2014

Hub Group, Inc. Reports Record Second Quarter 2012 Earnings

DOWNERS GROVE, Ill., July 19, 2012 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended June 30, 2012.

Hub Group reported record net income of $16.9 million for the second quarter ended June 30, 2012, an increase of 18% compared to the second quarter of 2011.  Diluted earnings per share for the second quarter of 2012 was $0.46.

Hub Group's second quarter 2011 pre-tax income included approximately $750,000 of costs related to Mode Transportation integration and Hub's Truck Brokerage restructuring.  Excluding the effects of these costs, non-GAAP earnings per share was $0.40 for the 2011 second quarter (see table below).  Earnings per share increased 15% when compared with the non-GAAP earnings per share in the prior year period. 

The Hub segment's revenue increased 6% to $596 million.  Second quarter intermodal revenue increased 9% to $432 million.  The increase was attributable to a 9% volume increase.  Truck brokerage revenue decreased 11% to $80 million this quarter.  Second quarter Unyson Logistics revenue increased 13% to $84 million.  The Hub segment's operating income was $24.9 million

The Mode segment's revenue increased 1% to $194 million for the second quarter.  Operating income was $2.9 million

Hub Group ended the quarter with $52 million in cash.

"Hub Group continues to execute well in a tough economic climate," said David P. Yeager, Chairman and Chief Executive Officer.        

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Thursday, July 19, 2012 to discuss its second quarter results and outlook for the year.

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.  The webcast is listen-only.  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) 679-8034.  The conference call participant code is 90092162. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PT6C7YLTY .  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 and the report on Form 10-Q for the period ended March 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


Six Months




Ended June 30,


Ended June 30,




2012


2011


2012


2011











Revenue

$778,312


$751,201


$1,518,197


$1,236,580











Transportation costs

690,954


666,472


1,347,097


1,094,544


Gross margin

87,358


84,729


171,100


142,036











Costs and expenses:









Salaries and benefits

31,436


32,722


64,735


59,523


Agent fees and commissions

13,601


13,765


27,296


14,516


General and administrative

12,734


12,852


25,311


24,911


Depreciation and amortization

1,737


1,472


3,397


2,408



Total costs and expenses

59,508


60,811


120,739


101,358











Operating income

27,850


23,918


50,361


40,678











Other income (expense):









Interest expense

(301)


(69)


(608)


(83)


Interest and dividend income

33


45


67


77


Other, net 

(18)


60


(41)


269



Total other (expense) income 

(286)


36


(582)


263











Income before provision for income taxes

27,564


23,954


49,779


40,941











Provision for income taxes

10,612


9,564


19,165


16,053











Net income

$  16,952


$  14,390


$     30,614


$     24,888































Basic earnings per common share

$      0.46


$      0.39


$         0.83


$         0.67











Diluted earnings per common share

$      0.46


$      0.39


$         0.82


$         0.67











Basic weighted average number of shares outstanding

37,070


36,901


37,057


36,893

Diluted weighted average number of shares outstanding

37,190


37,060


37,167


37,041











 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)

























Three Months





Ended June 30, 2012





Hub


Mode


Inter-Segment Elims


Hub Group Consolidated












Revenue

$595,888


$194,292


$(11,868)


$ 778,312









Transportation costs

531,080


171,742


(11,868)


690,954


Gross margin

64,808


22,550


-


87,358









Costs and expenses:









Salaries and benefits

27,590


3,846


-


31,436


Agent fees and commissions

490


13,111


-


13,601


General and administrative

10,707


2,027


-


12,734


Depreciation and amortization

1,099


638


-


1,737



Total costs and expenses

39,886


19,622


-


59,508









Operating income

24,922


2,928


-


27,850









 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




























Three Months






Ended June 30, 2011






Hub


Mode


Inter-Segment Elims


Hub Group Consolidated













Revenue

$560,418


$193,248


$ (2,465)


$  751,201













Transportation costs

497,832


171,105


(2,465)


666,472


Gross margin

62,586


22,143


-


84,729













Costs and expenses:









Salaries and benefits

28,111


4,611


-


32,722


Agent fees and commissions

638


13,127


-


13,765


General and administrative

10,264


2,588


-


12,852


Depreciation and amortization

951


521


-


1,472



Total costs and expenses

39,964


20,847


-


60,811













Operating income


22,622


1,296


-


23,918













 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




























Six Months






Ended June 30, 2012






Hub


Mode


Inter-Segment Elims


Hub Group Consolidated













Revenue

$1,159,100


$381,475


$(22,378)


$ 1,518,197













Transportation costs

1,032,773


336,702


(22,378)


1,347,097


Gross margin

126,327


44,773


-


171,100













Costs and expenses:









Salaries and benefits

56,671


8,064


-


64,735


Agent fees and commissions

1,125


26,171


-


27,296


General and administrative

21,438


3,873


-


25,311


Depreciation and amortization

2,221


1,176


-


3,397



Total costs and expenses

81,455


39,284


-


120,739













Operating income

44,872


5,489


-


50,361














 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




























Six Months






Ended June 30, 2011






Hub


Mode


Inter-Segment Elims


Hub Group Consolidated













Revenue





$1,045,797


$193,248


$ (2,465)


$   1,236,580













Transportation costs



925,904


171,105


(2,465)


1,094,544


Gross margin



119,893


22,143


-


142,036













Costs and expenses:











Salaries and benefits



54,912


4,611


-


59,523


Agent fees and commissions


1,389


13,127


-


14,516


General and administrative


22,323


2,588


-


24,911


Depreciation and amortization


1,887


521


-


2,408



Total costs and expenses

80,511


20,847


-


101,358













Operating income



39,382


1,296


-


40,678













 

HUB GROUP, INC.

UNAUDITED NON-GAAP TO GAAP RECONCILIATION

(earnings per share)




















Three Months


Six Months


Ended June 30,


Ended June 30,




Change

Change




Change

Change


2012

2011

$

%


2012

2011

$

%











Diluted GAAP EPS

$  0.46

$  0.39

$  0.07

17.9%


$  0.82

$  0.67

$  0.15

22.4%











Integration expenses and










restructuring costs

$     -

$  0.01

$(0.01)



$     -

$  0.04

$(0.04)












Diluted NON-GAAP EPS (adjusted)

$  0.46

$  0.40

$  0.06

15.0%


$  0.82

$  0.71

$  0.11

15.5%































Diluted Shares

37,190

37,060




37,167

37,041













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)































June 30,


December 31,









2012


2011












ASSETS








CURRENT ASSETS:










Cash and cash equivalents




$  52,185


$       49,091



Accounts receivable trade, net



357,645


326,537



Accounts receivable other




22,658


23,878



Prepaid taxes





1,003


2,392



Deferred taxes





5,523


4,838



Prepaid expenses and other current assets


12,386


9,056




TOTAL CURRENT ASSETS


451,400


415,792













Restricted investments





15,436


14,323


Property and equipment, net





131,988


124,587


Other intangibles, net





20,842


21,667


Goodwill, net





263,361


263,470


Other assets





2,257


2,845




 

TOTAL ASSETS 



$885,284


$     842,684























LIABILITIES AND STOCKHOLDERS' EQUITY








CURRENT LIABILITIES:










Accounts payable trade




$211,067


$     204,693



Accounts payable other




20,792


17,289



Accrued payroll





12,465


16,721



Accrued other





30,094


29,962



Current portion of capital lease



2,271


2,237




TOTAL CURRENT LIABILITIES


276,689


270,902













Non-current liabilities





18,169


17,717


Deferred taxes





96,757


91,764


Non-current portion of capital lease




22,279


23,436













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; 37,111,252 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

164,459


168,800



Purchase price in excess of predecessor basis, net of tax






 benefit of $10,306





(15,458)


(15,458)



Retained earnings





431,802


401,188



Other comprehensive income




2


4



Treasury stock; at cost, 4,113,540 shares in 2012








and 4,364,532 shares in 2011


(109,834)


(116,088)




TOTAL STOCKHOLDERS' EQUITY


471,390


438,865





     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$885,284


$     842,684












 

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)






















Six Months Ended










June 30,










2012


2011

























Cash flows from operating activities:





Net income

$30,614


$  24,888


Adjustments to reconcile net income






to net cash provided by operating activities:







Depreciation and amortization 

11,004


6,292




Deferred taxes

4,432


2,733




Compensation expense related to share-based compensation plans

3,229


2,433




Gain on sale of assets

(48)


(8)




Excess tax benefits from share-based compensation

(83)


-


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







Restricted investments

(1,113)


(1,043)




Accounts receivable, net

(29,883)


(62,743)




Prepaid taxes

1,389


169




Prepaid expenses and other current assets

(3,329)


(3,976)




Other assets

589


305




Accounts payable

9,877


31,079




Accrued expenses

(741)


8,445




Non-current liabilities

200


1,400





Net cash provided by operating activities

26,137


9,974





Cash flows from investing activities:





Proceeds from sale of equipment

643


214


Purchases of property and equipment




(21,043)


(15,281)


Cash used in acquisitions, net of cash acquired



(300)


(90,909)





Net cash used in investing activities


(20,700)


(105,976)





Cash flows from financing activities:





Proceeds from stock options exercised




45


26


Stock tendered for payments of withholding taxes



(1,770)


(1,477)


Capital lease payments





(1,107)


-


Excess tax benefits from share-based compensation



492


584





Net cash used in financing activities


(2,340)


(867)


























Effect of exchange rate changes on cash and cash equivalents


(3)


4





Net decrease in cash and cash equivalents

3,094


(96,865)

Cash and cash equivalents beginning of period

49,091


115,144

Cash and cash equivalents end of period

$52,185


$  18,279













 

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.