Hub Group, Inc. Reports Record First Quarter 2013 Earnings

DOWNERS GROVE, Ill., April 18, 2013 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended March 31, 2013.

Hub Group reported record income of $15.4 million for the first quarter ended March 31, 2013, an increase of 12% compared to the first quarter of 2012.  Hub Group's diluted earnings per share was $0.42 for the first quarter of 2013, which represents an increase of 14% when compared with the prior year period.  Hub Group's revenue increased 4% to $769 million

The Hub segment's revenue increased 5% to $593 million.  First quarter intermodal revenue increased 6% to $427 million.  The increase was attributable to a 2% volume increase and a 4% increase for price, fuel and mix.  Truck brokerage revenue increased 4% to $84 million this quarter.  First quarter Unyson Logistics revenue increased 3% to $82 million.  The Hub segment's operating income was $21.2 million

The Mode segment's revenue was $187 million for the first quarter.  Operating income was $3.5 million, an increase of 37% compared to the prior year period.

Hub Group ended the quarter with $86 million in cash.

"We are pleased with our results, delivering a 14% increase in earnings per share and improving margins. We remain focused on managing our business units to deliver a profitable return for our shareholders," said David P. Yeager, Chairman and Chief Executive Officer of Hub Group.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday, April 18, 2013 to discuss its first quarter results.

Hosting the conference call will be David Yeager, Chief Executive Officer, Mark Yeager, Chief Operating Officer, and Terri Pizzuto, Chief Financial Officer.

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) 680-0878.  The conference call participant code is 85050060. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PC7GMHH38 .  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, 2012.  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,









2013


2012

Revenue





$ 768,980


$ 739,885












Transportation costs





681,642


656,143


Gross margin





87,338


83,742












Costs and expenses:









Salaries and benefits





34,583


33,299


Agent fees and commissions




13,274


13,695


General and administrative




13,191


12,577


Depreciation and amortization




1,553


1,660



Total costs and expenses




62,601


61,231












Operating income





24,737


22,511












Other income (expense):








Interest expense





(290)


(307)


Interest and dividend income




29


34


Other, net 





(11)


(23)



Total other (expense) income 




(272)


(296)












Income before provision for income taxes




24,465


22,215












Provision for income taxes




9,101


8,553












Net income





$  15,364


$  13,662












Basic earnings per common share




$      0.42


$      0.37












Diluted earnings per common share




$      0.42


$      0.37












Basic weighted average number of shares outstanding



36,855


37,043

Diluted weighted average number of shares outstanding

36,949


37,143


 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)






















Three Months








Ended March 31, 2013








Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue




$ 592,651


$ 187,460


$                (11,131)


$      768,980















Transportation costs


527,471


165,302


(11,131)


681,642


Gross margin


65,180


22,158


-


87,338















Costs and expenses:










Salaries and benefits


30,777


3,806


-


34,583


Agent fees and commissions


449


12,825


-


13,274


General and administrative


11,698


1,493


-


13,191


Depreciation and amortization


1,020


533


-


1,553



Total costs and expenses


43,944


18,657


-


62,601















Operating income


21,236


3,501


-


24,737

 

 

HUB GROUP, INC.

UNAUDITED 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 CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)












March 31,


December 31,




2013


2012




(Unaudited)



ASSETS






CURRENT ASSETS:







Cash and cash equivalents


$      86,251


$         70,760



Accounts receivable trade, net


366,296


346,917



Accounts receivable other


18,503


25,945



Prepaid taxes


175


139



Deferred taxes


4,401


4,965



Prepaid expenses and other current assets


8,395


10,619




TOTAL CURRENT ASSETS


484,021


459,345










Restricted investments


17,399


17,218


Property and equipment, net


161,867


157,584


Other intangibles, net


19,691


20,068


Goodwill, net


263,196


263,251


Other assets


2,533


2,387




TOTAL ASSETS


$    948,707


$       919,853

















LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:







Accounts payable trade


$    221,072


$       206,497



Accounts payable other


24,585


22,925



Accrued payroll


11,751


17,210



Accrued other


31,333


28,633



Current portion of capital leases


2,345


2,120




TOTAL CURRENT LIABILITIES


291,086


277,385










Non-current liabilities


19,714


20,041


Non-current portion of capital leases


20,314


21,099


Deferred taxes


102,659


100,431










STOCKHOLDERS' EQUITY:







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

no shares issued or outstanding in 2013 and 2012








-


-



Common stock








Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2013 and 2012; 36,986,810 shares outstanding in 2013 and 36,767,485 shares outstanding in 2012
















412


412




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

662,296 shares issued and outstanding in 2013 and 2012









7


7



Additional paid-in capital


161,161


167,765



Purchase price in excess of predecessor basis, net of tax benefit of $10,306








(15,458)


(15,458)



Retained earnings


484,505


469,141



Other comprehensive income


27


1



Treasury stock; at cost, 4,237,982 shares in 2013 and 4,457,307 shares in 2012








(115,720)


(120,971)



    TOTAL STOCKHOLDERS' EQUITY


514,934


500,897




 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$    948,707


$       919,853












 

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)






















Three Months Ended










March 31,










2013


2012

























Cash flows from operating activities:






Net income




$ 15,364


$ 13,662


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












Depreciation and amortization


5,096


5,516



Deferred taxes


2,669


3,352



Compensation expense related to share-based compensation plans


1,882


1,637



(Gain) loss on sale of assets


(214)


1



Excess tax benefits from share-based compensation


(3)


(83)


Changes in operating assets and liabilities:







Restricted investments


(181)


(1,509)



Accounts receivable, net


(11,893)


(14,043)



Prepaid taxes


(30)


2,243



Prepaid expenses and other current assets


2,227


2,205



Other assets


(146)


445



Accounts payable


16,230


8,377



Accrued expenses


(2,801)


22



Non-current liabilities


(198)


1,010




Net cash provided by operating activities


28,002


22,835









Cash flows from investing activities:






Proceeds from sale of equipment


734


52


Purchases of property and equipment


(9,456)


(17,013)


Cash used in acquisitions


-


(150)




Net cash used in investing activities


(8,722)


(17,111)









Cash flows from financing activities:






Proceeds from stock options exercised


42


16


Stock tendered for payments of withholding taxes


(2,469)


(1,665)


Purchase of treasury stock


(903)


-


Capital lease payments


(560)


(546)


Excess tax benefits from share-based compensation


98


74




Net cash used in financing activities


(3,792)


(2,121)


















Effect of exchange rate changes on cash and cash equivalents


3


1









Net increase in cash and cash equivalents


15,491


3,604

Cash and cash equivalents beginning of period


70,760


49,091

Cash and cash equivalents end of period


$ 86,251


$ 52,695

 

SOURCE Hub Group, Inc.



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