Heartland Express, Inc. · NASDAQ:HTLD
Heartland Express — Merger or Acquisition (July 2017)
11 slides from Heartland Express's merger presentation, Jul 6, 2017
Slide 1: Acquisition of Interstate Distributor Co.
Acquisition of Interstate Distributor Co.July 6, 2017
Slide 2: Safe Harbor
Safe Harbor This report contains forward-looking statements relating to the expected results of acquiring Interstate Distributor Co. (“IDC”), future capital expenditures and debt levels, expected synergies, and financial goals. Forward-looking statements are usually identified by words such as "anti
Slide 3: Transaction Overview
Transaction Overview 3 Transaction Highlights Acquired all of the stock of Interstate Distributor Co. of Tacoma, WA (“IDC”) IDC total revenue of $325 million and an operating loss in 2016 $113 million enterprise value included $94 million in cash for the equity, $23 million in assumed debt, and $4 m
Slide 4: Why IDC?
Why IDC? 4 Safe carrier with strong driver corps and excellent customersOverlapping terminal network offers straightforward consolidation opportunityStrong visibility to near term improvement and EPS accretionAdditional lane density affords opportunity to improve asset allocation into an improving f
Slide 5: Safety and Driver Focus
Safety and Driver Focus IDC recognized by the Truckload Carriers Association as one of the top three safest fleets in each of the last three years IDC consistently recognized as one of the Best Fleets to Drive For by CarriersEdgeAverage driver tenure with IDC is approximately 3 years 5 Lowe’s Platin
Slide 6: Terminal Consolidation in All IDC Markets
6 Terminal Consolidation in All IDC Markets Increase density in West; better serve IDC customers in East Optimize load matchingDriver and other employee opportunitiesDeadhead reductionCost savings Consolidation of facilities in/near = Consolidation opportunities = IDC Terminal = Heartland Terminal S
Slide 7: Fleet Overview
Fleet Overview Approximately 1,570 tractors, which includes approximately 220 owner-operatorsAverage company tractor age: approximately 3.0 yearsApproximately 4,700 trailersAverage trailer age: approximately 7.5 yearsExpect to invest significant capex to bring fleet age toward Heartland’s standard a
Slide 8: IDC Blue Chip Customers
IDC Blue Chip Customers No customer more than 5% of total and modest overlap with Heartland accounts 8
Slide 9: Focus on Markets
Focus on Markets 9 9 2016 Revenue Mix 2016 End Market by Industry Intermodal4% Brokerage7% Contact Carrier5% Owner Operator10% Reefer13% Dedicated23% Van38% Other2% Medical3% Manufacturing7% Logistics15% Consumer Products15% Food & Beverage20% Retail38%
Slide 10: Expected Synergies
Expected Synergies Consolidate back office functions (one brand, one team)Eliminate duplicate terminal locationsImprove yield through density, capacity allocation, and fewer empty milesDownsize non-core business“Heartlandize” costs 10 Direct Path to EPS Accretion; Medium Term Expectation of Low to M
Slide 11: Back to Form 8-K
Back to Form 8-K
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