Hub Group, Inc. Reports 14% EPS Growth and Another Record Second Quarter
DOWNERS GROVE, Ill., July 24 /PRNewswire-FirstCall/ — Hub Group, Inc.
(Nasdaq: HUBG) today reported record diluted earnings per share for the
quarter ended June 30, 2008 of $0.40. This represents an increase of 14%
compared to last year’s second quarter diluted earnings per share of $0.35.
Hub Group’s income for the second quarter was $15.0 million, a 9% increase
versus income for the second quarter of 2007.
Hub Group’s revenue increased 22% to $490.9 million compared to $401.6
million in the second quarter of 2007. Second quarter intermodal revenue
increased 17% to $351.6 million. The increase was attributable to a 5% volume
increase and a 12% increase in pricing, related primarily to fuel. Truck
brokerage revenue was up 34% to $98.7 million this quarter. Second quarter
logistics revenue increased 50% to $40.6 million. Gross margin increased $2.1
million to $59.8 million compared to the second quarter of 2007.
Commenting on the results, David P. Yeager, Vice-Chairman and Chief
Executive Officer of Hub Group stated, “We are proud of our record earnings
for the second quarter. The results demonstrate that our strategy and
business model continue to be effective in any economic environment.”
FULL YEAR 2008
Given the current operating environment, we are comfortable that the
earnings for 2008 will be within the current analysts’ range of $1.59 to $1.69
per diluted share.
CONFERENCE CALL
Hub will hold a conference call at 1:00 p.m. Eastern Time (12:00 p.m.
Central Time) on Thursday, July 24, 2008 to discuss its second quarter
results.
Hosting the conference call will be David P. Yeager, Vice-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 https://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) 679-8037. The conference call participant code
is 37878566. Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PMP9UTGD9.
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 https://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, 2007 and the report on Form 10-Q for the period ended
March 31, 2008. 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 Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
Revenue $490,929 $401,565 $915,924 $794,862
Transportation costs 431,090 343,802 798,583 680,438
Gross margin 59,839 57,763 117,341 114,424
Costs and expenses:
Salaries and benefits 24,301 24,177 49,664 49,787
General and administrative 10,477 10,218 20,627 21,819
Depreciation and amortization 991 1,203 1,992 2,375
Total costs and expenses 35,769 35,598 72,283 73,981
Operating income 24,070 22,165 45,058 40,443
Other income (expense):
Interest expense (26) (24) (52) (45)
Interest and dividend income 340 611 678 1,256
Other, net (9) 55 86 58
Total other income 305 642 712 1,269
Income before provision for income
taxes 24,375 22,807 45,770 41,712
Provision for income taxes 9,405 9,032 17,665 16,518
Net income $14,970 $13,775 $28,105 $25,194
Basic earnings per common share $0.40 $0.35 $0.76 $0.64
Diluted earnings per common share $0.40 $0.35 $0.75 $0.64
Basic weighted average number of
shares outstanding 37,191 39,043 37,146 39,150
Diluted weighted average number of
shares outstanding 37,489 39,538 37,447 39,652
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
June 30, December 31,
2008 2007
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $54,038 $38,002
Accounts receivable
Trade, net 191,878 160,944
Other 10,720 9,828
Prepaid taxes 86 86
Deferred taxes 3,876 5,044
Prepaid expenses and other current assets 5,925 4,318
TOTAL CURRENT ASSETS 266,523 218,222
Restricted investments 7,746 5,206
Property and equipment, net 28,181 29,662
Other intangibles, net 6,833 7,056
Goodwill, net 230,448 230,448
Other assets 1,251 1,373
TOTAL ASSETS $540,982 $491,967
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade $147,282 $123,020
Other 9,029 6,683
Accrued expenses
Payroll 12,137 16,446
Other 28,434 33,063
Related party payable - 5,000
TOTAL CURRENT LIABILITIES 196,882 184,212
Non-current liabilities 9,753 9,708
Deferred taxes 51,129 47,148
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
2,000,000 shares authorized; no shares
issued or outstanding in 2008 and 2007 - -
Common stock
Class A: $.01 par value; 97,337,700
shares authorized and 41,224,792 shares
issued in 2008 and 2007; 37,001,494
shares outstanding in 2008 and
36,666,731 outstanding in 2007 412 412
Class B: $.01 par value; 662,300 shares
authorized; 662,296 shares issued and
outstanding in 2008 and 2007 7 7
Additional paid-in capital 172,357 176,657
Purchase price in excess of predecessor
basis, net of tax benefit of $10,306 (15,458) (15,458)
Retained earnings 234,147 206,042
Treasury stock; at cost, 4,223,298 shares
in 2008 and 4,558,061 shares in 2007 (108,247) (116,761)
TOTAL STOCKHOLDERS' EQUITY 283,218 250,899
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $540,982 $491,967
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
2008 2007
Cash flows from operating activities:
Net income $28,105 $25,194
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 3,395 3,706
Deferred taxes 5,149 3,034
Compensation expense related to
share-based compensation plans 2,257 1,923
Gain on sale of assets (197) (117)
Changes in operating assets and
liabilities:
Restricted investments (2,540) (1,786)
Accounts receivable, net (31,826) 1,667
Prepaid taxes - 2,033
Prepaid expenses and other current
assets (1,607) (345)
Other assets 122 4
Accounts payable 26,608 (4,388)
Accrued expenses (8,938) (174)
Deferred compensation 45 180
Net cash provided by operating
activities 20,573 30,931
Cash flows from investing activities:
Proceeds from sale of equipment 364 550
Purchases of property and equipment (1,858) (7,453)
Cash used in acquisition of Comtrak, Inc. (5,000) (5,000)
Net cash used in investing activities (6,494) (11,903)
Cash flows from financing activities:
Proceeds from stock options exercised 355 329
Purchase of treasury stock (796) (12,898)
Excess tax benefits from share-based
compensation 2,398 2,430
Net cash provided by (used in)
financing activities 1,957 (10,139)
Net increase in cash and cash equivalents 16,036 8,889
Cash and cash equivalents beginning
of period 38,002 43,491
Cash and cash equivalents end of period $54,038 $52,380
SOURCE Hub Group, Inc.
-0- 07/24/2008
/CONTACT: Amy Lisek of Hub Group, Inc., +1-630-795-2214/
/Web site: https://www.hubgroup.com /
(HUBG)
CO: Hub Group, Inc.
ST: Illinois
IN: TRN
SU: ERN ERP CCA
SS-AM
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8228 07/24/2008 09:00 EDT http://www.prnewswire.com