Hub Group, Inc. Reports Record First Quarter 2012 Earnings

19 Apr, 2012, 16:00 ET from Hub Group, Inc.

DOWNERS GROVE, Ill., April 19, 2012 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended March 31, 2012.

Hub Group reported record income of $13.7 million for the first quarter ended March 31, 2012, an increase of 30% compared to the first quarter of 2011.  Hub Group's diluted earnings per share was $0.37 for the first quarter of 2012, which represents an increase of 32% when compared with the prior year period.   

Hub Group's first quarter 2011 pre-tax income included approximately $1.7 million of costs related to the Mode Transportation acquisition.  Excluding the effects of these costs, non-GAAP earnings per share was $0.31 for the 2011 first quarter (see table below).  Earnings per share increased 19% when compared with the non-GAAP earnings per share in the prior year period. 

The Hub segment's revenue increased 16% to $563 million.  First quarter intermodal revenue increased 20% to $404 million.  The increase was attributable to a 15% volume increase and a 5% increase for fuel, price and mix.  Truck brokerage revenue decreased 6% to $80 million this quarter.  First quarter Unyson Logistics revenue increased 23% to $79 million.  The Hub segment's operating income was $20.0 million

The Mode segment's revenue was $187 million for the first quarter.  Operating income was $2.6 million

Hub Group ended the quarter with $53 million in cash.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday, April 19, 2012 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 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) 679-8038.  The conference call participant code is 89653878. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P7696KW7K .  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, 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

Ended March 31,

2012

2011

Revenue

$ 739,885

$ 485,379

Transportation costs

656,143

428,072

Gross margin

83,742

57,307

Costs and expenses:

Salaries and benefits

33,299

26,801

Agent fees and commissions

13,695

751

General and administrative

12,577

12,059

Depreciation and amortization

1,660

936

Total costs and expenses

61,231

40,547

Operating income

22,511

16,760

Other income (expense):

Interest expense

(307)

(14)

Interest and dividend income

34

32

Other, net 

(23)

209

Total other (expense) income 

(296)

227

Income before provision for income taxes

22,215

16,987

Provision for income taxes

8,553

6,489

Net income

$  13,662

$  10,498

Basic earnings per common share

$      0.37

$      0.28

Diluted earnings per common share

$      0.37

$      0.28

Basic weighted average number of shares outstanding

37,043

36,886

Diluted weighted average number of shares outstanding

37,143

 

37,022

 

HUB GROUP, INC.

FINANCIAL INFORMATION BY SEGMENT

(in thousands)

Three Months

Ended March 31, 2012

Hub

Mode

Inter-Segment Elims

Hub Group Consolidated

Revenue

$ 563,212

$ 187,183

$                (10,510)

$      739,885

Transportation costs

501,694

164,959

(10,510)

656,143

Gross margin

61,518

22,224

-

83,742

Costs and expenses:

Salaries and benefits

29,080

4,219

-

33,299

Agent fees and commissions

634

13,061

-

13,695

General and administrative

10,732

1,845

-

12,577

Depreciation and amortization

1,121

539

-

1,660

Total costs and expenses

41,567

19,664

-

61,231

Operating income

19,951

2,560

-

22,511

 

HUB GROUP, INC.

UNAUDITED NON-GAAP TO GAAP RECONCILIATION

(earnings per share)

Three Months

Ended, March 31,

Change

Change

2012

2011

$

%

Diluted GAAP EPS

$  0.37

$  0.28

$  0.09

32%

Mode acquisition-related costs

$     -

$  0.03

$ (0.03)

Diluted NON-GAAP EPS (adjusted)

$  0.37

$  0.31

$  0.06

19%

Diluted Shares

37,143

37,022

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)

March 31,

December 31,

2012

2011

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$      52,695

$         49,091

Accounts receivable trade, net

346,854

326,537

Accounts receivable other

17,601

23,878

Prepaid taxes

149

2,392

Deferred taxes

3,795

4,838

Prepaid expenses and other current assets

6,850

9,056

TOTAL CURRENT ASSETS

427,944

415,792

Restricted investments

15,832

14,323

Property and equipment, net

133,484

124,587

Other intangibles, net

21,238

21,667

Goodwill, net

263,415

263,470

Other assets

2,399

2,845

TOTAL ASSETS

$    864,312

$       842,684

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable trade

$    209,849

$       204,693

Accounts payable other

20,511

17,289

Current portion of capital leases

2,249

2,237

Accrued payroll

11,204

16,721

Accrued other

32,251

29,962

TOTAL CURRENT LIABILITIES

276,064

270,902

Non-current liabilities

18,861

17,717

Non-current portion of capital leases

22,862

23,436

Deferred taxes

94,018

91,764

STOCKHOLDERS' EQUITY:

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

no shares issued or outstanding in 2012 and 2011

-

-

Common stock

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

41,224,792 shares issued in 2012 and 2011; 37,100,852 shares

outstanding in 2012 and 36,860,260 shares outstanding in 2011

412

412

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

662,296 shares issued and outstanding in 2012 and 2011

7

7

Additional paid-in capital

162,723

168,800

Purchase price in excess of predecessor basis, net of tax

 benefit of $10,306

(15,458)

(15,458)

Retained earnings

414,850

401,188

Other comprehensive income

5

4

Treasury stock; at cost, 4,123,940 shares in 2012

and 4,364,532 shares in 2011

(110,032)

(116,088)

TOTAL STOCKHOLDERS' EQUITY

452,507

438,865

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$    864,312

$       842,684

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

March 31,

2012

2011

Cash flows from operating activities:

Net income

$ 13,662

$   10,498

Adjustments to reconcile net income

to net cash provided by operating activities:

Depreciation and amortization 

5,516

2,629

Deferred taxes

3,352

1,266

Compensation expense related to share-based compensation plans

1,637

1,225

Loss (gain) on sale of assets

1

(13)

Excess tax benefits from share-based compensation

(83)

-

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

Restricted investments

(1,509)

(707)

Accounts receivable, net

(14,043)

(23,411)

Prepaid taxes

2,243

173

Prepaid expenses and other current assets

2,205

1,738

Other assets

445

31

Accounts payable

8,377

32,229

Accrued expenses

22

(560)

Non-current liabilities

1,010

407

Net cash provided by operating activities

22,835

25,505

Cash flows from investing activities:

Proceeds from sale of equipment

52

68

Purchases of property and equipment

(17,013)

(4,880)

Cash used in acquisitions, net of cash acquired

(150)

(55)

Net cash used in investing activities

(17,111)

(4,867)

Cash flows from financing activities:

Proceeds from stock options exercised

16

24

Purchase of treasury stock

(1,665)

(1,447)

Capital lease payments

(546)

-

Excess tax benefits from share-based compensation

74

540

Net cash used in financing activities

(2,121)

(883)

Effect of exchange rate changes on cash and cash equivalents

1

4

Net increase in cash and cash equivalents

3,604

19,759

Cash and cash equivalents beginning of period

49,091

115,144

Cash and cash equivalents end of period

$ 52,695

$ 134,903

SOURCE Hub Group, Inc.



RELATED LINKS

http://www.hubgroup.com