Dive Brief:
- Heartland Express reported a net loss of $15.1 million for Q1, according to an earnings announcement Tuesday.
- The company notched a 105.3% operating ratio and 105.6% adjusted operating ratio for the quarter, a dangerous territory that’s far from its goal of 85% or lower.
- The results “reflect the combination of an extended and significant period of weak freight demand, driven by excess capacity in the industry, unfavorable weather early in the quarter, and ongoing operating cost inflation,” CEO Mike Gerdin said in the announcement.
Dive Insight:
Despite efforts to counter the downturn, the market wreaked havoc on Heartland in Q1.
The carrier did not rely on broker freight and refused to lower rates to unsustainable levels requested by certain customers, Gerdin said.
“We continue to believe that the freight market will improve as more capacity exits the market,” he said.
To counter interest expenses, the company also moved to reduce acquisition-related debt by nearly $37 million.
Heartland said it’s also working to improve the operating effectiveness of the businesses acquired from Smith Transport and TFI International in 2022.
Heartland has $1.5 billion in assets and $23.8 million in cash and cash equivalents.
Other carriers posted mixed Q1 results this month. While P.A.M. Transportation Services also posted a loss, Marten Transport reported $12.3 million in operating income.
