Hub Group, Inc. Reports First Quarter 2011 Earnings

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

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.