Hub Group, Inc. Reports Record Second Quarter 2013 Earnings

DOWNERS GROVE, Ill., July 18, 2013 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended June 30, 2013.

Hub Group reported record income of $18.6 million for the second quarter ended June 30, 2013, an increase of 10% compared to the second quarter of 2012.  Hub Group's diluted earnings per share was $0.50 for the second quarter of 2013, which represents an increase of 9% when compared with the prior year period.  Hub Group's revenue increased 8% to $837 million

The Hub segment's revenue increased 8% to $645 million.  Second quarter intermodal revenue increased 4% to $448 million.  Truck brokerage revenue increased 5% to $84 million this quarter.  Second quarter Unyson Logistics revenue increased 34% to $113 million.  The Hub segment's operating income was $25.5 million

The Mode segment's revenue increased 5% to $204 million.  Operating income was $5.0 million, an increase of 71% compared to the prior year period.

Hub Group ended the quarter with $72 million in cash.

"All of our business lines contributed to a record second quarter.  We remain focused on growing profitably and expect continued growth in the second half of the year," 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, July 18, 2013 to discuss its second 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.  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) 713-4209.  The conference call participant code is 65076828#. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PUU983CAH.  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 and the report on Form 10-Q for the period ended March 31, 2013.  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,








2013


2012


2013


2012

Revenue




$ 836,685


$ 778,312


$ 1,605,665


$ 1,518,197















Transportation costs




741,212


690,954


1,422,854


1,347,097


Gross margin




95,473


87,358


182,811


171,100















Costs and expenses:












Salaries and benefits




35,002


31,436


69,585


64,735


Agent fees and commissions



13,686


13,601


26,960


27,296


General and administrative



14,728


12,734


27,919


25,311


Depreciation and amortization



1,593


1,737


3,146


3,397



Total costs and expenses



65,009


59,508


127,610


120,739















Operating income




30,464


27,850


55,201


50,361















Other income (expense):











Interest expense




(305)


(301)


(595)


(608)


Interest and dividend income



15


33


44


67


Other, net 




23


(18)


12


(41)



Total other (expense) income 



(267)


(286)


(539)


(582)















Income before provision for income taxes



30,197


27,564


54,662


49,779















Provision for income taxes



11,587


10,612


20,688


19,165















Net income




$   18,610


$   16,952


$      33,974


$      30,614











































Basic earnings per common share



$       0.50


$       0.46


$         0.92


$         0.83















Diluted earnings per common share



$       0.50


$       0.46


$         0.92


$         0.82















Basic weighted average number of shares outstanding


36,870


37,070


36,863


37,057

Diluted weighted average number of shares outstanding

36,989


37,190


36,969


37,167


 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)






















Three Months








Ended June 30, 2013








Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue




$       644,924


$       203,918


$           (12,157)


$       836,685















Transportation costs




573,498


179,871


(12,157)


741,212


Gross margin




71,426


24,047


-


95,473















Costs and expenses:












Salaries and benefits




31,208


3,794


-


35,002


Agent fees and commissions



350


13,336


-


13,686


General and administrative



13,338


1,390


-


14,728


Depreciation and amortization



1,061


532


-


1,593



Total costs and expenses



45,957


19,052


-


65,009















Operating income




$        25,469


$          4,995


$                   -


$        30,464















 

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)























Six Months









Ended June 30, 2013









Hub


Mode


Inter-Segment Elims


Hub Group Consolidated


Revenue




$    1,237,575


$       391,378


$          (23,288)


$    1,605,665

















Transportation costs




1,100,969


345,173


(23,288)


1,422,854



Gross margin




136,606


46,205


-


182,811

















Costs and expenses:













Salaries and benefits




61,985


7,600


-


69,585



Agent fees and commissions



799


26,161


-


26,960



General and administrative



25,036


2,883


-


27,919



Depreciation and amortization



2,081


1,065


-


3,146




Total costs and expenses



89,901


37,709


-


127,610

















Operating income




$        46,705


$          8,496


$                  -


$        55,201


 

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 CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)































June 30,


December 31,









2013


2012












ASSETS








CURRENT ASSETS:







Cash and cash equivalents

$           72,000


$           70,760



Accounts receivable trade, net

395,387


346,917



Accounts receivable other

22,955


25,945



Prepaid taxes



173


139



Deferred taxes



5,432


4,965



Prepaid expenses and other current assets

11,033


10,619




TOTAL CURRENT ASSETS

506,980


459,345









Restricted investments

17,759


17,218


Property and equipment, net

189,396


157,584


Other intangibles, net

19,319


20,068


Goodwill, net

263,142


263,251


Other assets

2,504


2,387





TOTAL ASSETS

$         999,100


$         919,853

















LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:






Accounts payable trade

$         234,224


$         206,497



Accounts payable other

25,875


22,925



Accrued payroll

14,822


17,210



Accrued other

30,309


28,633



Current portion of capital lease

2,367


2,120



Current portion of long term debt

1,755


-





TOTAL CURRENT LIABILITIES

309,352


277,385










Long term debt

7,365


-


Non-current liabilities

19,847


20,041


Long term capital lease

19,709


21,099


Deferred taxes

107,510


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; 36,984,705 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

163,104


167,765



Purchase price in excess of predecessor basis, net of tax






 benefit of $10,306

(15,458)


(15,458)



Retained earnings

503,115


469,141



Other comprehensive (loss) income

(32)


1



Treasury stock; at cost, 4,240,087 shares in 2013







and 4,457,307 shares in 2012

(115,831)


(120,971)




TOTAL STOCKHOLDERS' EQUITY

535,317


500,897





     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$         999,100


$         919,853

 

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)






















Six Months Ended










June 30,










2013


2012

























Cash flows from operating activities:






Net income




$        33,974


$        30,614


Adjustments to reconcile net income







to net cash provided by operating activities:








Depreciation and amortization 


9,954


11,004




Deferred taxes



6,548


4,432




Compensation expense related to share-based compensation plans

3,757


3,229




Gain on sale of assets



(287)


(48)




Excess tax benefits from share-based compensation


(8)


(83)


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







Restricted investments



(541)


(1,113)




Accounts receivable, net


(45,558)


(29,883)




Prepaid taxes



(48)


1,389




Prepaid expenses and other current assets


(417)


(3,329)




Other assets




(120)


589




Accounts payable



30,685


9,877




Accrued expenses



(3,680)


(741)




Non-current liabilities



118


200






Net cash provided by operating activities


34,377


26,137













Cash flows from investing activities:






Proceeds from sale of equipment


1,358


643


Purchases of property and equipment


(39,202)


(21,043)


Cash used in acquisitions, net of cash acquired


-


(300)





Net cash used in investing activities


(37,844)


(20,700)













Cash flows from financing activities:






Proceeds from issuance of debt


9,120


-


Proceeds from stock options exercised


41


45


Stock tendered for payments of withholding taxes


(2,585)


(1,770)


Purchase of treasury stock



(903)


-


Capital lease payments



(1,143)


(1,107)


Excess tax benefits from share-based compensation


177


492





Net cash provided by (used in) financing activities


4,707


(2,340)


























Effect of exchange rate changes on cash and cash equivalents


-


(3)













Net increase in cash and cash equivalents


1,240


3,094

Cash and cash equivalents beginning of period


70,760


49,091

Cash and cash equivalents end of period


$        72,000


$        52,185

 

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.