2014

Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.48 Excluding One-Time Costs

DOWNERS GROVE, Ill., Jan. 26, 2012 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2011.

Hub Group reported income of $17.0 million for the fourth quarter ended December 31, 2011, an increase of 36% compared to the fourth quarter of 2010.  Hub Group's diluted earnings per share was $0.46 for the fourth quarter of 2011, which represents an increase of 35% when compared with the prior year period.  Hub Group's pre-tax income includes integration and restructuring costs of $1.0 million.  Excluding the effects of these items, non-GAAP earnings per share was $0.48 for the quarter (see table below).  Non-GAAP earnings per share increased 41% when compared with the prior year period.  Hub Group's revenue increased 59% to $763 million.

The Hub segment's revenue increased 20% to $577 million.  Fourth quarter intermodal revenue increased 23% to $419 million.  The increase was attributable to a 16% volume increase and a 7% increase for fuel, price and mix.  Truck brokerage revenue increased 3% to $82 million this quarter.  Fourth quarter Unyson Logistics revenue increased 27% to $76 million.  Hub's operating income increased $4.5 million to $23.7 million, which represents an increase of 23% when compared with the prior year period.  The Hub results include approximately $500,000 of restructuring costs.

The Mode segment's revenue was $195 million for the fourth quarter.  Operating income was $3.4 million.  The Mode results include approximately $500,000 of costs related to integration.

FULL YEAR 2011

Income for the year ended December 31, 2011 was $58 million.  Hub Group's diluted earnings per share for 2011 was $1.57.  Full year 2011 pre-tax income includes integration and restructuring costs of $4.6 million.  Excluding the effects of these items, non-GAAP earnings per share was $1.65 for the year (see table below).  Full year non-GAAP earnings per share increased 42% when compared with the prior year.  Hub Group's revenue increased 50% to $2.8 billion.

Hub Group ended the year with $49 million in cash.

"Despite the uncertain economic environment, Hub Group closed out 2011 with another quarter of strong operating results," 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 Thursday, January 26, 2011 to discuss its fourth quarter and full year results and provide 2012 guidance.

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 on Hub Group's Web site at 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) 679-8018.  The conference call participant code is 44109733. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PX3PNJTNA .  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 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 offices and independent agents 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 and the reports on Form 10-Q for the periods ended March 31, 2011, June 30, 2011 and September 30, 2011.  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


Twelve Months




Ended December 31,


Ended December 31,




2011


2010


2011


2010

Revenue

$ 762,775


$ 479,913


$ 2,751,534


$ 1,833,737











Transportation costs

678,964


423,271


2,438,986


1,620,304


Gross margin

83,811


56,642


312,548


213,433











Costs and expenses:









Salaries and benefits

29,522


26,270


121,044


99,138


Agent fees and commissions

13,091


635


41,491


2,410


General and administrative

12,425


9,572


49,951


38,211


Depreciation and amortization

1,635


947


5,603


3,792



Total costs and expenses

56,673


37,424


218,089


143,551











Operating income

27,138


19,218


94,459


69,882











Other income (expense):









Interest expense

(319)


(16)


(638)


(54)


Interest and dividend income

30


36


148


119


Other, net

42


62


328


146



Total other (expense) income

(247)


82


(162)


211











Income before provision for income taxes

26,891


19,300


94,297


70,093











Provision for income taxes

9,877


6,791


36,119


26,635











Net income

$   17,014


$   12,509


$      58,178


$      43,458











Basic earnings per common share

$       0.46


$       0.34


$         1.58


$         1.17












Diluted earnings per common share

$       0.46


$       0.34


$         1.57


$         1.16











Basic weighted average number of shares outstanding

36,943


36,817


36,913


37,223

Diluted weighted average number of shares outstanding

37,104


37,027


37,063


37,385















HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)






Three Months



Ended December 31, 2011



Hub


Mode


Inter-Segment

Elims


Hub Group

Consolidated

Revenue

$       577,306


$       195,242


$             (9,773)


$       762,775










Transportation costs

516,157


172,580


(9,773)


678,964


Gross margin

61,149


22,662


-


83,811










Costs and expenses:









Salaries and benefits

25,582


3,940


-


29,522


Agent fees and commissions

722


12,369


-


13,091


General and administrative

10,055


2,370


-


12,425


Depreciation and amortization

1,085


550


-


1,635



37,444


19,229


-


56,673










Operating income

23,705


3,433


-


27,138














HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)








Twelve Months




Ended December 31, 2011




Hub


Mode


Inter-Segment

Elims


Hub Group

Consolidated

Revenue

$    2,183,914


$       586,251


$          (18,631)


$    2,751,534











Transportation costs

1,939,263


518,354


(18,631)


2,438,986


Gross margin

244,651


67,897


-


312,548











Costs and expenses:









Salaries and benefits

107,378


13,666


-


121,044


Agent fees and commissions

2,771


38,720


-


41,491


General and administrative

42,523


7,428


-


49,951


Depreciation and amortization

3,975


1,628


-


5,603



Total costs and expenses

156,647


61,442


-


218,089











Operating income

88,004


6,455


-


94,459















HUB GROUP, INC.

UNAUDITED NON-GAAP TO GAAP RECONCILIATION

(earnings per share)




















Three Months


Twelve Months


Ended, Dec. 31,


Ended, Dec. 31,




Change

Change




Change

Change


2011

2010

$

%


2011

2010

$

%











Diluted GAAP EPS

$    0.46

$    0.34

$   0.12

35.3%


$    1.57

$    1.16

$    0.41

35.3%











Integration expenses and










restructuring costs

$    0.02

$       -

$   0.02



$    0.08

$       -

$    0.08












Diluted NON-GAAP EPS (adjusted)

$    0.48

$    0.34

$   0.14

41.2%


$    1.65

$    1.16

$    0.49

42.2%































Diluted Shares

37,104

37,027




37,063

37,385
















In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance.  This table and Hub's internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.


HUB GROUP, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

























December 31,


December 31,







2011


2010










ASSETS






CURRENT ASSETS:






Cash and cash equivalents

$           49,091


$         115,144



Accounts receivable trade, net

326,537


185,879



Accounts receivable other

23,878


17,958



Prepaid taxes

2,392


296



Deferred taxes

4,838


3,314



Prepaid expenses and other current assets

9,056


6,569





TOTAL CURRENT ASSETS

415,792


329,160











Restricted investments

14,323


11,421


Property and equipment, net

124,587


47,806


Other intangibles, net

21,667


5,856


Goodwill, net

263,470


233,029


Other assets

2,845


2,135






TOTAL ASSETS

$         842,684


$         629,407



















LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:






Accounts payable trade

$         204,693


$         121,078



Accounts payable other

17,289


10,064



Accrued payroll

16,721


14,378



Accrued other

29,962


21,898



Current portion of capital lease

2,237


-





TOTAL CURRENT LIABILITIES

270,902


167,418











Non-current liabilities

17,717


13,950


Deferred taxes

91,764


71,739


Non-current portion of capital lease

23,436


-











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; 36,860,260 shares








outstanding in 2011 and 36,638,359 shares 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

168,800


169,722



Purchase price in excess of predecessor basis, net of tax






benefit of $10,306

(15,458)


(15,458)



Retained earnings

401,188


343,010



Other comprehensive income

4


6



Treasury stock; at cost, 4,364,532 shares in 2011







and 4,586,433 shares in 2010

(116,088)


(121,399)




TOTAL STOCKHOLDERS' EQUITY

438,865


376,300





    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$         842,684


$         629,407
































HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)
















Twelve Months Ended







December 30,







2011


2010



















Cash flows from operating activities:





Net income

$        58,178


$        43,458


Adjustments to reconcile net income






to net cash provided by operating activities:







Depreciation and amortization

16,340


8,572




Deferred taxes

18,821


9,545




Compensation expense related to share-based compensation plans

4,788


3,576




(Gain) loss on sale of assets

(17)


85


Changes in operating assets and liabilities, net of effects of acquisition:







Restricted investments

(724)


(1,838)




Accounts receivable, net

(45,047)


(46,582)




Prepaid taxes

(2,097)


298




Prepaid expenses and other current assets

(1,728)


233




Other assets

(33)


298




Accounts payable

23,095


12,822




Accrued expenses

2,989


5,277




Non-current liabilities

301


1,910






Net cash provided by operating activities

74,866


37,654










Cash flows from investing activities:





Proceeds from sale of equipment

410


988


Purchases of property and equipment

(55,010)


(25,616)


Cash used in acquisitions, net of cash acquired

(85,182)


(170)





Net cash used in investing activities

(139,782)


(24,798)










Cash flows from financing activities:





Proceeds from stock options exercised

86


46


Purchase of treasury stock

(1,523)


(25,070)


Capital lease payments

(729)


-


Excess tax benefits from share-based compensation

1,034


434





Net cash used in financing activities

(1,132)


(24,590)




















Effect of exchange rate changes on cash and cash equivalents

(5)


15










Net decrease in cash and cash equivalents

(66,053)


(11,719)

Cash and cash equivalents beginning of period

115,144


126,863

Cash and cash equivalents end of period

$        49,091


$      115,144




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.