Hub Group, Inc. Reports First Quarter 2011 Earnings

19 Apr, 2011, 16:00 ET from Hub Group, Inc.

DOWNERS GROVE, Ill., April 19, 2011 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today reported net income for the quarter ended March 31, 2011 of $10.5 million.  Hub Group's diluted earnings per share was $0.28 for the first quarter of 2011.  This represents an increase of 22% compared to last year's first quarter diluted earnings per share of $0.23.  The results for the quarter include approximately $1.7 million of costs related to the Mode Transportation acquisition.

Hub Group's revenue increased 16% to $485 million compared to $417 million in the first quarter of 2010.  First quarter intermodal revenue increased 17% to $336 million.  The increase was attributable to a 13% volume increase, a 7% increase for fuel and a 3% increase in pricing, partially offset by a 6% decrease for mix.  Truck brokerage revenue increased 1% to $85 million this quarter.  First quarter logistics revenue increased 36% to $64 million.  

"At the start of our 40th year we believe that our outstanding operational results, combined with our recent acquisition of Mode Transportation, position Hub Group to have a very strong 2011 with revenue that will exceed $2.5 billion," said David P. Yeager, Chairman and Chief Executive Officer of Hub Group.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Tuesday, April 19, 2011 to discuss its first quarter results.

Hosting the conference call will be David P. Yeager, Chairman and Chief Executive Officer and Terri A. Pizzuto, Executive Vice-President, Chief Financial Officer and Treasurer.

This call is being webcast and can be accessed through the Investors link at Hub Group's Web site at http://www.hubgroup.com. Those interested in participating in the question and answer session should follow the telephone dial-in instructions below.

To participate in the conference call by telephone, please call ten minutes early by dialing (888) 679-8038.  The conference call participant code is 84771808. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PQ7VLLJV9 .  Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference, bypassing the operator.  The call will be limited to 60 minutes, including questions and answers.

An audio replay will be available through the Investors link on the Company's Web site at http://www.hubgroup.com. This replay will be available for 30 days.

ABOUT HUB GROUP: Hub Group, Inc. is a leading asset-light freight transportation management company providing comprehensive intermodal, truck brokerage and logistics services. The Company operates through a network of over 30 offices throughout the United States, Canada and Mexico.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about Hub Group's or management's earnings guidance, intentions, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and subject to risks. Such statements should be viewed with caution. Actual results or experience could differ materially from the forward-looking statements as a result of many factors. Factors that could cause actual results to differ materially include the factors listed from time to time in Hub Group's SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 2010.  Hub Group assumes no liability to update any such forward-looking statements.

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

Three Months

Ended March 31,

2011

2010

Revenue

$ 485,379

$ 417,294

Transportation costs

428,072

368,476

Gross margin

57,307

48,818

Costs and expenses:

Salaries and benefits

26,801

23,458

General and administrative

12,810

10,145

Depreciation and amortization

936

973

Total costs and expenses

40,547

34,576

Operating income

16,760

14,242

Other income (expense):

Interest expense

(14)

(14)

Interest income

32

25

Other, net

209

68

Total other income

227

79

Income before provision for income taxes

16,987

14,321

Provision for income taxes

6,489

5,619

Net income

$  10,498

$    8,702

Basic earnings per common share

$      0.28

$      0.23

Diluted earnings per common share

$      0.28

$      0.23

Basic weighted average number of shares outstanding

36,886

37,527

Diluted weighted average number of shares outstanding

37,022

37,643

HUB GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

March 31,

December 31,

2011

2010

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$  134,903

$       115,144

Accounts receivable trade, net

214,269

185,879

Accounts receivable other

12,981

17,958

Prepaid taxes

123

296

Deferred taxes

2,480

3,314

Prepaid expenses and other current assets

4,831

6,569

TOTAL CURRENT ASSETS

369,587

329,160

Restricted investments

12,128

11,421

Property and equipment, net

46,782

47,806

Other intangibles, net

5,725

5,856

Goodwill, net

232,975

233,029

Other assets

2,105

2,135

TOTAL ASSETS

$  669,302

$       629,407

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable trade

$  150,538

$       121,078

Accounts payable other

12,833

10,064

Accrued payroll

8,714

14,378

Accrued other

23,564

21,898

TOTAL CURRENT LIABILITIES

195,649

167,418

Non-current liabilities

14,395

13,950

Deferred taxes

72,118

71,739

STOCKHOLDERS' EQUITY:

Preferred stock, $.01 par value; 2,000,000 shares authorized;

no shares issued or outstanding in 2011 and 2010

-

-

Common stock

Class A: $.01 par value; 97,337,700 shares authorized and

41,224,792 shares issued in 2011 and 2010; 36,813,882

outstanding in 2011 and 36,638,359 outstanding in 2010

412

412

Class B:  $.01 par value; 662,300 shares authorized;

662,296 shares issued and outstanding in 2011 and 2010

7

7

Additional paid-in capital

165,817

169,722

Purchase price in excess of predecessor basis, net of tax

  benefit of $10,306

(15,458)

(15,458)

Retained earnings

353,508

343,010

Other comprehensive income

6

6

Treasury stock; at cost, 4,410,910 shares in 2011 and

4,586,433 shares in 2010

(117,152)

(121,399)

TOTAL STOCKHOLDERS' EQUITY

387,140

376,300

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$  669,302

$       629,407

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

March 31,

2011

2010

Cash flows from operating activities:

Net income

$   10,498

$     8,702

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,629

1,952

Deferred taxes

1,266

3,401

Compensation expense related to share-based compensation plans

1,225

931

(Gain) loss on sale of assets

(13)

63

Changes in operating assets and liabilities:

Restricted investments

(707)

(188)

Accounts receivable, net

(23,411)

(25,784)

Prepaid taxes

173

461

Prepaid expenses and other current assets

1,738

2,659

Other assets

31

41

Accounts payable

32,229

26,457

Accrued expenses

(560)

(545)

Non-current liabilities

407

125

Net cash provided by operating activities

25,505

18,275

Cash flows from investing activities:

Proceeds from sale of equipment

68

7

Purchases of property and equipment

(4,880)

(647)

Cash used in acquisitions

(55)

-

Net cash used in investing activities

(4,867)

(640)

Cash flows from financing activities:

Proceeds from stock options exercised

24

12

Purchase of treasury stock

(1,447)

(2,919)

Excess tax benefits from share-based compensation

540

133

Net cash used in financing activities

(883)

(2,774)

Effect of exchange rate changes on cash and cash equivalents

4

12

Net increase in cash and cash equivalents

19,759

14,873

Cash and cash equivalents beginning of period

115,144

126,863

Cash and cash equivalents end of period

$ 134,903

$ 141,736

SOURCE Hub Group, Inc.



RELATED LINKS

http://www.hubgroup.com