14,064 $ 27,136 2018 Amortization period (years) Gross Amount Accumulated Amortization Net intangible assets (in thousands) Customer relationships 20 $ 13,600 $ 2,329 $ 11,271 Tradename 0.5-6 8,100 7,021 1,079 Covenants not to compete 1-10 4,200 2,056 2,144 $ 25,900 $ 11,406 $ 14,494 Future amortization expense for intangible assets is estimated at $2.4 million for 2020, $2.4 million for 2021, $2.3 million for 2022, $2.2 million for 2023, and $1.9 million for 2024. Changes in carrying amount of goodwill during the twelve months ended December 31, 2019 and December 31, 2018 were as follows: (in thousands) Balance at December 31, 2017 $ 132,410 Acquisition — Balance at December 31, 2018 $ 132,410 Acquisition 35,885 Balance at December 31, 2019 $ 168,295 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Line of Credit and Long Term Debt | Long-Term Debt In November 2013, Heartland Express, Inc. of Iowa, (the "Borrower"), a wholly owned subsidiary of the Company, entered into a Credit Agreement with Wells Fargo Bank, National Association, (the “Bank”). Pursuant to the Credit Agreement, the Bank provided a five-year, $250.0 million unsecured revolving line of credit, which was used to assist in the repayment of all debt acquired at the time of acquisition, and which may be used for future working capital, equipment financing, and general corporate purposes. The Bank's original commitment decreased to $175.0 million on November 1, 2016 through October 31, 2018. However, on August 31, 2018, Borrower and the Bank entered into the First Amendment to this Credit Agreement. The First Amendment (i) provides for a $100.0 million unsecured revolving line of credit (the “Revolver”), which may be used for working capital, equipment financing, permitted acquisitions, and general corporate purposes, (ii) provides an uncommitted accordion feature, which allows the Company a one-time request, at the discretion of the Bank, to increase the Revolver by up to an additional $100.0 million, (iii) increases the letter of credit subfeature of the Credit Agreement from $20.0 million to $30.0 million, and (iv) extends the maturity of the Credit Agreement to August 31, 2021, subject to the Borrower’s ability to terminate the commitment at any time at no additional cost to the Borrower. The Credit Agreement is unsecured, with a negative pledge against all assets of our consolidated group, except for debt associated with permitted acquisitions, new purchase-money debt and capital lease obligations as described in the Credit Agreement. Borrowings under the Credit Agreement can either be, at the Borrower's election, (i) one-month or three-month LIBOR (Index) plus a spread between 0.700% and 0.900% per annum, based on the Company's consolidated funded debt to adjusted EBITDA ratio or (ii) Prime (Index) plus 0.0%. The weighted average variable annual percentage rate is not calculated since no amounts were borrowed and outstanding at December 31, 2019. There is a commitment fee on the unused portion of the Revolver between 0.0725% and 0.1750% per annum, based on the Company's consolidated funded debt to adjusted EBITDA ratio. The Credit Agreement contains customary financial covenants including, but not limited to, (i) a maximum adjusted leverage ratio of 2:1, measured quarterly on a trailing twelve month basis, (ii) a minimum net income requirement of $1.00, measured quarterly on a trailing twelve month basis, (iii) a minimum tangible net worth of $250.0 million requirement, measured quarterly, and (iv) limitations on other indebtedness and liens. The Credit Agreement also includes customary events of default, covenants, representations and warranties, and indemnification provisions. We were in compliance with the respective financial covenants as of and for the year ended December 31, 2019 and December 31, 2018. |
Accident and Workers' Compensat
Accident and Workers' Compensation Insurance Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accident and Workers' Compensation Insurance Liabilities [Abstract] | |
Accident and Workers' Compensation Insurance Liabilities | Auto Liability and Workers’ Compensation Insurance Accruals We act as a self-insurer for auto liability, defined as including property damage, personal injury, or cargo based on defined insurance retention of $0.1 million under our Millis policy or $2.0 million under our Heartland policy, for any individual claim based on the insured party, accident date, and circumstances of the loss event. Within the Heartland policy, there is an additional $1.0 million aggregate self-insurance corridor for claims between $2.0 million and $3.0 million. For the Heartland policy claims, liabilities in excess of these amounts are covered by insurance up to $100.0 million. For the Millis policy claims, we retain liability for claims between $3.0 million and $10.0 million, while liabilities in excess of these amounts are covered by insurance up to $100.0 million. We retain any liability in excess of $100.0 million. We act as a self-insurer for property damage to our tractors and trailers. We act as a self-insurer for workers’ compensation liability of $0.5 million or $1.0 million for any individual claim based on the insured party, accident date, and circumstances of the loss event. Liabilities in excess of this amount are covered by insurance. The State of Iowa initially required us to deposit $0.7 million into a trust fund as part of the self-insurance program. Earnings on this account become part of the required deposit and as of December 31, 2019 and 2018 total deposits in this account were $1.5 million. This deposit is in municipal bonds classified as held-to-maturity and is recorded in other non-current assets on the consolidated balance sheets. In addition, we have provided insurance carriers with letters of credit totaling approximately $12.8 million in connection with our liability and workers’ compensation insurance arrangements and self-insurance requirements of the Federal Motor Carrier Safety Administration. There were no outstanding balances due on any letters of credit at December 31, 2019 or 2018. Accident and workers’ compensation accruals include the estimated settlements, settlement expenses and an estimate for claims incurred but not yet reported for property damage, personal injury and public liability losses from vehicle accidents and cargo losses as well as workers’ compensation claims for amounts not covered by insurance. Accident and workers’ compensation accruals are based upon individual case estimates, including reserve development, and estimates of incurred-but-not-reported losses based upon our own historical experience and industry claim trends. Since the reported liability is an estimate, the ultimate liability may be more or less than reported. In addition to internally developed reserves and estimates, we utilize an actuarial specialist to provide an independent annual assessment of the internally developed accident and workers' compensation accruals. If adjustments to previously established accruals are required, such amounts are included in operating expenses in the current period. These accruals are recorded on an undiscounted basis. Estimated claim payments to be made within one year of the balance sheet date have been classified as insurance accruals within current liabilities as of December 31, 2019 and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the US Congress enacted the Tax Act, which made significant changes to U.S. federal income tax law, including a reduction in the federal corporate tax rate from 35.0% to 21.0% effective January 1, 2018. Management has evaluated the relevant provisions of the Tax Act to the Company and accounted for the federal and state impacts in the financial statements and have therefore finalized the accounting for the tax effects of the Tax Act in 2018. Deferred tax assets and liabilities as of December 31 are as follows: 2019 2018 (in thousands) Deferred income tax assets: Allowance for doubtful accounts $ 262 $ 224 Accrued expenses 3,892 3,179 Stock-based compensation 178 92 Insurance accruals 15,054 15,415 State net operating loss carryforward 2,618 — Federal net operating loss carryover and credits 8,793 — Indirect tax benefits of unrecognized tax benefits 1,052 963 Other 3 2 Total gross deferred tax assets 31,852 19,875 Less valuation allowance — — Net deferred tax assets 31,852 19,875 Deferred income tax liabilities: Property and equipment (101,843) (74,794) Goodwill and amortizable intangibles (15,939) (10,319) Prepaid expenses (1,762) (1,268) (119,544) (86,381) Net deferred tax liability $ (87,692) $ (66,506) The deferred tax amounts above have been classified in the accompanying consolidated balance sheets at December 31, 2019 and 2018 as follows: 2019 2018 (in thousands) Noncurrent assets, net $ 6,006 $ 4,535 Long-term liabilities, net (93,698) (71,041) $ (87,692) $ (66,506) We have not recorded a valuation allowance against any deferred tax assets at December 31, 2019 and 2018. In management’s opinion, it is more likely than not that we will be able to utilize these deferred tax assets in future periods as a result of our history of profitability, taxable income, and reversal of deferred tax liabilities. Income tax expense consists of the following: 2019 2018 2017 (in thousands) Current income taxes: Federal $ 14,122 $ 11,985 $ 17,997 State 5,698 4,498 (1,495) 19,820 16,483 16,502 Deferred income taxes: Federal 5,595 5,537 (28,020) State (1,204) (2,780) 843 4,391 2,757 (27,177) Total $ 24,211 $ 19,240 $ (10,675) The income tax provision differs from the amount determined by applying the U.S. federal tax rate as follows: 2019 2018 2017 (in thousands) Federal tax at statutory rate (21%, 21%, 35% respectively) $ 20,406 $ 19,302 $ 22,574 State taxes, net of federal benefit 3,561 2,200 178 Permanent differences to return 540 408 309 Return to provision adjustment (392) (1,327) (325) Uncertain income tax penalties and interest, net 289 (1,067) (1,208) Enacted federal tax rate change — — (32,789) Other (193) (276) 586 $ 24,211 $ 19,240 $ (10,675) At December 31, 2019 and December 31, 2018, we had a total of $5.0 million and $4.6 million in gross unrecognized tax benefits, respectively, included in long-term income taxes payable in the consolidated balance sheets. Of this amount, $4.0 million and $3.6 million represents the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate as of December 31, 2019 and December 31, 2018, respectively. Unrecognized tax benefits were a net increase of $0.4 million and a net decrease of $1.3 million during the years ended December 31, 2019 and 2018, respectively, due mainly to the expiration of certain statutes of limitation net of additions and settlements with respective states. This had the effect of increasing the effective state tax rate in 2019 and reducing the effective state rate during 2018. The total net amount of accrued interest and penalties for such unrecognized tax benefits was $0.9 million and $1.0 million at December 31, 2019 and December 31, 2018, respectively, and is included in income taxes payable in the consolidated balance sheets. Net interest and penalties included in income tax expense for the years ended December 31, 2019, 2018 and 2017 was approximately zero, a benefit of $1.4 million, and a benefit of $0.9 million, respectively. Income tax expense is increased each period for the accrual of interest on outstanding positions and penalties when the uncertain tax position is initially recorded. Income tax expense is reduced in periods by the amount of accrued interest and penalties associated with reversed uncertain tax positions due to lapse of applicable statute of limitations, when applicable or when a position is settled. Income tax expense was reduced during the years ended December 31, 2019, 2018 and 2017 due to reversals of interest and penalties due to lapse of applicable statute of limitations and settlements, net of additions for interest and penalty accruals during the same period. These unrecognized tax benefits relate to risks associated with state income tax filing positions for our corporate subsidiaries. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 (in thousands) Balance at January 1, $ 4,585 $ 5,839 Additions based on tax positions related to current year 1,138 700 Additions for tax positions of prior years 124 — Reductions due to lapse of applicable statute of limitations (701) (1,954) Settlements (136) — Balance at December 31, $ 5,010 $ 4,585 A number of years may elapse before an uncertain tax position is audited and ultimately settled. It is difficult to predict the ultimate outcome or the timing of resolution for uncertain tax positions. It is reasonably possible that the amount of unrecognized tax benefits could significantly increase or decrease within the next twelve months. These changes could result from the expiration of the statute of limitations, examinations or other unforeseen circumstances. We do not have any outstanding litigation related to tax matters. At this time, management’s best estimate of the reasonably possible change in the amount of gross unrecognized tax benefits is approximately no change to an increase of $1.0 million during the next twelve months, due to the combination of expiration of certain statute of limitations and estimated additions. The federal statute of limitations remains open for the years 2016 and forward. Tax years 2009 and forward are subject to audit by state tax authorities depending on the tax code and administrative practice of each state. |
Operating Leases Operating Leas
Operating Leases Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Operating Leases We had operating leases for certain revenue equipment during the periods presented related to the IDC acquisition. Rent expense for these leases, including lease termination payments, was $0.3 million, $5.0 million, and $8.0 million, for the years ended December 31, 2019, 2018, and 2017, respectively, and were included in rent and purchased transportation in the consolidated statements of comprehensive income. The last remaining leases from the acquisition were terminated March 31, 2019. These expenses were included in rent and purchased transportation in the consolidated statements of comprehensive income. We lease certain terminal facilities under operating leases. Historically, a portion of these leases were with limited liability companies, whose members included one of our board members, and a commercial tractor dealership whose owners included one of our board members. The related-party rental payments were entered into as a result of a previous acquisition and these leases ended in 2018. Rent expense for terminal facilities was $2.5 million (including no related-party rental expense) for the year ended December 31, 2019 and expected to be reduced further upon completion of the purchase of the Tacoma, WA terminal facility which is expected to be completed in 2020. Rent expense for terminal facilities was $4.8 million, and $3.9 million, (including related-party rental expense totaling $0.8 million, and $1.6 million), for the years ended December 31, 2018, and 2017, respectively, and was included in rent and purchased transportation in the consolidated statements of comprehensive income. The various leases remaining are month-to-month or expire in 2020. We are responsible for all taxes, insurance, and utilities related to the terminal leases. See Note 13 for additional information regarding related party transactions. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |
Stockholders' Equity | Equity We have a stock repurchase program with 6.9 million shares remaining authorized for repurchase as of December 31, 2019. There were no shares repurchased in the open market during the year ended December 31, 2019, 1.4 million in 2018, and none in 2017. Repurchases are expected to continue from time to time, as determined by market conditions, cash flow requirements, securities law limitations, and other factors, until the number of shares authorized have been repurchased, or until the authorization is terminated. The share repurchase authorization is discretionary and has no expiration date. During the years ended December 31, 2019, 2018 and 2017 our Board of Directors declared regular quarterly dividends totaling $6.6 million, $6.6 million, and $6.7 million for each year, respectively. Future payment of cash dividends and the amount of such dividends will depend upon our financial conditions, our results of operations, our cash requirements, our tax treatment, and certain corporate law requirements, as well as factors deemed relevant by our Board of Directors. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock Based Compensation | Stock-Based Compensation In July 2011, a Special Meeting of Stockholders of Heartland Express, Inc. was held, at which meeting the approval of the Heartland Express, Inc. 2011 Restricted Stock Award Plan (the “Plan”) was ratified. The Plan made available up to 0.9 million shares for the purpose of making restricted stock grants to our eligible officers and employees. The Plan has 0.2 million shares that remain available for the purpose of making restricted stock grants at December 31, 2019. Shares granted in 2017 through 2019 have various vesting terms that range from immediate to four years from the date of grant and have share prices ranging between $18.12 and $23.37. Compensation expense associated with these awards is based on the market value of our stock on the grant date. Compensation expense associated with restricted stock awards is included in salaries, wages and benefits in the consolidated statements of comprehensive income. There were no significant assumptions made in determining fair value. Compensation expense associated with restricted stock awards was $2.1 million, $0.5 million, and $0.5 million for the years ended December 31, 2019, 2018, and 2017, respectively. Unrecognized compensation expense was $0.4 million at December 31, 2019 which will be recognized over a weighted average period of 0.7 years. The following table summarizes our restricted stock award activity for the years ended December 31, 2019, 2018 and 2017. The vesting dates for the awards vested in 2019 occurred relatively evenly throughout the year ended December 31, 2019. The fair value of awards vested during 2019, 2018 and 2017 was $1.8 million, $0.8 million and $0.6 million, respectively. 2019 Number of Restricted Stock Awards ( in thousands) Weighted Average Grant Date Fair Value Unvested at January 1 26.5 $ 21.31 Granted 114.0 19.88 Vested (87.9) 19.93 Forfeited (0.5) 17.11 Outstanding (unvested) at end of year 52.1 $ 20.55 2018 Number of Restricted Stock Awards ( in thousands) Weighted Average Grant Date Fair Value Unvested at January 1 53.7 $ 21.82 Granted 10.0 18.58 Vested (35.7) 21.48 Forfeited (1.5) 17.11 Outstanding (unvested) at end of year 26.5 $ 21.31 2017 Number of Restricted Stock Awards (in thousands) Weighted Average Grant Date Fair Value Unvested at beginning of year 53.0 $ 21.53 Granted 27.0 22.98 Vested (25.3) 22.07 Forfeited (1.0) 17.11 Outstanding (unvested) at end of year 53.7 $ 21.82 |
Profit Sharing Plan and Retirem
Profit Sharing Plan and Retirement Plan | 12 Months Ended |
Dec. 31, 2019 | |
Profit Sharing Plan and Retirement Plan [Abstract] | |
Profit Sharing Plan and Retirement Plan | Profit Sharing Plan and Retirement PlanWe have retirement savings plans (the “Retirement Savings Plans”) for substantially all employees who have completed one year of service and are 19 years of age or older. Employees may make 401(k) contributions subject to Internal Revenue Code limitations. The Retirement Savings Plans provide for a discretionary profit sharing contribution to non-driver employees and a matching contribution of a discretionary percentage to driver employees ("Heartland Plan"). Following the acquisition of Millis Transfer on August 26, 2019 a retirement savings plan ("Millis Transfer Plan") was created. The Millis Transfer Plan has the aforementioned characteristics of the Heartland Plan, but is for Millis Transfer employees. Also, we acquired the Retirement Saving Plan providing for discretionary matching contributions to driver and non-driver employees in our acquisition of IDC ("IDC Plan"). The IDC Plan was merged into the Heartland Plan on January 1, 2018. Our profit sharing contributions to the Retirement Savings Plans totaled approximately $1.6 million, $1.0 million, and $1.8 million, for the years ended December 31, 2019, 2018 and 2017, respectively. |
Related Party
Related Party | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Related Party | Related Party Transactions We historically leased terminal facilities for operations under operating leases from certain limited liability companies, whose members include one of our board members, and a commercial tractor dealership whose owners include one of our board members until the leases ended in November 2018. We purchased parts and services from the commercial tractor dealership noted above. We owed this commercial tractor dealership zero and $0.1 million, included in accounts payable and accrued liabilities in the consolidated balance sheet at December 31, 2019 and 2018, respectively. The payments (receipts) with related parties for the years ended December 31, 2019, 2018, and 2017 were as follows: 2019 2018 2017 (in thousands) Receipts for trailer sales $ — $ — $ (12) Payments for parts and services 310 551 650 Terminal lease payments — 713 1,625 $ 310 $ 1,264 $ 2,263 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are a party to ordinary, routine litigation and administrative proceedings incidental to our business. In the opinion of management, our potential exposure under pending legal proceedings is adequately provided for in the accompanying consolidated financial statements. The total estimated purchase commitments for tractors (net of tractor sale commitments), trailer equipment and an exercised terminal purchase option at December 31, 2019, was $113.3 million. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) First Second Third Fourth (In Thousands, Except Per Share Data) Year ended December 31, 2019 Operating revenue $ 139,536 $ 142,144 $ 147,908 $ 167,227 Operating income 20,843 29,030 26,739 17,663 Income before income taxes 21,988 30,259 27,415 17,516 Net income 17,318 22,361 20,501 12,787 Net income per share, basic 0.21 0.27 0.25 0.16 Net income per share, diluted 0.21 0.27 0.25 0.16 Year ended December 31, 2018 Operating revenue $ 156,695 $ 155,826 $ 151,279 $ 147,003 Operating income 12,948 22,147 25,132 29,560 Income before income taxes 13,290 22,570 25,718 30,339 Net income 13,378 17,803 19,056 22,440 Net income per share, basic 0.16 0.22 0.23 0.27 Net income per share, diluted 0.16 0.22 0.23 0.27 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent EventsNo events occurred requiring additional disclosure. |
Schedule II Valuation of Qualif
Schedule II Valuation of Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2019 | |
Schedule II Valuation and Qualifying Accounts and Reserves [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (In Thousands, Except Per Share Data) Column C Column A Column B Charges To Column D Column E Balance At Cost Balance Beginning And Other At End Description of Period Expense Accounts Deductions of Period Allowance for doubtful accounts: Year ended December 31, 2019 $ 900 $ 200 $ — $ — $ 1,100 Year ended December 31, 2018 1,475 — — 575 900 Year ended December 31, 2017 1,475 — — — 1,475 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Nature of Operations [Text Block] | Nature of Business Heartland Express, Inc. is a holding company incorporated in Nevada, which owns all of the stock of Heartland Express, Inc. of Iowa, Heartland Express Services, Inc., Heartland Express Maintenance Services, Inc., Midwest Holding Group, LLC and Millis Transfer, LLC. On July 6, 2017, Heartland Express, Inc. of Iowa acquired Interstate Distributor Co. ("IDC"), which was subsequently merged into Heartland Express, Inc. of Iowa effective October 1, 2017. On December 31, 2018, A & M Express, Inc. was merged into Heartland Express, Inc. of Iowa. On August 26, 2019, Heartland Express, Inc. of Iowa acquired Midwest Holding Group, Inc. and Millis Real Estate Leasing, LLC (together, "Millis Transfer"), a truckload carrier headquartered in Black River Falls, Wisconsin. Effective December 31, 2019, Millis Transfer, Inc. and Midwest Holding Group, Inc. were converted to Millis Transfer, LLC and Midwest Holding Group, LLC, respectively. Further, effective December 31, 2019, Millis Real Estate Leasing, LLC, Rivera Real Estate, LLC, and Great River Leasing, LLC were merged into Millis Transfer, LLC. We, together with our subsidiaries, are a short-to-medium haul truckload carrier (predominately 500 miles or less per load). We primarily provide nationwide asset-based dry van truckload service for major shippers from Washington to Florida and New England to California. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the parent company, Heartland Express, Inc., and its subsidiaries, all of which are wholly owned. All material intercompany items and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Segment Reporting, Policy [Policy Text Block] | Segment InformationWe provide truckload services across the United States (U.S.) and parts of Canada. These truckload services are primarily asset-based transportation services in the dry van truckload market, and we also offer truckload temperature-controlled transportation services to select dedicated customers, which are not significant to our operations. We exited our non-asset-based freight brokerage business in the first quarter of 2017, however due to the acquisition of IDC we acquired and again operated a non-asset-based freight brokerage business from the date of acquisition until the termination of this business during the fourth quarter of 2017. During 2018 and 2019 we did not operate a non-asset-based freight brokerage business. Our Chief Operating Decision Maker oversees and manages all of our transportation services, on a combined basis, including previously acquired entities. As a result of the foregoing, we have determined that we have one segment, consistent with the authoritative accounting guidance on disclosures about segments of an enterprise and related information. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments with insignificant interest rate risk and original maturities of three months or less at acquisition. At December 31, 2019 and 2018, restricted and designated cash and investments totaled $19.4 million and $21.5 million, respectively. At December 31, 2019, $1.6 million was included in other current assets and $17.8 million was included in other non-current assets in the consolidated balance sheets. At December 31, 2018 $3.1 million was included in other current assets and $18.4 million was included in other non-current assets in the consolidated balance sheets. The restricted and designated funds represent deposits required by state agencies for self-insurance purposes and funds that are earmarked for a specific purpose and not for general business use. |
Marketable Securities, Policy [Policy Text Block] | InvestmentsMunicipal bonds of $1.5 million at December 31, 2019 and 2018, are stated at amortized cost, are classified as held-to-maturity and are included in restricted cash in other non-current assets. Investment income received on held-to-maturity municipal bond investments is generally exempt from federal income taxes and is recognized as earned. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Trade Receivables and Allowance for Doubtful Accounts The Company recognizes revenue over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The delivery of the shipment and completion of the performance obligation allows for the collection of payment based on the credit terms for customer accounts which are generally on a net 30 day basis or less. We use our write off history and our knowledge of uncollectible accounts in estimating the allowance for bad debts. We review the adequacy of our allowance for doubtful accounts on a monthly basis. We are aggressive in our collection efforts resulting in a low number of write-offs annually. Conditions that would lead an account to be considered uncollectible include customers filing bankruptcy and the exhaustion of all practical collection efforts. We will use the necessary legal recourse to recover as much of the receivable as is practical under the law. Allowance for doubtful accounts was $1.1 million and $0.9 million at December 31, 2019 and 2018, respectively. |
Property, Plant and Equipment, Policy [Policy Text Block] | Prepaid Tires, Property, Equipment, and Depreciation Property and equipment are reported at cost, net of accumulated depreciation. Maintenance and repairs are charged to operations as incurred. Tires are capitalized separately from revenue equipment and are reported separately as “Prepaid tires” in the consolidated balance sheets and amortized over two years. Depreciation expense of $0.7 million and $0.8 million for the years ended December 31, 2019 and 2018, respectively, has been included in communications and utilities in the consolidated statements of comprehensive income. Depreciation for financial statement purposes is computed by the straight-line method for all assets other than new tractors. We recognize depreciation expense on new tractors (excluded tractors acquired through acquisition) at 125% declining balance method. New tractors are depreciated to salvage values of $15,000, while new trailers are depreciated to salvage values of $4,000. Revenue equipment acquired through acquisitions is generally revalued to current market values as of the acquisition date. These acquired assets are depreciated on a straight-line basis aligned with the remaining period of expected use. As acquired equipment is replaced, our fleet returns to our base methods of declining balance depreciation for tractors and straight-line depreciation for trailers. Lives of the assets are as follows: Years Land improvements and buildings 5-30 Leasehold improvements 5-25 Furniture and fixtures 3-5 Shop and service equipment 3-10 Revenue equipment 5-7 |
Property, Plant and Equipment, Impairment [Policy Text Block] | Impairment of Long-Lived Assets We periodically evaluate property and equipment and amortizable intangible assets for impairment upon the occurrence of events or changes in circumstances that indicate the carrying amount of assets may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of an asset group to future net undiscounted cash flows expected to be generated by the group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount over which the carrying amount of the assets exceeds the fair value of the assets. There were no impairment charges recognized during the years ended December 31, 2019, 2018, and 2017. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial InstrumentsThe fair values of cash and cash equivalents, trade receivables, held-to-maturity investments and accounts payable, which are recorded at cost, approximate fair value based on the short-term nature and high credit quality of these financial instruments. |
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | Advertising Costs We expense all advertising costs as incurred. Advertising costs are included in other operating expenses in the consolidated statements of comprehensive income. Advertising expense was $1.9 million, $1.8 million, and $2.0 million for the years ended December 31, 2019, 2018, and 2017, respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | GoodwillGoodwill is not subject to amortization and is tested for impairment annually and whenever events or changes in circumstances indicate that impairment may have occurred. The Company performs its annual impairment test as of September 30. The Company first assesses qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of our reporting unit is less than its carrying amount, including goodwill. If, after assessing qualitative factors, the Company determines that it is more likely than not that the fair value of our reporting unit is less than its carrying amount, then the Company performs a full fair value assessment of identifiable net assets to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. As of September 30, 2019, the Company’s assessment of qualitative factors informed its conclusion that a goodwill impairment did not occur. The significant qualitative factors considered include an increase in the Company’s share price and continued strong cash flow. Our reporting unit had fair value significantly in excess of its carrying value. Management determined that no impairment charge was required for the years ended December 31, 2019, 2018, and 2017. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Other Intangibles, Net Other intangibles, net consists of a tradename, covenants not to compete, and customer relationships. All intangible assets determined to have finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. We periodically evaluate amortizable intangible assets for impairment upon occurrence of events or changes in circumstances that indicate the carrying amount of intangible assets may not be recoverable. Management determined that no intangible impairment charge was required for the years ended December 31, 2019, 2018, and 2017. See Note 5 for additional information regarding intangible assets. |
Self-insurance Policy Text Block [Policy Text Block] | Insurance Accruals We are self-insured for auto liability, cargo loss and damage, bodily injury and property damage ("BI/PD"), and workers’ compensation. Insurance accruals reflect the estimated cost of claims, including estimated loss and loss adjustment expenses incurred but not reported, and not covered by insurance. Accident and workers’ compensation accruals are based upon individual case estimates, including reserve development, and estimates of incurred-but-not-reported losses based upon our own historical experience and industry claim trends. Insurance accruals are not discounted. In addition to internally developed reserves and estimates, we utilize an actuarial specialist to provide an independent annual assessment of the internally developed accident and workers' compensation accruals. The cost of cargo and BI/PD insurance and claims are included in insurance and claims expense, while the costs of workers’ compensation insurance and claims are included in salaries, wages, and benefits in the consolidated statements of comprehensive income. Insurance accruals are presented as either current or non-current in the consolidated balance sheets based on our expectation of when payment will occur. Health insurance accruals reflect the estimated cost of health related claims, including estimated expenses incurred but not reported. The cost of health insurance and claims are included in salaries, wages and benefits in the consolidated statements of comprehensive income. Health insurance accruals of $6.0 million and $4.9 million are included in other accruals in the consolidated balance sheets as of December 31, 2019 and 2018, respectively. |
Revenue Recognition, Policy [Policy Text Block] | Revenue and Expense Recognition The Company recognizes revenue over time as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. The delivery of the shipment and completion of the performance obligation allows for the collection of payment generally within 30 days after the delivery date of the shipment for the majority of our customers. The Company's operations are consistent with those in the trucking industry where freight is hauled twenty-four hours a day and seven days a week, subject to hours of service rules. The Company’s average length of haul is 400-500 miles per trip and each individual shipment accepted by the Company is considered a separate contract with the performance obligation being the delivery of the freight. Our average length of haul for each load of freight generally equals less than one day of continuous transit time. The Company estimates revenue for multiple-stop loads based on miles run and estimates revenue for single stop loads based on transit time, as the customer simultaneously receives and consumes the benefit provided. The Company hauls freight and earns revenue on a consistent basis throughout the periods presented. A corresponding contract asset existed for the estimated revenue of these in-process loads for $1.2 million and $1.1 million as of December 31, 2019 and 2018, respectively. Recorded contract assets are included in the accounts receivable line item of the balance sheet. Corresponding liabilities are recorded in the accounts payable and accrued liabilities and compensation and benefits line items for the estimated expenses on |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation We have a stock-based compensation plan that provides for the grants of restricted stock awards to our employees. We account for restricted stock awards using the fair value method of accounting for stock-based compensation. Issuances of stock upon vesting of restricted stock are made from treasury stock. Compensation expense for restricted stock grants is recognized over the requisite service period of each award and is included in salaries, wages and benefits in the consolidated statements of comprehensive income. Total compensation of $11.2 million related to all awards granted under the program has been amortized over the requisite service period for each separate vesting period as if the award is, in substance, multiple awards between 2011 and 2022. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per ShareBasic earnings per share are based upon the weighted average common shares outstanding during each year. Diluted earnings per share is based on the basic weighted earnings per share with additional weighted common shares for common stock equivalents. |
Income Tax, Policy [Policy Text Block] | Income Taxes We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amount of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. The effect of a change in tax rates on deferred taxes is recognized in the period that the change is enacted. We have not recorded a valuation allowance against any deferred tax assets at December 31, 2019 and 2018. In management’s opinion, it is more likely than not that we will be able to utilize these deferred tax assets in future periods as a result of our history of profitability, taxable income, and reversal of deferred tax liabilities. Pursuant to the authoritative accounting guidance on income taxes, when establishing a valuation allowance, we consider future sources of taxable income such as “future reversals of existing taxable temporary differences and carry-forwards” and “tax planning strategies”. In the event we determine that the deferred tax assets will not be realized in the future, the valuation adjustment to the deferred tax assets is charged to earnings or accumulated other comprehensive loss based on the nature of the asset giving rise to the deferred tax asset and the facts and circumstances resulting in that conclusion. We calculate our current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified. |
Income Tax Uncertainties, Policy [Policy Text Block] | We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits in income tax expense. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” which continues to require an entity to review indicators for impairment, perform qualitative assessments, and analyze the fair value of a reporting unit as compared to the carrying value of goodwill for potential impairment, but eliminates or replaces additional tests and assessments within the prior guidance. The provisions of this update are effective for fiscal years beginning after December 15, 2019, with early adoption permitted for impairment measurement tests occurring after January 1, 2017. We adopted the provisions of this standard in 2019 as part of our annual impairment test that occurred in September 2019. The adoption of this standard did not have material impact on our impairment analysis. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". This update requires measurement and recognition of expected versus incurred credit losses for financial assets held. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. We have adopted this standard effective January 1, 2020 and the impact of adoption of the standard did not have a material impact on our financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". This update seeks to increase the transparency and comparability among entities by requiring public entities to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. To satisfy the standard’s objective, a lessee will recognize a right-of-use asset representing its right to use the underlying asset for the lease term and a lease liability for the obligation to make lease payments. Both the right-of-use asset and lease liability will initially be measured at the present value of the lease payments, with subsequent measurement dependent on the classification of the lease as either a finance or an operating lease. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. In July 2018, the FASB issued ASU 2018-10, "Leases (Topic 842) - Codification Improvements" which contains several FASB Codification improvements for ASC Topic 842, including several implementation issues and ASU 2018-11, "Leases (Topic 842) - Targeted Improvements" which provides entities with an additional transition method for implementing ASC Topic 842. Entities have the option to apply the new standard at the adoption date, recognizing a cumulative-effect adjustment to the opening balance of retained earnings along with the modified retrospective approach previously identified, both of which include a number of practical expedients that companies may elect to apply. Under the cumulative-effect adjustment comparative periods would not be restated, and would instead be presented under the legacy ASC Topic 840 guidance. Under the modified retrospective approach leases are recognized and measured under the noted guidance at the beginning of the earliest period presented. The new standard is effective for public companies for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. We have adopted this guidance as of January 1, 2019 and the effect of the adoption was not material to our financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes.” The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also clarifies and amends existing guidance to improve consistent application among reporting entities. This ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within that reporting period; |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Lives of the assets are as follows: Years Land improvements and buildings 5-30 Leasehold improvements 5-25 Furniture and fixtures 3-5 Shop and service equipment 3-10 Revenue equipment 5-7 |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | A reconciliation of the numerator (net income) and denominator (weighted average number of shares outstanding) of the basic and diluted earnings per share (“EPS”) for 2019, 2018, and 2017 is as follows (in thousands, except per share data): 2019 Net Income (numerator) Shares (denominator) Per Share Amount Basic EPS $ 72,967 81,980 $ 0.89 Effect of restricted stock — 44 Diluted EPS $ 72,967 82,024 $ 0.89 2018 Net Income (numerator) Shares (denominator) Per Share Amount Basic EPS $ 72,677 82,378 $ 0.88 Effect of restricted stock — 32 Diluted EPS $ 72,677 82,410 $ 0.88 2017 Net Income (numerator) Shares (denominator) Per Share Amount Basic EPS $ 75,173 83,298 $ 0.90 Effect of restricted stock — 38 Diluted EPS $ 75,173 83,336 $ 0.90 |
Acquisitions of Millis Transf_2
Acquisitions of Millis Transfer and Interstate Distributor Co. (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Text Block] | Year ended Year ended December 31, 2019 December 31, 2018 (in thousands) Operating revenue $694,672 $760,917 Net income $75,951 $76,259 |
Business Acquisition ProForma Information | Year ended December 31, 2017 (in thousands) Operating revenue $ 756,498 Net income $ 72,752 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | MILLIS TRANSFER ACQUISITION DATE FAIR MARKET VALUES (in thousands) Trade and other accounts receivable $ 14,474 Other current assets 1,656 Property and equipment 117,060 Other non-current assets 802 Intangible assets 15,300 Goodwill 35,885 Total assets 185,177 Accounts payable, accrued expenses, and current portion of long-term debt (31,737) Insurance accruals (4,371) Long-term debt (70,191) Deferred taxes (16,201) Total cash paid and common stock issued $ 62,677 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | MILLIS TRANSFER TOTAL PURCHASE PRICE CONSIDERATION (in thousands) Cash paid pursuant to Stock Purchase Agreement $ 61,927 Common stock issued pursuant to the Acquisition and Merger Agreement 750 Total cash paid and common stock issued $ 62,677 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2019 Amortization period (years) Gross Amount Accumulated Amortization Net intangible assets (in thousands) Customer relationships 15-20 $ 23,000 $ 3,221 $ 19,779 Tradename 0.5-10 12,900 8,260 4,640 Covenants not to compete 1-10 5,300 2,583 2,717 $ 41,200 $ 14,064 $ 27,136 2018 Amortization period (years) Gross Amount Accumulated Amortization Net intangible assets (in thousands) Customer relationships 20 $ 13,600 $ 2,329 $ 11,271 Tradename 0.5-6 8,100 7,021 1,079 Covenants not to compete 1-10 4,200 2,056 2,144 $ 25,900 $ 11,406 $ 14,494 |
Schedule of Goodwill [Table Text Block] | Changes in carrying amount of goodwill during the twelve months ended December 31, 2019 and December 31, 2018 were as follows: (in thousands) Balance at December 31, 2017 $ 132,410 Acquisition — Balance at December 31, 2018 $ 132,410 Acquisition 35,885 Balance at December 31, 2019 $ 168,295 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets and liabilities as of December 31 are as follows: 2019 2018 (in thousands) Deferred income tax assets: Allowance for doubtful accounts $ 262 $ 224 Accrued expenses 3,892 3,179 Stock-based compensation 178 92 Insurance accruals 15,054 15,415 State net operating loss carryforward 2,618 — Federal net operating loss carryover and credits 8,793 — Indirect tax benefits of unrecognized tax benefits 1,052 963 Other 3 2 Total gross deferred tax assets 31,852 19,875 Less valuation allowance — — Net deferred tax assets 31,852 19,875 Deferred income tax liabilities: Property and equipment (101,843) (74,794) Goodwill and amortizable intangibles (15,939) (10,319) Prepaid expenses (1,762) (1,268) (119,544) (86,381) Net deferred tax liability $ (87,692) $ (66,506) The deferred tax amounts above have been classified in the accompanying consolidated balance sheets at December 31, 2019 and 2018 as follows: 2019 2018 (in thousands) Noncurrent assets, net $ 6,006 $ 4,535 Long-term liabilities, net (93,698) (71,041) $ (87,692) $ (66,506) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense consists of the following: 2019 2018 2017 (in thousands) Current income taxes: Federal $ 14,122 $ 11,985 $ 17,997 State 5,698 4,498 (1,495) 19,820 16,483 16,502 Deferred income taxes: Federal 5,595 5,537 (28,020) State (1,204) (2,780) 843 4,391 2,757 (27,177) Total $ 24,211 $ 19,240 $ (10,675) The income tax provision differs from the amount determined by applying the U.S. federal tax rate as follows: 2019 2018 2017 (in thousands) Federal tax at statutory rate (21%, 21%, 35% respectively) $ 20,406 $ 19,302 $ 22,574 State taxes, net of federal benefit 3,561 2,200 178 Permanent differences to return 540 408 309 Return to provision adjustment (392) (1,327) (325) Uncertain income tax penalties and interest, net 289 (1,067) (1,208) Enacted federal tax rate change — — (32,789) Other (193) (276) 586 $ 24,211 $ 19,240 $ (10,675) |
Reconciliation of Unrecognized Tax Benefits [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 (in thousands) Balance at January 1, $ 4,585 $ 5,839 Additions based on tax positions related to current year 1,138 700 Additions for tax positions of prior years 124 — Reductions due to lapse of applicable statute of limitations (701) (1,954) Settlements (136) — Balance at December 31, $ 5,010 $ 4,585 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The following table summarizes our restricted stock award activity for the years ended December 31, 2019, 2018 and 2017. The vesting dates for the awards vested in 2019 occurred relatively evenly throughout the year ended December 31, 2019. The fair value of awards vested during 2019, 2018 and 2017 was $1.8 million, $0.8 million and $0.6 million, respectively. 2019 Number of Restricted Stock Awards ( in thousands) Weighted Average Grant Date Fair Value Unvested at January 1 26.5 $ 21.31 Granted 114.0 19.88 Vested (87.9) 19.93 Forfeited (0.5) 17.11 Outstanding (unvested) at end of year 52.1 $ 20.55 2018 Number of Restricted Stock Awards ( in thousands) Weighted Average Grant Date Fair Value Unvested at January 1 53.7 $ 21.82 Granted 10.0 18.58 Vested (35.7) 21.48 Forfeited (1.5) 17.11 Outstanding (unvested) at end of year 26.5 $ 21.31 2017 Number of Restricted Stock Awards (in thousands) Weighted Average Grant Date Fair Value Unvested at beginning of year 53.0 $ 21.53 Granted 27.0 22.98 Vested (25.3) 22.07 Forfeited (1.0) 17.11 Outstanding (unvested) at end of year 53.7 $ 21.82 |
Related Party (Tables)
Related Party (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The payments (receipts) with related parties for the years ended December 31, 2019, 2018, and 2017 were as follows: 2019 2018 2017 (in thousands) Receipts for trailer sales $ — $ — $ (12) Payments for parts and services 310 551 650 Terminal lease payments — 713 1,625 $ 310 $ 1,264 $ 2,263 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | First Second Third Fourth (In Thousands, Except Per Share Data) Year ended December 31, 2019 Operating revenue $ 139,536 $ 142,144 $ 147,908 $ 167,227 Operating income 20,843 29,030 26,739 17,663 Income before income taxes 21,988 30,259 27,415 17,516 Net income 17,318 22,361 20,501 12,787 Net income per share, basic 0.21 0.27 0.25 0.16 Net income per share, diluted 0.21 0.27 0.25 0.16 Year ended December 31, 2018 Operating revenue $ 156,695 $ 155,826 $ 151,279 $ 147,003 Operating income 12,948 22,147 25,132 29,560 Income before income taxes 13,290 22,570 25,718 30,339 Net income 13,378 17,803 19,056 22,440 Net income per share, basic 0.16 0.22 0.23 0.27 Net income per share, diluted 0.16 0.22 0.23 0.27 |
Significant Accounting Polici_4
Significant Accounting Policies Segment Information (Details) | 12 Months Ended |
Dec. 31, 2019segments | |
Significant Accounting Policies [Abstract] | |
Number of Reportable Segments | 1 |
Significant Accounting Polici_5
Significant Accounting Policies Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Abstract] | ||
Restricted Cash and Cash Equivalents | $ 19.4 | $ 21.5 |
Restricted Cash and Cash Equivalents, Current | 1.6 | 3.1 |
Restricted Cash and Cash Equivalents, Noncurrent | $ 17.8 | $ 18.4 |
Significant Accounting Polici_6
Significant Accounting Policies Investments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Abstract] | ||
Debt Securities, Held-to-maturity | $ 1.5 | $ 1.5 |
Significant Accounting Polici_7
Significant Accounting Policies Trade Receivables and Allowance for Doubtful Accounts (Details) $ in Millions | Dec. 31, 2019USD ($)d | Dec. 31, 2018USD ($) |
Significant Accounting Policies [Abstract] | ||
Customer credit terms (in days) | d | 30 | |
Allowance for Doubtful Accounts Receivable, Current | $ | $ 1.1 | $ 0.9 |
Significant Accounting Polici_8
Significant Accounting Policies Property, Equipment and Depreciation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | ||
Amortization Period of Tires | two years | |
Communications and Utilities Expense [Member] | ||
Property, Plant and Equipment | ||
Depreciation | $ 700,000 | $ 800,000 |
Tractors [Member] | ||
Property, Plant and Equipment | ||
Property, Plant, and Equipment, Salvage Value | 15,000 | |
Trailers [Member] | ||
Property, Plant and Equipment | ||
Property, Plant, and Equipment, Salvage Value | $ 4,000 | |
Minimum [Member] | Land Improvements and Buildings [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum [Member] | Shop and Service Equipment [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Minimum [Member] | Revenue Equipment [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum [Member] | Land Improvements and Buildings [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 30 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Maximum [Member] | Shop and Service Equipment [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Maximum [Member] | Revenue Equipment [Member] | ||
Property, Plant and Equipment | ||
Property, Plant and Equipment, Useful Life | 7 years |
Significant Accounting Polici_9
Significant Accounting Policies Impairment of Long-Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |||
Asset Impairment Charges | $ 0 | $ 0 | $ 0 |
Significant Accounting Polic_10
Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |||
Advertising Expense | $ 1.9 | $ 1.8 | $ 2 |
Significant Accounting Polic_11
Significant Accounting Policies Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Impairment Charges [Abstract] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 0 |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Significant Accounting Polic_12
Significant Accounting Policies Self-Insurance Accruals (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Abstract] | ||
Health insurance reserves | $ 6 | $ 4.9 |
Significant Accounting Polic_13
Significant Accounting Policies Revenue and Expense Recognition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Contract with Customer, Asset, Net [Abstract] | ||
Contract with Customer, Asset, Net | $ 1,200 | $ 1,100 |
Significant Accounting Polic_14
Significant Accounting Policies Stock-based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | 121 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based Compensation | $ 2,100 | $ 500 | $ 500 | |
Scenario, Forecast [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based Compensation | $ 11,200 |
Significant Accounting Polic_15
Significant Accounting Policies Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |||
Net Income Loss | $ 72,967 | $ 72,677 | $ 75,173 |
Weighted Average Number of Shares Outstanding, Basic | 81,980 | 82,378 | 83,298 |
Basic EPS | $ 0.89 | $ 0.88 | $ 0.90 |
Dilutive Securities, Effect on Basic Earnings Per Share, Including Options and Restrictive Stock Units | $ 0 | $ 0 | $ 0 |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 44 | 32 | 38 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 72,967 | $ 72,677 | $ 75,173 |
Weighted Average Number of Shares Outstanding, Diluted | 82,024 | 82,410 | 83,336 |
Diluted EPS | $ 0.89 | $ 0.88 | $ 0.90 |
Significant Accounting Polic_16
Significant Accounting Policies Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies [Abstract] | ||
PortionOfTaxBenefitRecordedPositionsMoreLikelyThanNotToBeSustained | 50.00% | |
Valuation Allowance Against Any Deferred Tax Asset | $ 0 | $ 0 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017 | |
Concentration Risk | |||
Concentration of risk, number of customers | 5 | ||
Concentration Risk, Percentage | 36.00% | 37.00% | 38.00% |
Sales Revenue and Services, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Concentration of risk, number of customers | 1 | 1 | |
Concentration Risk, Percentage | 10.90% | 12.50% | 12.60% |
Baseline percentage for customer concentration of risk | 10.00% | 10.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk | |||
Accounts receivable | $ | $ 5.8 | $ 6.7 | |
Concentration Risk, Percentage | 30.00% | 36.00% |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset, Net [Abstract] | |||
Contract with Customer, Asset, Net | $ 1,200 | $ 1,100 | |
Operating Revenues | 596,800 | 610,800 | $ 607,300 |
Fuel surcharge revenue | 75,000 | 85,300 | 72,500 |
Revenue from Contract with Customer, Including Assessed Tax | 13,500 | 14,900 | $ 24,300 |
Deposit Contracts, Liabilities | $ 0 | $ 0 |
Acquisitions of Millis Transf_3
Acquisitions of Millis Transfer and Interstate Distributor Co. (Details) - USD ($) $ in Thousands | Aug. 26, 2019 | Jul. 06, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 500 | $ 900 | |||
Accounts and Other Receivables, Net, Current | $ 14,474 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 1,656 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 117,060 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 802 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 15,300 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill | 35,885 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 185,177 | ||||
Self Insurance Reserve | 4,371 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 61,927 | $ 61,927 | $ 0 | 86,728 | |
Accounts Payable and Accrued Liabilities | 31,737 | ||||
Long-term Debt | 70,191 | ||||
Business Combination, Total Consideration | 156,000 | ||||
Business Combination, Cash and Equity Transferred | 62,677 | ||||
Noncash or Part Noncash Acquisition, Debt Assumed | 93,300 | ||||
Acquired Business Percent of Assets | 21.10% | ||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 750 | ||||
Deferred Taxes | $ 16,201 | ||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | ||||
Acquired Business Percent of Revenue | 8.80% | ||||
Payments to Acquire Businesses, Gross | $ 93,000 | ||||
Cash Acquired from Acquisition | $ 6,300 | ||||
Business Combination, Pro Forma Information, Net Income Change | $ 3,000 | 3,600 | 5,700 | ||
Business Acquisition, Pro Forma Revenue | 694,672 | 760,917 | 756,498 | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ 75,951 | $ 76,259 | $ 72,752 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 15,300 | ||
Goodwill | 168,295 | $ 132,410 | $ 132,410 |
Goodwill, Acquired During Period | 35,885 | 0 | |
Finite-Lived Intangible Assets, Amortization Expense | 2,700 | 2,500 | $ 2,900 |
Finite-Lived Intangible Assets, Gross | 41,200 | 25,900 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 14,064 | 11,406 | |
Finite-Lived Intangible Assets, Net | 27,136 | $ 14,494 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling Twelve Months | 2,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 2,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,300 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 2,200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,900 | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Finite-Lived Intangible Assets, Gross | 23,000 | $ 13,600 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 3,221 | 2,329 | |
Finite-Lived Intangible Assets, Net | 19,779 | 11,271 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 12,900 | 8,100 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 8,260 | 7,021 | |
Finite-Lived Intangible Assets, Net | 4,640 | 1,079 | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 5,300 | 4,200 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,583 | 2,056 | |
Finite-Lived Intangible Assets, Net | $ 2,717 | $ 2,144 | |
Minimum [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Minimum [Member] | Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 6 months | 6 months | |
Minimum [Member] | Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | 1 year | |
Maximum [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Maximum [Member] | Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | 6 years | |
Maximum [Member] | Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2018 | Nov. 01, 2016 | Dec. 31, 2014 | Nov. 11, 2013 | |
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | $ 175,000,000 | $ 250,000,000 | |||
Allowable Amount for Issuance of Letters of Credit | $ 30,000,000 | $ 20,000,000 | ||||
Debt Instrument, Covenant, Leverage Ratio | 2 | |||||
Debt Covenant, Minimum Net Income Requirement | $ 1 | |||||
Debt Instrument, Covenant minimum tangible net worth | 250,000,000 | |||||
Long-term Line of Credit | 0 | $ 0 | ||||
Letters of Credit Outstanding on a Line of Credit, Amount Outstanding | 11,300,000 | 10,700,000 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 88,700,000 | $ 89,300,000 | ||||
Prime Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||
Accordion Feature [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | |||||
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.175% | |||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.90% | |||||
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.0725% | |||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.70% |
Accident and Workers' Compens_2
Accident and Workers' Compensation Insurance Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accident and Workers' Compensation Insurance Liabilities [Line Items] | ||
Excess Insurance Coverage Limit | $ 100 | |
Trust fund requirements | 0.7 | |
Debt Securities, Held-to-maturity | 1.5 | $ 1.5 |
Letters of Credit Outstanding, Amount | 12.8 | |
Letter of credit due | 0 | $ 0 |
Excess Insurance Coverage Minimum Claims | 3 | |
Excess Insurance Coverage Maximum Claims | 10 | |
Aggregate Self-Insurance Corridor | 1 | |
Aggregate Self-Insurance Corridor Claims Minimum [Member] | 2 | |
Aggregate Self-Insurance Corridor Claims Maximum [Member] | 3 | |
Auto liability retention limit minimum [Member] | ||
Accident and Workers' Compensation Insurance Liabilities [Line Items] | ||
Auto liability retention limit | 0.1 | |
Auto liability retention limit maximum [Member] [Member] | ||
Accident and Workers' Compensation Insurance Liabilities [Line Items] | ||
Auto liability retention limit | 2 | |
workers compensation retention limit minimum [Member] | ||
Accident and Workers' Compensation Insurance Liabilities [Line Items] | ||
Workers compensation retention limit | 0.5 | |
workers compensation retention limit maximum [Member] | ||
Accident and Workers' Compensation Insurance Liabilities [Line Items] | ||
Workers compensation retention limit | $ 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% |
Income Tax Uncertainties [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4,000 | $ 3,600 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | 400 | (1,300) | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 900 | 1,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | (1,400) | $ (900) |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 0 | ||
Increase in Unrecognized Tax Benefits is Reasonably Possible | 1,000 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance beginning of period | 4,585 | 5,839 | |
Additions based on tax positions related to current year | 1,138 | 700 | |
Additions for tax positions of prior years | 124 | 0 | |
Reductions due to lapse of applicable statute of limitations | (701) | (1,954) | |
Settlements | (136) | 0 | |
Balance end of period | 5,010 | 4,585 | $ 5,839 |
Valuation Allowance [Abstract] | |||
Valuation Allowance, Amount | $ 0 | $ 0 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $ 20,406 | $ 19,302 | $ 22,574 |
Income Tax Reconciliation, State and Local Income Taxes | 3,561 | 2,200 | 178 |
Income Tax Reconciliation, Permanent differences to return | 540 | 408 | 309 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | (392) | (1,327) | (325) |
Income Tax Reconciliation, Tax Contingencies | 289 | (1,067) | (1,208) |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Deferred TaxLiability, Provisional Income Tax (Expense) Benefit | 0 | 0 | (32,789) |
Income Tax Reconciliation, Other Adjustments | (193) | (276) | 586 |
Income Tax Expense (Benefit) | $ 24,211 | $ 19,240 | $ (10,675) |
Income Taxes Income Tax Expense
Income Taxes Income Tax Expense Detail (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Current Federal Tax Expense (Benefit) | $ 14,122 | $ 11,985 | $ 17,997 |
Current State and Local Tax Expense (Benefit) | 5,698 | 4,498 | (1,495) |
Current Income Tax Expense (Benefit) | 19,820 | 16,483 | 16,502 |
Deferred Federal Income Tax Expense (Benefit) | 5,595 | 5,537 | (28,020) |
Deferred State and Local Income Tax Expense (Benefit) | (1,204) | (2,780) | 843 |
Deferred Income Tax Expense (Benefit) | 4,391 | 2,757 | (27,177) |
Income Tax Expense (Benefit) | $ 24,211 | $ 19,240 | $ (10,675) |
Income Taxes Deferred Tax Summa
Income Taxes Deferred Tax Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 6,006 | $ 4,535 |
Deferred Tax Liabilities, Noncurrent | (93,698) | (71,041) |
Deferred Tax Liabilities, Net | $ (87,692) | $ (66,506) |
Income Taxes Deferred tax asset
Income Taxes Deferred tax assets and liabilties (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | $ 262 | $ 224 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 3,892 | 3,179 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 178 | 92 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 15,054 | 15,415 |
Deferred Tax Assets Operating Loss Carryforwards - State | 2,618 | 0 |
Deferred Tax Assets Operating Loss Carryforwards - Federal | 8,793 | 0 |
Unrecognized tax benefit | 1,052 | 963 |
Deferred Tax Assets, Other | 3 | 2 |
Deferred Tax Assets, Gross | 31,852 | 19,875 |
Deferred Tax Assets, Valuation Allowance | 0 | 0 |
Deferred Tax Assets, Net | 31,852 | 19,875 |
Deferred Tax Liabilities, Property, Plant and Equipment | (101,843) | (74,794) |
Deferred Tax Liabilities, Goodwill and Intangible Assets | (15,939) | (10,319) |
Deferred Tax Liabilities, Prepaid Expenses | (1,762) | (1,268) |
Deferred Income Tax Liabilities | (119,544) | (86,381) |
Deferred Tax Liabilities, Net | $ (87,692) | $ (66,506) |
Operating Leases Operating Le_2
Operating Leases Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense Revenue Equipment | $ 300 | $ 5,000 | $ 8,000 |
Terminal Facilities [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | 2,500 | 4,800 | 3,900 |
Terminal Facilities [Member] | Related Party [Member] | |||
Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense | $ 0 | $ 800 | $ 1,600 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Repurchases [Abstract] | |||
Stock Repurchase Shares Authorized | 6,900 | ||
Treasury Stock, Shares, Acquired | 0 | 1,400 | 0 |
Payments of Dividends | $ 6.6 | $ 6.6 | $ 6.7 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 11, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 114,000 | 10,000 | 27,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,800,000 | $ 800,000 | $ 600,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 17.11 | $ 17.11 | $ 17.11 | |
Vesting Terms Range Minimum (in years) | 0 | |||
Vesting Terms Range Maximum (in years) | 4 | |||
Vesting Share Price Range Minimum | $ 18.12 | |||
Vesting Share Price Range Maximum | 23.37 | |||
Stock-based Compensation | $ 2,100,000 | $ 500,000 | $ 500,000 | |
Restricted Stock Shares Authorized | 900,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 200,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period, Weighted Average Exercise Price, Beginning of Year | $ 21.31 | $ 21.82 | $ 21.53 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Unvested at beginning of year, Number of Restricted Stock Awards (in shares) | 26,500 | 53,700 | 53,000 | |
Unvested at end of year, Number of Restricted Stock Awards (in shares) | 52,150 | 26,500 | 53,700 | |
Share-based Compensation Arrangement by Share-based Payment Award, Grants in Period, Weighted Average Exercise Price, End of Year | $ 20.55 | $ 21.31 | $ 21.82 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 19.88 | $ 18.58 | $ 22.98 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (87,900) | (35,700) | (25,300) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 19.93 | $ 21.48 | $ 22.07 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (500) | (1,500) | (1,000) | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition (in years) | 8 months 12 days |
Profit Sharing Plan and Retir_2
Profit Sharing Plan and Retirement Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit Sharing Plan and Retirement Plan [Abstract] | |||
Defined Contribution Plan, Cost | $ 1.6 | $ 1 | $ 1.8 |
Related Party (Details)
Related Party (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Operating Leases, Rent Expense Revenue Equipment | $ 300 | $ 5,000 | $ 8,000 |
Terminal Facilities [Member] | |||
Related Party Transaction [Line Items] | |||
Operating Leases, Rent Expense | 2,500 | 4,800 | 3,900 |
Related Party [Member] | Terminal Facilities [Member] | |||
Related Party Transaction [Line Items] | |||
Operating Leases, Rent Expense | 0 | 800 | 1,600 |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Due to Related Parties, Current | 0 | 100 | |
Receipts for trailer sales | 0 | 0 | (12) |
Operating Leases, Rent Expense | 310 | 1,264 | 2,263 |
Related Party [Member] | Terminal Facilities [Member] | |||
Related Party Transaction [Line Items] | |||
Payments for parts and services | 310 | 551 | 650 |
Operating Leases, Rent Expense Revenue Equipment | $ 0 | $ 713 | $ 1,625 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Unrecorded Unconditional Purchase Obligation | $ 113.3 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information (Unaudited) [Abstract] | |||||||||||
OPERATING REVENUE | $ 167,227 | $ 147,908 | $ 142,144 | $ 139,536 | $ 147,003 | $ 151,279 | $ 155,826 | $ 156,695 | $ 596,815 | $ 610,803 | $ 607,336 |
Operating Income (Loss) | 17,663 | 26,739 | 29,030 | 20,843 | 29,560 | 25,132 | 22,147 | 12,948 | 94,275 | 89,787 | 63,544 |
Income before income taxes | 17,516 | 27,415 | 30,259 | 21,988 | 30,339 | 25,718 | 22,570 | 13,290 | 97,178 | 91,917 | 64,498 |
Net income | $ 12,787 | $ 20,501 | $ 22,361 | $ 17,318 | $ 22,440 | $ 19,056 | $ 17,803 | $ 13,378 | $ 72,967 | $ 72,677 | $ 75,173 |
Earnings Per Share Basic | $ 0.16 | $ 0.25 | $ 0.27 | $ 0.21 | $ 0.27 | $ 0.23 | $ 0.22 | $ 0.16 | $ 0.89 | $ 0.88 | $ 0.9 |
Earnings Per Share Diluted | $ 0.16 | $ 0.25 | $ 0.27 | $ 0.21 | $ 0.27 | $ 0.23 | $ 0.22 | $ 0.16 | $ 0.89 | $ 0.88 | $ 0.9 |
Schedule II Valuation of Qual_2
Schedule II Valuation of Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation Allowances and Reserves, Balance Beginning of Period | $ 900 | $ 1,475 | $ 1,475 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 200 | 0 | 0 |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 0 | 575 | 0 |
Valuation Allowances and Reserves, Balance End of Period | $ 1,100 | $ 900 | $ 1,475 |