Hub Group, Inc. Reports Third Quarter 2010 Earnings

Oct 19, 2010, 16:00 ET from Hub Group, Inc.

DOWNERS GROVE, Ill., Oct. 19 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today announced financial results for the quarter ended September 30, 2010.

"We are pleased with our third quarter results which include continued volume growth along with improving margins," commented David P. Yeager, Chairman and Chief Executive Officer. "Our intermodal, truck brokerage and logistics revenue each grew by more than 15% and, for the second quarter in a row, we increased our intermodal volume by more than 20%. We look forward to a strong finish to the year."

Hub Group reported income of $12.6 million for the third quarter of 2010, an increase of 28% compared to the third quarter of 2009. Hub Group's diluted earnings per share was $0.34 for the third quarter of 2010, which represents an increase of 31% when compared with the prior year period.

Each of the three business lines contributed to Hub Group's overall revenue increase of 23% to $478 million. Third quarter intermodal revenue increased 25% to $338 million. The increase was attributable to a 22% volume increase, a 4% increase for fuel and a 3% increase in pricing, partially offset by a 4% decrease for mix. Truck brokerage revenue increased 16% to $86 million this quarter. Third quarter Unyson Logistics revenue increased 23% to $54 million.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Tuesday, October 19, 2010 to discuss its third 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) 713-4217. The conference call participant code is 54227813. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PMQRCBPNC . 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 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, 2009 and the reports on Form 10-Q for the periods ended March 31, 2010 and June 30, 2010.  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


Nine Months





Ended September 30,


Ended September 30,





2010


2009


2010


2009

Revenue


$ 478,417


$ 388,781


$ 1,353,824


$ 1,103,089












Transportation costs


421,020


340,581


1,197,033


963,958


Gross margin


57,397


48,200


156,791


139,131












Costs and expenses:










Salaries and benefits


25,547


22,237


72,868


67,514


General and administrative


10,205


9,122


30,414


28,374


Depreciation and amortization


938


949


2,845


3,229



Total costs and expenses


36,690


32,308


106,127


99,117












Operating income


20,707


15,892


50,664


40,014












Other income (expense):










Interest expense


(12)


(26)


(38)


(76)


Interest and dividend income


35


29


83


120


Other, net


(68)


116


84


188



Total other income


(45)


119


129


232












Income before provision for income taxes


20,662


16,011


50,793


40,246












Provision for income taxes


8,045


6,180


19,844


15,932












Net income


$   12,617


$    9,831


$     30,949


$     24,314












Basic earnings per common share


$      0.34


$      0.26


$         0.83


$         0.65












Diluted earnings per common share


$      0.34


$      0.26


$         0.83


$         0.65












Basic weighted average number of shares outstanding


37,118


37,373


37,358


37,346

Diluted weighted average number of shares outstanding


37,288


37,550


37,504


37,481

























HUB GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

























September 30,


December 31,







2010


2009







(Unaudited)



ASSETS






CURRENT ASSETS:






Cash and cash equivalents

$         118,043


$         126,863



Accounts receivable trade, net

210,134


145,317



Accounts receivable other

13,561


11,932



Prepaid taxes

129


593



Deferred taxes

2,260


2,874



Prepaid expenses and other current assets

6,285


6,801





TOTAL CURRENT ASSETS

350,412


294,380











Restricted investments

10,521


9,583


Property and equipment, net

43,184


28,510


Other intangibles, net

5,830


6,164


Goodwill, net

232,727


232,892


Other assets

2,310


1,819






TOTAL ASSETS

$         644,984


$         573,348



















LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:






Accounts payable trade

$         148,057


$         110,626



Accounts payable other

9,958


7,695



Accrued payroll

13,420


8,253



Accrued other

28,233


18,958





TOTAL CURRENT LIABILITIES

199,668


145,532











Non-current liabilities

12,997


12,002


Deferred taxes

68,401


61,973











STOCKHOLDERS' EQUITY:






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







no shares issued or outstanding in 2010 and 2009

-


-



Common stock







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








41,224,792 shares issued in 2010 and 2009; 36,652,858 shares








outstanding in 2010 and 37,253,330 shares outstanding in 2009

412


412




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








662,296 shares issued and outstanding in 2010 and 2009

7


7



Additional paid-in capital

169,181


171,470



Purchase price in excess of predecessor basis, net of tax






benefit of $10,306

(15,458)


(15,458)



Retained earnings

330,501


299,552



Other comprehensive income (loss)

5


(9)



Treasury stock; at cost, 4,571,934 shares in 2010







and 3,971,462 shares in 2009

(120,730)


(102,133)




TOTAL STOCKHOLDERS' EQUITY

363,918


353,841





    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$         644,984


$         573,348
















































HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)
















Nine Months Ended







September 30,







2010


2009



















Cash flows from operating activities:





Net income

$        30,949


$        24,314


Adjustments to reconcile net income






to net cash provided by operating activities:







Depreciation and amortization

6,078


6,282




Deferred taxes

7,325


4,465




Compensation expense related to share-based compensation plans

2,720


3,218




Loss (gain) on sale of assets

46


(21)


Changes in operating assets and liabilities:







Restricted investments

(938)


(2,833)




Accounts receivable, net

(66,443)


(12,555)




Prepaid taxes

464


(9)




Prepaid expenses and other current assets

517


(1,809)




Other assets

(491)


99




Accounts payable

39,692


20,542




Accrued expenses

6,497


(3,544)




Non-current liabilities

847


1,601






Net cash provided by operating activities

27,263


39,750










Cash flows from investing activities:





Proceeds from sale of equipment

871


72


Purchases of property and equipment

(13,362)


(2,534)





Net cash used in investing activities

(12,491)


(2,462)










Cash flows from financing activities:





Proceeds from stock options exercised

18


155


Purchase of treasury stock

(23,822)


(1,096)


Excess tax benefits from share-based compensation

198


660





Net cash used in financing activities

(23,606)


(281)




















Effect of exchange rate changes on cash and cash equivalents

14


2










Net (decrease) increase in cash and cash equivalents

(8,820)


37,009

Cash and cash equivalents beginning of period

126,863


85,799

Cash and cash equivalents end of period

$      118,043


$      122,808












SOURCE Hub Group, Inc.



RELATED LINKS

http://www.hubgroup.com