Hub Group, Inc. Reports Earnings for the Fourth Quarter and Full Year 2009 and Provides 2010 Guidance

Jan 28, 2010, 16:00 ET from Hub Group, Inc.

DOWNERS GROVE, Ill., Jan. 28 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported income for the quarter ended December 31, 2009 of $10 million. Hub Group's diluted earnings per share was $0.26 for the fourth quarter of 2009.  

Hub Group's revenue decreased 5% to $408 million compared to $430 million in the fourth quarter of 2008.  Fourth quarter intermodal revenue decreased 7% to $285 million.  The decrease was attributable to a 7% decrease for price and mix and a 6% decrease for fuel, partially offset by 6% higher volume.  Truck brokerage revenue was down 4% to $79 million this quarter.  Fourth quarter logistics revenue increased 2% to $44 million.  

Commenting on the results, David P. Yeager, Chairman and Chief Executive Officer of Hub Group stated, "We are pleased with our fourth quarter results and strong finish to 2009.  While 2009 was a challenging year due to the economy, we are starting 2010 with positive momentum."      

FULL YEAR 2009

Income for the year ended December 31, 2009 was $34 million.  Hub Group's diluted earnings per share for 2009 was $0.91.  

As of December 31, 2009, the Company had $127 million of cash and no debt.  

FULL YEAR 2010

Assuming there is no further deterioration in the economy, we are comfortable that earnings for 2010 will be within the current analysts' range of $1.00 to $1.15 per diluted share.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Thursday, January 28, 2010 to discuss its fourth quarter and full year 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 at Hub Group's Web site at http://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) 680-0860.  The conference call participant code is 99782403. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P7CQFP8K7 .  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 http://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 over 30 offices 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, 2008 and the reports on Form 10-Q for the periods ended March 31, 2009, June 30, 2009 and September 30, 2009.  Hub Group assumes no liability to update any such forward-looking statements.

    
    
                                    HUB GROUP, INC.
                UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share amounts)
    
                                   Three Months           Twelve Months
                                 Ended December 31,     Ended December 31,
                                 ------------------     ------------------
                                   2009      2008        2009        2008
                                   ----      ----        ----        ----
    Revenue                      $407,881  $430,472  $1,510,970  $1,860,608
    
    Transportation costs          361,323   376,662   1,325,280   1,626,297
                                  -------   -------   ---------   ---------
      Gross margin                 46,558    53,810     185,690     234,311
    
    Costs and expenses:
      Salaries and benefits        21,004    19,878      88,518      93,658
      General and administrative    9,092     9,841      37,467      41,234
      Depreciation and amortization   945       970       4,174       3,957
                                      ---       ---       -----       -----
        Total costs and expenses   31,041    30,689     130,159     138,849
                                   ------    ------     -------     -------
    Operating income               15,517    23,121      55,531      95,462
    
    Other income (expense):
      Interest expense                (15)      (19)        (91)       (102)
      Interest income                  26       113         146       1,153
      Other, net                      111      (215)        299        (187)
                                      ---      ----         ---        ----
        Total other income
         (expense)                    122      (121)        354         864
    
    Income before provision
     for income taxes              15,639    23,000      55,885      96,326
    
    Provision for income taxes      5,688     8,790      21,620      37,081
                                    -----     -----      ------      ------
    
    Net income                     $9,951   $14,210     $34,265     $59,245
                                   ======   =======     =======     =======
    
    Basic earnings per common
     share                          $0.27     $0.38       $0.92       $1.59
                                    =====     =====       =====       =====
    
    Diluted earnings per common 
     share                          $0.26     $0.38       $0.91       $1.58
                                    =====     =====       =====       =====
    
    Basic weighted average number 
     of shares outstanding         37,428    37,195      37,367      37,174
                                   ======    ======      ======      ======
    Diluted weighted average number 
     of shares outstanding         37,657    37,501      37,525      37,484
                                   ======    ======      ======      ======
    
    
                                      HUB GROUP, INC.
                           CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands, except share amounts)
    
                                          December 31,     December 31,
                                          ------------     ------------
                                              2009             2008
                                              ----             ----
    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents           $126,863          $85,799
        Accounts receivable
          Trade, net                         145,317          145,362
          Other                               11,932           10,318
        Prepaid taxes                            593              123
        Deferred taxes                         2,874            1,985
        Prepaid expenses and
         other current assets                  6,801            4,346
                                               -----            -----
            TOTAL CURRENT ASSETS             294,380          247,933
    
      Restricted investments                   9,583            6,118
      Property and equipment, net             28,510           32,713
      Other intangibles, net                   6,164            6,610
      Goodwill, net                          232,892          233,110
      Other assets                             1,819            1,747
                                               -----            -----
                TOTAL ASSETS                $573,348         $528,231
                                            ========         ========
    
    
    LIABILITIES AND STOCKHOLDERS' EQUITY
      CURRENT LIABILITIES:
        Accounts payable
          Trade                             $110,626         $105,064
          Other                                7,695            6,107
        Accrued expenses
          Payroll                              8,253            9,988
          Other                               18,958           26,388
                                              ------           ------
            TOTAL CURRENT LIABILITIES        145,532          147,547
    
      Non-current liabilities                 12,002            9,535
      Deferred taxes                          61,973           55,965
      STOCKHOLDERS' EQUITY:
        Preferred stock, $.01 par value; 
         2,000,000 shares authorized;
         no shares issued or outstanding 
         in 2009 and 2008                          -                -
        Common stock
          Class A: $.01 par value;
           97,337,700 shares authorized and
           41,224,792 shares issued in 2009 
           and 2008; 37,253,330 outstanding 
           in 2009 and 36,970,347 
           outstanding in 2008                   412              412
          Class B:  $.01 par value; 
           662,300 shares authorized;
           662,296 shares issued and 
           outstanding in 2009 and 2008            7                7
        Additional paid-in capital           171,470          174,355
        Purchase price in excess
         of predecessor basis,
         net of tax benefit of $10,306       (15,458)         (15,458)
        Retained earnings                    299,552          265,287
        Other comprehensive income (loss)         (9)               -
        Treasury stock; at cost,
         3,971,462 shares in 2009 and 
         4,254,445 shares in 2008           (102,133)        (109,419)
                                            --------         --------
          TOTAL STOCKHOLDERS' EQUITY         353,841          315,184
                                             -------          -------
                 TOTAL LIABILITIES AND
                  STOCKHOLDERS' EQUITY      $573,348         $528,231
                                            ========         ========
    
    
                                    HUB GROUP, INC.
               UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    (in thousands)
    
                                                      Twelve Months Ended
                                                          December 31,
                                                          ------------
                                                      2009             2008
                                                      ----             ----
    
    Cash flows from operating activities:
      Net income                                     $34,265          $59,245
      Adjustments to reconcile net income to net
       cash provided by operating activities:
          Depreciation and amortization                8,199            7,369
          Deferred taxes                               5,519            9,294
          Compensation expense related to share-
           based compensation plans                    4,394            4,360
          Loss (gain) on sale of assets                   50              (22)
      Changes in operating assets and liabilities:
          Restricted investments                      (3,465)            (912)
          Accounts receivable, net                    (1,569)          15,092
          Prepaid taxes                                 (470)             (37)
          Prepaid expenses and other current
           assets                                     (2,455)             (28)
          Other assets                                   (72)            (374)
          Accounts payable                             7,150          (18,532)
          Accrued expenses                            (8,603)         (13,040)
          Non-current liabilities                      2,285             (908)
                                                       -----             ----
            Net cash provided by operating
             activities                               45,228           61,507
                                                      ------           ------
    
    Cash flows from investing activities:
      Proceeds from sale of equipment                     84            1,342
      Purchases of property and equipment             (4,246)         (10,732)
      Cash used in acquisition of
       Comtrak, Inc.                                       0           (5,000)
                                                         ---           ------
            Net cash used in investing
             activities                               (4,162)         (14,390)
                                                      ------          -------
    
    Cash flows from financing activities:
      Proceeds from stock options exercised              256              407
      Purchase of treasury stock                      (1,101)          (2,630)
      Excess tax benefits from share-
       based compensation                                852            2,903
                                                         ---            -----
            Net cash provided by financing
             activities                                    7              680
                                                         ---              ---
    
    Effect of exchange rate changes on
     cash and cash equivalents                            (9)               -
    
    Net increase in cash and cash equivalents         41,064           47,797
    Cash and cash equivalents beginning of year       85,799           38,002
                                                      ------           ------
    Cash and cash equivalents end of year           $126,863          $85,799
                                                    ========          =======

SOURCE Hub Group, Inc.



RELATED LINKS

http://www.hubgroup.com