| [X]                                 | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934     |   |
|-------------------------------------|----------------------------------------------------------------------------------------------------|--------|
|                                | For      the Fiscal Year Ended December 31, 2009                                                   |   |
|                                |                                                                                               |   |
| [  ]                      | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |   |
|                                | For      the transition period from                                                                | to     |
|                                |                                                                                               |   |
| Commission      file number 0-15087 |                                                                                               |

| Nevada                                 | 93-0926999               |
|----------------------------------------|--------------------------|
| (State      or Other Jurisdiction      | (I.R.S.      Employer    |
| of      Incorporation or organization) | Identification      No.) |

| 901      North Kansas Avenue, North Liberty, Iowa                | 52317                              |
|------------------------------------------------------------------|------------------------------------|
| (Address      of Principal Executive Offices)                    | (Zip      Code)                    |
| 319-626-3600                                                     |
| (Registrant’s      telephone number, including area code)  |
|                                                             |                               |
| Securities      Registered Pursuant to section 12(b) of the Act: | None                               |
|                                                             |                               |
| Securities      Registered Pursuant to section 12(g) of the Act: | Common      stock, $0.01 par value |
|                                                             | The      NASDAQ Stock Market LLC   |

TABLE OF CONTENTS

|          |          |                                                                                                     |     |
|---------------|---------------|----------------------------------------------------------------------------------------------------------|----------|
|          |          |                                                                                                     |     |
|          |          |                                                                                                     | Page     |
| PART      I   |          |                                                                                                     |     |
|          | Item      1.  | Business                                                                                                 | 1        |
|          | Item      1A. | Risk      Factors                                                                                        | 6   |
|          | Item      1B. | Unresolved      Staff Comments                                                                           | 11       |
|          | Item      2.  | Properties                                                                                               | 12       |
|          | Item      3.  | Legal      Proceedings                                                                                   | 12  |
|          | Item      4.  | Submission      of Matters to a Vote of Security Holders                                                 | 12       |
| PART      II  |          |                                                                                                     |     |
|          | Item      5.  | Market      for the Registrant’s Common Equity, Related Stockholder                                |     |
|          |          | Matters,      and Issuer Purchases of Equity Securities                                                  | 13       |
|          | Item      6.  | Selected      Financial Data                                                                             | 15  |
|          | Item      7.  | Management’s      Discussion and Analysis of Financial Condition                                   |     |
|          |          | and      Results of Operations                                                                           | 16       |
|          | Item      7A. | Quantitative      and Qualitative Disclosures about Market Risk                                          | 25  |
|          | Item      8.  | Financial      Statements and Supplementary Data                                                         | 26  |
|          | Item      9.  | Changes      in and Disagreements with Accountants on Accounting                                         |     |
|          |          | and      Financial Disclosure                                                                            | 26  |
|          | Item      9A. | Controls      and Procedures                                                                             | 26  |
|          | Item      9B. | Other      Information                                                                                   | 28  |
| PART      III |          |                                                                                                     |     |
|          | Item      10. | Directors,      Executive Officers, and Corporate Governance                                             | 28  |
|          | Item      11. | Executive      Compensation                                                                              | 28  |
|          | Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters | 28  |
|          | Item      13. | Certain      Relationships and Related Transactions, and Director      Independence                      | 28  |
|          | Item      14. | Principal      Accounting Fees and Services                                                              | 28  |
| PART      IV  |          |                                                                                                     |     |
|          | Item      15. | Exhibits,      Financial Statement Schedule                                                              | 28  |
|          |          |                                                                                                     |
| SIGNATURES    | 31            |
|          |          |                                                                                                     |     |
|          |          |                                                                                                     |     |
|          |          |                                                                                                     |     |
|          |          |                                                                                                     |     |
|          |          |                                                                                                     |     |
|          |          |                                                                                                     |     |
|          |          |                                                                                                     |     |
|          |          |                                                                                                     |     |

----

Table of Contents

Item1.                                Business

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

ITEM1A.                      RISKFACTORS

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

ITEM1B.                      UNRESOLVEDSTAFF COMMENTS

----

Table of Contents

ITEM2.                      PROPERTIES

| Company      Location          | Office | Shop | Fuel | Owned      or Leased |
|--------------------------------|--------|------|------|----------------------|
| North      Liberty, Iowa (1)   | Yes    | Yes  | Yes  | Owned                |
| Ft.      Smith, Arkansas       | No     | Yes  | Yes  | Owned                |
| O’Fallon,      Missouri  | No     | Yes  | Yes  | Owned                |
| Atlanta,      Georgia          | Yes    | Yes  | Yes  | Owned                |
| Columbus,      Ohio            | Yes    | Yes  | Yes  | Owned                |
| Jacksonville,      Florida     | Yes    | Yes  | Yes  | Owned                |
| Kingsport,      Tennessee      | Yes    | Yes  | Yes  | Owned                |
| Olive      Branch, Mississippi | Yes    | Yes  | Yes  | Owned                |
| Chester,      Virginia         | Yes    | Yes  | Yes  | Owned                |
| Carlisle,      Pennsylvania    | Yes    | Yes  | Yes  | Owned                |
| Phoenix,      Arizona (2)      | Yes    | Yes  | Yes  | Owned                |
| Seagoville,      Texas (3)     | Yes    | Yes  | Yes  | Owned                |

| (1)   | The      Company moved into its new corporate headquarters in July      2007.  Prior to July 2007 the Company headquarters was      located      in Iowa City, Iowa and was located on property that the Company both owned      and leased. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The      Company leased a facility in Phoenix, Arizona for a portion of 2007. In      2005, the Company acquired fourteen acres of land in Phoenix, Arizona for      the construction of a new regional operating facility. Construction began      in 2006 and was completed in the second quarter of 2007. Construction was      financed by cash flows from operations.  The leased facilities      did not include fuel facilities. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The      Company acquired this terminal location in August 2008.  The      Company completed property renovations late in the fourth quarter of 2008      and terminal operations began January 5,2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM3.                      LEGALPROCEEDINGS

ITEM4.                      SUBMISSIONOF MATTERS TO A VOTE OF SECURITY HOLDERS

----

Table of Contents

| ITEM 5. | MARKET      FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER      PURCHASES OF EQUITY SECURITIES |
|---------|-------------------------------------------------------------------------------------------------------------------------------|

|                    |   |   |   |   |   |   |   | Dividends      Declared |   |
|-------------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
| Period                  |   | High   |   |   | Low    |   |   | per      Common Share   |   |
| Calendar      Year 2009 |   |   |   |   |   |   |   |                    |   |
| 1st      Quarter        |   | $      | 16.20  |   |   | $      | 11.89  |                    |   | $ | 0.020 |   |
| 2nd      Quarter        |   |   | 16.96  |   |   |   | 14.00  |                    |   |   | 0.020 |   |
| 3rd      Quarter        |   |   | 15.84  |   |   |   | 13.70  |                    |   |   | 0.020 |   |
| 4th      Quarter        |   |   | 15.80  |   |   |   | 13.21  |                    |   |   | 0.020 |   |
| Calendar      Year 2008 |   |   |   |   |   |   |   |                    |   |   |   |   |
| 1st      Quarter        |   | $      | 16.48  |   |   | $      | 12.89  |                    |   | $ | 0.020 |   |
| 2nd      Quarter        |   |   | 16.40  |   |   |   | 13.80  |                    |   |   | 0.020 |   |
| 3rd      Quarter        |   |   | 20.00  |   |   |   | 14.18  |                    |   |   | 0.020 |   |
| 4th      Quarter        |   |   | 16.52  |   |   |   | 12.25  |                    |   |   | 0.020 |   |

|                                     | 2009      Period    |
|------------------------------------------|---------------------|
|                                     | 1st      Quarter    | 2nd      Quarter | 3rd      Quarter | 4th      Quarter |
| Announcement      date                   | March      9, 2009  | June      8, 2009 | September      10, 2009 | November      30, 2009 |
| Record      date                         | March      20, 2009 | June      19, 2009 | September      21, 2009 | December      11, 2009 |
| Payment      date                        | April      2, 2009  | July      2, 2009 | October      2, 2009 | December      22, 2009 |
| Payment      amount (per common share)   | $0.02               | $0.02 | $0.02 | $0.02 |
| Payment      amount total for all shares | $1.8      million   | $1.8      million | $1.8      million | $1.8      million |

----

Table of Contents

|                                                   |   |   |    |   | Grant-date      |   |
|--------------------------------------------------------|--------|--------|---------|--------|-----------------|--------|
|                                                   |   | Shares |    |   | Fair      Value |   |
| Non-vested      stock outstanding at January 1, 2007   |   |   | 34,200  |   |            | $      | 11.00 |   |
| Granted                                                |   |   | -       |   |            |   | - |   |
| Vested                                                 |   |   | (34,000 | )      |            |   | 11.00 |   |
| Forfeited                                              |   |   | -       |   |            |   | - |   |
| Non-vested      stock outstanding at December 31, 2007 |   |   | 200     |   |            |   | 11.00 |   |
|                                                   |   |   |    |   |            |   |   |   |
| Non-vested      stock outstanding at January 1, 2008   |   |   | 200     |   |            |   | 11.00 |   |
| Granted                                                |   |   | -       |   |            |   | - |   |
| Vested                                                 |   |   | (200    | )      |            |   | 11.00 |   |
| Forfeited                                              |   |   | -       |   |            |   | - |   |
| Non-vested      stock outstanding at December 31, 2008 |   |   | -       |   |            | $      | - |   |

----

Table of Contents

ITEM6.                      SELECTEDFINANCIAL DATA

|                                                                                                                                              |   | Year      Ended December 31,               |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                                                                              |   | (in      thousands, except per share data) |    |
|                                                                                                                                              |   |                                       | 2009    |   |   |   | 2008 |   |   |   | 2007 |   |   |   | 2006 |   |   |   | 2005 |   |
| Statements of Income      Data:                                                                                                                   |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenue                                                                                                                            |   | $                                          | 459,539 |   |   | $ | 625,600 |   |   | $ |         591,893 |   |   | $ | 571,919 |   |   | $ | 523,792 |   |
| Operating      expenses:                                                                                                                          |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Salaries,      wages, and benefits                                                                                                    |   |                                       | 168,716 |   |   |   | 197,992 |   |   |   | 196,303 |   |   |   | 189,179 |   |   |   | 174,180 |   |
|   Rent      and purchased transportation                                                                                                |   |                                       | 11,138  |   |   |   | 18,703 |   |   |   | 21,421 |   |   |   | 24,388 |   |   |   | 29,635 |   |
|   Fuel                                                                                                                                  |   |                                       | 104,246 |   |   |   | 204,708 |   |   |   | 164,285 |   |   |   | 146,240 |   |   |   | 123,558 |   |
|   Operations      and maintenance                                                                                                       |   |                                       | 14,913  |   |   |   | 15,575 |   |   |   | 12,314 |   |   |   | 12,647 |   |   |   | 14,955 |   |
|   Operating      taxes and licenses                                                                                                     |   |                                       | 9,286   |   |   |   | 9,317 |   |   |   | 9,454 |   |   |   | 9,143 |   |   |   | 8,968 |   |
|   Insurance      and claims                                                                                                             |   |                                       | 16,629  |   |   |   | 24,307 |   |   |   | 18,110 |   |   |   | 16,621 |   |   |   | 17,938 |   |
|   Communications      and utilities                                                                                                     |   |                                       | 3,655   |   |   |   | 3,693 |   |   |   | 3,857 |   |   |   | 3,721 |   |   |   | 3,554 |   |
|   Depreciation      (2)                                                                                                                 |   |                                       | 58,730  |   |   |   | 46,109 |   |   |   | 48,478 |   |   |   | 47,351 |   |   |   | 38,228 |   |
|   Other      operating expenses                                                                                                         |   |                                       | 12,970  |   |   |   | 16,807 |   |   |   | 17,380 |   |   |   | 17,356 |   |   |   | 16,697 |   |
|   Gain      on disposal of property                                                                                                     |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       and      equipment (2)                                                                                        |   |                                       | (19,708 | ) |   |   | (9,558 | ) |   |   | (10,159 | ) |   |   | (18,144 | ) |   |   | (8,032 | ) |
|                                                                                                                                              |   |                                       | 380,575 |   |   |   | 527,653 |   |   |   | 481,443 |   |   |   | 448,502 |   |   |   | 419,681 |   |
|                     Operating      income (2) |   |                                       | 78,964  |   |   |   | 97,947 |   |   |   | 110,450 |   |   |   | 123,417 |   |   |   | 104,111 |   |
| Interest      income                                                                                                                              |   |                                       | 2,338   |   |   |   | 9,132 |   |   |   | 10,285 |   |   |   | 11,732 |   |   |   | 7,373 |   |
| Income      before income taxes (2)                                                                                                               |   |                                       | 81,302  |   |   |   | 107,079 |   |   |   | 120,735 |   |   |   | 135,149 |   |   |   | 111,484 |   |
| Federal      and state income taxes                                                                                                               |   |                                       | 24,353  |   |   |   | 37,111 |   |   |   | 44,565 |   |   |   | 47,978 |   |   |   | 39,578 |   |
| Net      income (2)                                                                                                                               |   | $                                          | 56,949  |   |   | $ | 69,968 |   |   | $ | 76,170 |   |   | $ | 87,171 |   |   | $ | 71,906 |   |
| Weighted      average shares                                                                                                                      |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| outstanding      (1)                                                                                                                              |   |                                       | 91,131  |   |   |   | 95,900 |   |   |   | 97,735 |   |   |   | 98,359 |   |   |   | 99,125 |   |
| Earnings      per share (1) (2)                                                                                                                   |   | $                                          | 0.62    |   |   | $ | 0.73 |   |   | $ | 0.78 |   |   | $ | 0.89 |   |   | $ | 0.73 |   |
| Dividends      declared per share (1)                                                                                                             |   | $                                          | 0.080   |   |   | $ | 0.080 |   |   | $ | 2.080 |   |   | $ | 0.075 |   |   | $ | 0.060 |   |
|                                                                                                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet      data:                                                                                                                          |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      working capital (3) (4)                                                                                                                  |   | $                                          | 77,460  |   |   | $ | 70,065 |   |   | $ | 182,546 |   |   | $ | 294,252 |   |   | $ | 271,263 |   |
| Total      assets (4)                                                                                                                             |   |                                       | 551,163 |   |   |   | 533,670 |   |   |   | 526,294 |   |   |   | 669,070 |   |   |   | 573,508 |   |
| Stockholders'      equity                                                                                                                         |   |                                       | 367,670 |   |   |   | 360,039 |   |   |   | 342,759 |   |   |   | 495,024 |   |   |   | 433,252 |   |

----

Table of Contents

| ITEM 7. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS    OF |
|---------|------------------------------------------------------------------------------------------|
|    | OPERATIONS                                                                               |

----

Table of Contents

|                                                                                                                                                                        |   | Year      Ended December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                                                                        |   | 2009                         |   |   | 2008 |   |   | 2007 |   |
| Operating      revenue                                                                                                                                                      |   |                         | 100.0  | % |   |   | 100.0 | % |   |   | 100.0 | % |
| Operating      expenses:                                                                                                                                                    |   |                         |   |   |   |   |   |   |   |   |   |   |
|      Salaries,      wages, and benefits                                                                                                            |   |                         | 36.7   | % |   |   | 31.6 | % |   |   | 33.2 | % |
|      Rent      and purchased transportation                                                                                                        |   |                         | 2.4    |   |   |   | 3.0 |   |   |   | 3.6 |   |
|      Fuel                                                                                                                                          |   |                         | 22.7   |   |   |   | 32.7 |   |   |   | 27.8 |   |
|      Operations      and maintenance                                                                                                               |   |                         | 3.2    |   |   |   | 2.5 |   |   |   | 2.1 |   |
|      Operating      taxes and license                                                                                                              |   |                         | 2.0    |   |   |   | 1.5 |   |   |   | 1.6 |   |
|      Insurance      and claims                                                                                                                     |   |                         | 3.6    |   |   |   | 3.9 |   |   |   | 3.1 |   |
|      Communications      and utilities                                                                                                             |   |                         | 0.8    |   |   |   | 0.6 |   |   |   | 0.7 |   |
|      Depreciation                                                                                                                                  |   |                         | 12.8   |   |   |   | 7.4 |   |   |   | 8.2 |   |
|      Other      operating expenses                                                                                                                 |   |                         | 2.8    |   |   |   | 2.7 |   |   |   | 2.9 |   |
|      Gain      on disposal of property and equipment                                                                                               |   |                         | (4.3   | ) |   |   | (1.5 | ) |   |   | (1.7 | ) |
|                                                                                                                                                                        |   |                         | 82.8   | % |   |   | 84.3 | % |   |   | 81.3 | % |
|                          Operating      income |   |                         | 17.2   | % |   |   | 15.7 | % |   |   | 18.7 | % |
| Interest      income                                                                                                                                                        |   |                         | 0.5    |   |   |   | 1.5 |   |   |   | 1.7 |   |
|      Income      before income taxes                                                                                                               |   |                         | 17.7   | % |   |   | 17.1 | % |   |   | 20.4 | % |
| Income      taxes                                                                                                                                                           |   |                         | 5.3    |   |   |   | 5.9 |   |   |   | 7.5 |   |
|      Net      income                                                                                                                               |   |                         | 12.4   | % |   |   | 11.2 | % |   |   | 12.9 | % |
|                                                                                                                                                                        |   |                         |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                  | December      31, 2009 |   | December      31, 2008 |   |
|---------------------------------------|------------------------|--------|------------------------|--------|
| Average      life of underlying loans | 2-10      years        |   | 2-10      years        |   |
| Rate      of return                   | 0.69-4.99%             |   | 3.5-3.94%              |   |
| Discount      rate                    | 0.74-2.07%             |   | 0.52-1.35%             |   |
| Liquidity      discount rate          | 0.40-3.0%              |   | 3.0-3.25%              |   |

----

Table of Contents

| ·   | Current      market activity and the lack of severity or extended decline do not      warrant such action at this time. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | Since      auction failures began in February 2008, the Company has received      approximately $47.8 million as the result of partial calls by issuers,      including $2.3 million received in January 2010.  The Company      received par value for the amount of these calls plus accrued      interest. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Based      on the Company’s financial operating results, operating cash flows and      debt free balance sheet, the Company has the ability and intent to hold      such securities until recovery of the unrealized  loss. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | There      have not been any significant changes in collateralization and ratings of      the underlying securities since the first failed auction.  The      Company continues to hold 96% of the auction rate security portfolio in      senior positions of AAA (or equivalent) rated  securities. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company is aware of recent increases in default rates of the underlying      student loans that are the assets to the trusts issuing the auction rate      security debt, which management believes is due to current overall      negative economic conditions.  As the underlying loans are      guaranteed by the U.S. Government, defaults of the loans accelerate      payment of the underlying loan to the trust.  As trusts are no      longer recycling repayment money for new loans, accelerated repayment of      any student loan to the underlying trust would increase cash flows of the      trust which would potentially result in partial calls by the underlying      trusts. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Currently,      there is legislative pressure to provide liquidity in student loan      investments, providing liquidity to state student loan agencies, to      continue to provide financial assistance to eligible students to enable      higher educations as well as improve overall liquidity in the student loan      auction rate market.  This has the potential to impact existing      securities with underlying studentloans. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | All      of the auction rate securities are held with financial institutions that      have agreed in principle to settlement agreements with various regulatory      agencies to provide liquidity.  Although the principles of the      respective settlement agreements focus mostly on small investors      (generally companies and individual investors with auction rate security      assets less than $25 million) the respective settlements state the      financial institutions will work with issuers and other interested parties      to use their best efforts to provide liquidity solutions to companies not      specifically covered by the principle terms of the respective settlements      by the end of 2009 in certain settlement agreements.  The      Company is expecting further guidance from regulatory agencies in the      future as they monitor the progress of the respective financial      institutions towards this goal. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                               |   |                                      |   |
|----------------------------------------------------|--------|-------------------------------------------|--------|
|                                               |   | Payments      due by period (in millions) |   |
| Contractual      Obligations                       |   |  Total                               |   |   | Less      than 1 year |   |   | 1–3      years |   |   | 3–5      years |   |   |  Other |   |
| Purchase      Obligation                           |   | $                                         | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Operating      Lease Obligations                   |   | $                                         | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Obligations      for unrecognized tax benefits (1) |   | $                                         | 31.3   |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 31.3 |   |
|                                               |   | $                                         | 31.3   |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 31.3 |   |

| (1)   | Obligations      for unrecognized tax benefits represent potential liabilities and include      interest and penalties.  The Company is unable to reasonably      determine when these amounts will besettled. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | * | Revenue      is recognized when freight isdelivered. |
|--------|---|------------------------------------------------------|

|   | * | Selections      of estimated useful lives, salvage values, and depreciation methods for      purposes of depreciating tractors and trailers.  Depreciable      lives of tractors and trailers are 5 and 7 years,      respectively.  Estimates of salvage value are based upon the      expected market values of equipment at the end of the expected useful      life.  Management selects depreciation methods that it believes      most accurately reflects the timing of benefit received from the      applicable assets. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Management      estimates accruals for the self-insured portion of pending accident      liability, workers’ compensation, physical damage and cargo damage      claims.  These accruals are based upon individual case      estimates, including reserve development, and estimates of      incurred-but-not-reported losses based upon past    experience. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Management      judgment is required to determine the provision for income taxes and to      determine whether deferred income taxes will be realized. Deferred tax      assets and liabilities are measured using enacted tax rates expected to      apply to taxable income in the years in which the temporary differences      are expected to be recovered or settled. A valuation allowance is required      to be established for the amount of deferred income tax assets that are      determined not to be realizable. The Company has recorded a $1.7 million      valuation allowance for deferred income tax assets associated with the      auction rate securities fair value adjustment.   Further,      management judgment is required in the accounting for uncertainty in      income taxes recognized in the financial statements based on recognition      threshold and measurement attributes for the financial statement      recognition and measurement of a tax position taken or expected to be      taken in a tax return. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | * | Auction      rate security investments are valued at fair value applying a fair value      hierarchy as established by applicable authoritative accounting      guidance.  Fair value estimates the price that would be received      to sell an asset or paid to transfer a liability in an orderly transaction      between market participants at the measurement date.  As there      is no current active market for these securities, management utilizes a      combination of internal discounted cash flow model with key assumptions      being the discount rate, rate of return and duration as well as external      market data provided by financial institutions.  Management does      not consider there to be significant credit risk due to government support      of the underlying loans and current credit ratings.  Management      monitors its investments and ongoing market conditions to assess      impairments considered to be other than temporary.  Should      estimated fair values continue to remain below cost or the fair value      decrease significantly from current fair value due to credit related      issues, the Company may be required to record an impairment of these      investments, through a charge in the consolidated statement of      income.  To date, the Company has not recorded any impairment of      these investments in the consolidated statement of  income. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM7A.                      QUANTITATIVEAND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

----

Table of Contents

| ITEM 8. | FINANCIAL      STATEMENTS AND SUPPLEMENTARY DATA |
|---------|--------------------------------------------------|

| ITEM 9. | CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND |
|---------|----------------------------------------------------------------------|
|    | FINANCIAL      DISCLOSURE                                            |

| ITEM 9A. | CONTROLS      AND PROCEDURES |
|----------|------------------------------|

----

Table of Contents

----

Table of Contents

| ITEM 9B. | OTHER      INFORMATION |
|----------|------------------------|

| ITEM 10. | DIRECTORS,      EXECUTIVE OFFICERS, AND CORPORATEGOVERNANCE |
|----------|-------------------------------------------------------------|

| ITEM 11. | EXECUTIVE      COMPENSATION |
|----------|-----------------------------|

| ITEM 12. | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT,  AND |
|----------|---------------------------------------------------------------------------|
|     | RELATED      STOCKHOLDER MATTERS                                          |

| ITEM 13. | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR      INDEPENDENCE |
|----------|-------------------------------------------------------------------------------------|

| ITEM 14. | PRINCIPAL      ACCOUNTING FEES AND SERVICES |
|----------|---------------------------------------------|

ITEM15

| Report      of Independent Registered Public Accounting Firm                                                         | F-1 |
|----------------------------------------------------------------------------------------------------------------------|-----|
| Consolidated      Balance Sheets – December 31, 2009 and 2008                                                  | F-2 |
| Consolidated      Statements of Income – Years ended December 31, 2009, 2008 and      2007                     | F-3 |
| Consolidated      Statements of Stockholders’ Equity – Years ended December 31, 2009, 2008      and 2007 | F-4 |
| Consolidated      Statements of Cash Flows – Years ended December 31, 2009, 2008 and      2007                 | F-5 |
| Notes      to Consolidated Financial Statements                                                                      | F-6 |

----

Table of Contents

| Valuation      and Qualifying Accounts and Reserves - Years ended December 31, 2009, 2008      and 2007  | S-1 |
|---------------------------------------------------------------------------------------------------------------|-----|

| Exhibit      No. | Document                                                         | Method      of Filing                                 |
|------------------|------------------------------------------------------------------|-------------------------------------------------------|
|             |                                                             |                                                  |
| 3.1              | Articles      of Incorporation                                   | Incorporated      by reference to the Company’s |
|             |                                                             | registration      statement on Form S-1,              |
|             |                                                             | Registration  No.      33-8165, effective   |
|             |                                                             | November      5, 1986.                                |
|             |                                                             |                                                  |
| 3.2              | Amended      and Restated Bylaws                                 | Incorporated      by reference to the Company’s |
|             |                                                             | Form      10-K, for the year ended December           |
|             |                                                             | 31,      2007, dated February 28, 2008                |
|             |                                                             |                                                  |
| 3.3              | Certificate      of Amendment to Articles of Incorporation       | Incorporated      by reference to the Company’s |
|             |                                                             | Form      10-QA, for the quarter ended June 30,       |
|             |                                                             | 1997,      dated March 20, 1998.                      |
|             |                                                             |                                                  |
| 4.1              | Articles      of Incorporation                                   | Incorporated      by reference to the Company’s |
|             |                                                             | registration      statement on Form S-1,              |
|             |                                                             | Registration      No. 33-8165, effective              |
|             |                                                             | November      5, 1986.                                |
|             |                                                             |                                                  |
| 4.2              | Amended      and Restated Bylaws                                 | Incorporated      by reference to the Company’s |
|             |                                                             | Form      10-K, for the year ended December           |
|             |                                                             | 31,      2007, dated February 28, 2008                |
|             |                                                             |                                                  |
| 4.3              | Certificate      of Amendment to Articles of Incorporation       | Incorporated      by reference to the Company’s |
|             |                                                             | Form      10-QA, for the quarter ended June 30,       |
|             |                                                             | 1997,      dated March 20, 1998.                      |
|             |                                                             |                                                  |
| 9.1              | Voting      Trust Agreement dated June 6, 1997                   | Incorporated      by reference to the Company’s |
|             | between      Larry Crouse, as trustee under the Gerdin           | Form      10-K for the year ended December 31,        |
|             | Educational      Trusts, and Lawrence D. Crouse, voting trustee. | 1997.      Commission file no. 0-15087                |

----

Table of Contents

| 9.2    | Voting      Trust Agreement dated July 10, 2007          | Incorporated      by reference to the Company’s |
|--------|----------------------------------------------------------|-------------------------------------------------------|
|   | between      Lawrence D. Crouse, as the                  | Form      10-K, for the year ended December           |
|   | voting      trustee for certain Grantor Retained         | 31,      2007, dated February 28, 2008.               |
|   | Annuity      Trusts established by Russell A.            |                                                  |
|   | Gerdin      and Ann S. Gerdin (“GRATS”), and |                                                  |
|   | Mr.      and Mrs. Gerdin, the trustees for certain       |                                                  |
|   | GRATS.                                                   |                                                  |
|   |                                                     |                                                  |
| 10.2*  | Restricted      Stock Agreement                          | Incorporated      by reference to the Company’s |
|   |                                                     | Form      10-K for the year ended December 31, 2002   |
|   |                                                     | Commission      file no. 0-15087.                     |
|   |                                                     |                                                  |
| 10.3*  | Nonqualified      Deferred Compensation Plan             | Incorporated      by reference to the Company’s |
|   |                                                     | Form      10-K for the year ended December 31, 2006   |
|   |                                                     | Commission      file no. 0-15087.                     |
|   |                                                     |                                                  |
| 21     | Subsidiaries      of the Registrant                      | Filed      herewith                                   |
|   |                                                     |                                                  |
| 31.1   | Certification      of Chief Executive Officer            | Filed      herewith.                                  |
|   | pursuant      to Rule 13a-14(a) and Rule                 |                                                  |
|   | 15d-14(a)      of the Securities Exchange Act,           |                                                  |
|   | as      amended.                                         |                                                  |
|   |                                                     |                                                  |
| 31.2   | Certification      of Chief Financial Officer            | Filed      herewith.                                  |
|   | pursuant      to Rule 13a-14(a) and Rule                 |                                                  |
|   | 15d-14(a)      of the Securities Exchange Act,           |                                                  |
|   | as      amended.                                         |                                                  |
|   |                                                     |                                                  |
| 32.1   | Certification      of Chief Executive Officer            | Filed      herewith.                                  |
|   | Pursuant      to 18 U.S.C. 1350, as adopted              |                                                  |
|   | pursuant      to Section 906 of the Sarbanes-            |                                                  |
|   | Oxley      Act of 2002.                                  |                                                  |
|   |                                                     |                                                  |
| 32.2   | Certification      of Chief Financial Officer            | Filed      herewith.                                  |
|   | Pursuant      to 18 U.S.C. 1350, as adopted              |                                                  |
|   | pursuant      to Section 906 of the Sarbanes             |                                                  |
|   | Oxley      Act of 2002.                                  |                                                  |

----

Table of Contents

SIGNATURES

|                                    | HEARTLAND      EXPRESS, INC.                      |
|-----------------------------------------|---------------------------------------------------|
|                                    |                                              |
| Date:  February      24, 2010 | By:      /s/ Russell A.      Gerdin               |
|                                    | Russell      A. Gerdin                            |
|                                    | Chief      Executive Officer                      |
|                                    | (Principal      executive officer)                |
|                                    |                                              |
|                                    |                                              |
|                                    | By:      /s/ John P.      Cosaert                 |
|                                    | John      P. Cosaert                              |
|                                    | Executive      Vice President of Finance          |
|                                    | and      Chief Financial Officer                  |
|                                    | (Principal      accounting and financial officer) |

| Signature                    | Title                                             | Date                   |
|------------------------------|---------------------------------------------------|------------------------|
|                         |                                              |                   |
| /s/      Russell A. Gerdin   | Chairman      and Chief Executive Officer         |                   |
| Russell      A. Gerdin       | (Principal      executive officer)                | February      24, 2010 |
|                         |                                              |                   |
|                         |                                              |                   |
| /s/      Michael J. Gerdin   | President      and Director                       | February      24, 2010 |
| Michael      J. Gerdin       |                                              |                   |
|                         |                                              |                   |
| /s/      John P. Cosaert     | Executive      Vice President of Finance,         |                   |
| John      P. Cosaert         | Chief      Financial Officer, and Treasurer       |                   |
|                         | (Principal      accounting and financial officer) | February      24, 2010 |
|                         |                                              |                   |
| /s/      Richard O. Jacobson | Director                                          | February      24, 2010 |
| Richard      O. Jacobson     |                                              |                   |
|                         |                                              |                   |
| /s/      Benjamin J. Allen   | Director                                          | February      24, 2010 |
| Benjamin      J. Allen       |                                              |                   |
|                         |                                              |                   |
| /s/      Lawrence D. Crouse  | Director                                          | February      24, 2010 |
| Lawrence      D. Crouse      |                                              |                   |
|                         |                                              |                   |
| /s/      James G. Pratt      | Director                                          | February      24, 2010 |
| James      G. Pratt          |                                              |                   |
|                         |                                              |                   |

----

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

----

Table of Contents

| HEARTLAND      EXPRESS, INCAND      SUBSIDIARIES CONSOLIDATED BALANCE SHEETS(in      thousands, except per share amounts) |
|--------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                           | December      31, |   | December      31, |   |
| ASSETS                                                                                                                         | 2009 |   | 2008 |   |
| CURRENT      ASSETS                                                                                                            |   |   |   |   |   |   |   |
|    Cash      and cash equivalents                                                                               | $ | 52,351 |   |   | $ | 56,651 |   |
|    Short-term      investments                                                                                  |   | 7,126 |   |   |   | 241 |   |
|    Trade      receivables, net                                                                                  |   | 37,361 |   |   |   | 36,803 |   |
|    Prepaid      tires                                                                                           |   | 6,579 |   |   |   | 6,449 |   |
|    Other      current assets                                                                                    |   | 1,923 |   |   |   | 2,834 |   |
|    Income      tax receivable                                                                                   |   | 4,658 |   |   |   | - |   |
|    Deferred      income taxes, net                                                                              |   | 14,516 |   |   |   | 11,606 |   |
|              Total      current assets                        | $ | 124,514 |   |   | $ | 114,584 |   |
| PROPERTY      AND EQUIPMENT                                                                                                    |   |   |   |   |   |   |   |
|    Land      and land improvements                                                                              |   | 17,442 |   |   |   | 17,442 |   |
|    Buildings                                                                                                    |   | 26,761 |   |   |   | 26,761 |   |
|    Furniture      and fixtures                                                                                  |   | 2,269 |   |   |   | 2,269 |   |
|    Shop      and service equipment                                                                              |   | 5,295 |   |   |   | 5,290 |   |
|    Revenue      equipment                                                                                       |   | 361,797 |   |   |   | 337,799 |   |
|                                                                                                                           |   | 413,564 |   |   |   | 389,561 |   |
|    Less      accumulated depreciation                                                                           |   | 138,394 |   |   |   | 151,881 |   |
|               Property      and equipment, net           | $ | 275,170 |   |   | $ | 237,680 |   |
| LONG-TERM      INVESTMENTS                                                                                                     |   | 140,884 |   |   |   | 171,122 |   |
| GOODWILL                                                                                                                       |   | 4,815 |   |   |   | 4,815 |   |
| OTHER      ASSETS                                                                                                              |   | 5,780 |   |   |   | 5,469 |   |
|                                                                                                                           | $ | 551,163 |   |   | $ | 533,670 |   |
| CURRENT      LIABILITIES                                                                                                       |   |   |   |   |   |   |   |
|    Accounts      payable and accrued liabilities                                                                | $ | 6,953 |   |   | $ | 10,338 |   |
|    Compensation and      benefits                                                                          |   | 13,770 |   |   |   | 15,862 |   |
|    Income      taxes payable                                                                                    |   | - |   |   |   | 452 |   |
|    Insurance      accruals                                                                                      |   | 19,236 |   |   |   | 10,369 |   |
|    Other      accruals                                                                                          |   | 7,095 |   |   |   | 7,498 |   |
|              Total      current liabilities                   | $ | 47,054 |   |   | $ | 44,519 |   |
| LONG-TERM      LIABILITIES                                                                                                     |   |   |   |   |   |   |   |
|    Income      taxes payable                                                                                    | $ | 31,323 |   |   | $ | 35,264 |   |
|    Deferred      income taxes, net                                                                              |   | 51,218 |   |   |   | 33,671 |   |
|    Insurance      accruals less current portion                                                                 |   | 53,898 |   |   |   | 60,177 |   |
|               Total      long-term liabilities           | $ | 136,439 |   |   | $ | 129,112 |   |
| COMMITMENTS      AND CONTINGENCIES (Note 11)                                                                                   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                                                                      |   |   |   |   |   |   |   |
|    Preferred      stock, par value $.01; authorized 5,000 shares; noneissued                                    |   | - |   |   |   | - |   |
|    Capital      stock, common, $.01 par value; authorized 395,000 shares;                                       |   |   |   |   |   |   |   |
|       issued      and outstanding 90,689 in 2009 and 94,229 in 2008                              | $ | 907 |   |   | $ | 942 |   |
|    Additional      paid-in capital                                                                              |   | 439 |   |   |   | 439 |   |
|    Retained      earnings                                                                                       |   | 371,650 |   |   |   | 367,281 |   |
|    Accumulated      other comprehensive loss                                                                    |   | (5,326 | ) |   |   | (8,623 | ) |
|                                                                                                                           | $ | 367,670 |   |   | $ | 360,039 |   |
|                                                                                                                           | $ | 551,163 |   |   | $ | 533,670 |   |

----

Table of Contents

| HEARTLAND      EXPRESS, INC                                                                                                                                                                               |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| AND      SUBSIDIARIES                                                                                                                                                                                     |   |
|                                                                                                                                                                                                      |   |
| CONSOLIDATED STATEMENTS OF INCOME                                                                                                                                                                         |   |
| (in      thousands, expect per share amounts)                                                                                                                                                             |   |
|                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                      |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| OPERATING      REVENUE                                                                                                                                                                                    |   | $ | 459,539 |   |   | $ | 625,600 |   |   | $ | 591,893 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Salaries,      wages and benefits                                                                                                                                                       |   | $ | 168,716 |   |   | $ | 197,992 |   |   | $ | 196,303 |   |
|    Rent      and purchased transportation                                                                                                                                                  |   |   | 11,138 |   |   |   | 18,703 |   |   |   | 21,421 |   |
|    Fuel                                                                                                                                                                                    |   |   | 104,246 |   |   |   | 204,708 |   |   |   | 164,285 |   |
|    Operations      and maintenance                                                                                                                                                         |   |   | 14,913 |   |   |   | 15,575 |   |   |   | 12,314 |   |
|    Operating      taxes and licenses                                                                                                                                                       |   |   | 9,286 |   |   |   | 9,317 |   |   |   | 9,454 |   |
|    Insurance      and claims                                                                                                                                                               |   |   | 16,629 |   |   |   | 24,307 |   |   |   | 18,110 |   |
|    Communications      and utilities                                                                                                                                                       |   |   | 3,655 |   |   |   | 3,693 |   |   |   | 3,857 |   |
|    Depreciation                                                                                                                                                                            |   |   | 58,730 |   |   |   | 46,109 |   |   |   | 48,478 |   |
|    Other      operating expenses                                                                                                                                                           |   |   | 12,970 |   |   |   | 16,807 |   |   |   | 17,380 |   |
|    Gain      on disposal of property and equipment                                                                                                                                         |   |   | (19,708 | ) |   |   | (9,558 | ) |   |   | (10,159 | ) |
|                                                                                                                                                                                                      |   |   | 380,575 |   |   |   | 527,653 |   |   |   | 481,443 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                               Operating      income |   |   | 78,964 |   |   |   | 97,947 |   |   |   | 110,450 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                                                                                                                      |   |   | 2,338 |   |   |   | 9,132 |   |   |   | 10,285 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before income taxes                                                                                                                                                                           |   |   | 81,302 |   |   |   | 107,079 |   |   |   | 120,735 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      and state income taxes                                                                                                                                                                       |   |   | 24,353 |   |   |   | 37,111 |   |   |   | 44,565 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                           |   | $ | 56,949 |   |   | $ | 69,968 |   |   | $ | 76,170 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share                                                                                                                                                                                   |   | $ | 0.62 |   |   | $ | 0.73 |   |   | $ | 0.78 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding                                                                                                                                                                  |   |   | 91,131 |   |   |   | 95,900 |   |   |   | 97,735 |   |
|                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared per share                                                                                                                                                                         |   | $ | 0.080 |   |   | $ | 0.080 |   |   | $ | 2.080 |   |

----

Table of Contents

| HEARTLAND      EXPRESS, INC                                                                                                  |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|
| ANDSUBSIDIARIES                                                                                                              |   |
|                                                                                                                         |   |
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS’      EQUITY                                                                   |   |
| (in      thousands, except per share amounts)                                                                                |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                                                         |   | Capital |   |   | Additional |   |   |   |   |   | Other |   |   |   |   |
|                                                                                                                         |   | Stock, |   |   | Paid-In |   |   | Retained |   |   | Comprehensive |   |   |   |   |
|                                                                                                                         |   | Common |   |   | Capital |   |   | Earnings |   |   | Loss |   |   | Total |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      January 1, 2007                                                                                                |   | $ | 983 |   |   | $ | 376 |   |   | $ | 493,665 |   |   | $ | - |   |   | $ | 495,024 |   |
| Net      income                                                                                                              |   |   | - |   |   |   | - |   |   |   | 76,170 |   |   |   | - |   |   |   | 76,170 |   |
| Impact      of adopting FIN48                                                                                                |   |   | - |   |   |   | - |   |   |   | (4,798 | ) |   |   | - |   |   |   | (4,798 | ) |
| Dividends      on common stock,   $2.08      per share                                                        |   |   | - |   |   |   | - |   |   |   | (204,312 | ) |   |   | - |   |   |   | (204,312 | ) |
| Stock      repurchase                                                                                                        |   |   | (13 | ) |   |   | - |   |   |   | (19,375 | ) |   |   | - |   |   |   | (19,388 | ) |
| Amortization      of share based   compensation                                                               |   |   | - |   |   |   | 63 |   |   |   | - |   |   |   | - |   |   |   | 63 |   |
| Balance,      December 31, 2007                                                                                              |   |   | 970 |   |   |   | 439 |   |   |   | 341,350 |   |   |   | - |   |   |   | 342,759 |   |
| Comprehensive      income:                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                                                            |   |   | - |   |   |   | - |   |   |   | 69,968 |   |   |   | - |   |   |   | 69,968 |   |
|    Unrealized      loss on available-      for-sale      securities, net of tax |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (8,623 | ) |   |   | (8,623 | ) |
|    Total      comprehensive income                                                                            |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 61,345  |   |
| Dividends      on common stock,   $0.08      per share                                                        |   |   | - |   |   |   | - |   |   |   | (7,662 | ) |   |   | - |   |   |   | (7,662 | ) |
| Stock      repurchase                                                                                                        |   |   | (28 | ) |   |   | - |   |   |   | (36,375 | ) |   |   | - |   |   |   | (36,403 | ) |
| Balance,      December 31, 2008                                                                                              |   |   | 942 |   |   |   | 439 |   |   |   | 367,281 |   |   |   | (8,623 | ) |   |   | 360,039 |   |
| Comprehensive      income:                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      income                                                                                            |   |   | - |   |   |   | - |   |   |   | 56,949 |   |   |   | - |   |   |   | 56,949 |   |
|    Unrealized      gain on available-      for      sale securities, net of tax |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,297 |   |   |   | 3,297 |   |
|    Total      comprehensive income                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 60,246  |   |
| Dividends      on common stock,   $0.08      per share                                                        |   |   | - |   |   |   | - |   |   |   | (7,255 | ) |   |   | - |   |   |   | (7,255 | ) |
| Stock      repurchase                                                                                                        |   |   | (35 | ) |   |   | - |   |   |   | (45,325 | ) |   |   | - |   |   |   | (45,360 | ) |
| Balance,      December 31, 2009                                                                                              |   | $ | 907 |   |   | $ | 439 |   |   | $ | 371,650 |   |   | $ | (5,326 | ) |   | $ | 367,670 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Table of Contents

| HEARTLAND      EXPRESS, INC.                                                                              |
|-----------------------------------------------------------------------------------------------------------|
| AND      SUBSIDIARIES                                                                                     |
|                                                                                                      |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                     |
| (in      thousands)                                                                                       |
|                                                                                                      |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                                      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                           |   | $ | 56,949 |   |   | $ | 69,968 |   |   | $ | 76,170 |   |   |   |   |
| Adjustments      to reconcile net income to net cash provided  by      operating activities:    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Depreciation                                                                            |   |   | 58,730 |   |   |   | 46,109 |   |   |   | 48,486 |   |   |   |   |
|    Deferred      income taxes                                                              |   |   | 14,637 |   |   |   | 2,192 |   |   |   | 494 |   |   |   |   |
|    Amortization      of share based compensation                                           |   |   | - |   |   |   | - |   |   |   | 63 |   |   |   |   |
|    Gain      on disposal of property and equipment                                         |   |   | (19,708 | ) |   |   | (9,558 | ) |   |   | (10,159 |  ) |   |   |   |   |
|    Changes      in certain working capital items:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Trade      receivables                                                      |   |   | (558 | ) |   |   | 7,556 |   |   |   | (860 |  ) |   |   |   |   |
|      Prepaid      expenses and other current assets                              |   |   | 671 |   |   |   | (1,018 | ) |   |   | 978 |   |   |   |   |   |
|      Accounts      payable, accrued liabilities, and accrued expenses            |   |   | (567 | ) |   |   | 8,383 |   |   |   | 2,731 |   |   |   |   |   |
|      Accrued      income taxes                                                   |   |   | (9,051 | ) |   |   | (1,820 | ) |   |   | 2,506 |   |   |   |   |   |
|        Net      cash provided by operating activities                  |   |   | 101,103 |   |   |   | 121,812 |   |   |   | 120,409 |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from sale of property and equipment                                                         |   |   | 11 |   |   |   | 1,849 |   |   |   | 13,228 |   |   |   |   |   |
| Purchases      of property and equipment, net of trades                                                   |   |   | (79,123 | ) |   |   | (35,949 | ) |   |   | (43,579 |  ) |   |   |   |   |
| Maturity      and calls of investments                                                                    |   |   | 26,650 |   |   |   | 20,750 |   |   |   | - |   |   |   |   |   |
| Net      (purchases) sales of auction rate securities                                                     |   |   | - |   |   |   | (14,046 | ) |   |   | 133,374 |   |   |   |   |   |
| Change      in other assets                                                                               |   |   | (311 | ) |   |   | 279 |   |   |   | (207 |  ) |   |   |   |   |
|        Net      cash (used in) provided by investing activities        |   |   | (52,773 | ) |   |   | (27,117 | ) |   |   | 102,816 |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Cash      dividend                                                                      |   |   | (7,270 | ) |   |   | (9,601 | ) |   |   | (204,336 |  ) |   |   |   |   |
|    Stock      repurchase                                                                   |   |   | (45,360 | ) |   |   | (36,403 | ) |   |   | (19,388 |  ) |   |   |   |   |
|         Net      cash used in financing activities                |   |   | (52,630 | ) |   |   | (46,004 | ) |   |   | (223,724 |  ) |   |   |   |   |
|         Net      (decrease) increase in cash and cash equivalents |   |   | (4,300 | ) |   |   | 48,691 |   |   |   | (499 |  ) |   |   |   |   |
| CASH      AND CASH EQUIVALENTS                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning      of period                                                                                  |   |   | 56,651 |   |   |   | 7,960 |   |   |   | 8,459 |   |   |   |   |   |
| End      of period                                                                                        |   | $ | 52,351 |   |   | $ | 56,651 |   |   | $ | 7,960 |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES OF CASH FLOWINFORMATION                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid during the period for income taxes, net of refunds                                         |   | $ | 18,767 |   |   | $ | 36,739 |   |   | $ | 41,564 |   |   |   |   |   |
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncash      investing and financing activities:                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Trade      value of revenue equipment traded                                            |   | $ | 60,645 |   |   | $ | 20,991 |   |   | $ | 6,429 |   |   |   |   |   |
|    Purchased      property and equipment in accounts payable                               |   | $ | 178 |   |   | $ | 2,778 |   |   |   | 459 |   |   |   |   |   |
|    Common      stock dividends declared in accounts payable                                |   | $ | - |   |   | $ | 15 |   |   |   | 1,954 |   |   |   |   |   |

----

Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

----

Table of Contents

| Lives      of the assets are as follows: |   |
|------------------------------------------|--------|
|                                     | Years  |
| Land      improvements and building      | 3-30   |
| Furniture      and fixtures              | 3-5    |
| Shop      & service equipment        | 3-10   |
| Revenue      equipment                   | 5-7    |

----

Table of Contents

----

Table of Contents

| ·   | Level      1 – quoted prices in active markets for identical assets or      liabilities. |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Level      2 – quoted prices for similar assets or liabilities in active markets;      quoted prices for identical or similar assets or liabilities in markets      that are not active; modeling with inputs that have observable inputs      (i.e. interest rates observable at commonly quoted    intervals. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level      3 – valuation is generated from model-based techniques that use      significant assumptions not observable in the  market. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                           |   | As      previously |    |   |        |   |    | As       |   |
|------------------------------------------------|--------|--------------------|---------|--------|-------------|--------|---------|----------|--------|
|                                           |   | Reported           |    |   | Adjustments |   |    | Adjusted |   |
| Current      deferred tax asset                |   | $                  | 35,650  |   |        | $      | (24,044 | )        |   | $ | 11,606 |   |
| Total      current assets                      |   |               | 138,628 |   |        |   | (24,044 | )        |   |   | 114,584 |   |
| Total      assets                              |   |               | 557,714 |   |        |   | (24,044 | )        |   |   | 533,670 |   |
|                                           |   |               |    |   |        |   |    |     |   |   |   |   |
| Current      insurance accruals                |   | $                  | 70,546  |   |        | $      | (60,177 | )        |   | $ | 10,369 |   |
| Total      current liabilities                 |   |               | 104,696 |   |        |   | (60,177 | )        |   |   | 44,519 |   |
|                                           |   |               |    |   |        |   |    |     |   |   |   |   |
| Insurance      accruals net of current portion |   | $                  | -       |   |        | $      | 60,177  |     |   | $ | 60,177 |   |
| Deferred      income taxes long term           |   |               | 57,715  |   |        |   | (24,044 | )        |   |   | 33,671 |   |
| Total      long-term liabilities               |   |               | 92,979  |   |        |   | 36,133  |     |   |   | 129,112 |   |

----

Table of Contents

|                                  | December      31, 2009 |   | December      31, 2008 |   |
|---------------------------------------|------------------------|--------|------------------------|--------|
| Average      life of underlying loans | 2-10      years        |   | 2-10      years        |   |
| Rate      of return                   | 0.69-4.99%             |   | 3.5-3.94%              |   |
| Discount      rate                    | 0.74-2.07%             |   | 0.52-1.35%             |   |
| Liquidity      discount rate          | 0.40-3.0%              |   | 3.0-3.25%              |   |

----

Table of Contents

| ·   | Current      market activity and the lack of severity or extended decline do not      warrant such action at this time. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | Since      auction failures began in February 2008, the Company has received      approximately $47.8 million as the result of partial calls by issuers,      including $2.3 million received in January 2010.  The Company      received par value for the amount of these calls plus accrued      interest. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Based      on the Company’s financial operating results, operating cash flows and      debt free balance sheet, the Company has the ability and intent to hold      such securities until recovery of the unrealized  loss. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | There      have not been any significant changes in collateralization and ratings of      the underlying securities since the first failed auction.  The      Company continues to hold 96% of the auction rate security portfolio in      senior positions of AAA (or equivalent) rated  securities. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company is aware of recent increases in default rates of the underlying      student loans that are the assets to the trusts issuing the auction rate      security debt, which management believes is due to current overall      negative economic conditions.  As the underlying loans are      guaranteed by the U.S. Government, defaults of the loans accelerate      payment of the underlying loan to the trust.  As trusts are no      longer recycling repayment money for new loans, accelerated repayment of      any student loan to the underlying trust would increase cash flows of the      trust which would potentially result in partial calls by the underlying      trusts. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Currently,      there is legislative pressure to provide liquidity in student loan      investments, providing liquidity to state student loan agencies, to      continue to provide financial assistance to eligible students to enable      higher educations as well as improve overall liquidity in the student loan      auction rate market.  This has the potential to impact existing      securities with underlying studentloans. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | All      of the auction rate securities are held with financial institutions that      have agreed in principle to settlement agreements with various regulatory      agencies to provide liquidity.  Although the principles of the      respective settlement agreements focus mostly on small investors      (generally companies and individual investors with auction rate security      assets less than $25 million) the respective settlements state the      financial institutions will work with issuers and other interested parties      to use their best efforts to provide liquidity solutions to companies not      specifically covered by the principle terms of the respective settlements      by the end of 2009 in certain settlement agreements.  The      Company is expecting further guidance from regulatory agencies in the      future as they monitor the progress of the respective financial      institutions towards this goal. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| Level      3 Fair Value Measurements                                                |   | Available-for-saledebt      securities |    |
|-------------------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                                |   | (in      thousands)                    |    |
|                                                                                |   |                                   |    |   |   |   |
|                                                                                |   | 2009                                   |    |   | 2008 |   |
| Balance,      January 1                                                             |   | $                                      | 171,122 |   |   | $ | - |   |
| Purchases,      sales, issuances, and settlements                                   |   |                                   | (27,000 | ) |   |   | (6,682 | ) |
| Transfers      in to (out of) Level 3                                               |   |                                   | -       |   |   |   | 186,427 |   |
| Total      gains or losses (realized/unrealized):                                   |   |                                   |    |   |   |   |   |   |
|      Included      in earnings                             |   |                                   | -       |   |   |   | - |   |
|      Included      in other comprehensive loss, net of tax |   |                                   | 3,297   |   |   |   | (8,623 | ) |
| Balance,      December 31                                                           |   | $                                      | 147,419 |   |   | $ | 171,122 |   |
|                                                                                |   |                                   |    |   |   |   |   |   |

|                                                                                                                         |   |                 |    |   | Gross      |   |   | Gross      |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                                                                                                         |   | Amortized            |    |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                                                                                                         |   | Cost                 |    |   | Gains      |   |   | Losses     |   |   | Value  |   |
|                                                                                                                         |   | (      in thousands) |    |
| December      31, 2009:                                                                                                      |   |                 |    |
|    Current:                                                                                                   |   |                 |    |   |       |   |   |       |   |   |   |   |
|      Municipal      bonds                                                                           |   | $                    | 345     |   |       |   | -      |       |   | $      | -      |   |   | $ | 345 |   |
|      Auction      rate student loan       educational      bonds |   |                 | 6,781   |   |       |   | -      |       |   |   | -      |   |   |   | 6,781 |   |
|                                                                                                                         |   | $                    | 7,126   |   |       |   | -      |       |   | $      | -      |   |   | $ | 7,126 |   |
|                                                                                                                         |   |                 |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
|    Long-term                                                                                                  |   |                 |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
|      Municipal      bonds                                                                           |   | $                    | 246     |   |       |   | -      |       |   | $      | -      |   |   | $ | 246 |   |
|      Auction      rate student loan       educational      bonds |   |                 | 146,219 |   |       |   | -      |       |   |   | 5,581  |   |   |   | 140,638 |   |
|                                                                                                                         |   | $                    | 146,465 |   |       |   | -      |       |   | $      | 5,581  |   |   | $ | 140,884 |   |
|                                                                                                                         |   | $                    | 153,591 |   |       |   | -      |       |   | $      | 5,581  |   |   | $ | 148,010 |   |

| December      31, 2008:                                                                                     |   |   |    |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|    Current:                                                                                  |   |   |    |   |   |   |   |   |   |   |   |   |
|      Municipal      bonds                                                          |   | $      | 241     |   |   |   | -      |   |   | $      | -      |   |   | $ | 241 |   |
|                                                                                                        |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Long-term                                                                                 |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           Auction rate student loan     educational      bonds |   |   | 180,000 |   |   |   | -      |   |   |   | 8,878  |   |   |   | 171,122 |   |
|                                                                                                        |   | $      | 180,241 |   |   |   | -      |   |   | $      | 8,878  |   |   | $ | 171,363 |   |

----

Table of Contents

|                                               |   | Fair Value |    |   | Amortized Cost |   |
|----------------------------------------------------|--------|------------|---------|--------|----------------|--------|
| Due      within one-year                           |   | $          | 7,126   |   |           | $      | 7,126 |   |
| Due      after one year through five years         |   |       | 3,227   |   |           |   | 3,346 |   |
| Due      after five years through ten years        |   |       | -       |   |           |   | - |   |
| Due      after ten years through September 1, 2047 |   |       | 137,657 |   |           |   | 143,119 |   |
|                                               |   | $          | 148,010 |   |           | $      | 153,591 |   |

| Derivatives      in SFAS 133 Cash Flow Hedging Relationship |   | Amount      of Gain or (Loss) Recognized in OCI on Derivative (Effective      Portion) | Location      of Gain or (Loss) Reclassified from Accumulated OCI into income (Effective      Portion) |   | Amount      of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective      Portion) | Location      of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion      and Amount Excluded from Effectiveness Testing) |   | Amount      of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion      and Amount Excluded from Effectiveness Testing) |
|-------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
| (000’s)                                               |   |                                                                                   |                                                                                                   |   |                                                                                                 |                                                                                                                                         |   |                                                                                                                                       |
| Fuel      contract                                          | $      | -                                                                                      | Fuel      expense                                                                                      | $      | -                                                                                                    | Fuel      expense                                                                                                                            | $      | 561                                                                                                                                        |

----

Table of Contents

|                                                                      |   | 2009                |   |   |   | 2008    |   |
|---------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|---------|--------|
|                                                                      |   | (in      thousands) |   |
|                                                                      |   |                |   |   |   |    |   |
| Deferred      income tax assets:                                          |   |                |   |   |   |    |   |
|    Allowance      for doubtful accounts                    | $      | 283                 |   |   | $      | 292     |   |
|    Accrued      expenses                                   |   | 6,347               |   |   |   | 6,837   |   |
|    Insurance      accruals                                 |   | 28,362              |   |   |   | 28,187  |   |
|    Unrealized      loss on available-for-sale investments  |   | 1,953               |   |   |   | 3,108   |   |
|    Indirect      tax benefits of unrecognized tax benefits |   | 7,288               |   |   |   | 8,037   |   |
|    Other                                                   |   | 171                 |   |   |   | 80      |   |
|      Total      gross deferred tax assets        |   | 44,404              |   |   |   | 46,541  |   |
| Less      valuation allowance                                             |   | (1,698              | )      |   |   | (2,854  | )      |
|       Net      deferred tax assets          |   | 42,706              |   |   |   | 43,687  |   |
| Deferred      income tax liabilities:                                     |   |                |   |   |   |    |   |
| Property      and equipment                                               |   | (79,408             | )      |   |   | (65,752 | )      |
|      Net      deferred tax liability             | $      | (36,702             | )      |   | $      | (22,065 | )      |
|                                                                      |   |                |   |   |   |    |   |

|                             |   | 2009                |   |   |   | 2008    |   |
|----------------------------------|--------|---------------------|--------|--------|--------|---------|--------|
|                             |   | (in      thousands) |   |
|                             |   |                |   |   |   |    |   |
| Current      assets, net         | $      | 14,516              |   |   | $      | 11,606  |   |
| Noncurrent      liabilities, net |   | (51,218             | )      |   |   | (33,671 | )      |
|                             | $      | (36,702             | )      |   | $      | (22,065 | )      |

----

Table of Contents

|                        |   | 2009                |   |   |   | 2008   |   |   |   | 2007   |   |
|-----------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                        |   | (in      thousands) |   |
| Current      income taxes:  |   |                |   |   |   |   |   |   |   |   |   |
| Federal                     | $      | 14,369              |   |   | $      | 31,445 |   |   | $      | 37,800 |   |
| State                       |   | (4,653              | )      |   |   | 3,474  |   |   |   | 6,271  |   |
|                        |   | 9,716               |   |   |   | 34,919 |   |   |   | 44,071 |   |
| Deferred      income taxes: |   |                |   |   |   |   |   |   |   |   |   |
| Federal                     |   | 14,321              |   |   |   | 2,197  |   |   |   | (746   | )      |
| State                       |   | 316                 |   |   |   | (5     | )      |   |   | 1,240  |   |
|                        |   | 14,637              |   |   |   | 2,192  |   |   |   | 494    |   |
| Total                       | $      | 24,353              |   |   | $      | 37,111 |   |   | $      | 44,565 |   |

|                                                  |   | 2009                |   |   |   | 2008   |   |   |   | 2007   |   |
|-------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                  |   | (in      thousands) |   |
| Federal      tax at statutory rate (35%)              | $      | 28,456              |   |   | $      | 37,478 |   |   | $      | 42,257 |   |
| State      taxes, net of federal benefit              |   | (1,665              | )      |   |   | 2,019  |   |   |   | 5,515  |   |
| Non-taxable      interest income                      |   | (571                | )      |   |   | (2,884 | )      |   |   | (3,451 | )      |
| Uncertain      income tax penalties and interest, net |   | (1,776              | )      |   |   | 361    |   |   |   | -      |   |
| Other                                                 |   | (91                 | )      |   |   | 137    |   |   |   | 244    |   |
|                                                  | $      | 24,353              |   |   | $      | 37,111 |   |   | $      | 44,565 |   |

----

Table of Contents

|                                                              |   | (in      thousands) |   |
|-------------------------------------------------------------------|--------|---------------------|--------|
| Balance      at December 31, 2008                                 | $      |  22,985        |   |
| Additions      based on tax positions related to current year     |   | 1,596               |   |
| Additions      for tax positions of prior years                   |   | 80                  |   |
| Reductions      for tax positions of prior years                  |   | -                   |   |
| Reductions      due to lapse of applicable statute of limitations |   | (3,888              | )      |
| Settlements                                                       |   | -                   |   |
| Balance      at December 31, 2009                                 | $      |  20,773        |   |

----

Table of Contents

| Note      12. Quarterly Financial Information (Unaudited) |   |
|-----------------------------------------------------------|--------|
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | First |   |   | Second |   |   | Third |   |   | Fourth |   |
|                                                      |   | (In      Thousands, Except Per Share Data) |   |
| Year      ended December 31, 2009                         |   |   |   |   |   |   |   |   |   |   |
|    Operating      revenue                  |   | $ | 114,979 |   |   | $ | 116,974 |   |   | $ | 113,390 |   |   | $ | 114,196 |   |
|    Operating      income                   |   |   | 19,040 |   |   |   | 21,708 |   |   |   | 22,410 |   |   |   | 15,806 |   |
|    Income      before income taxes         |   |   | 19,911 |   |   |   | 22,271 |   |   |   | 22,899 |   |   |   | 16,221 |   |
|    Net      income                         |   |   | 14,141 |   |   |   | 17,615 |   |   |   | 14,507 |   |   |   | 10,686 |   |
|    Earnings      per share                 |   |   | 0.15 |   |   |   | 0.19 |   |   |   | 0.16 |   |   |   | 0.12 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Year      ended December 31, 2008                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Operating      revenue                  |   | $ | 149,049 |   |   | $ | 164,592 |   |   | $ | 169,935 |   |   | $ | 142,024 |   |
|    Operating      income                   |   |   | 19,759 |   |   |   | 20,910 |   |   |   | 28,621 |   |   |   | 28,657 |   |
|    Income      before income taxes         |   |   | 22,622 |   |   |   | 23,146 |   |   |   | 30,564 |   |   |   | 30,747 |   |
|    Net      income                         |   |   | 14,663 |   |   |   | 17,231 |   |   |   | 18,723 |   |   |   | 19,351 |   |
|    Earnings      per share                 |   |   | 0.15 |   |   |   | 0.18 |   |   |   | 0.19 |   |   |   | 0.20 |   |

----

Table of Contents

| SCHEDULE      II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES(In      Thousands, Except Per Share Data) |   |
|-----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Column      A                                                                                             |   | Column      B |   |   | Column      C |   |   | Column      D |   |   | Column      E |   |
|                                                                                                      |   |   |   |   | Charges      To |   |   |   |   |   |   |   |
|                                                                                                      |   | 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, 2009                                                                         |   | $ | 775 |   |   | $ | 129 |   |   | $ | - |   |   | $ | 129 |   |   | $ | 775 |   |
| Year      ended December 31, 2008                                                                         |   |   | 775 |   |   |   | 192 |   |   |   | - |   |   |   | 192 |   |   |   | 775 |   |
| Year      ended December 31, 2007                                                                         |   |   | 775 |   |   |   | 44 |   |   |   | - |   |   |   | 44 |   |   |   | 775 |   |

----