Hub Group, Inc. Reports Earnings for the Fourth Quarter and Full Year 2008 and Provides 2009 Guidance
DOWNERS GROVE, Ill.,
(Nasdaq: HUBG) today reported income for the quarter ended
of
fourth quarter of 2008. Fourth quarter 2007 diluted earnings per share
included a
IRS. Excluding this benefit, earnings per share decreased 12% this quarter.
million
decreased 3% to
decrease and a 1% decrease in price. Truck brokerage revenue was down 13% to
Commenting on the results,
Officer of
during the fourth quarter we generated solid earnings. Our variable cost,
asset light model allowed us to reduce costs in the quarter to help compensate
for the weaker economy. We will continue to work to improve efficiencies and
maintain tight control over our costs and expenses in this challenging
environment.”
FULL YEAR 2008
Income for the year ended
compared to last year’s income of
per share for 2008 was
benefits, earnings per share increased 8% this year.
Revenue increased 12% for the year to
1% to
Costs and expenses decreased 2% in 2008 to
As of
debt.
FULL YEAR 2009
Given the current operating environment, we are comfortable that the
earnings for 2009 will be within the current analysts’ range of
per diluted share.
CONFERENCE CALL
Hub will hold a conference call at
January 29, 2009
Hosting the conference call will be
Executive Officer and
Financial Officer and Treasurer.
This call is being webcast and can be accessed through the Investors link
at
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) 680-0893. The conference call participant code
is 26743830. Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PTQYQKFKW .
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
transportation management company providing comprehensive intermodal, truck
brokerage and logistics services. The Company operates through a network of
over 30 offices throughout the
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that
are not historical, including statements about
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
reports including, but not limited to, the annual report on Form 10-K for the
year ended
ended
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,
2008 2007 2008 2007
Revenue $430,472 $445,464 $1,860,608 $1,658,168
Transportation costs 376,662 385,074 1,626,297 1,425,844
Gross margin 53,810 60,390 234,311 232,324
Costs and expenses:
Salaries and benefits 19,878 23,791 93,658 95,678
General and administrative 9,841 10,001 41,234 41,416
Depreciation and
amortization 970 1,035 3,957 4,490
Total costs and expenses 30,689 34,827 138,849 141,584
Operating income 23,121 25,563 95,462 90,740
Other income (expense):
Interest expense (19) (30) (102) (108)
Interest income 113 513 1,153 2,480
Other, net (215) 34 (187) 116
Total other (expense)
income (121) 517 864 2,488
Income before provision for
income taxes 23,000 26,080 96,326 93,228
Provision for income taxes 8,790 8,083 37,081 33,429
Net income $14,210 $17,997 $59,245 $59,799
Basic earnings per common
share $0.38 $0.48 $1.59 $1.55
Diluted earnings per common
share $0.38 $0.47 $1.58 $1.53
Basic weighted average number
of shares outstanding 37,195 37,562 37,174 38,660
Diluted weighted average
number of shares outstanding 37,501 37,978 37,484 39,128
HUB GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31 , December 31,
2008 2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $85,799 $38,002
Accounts receivable
Trade, net 145,362 160,944
Other 10,318 9,828
Prepaid taxes 123 86
Deferred taxes 5,430 5,044
Prepaid expenses and other
current assets 4,346 4,318
TOTAL CURRENT ASSETS 251,378 218,222
Restricted investments 6,118 5,206
Property and equipment, net 32,713 29,662
Other intangibles, net 6,610 7,056
Goodwill, net 233,110 230,448
Other assets 1,747 1,373
TOTAL ASSETS $531,676 $491,967
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade $105,064 $123,020
Other 6,107 6,683
Accrued expenses
Payroll 9,988 16,446
Other 26,388 32,408
Related party payable - 5,000
TOTAL CURRENT LIABILITIES 147,547 183,557
Non-current liabilities 9,535 10,363
Deferred taxes 59,410 47,148
STOCKHOLDERS’ EQUITY:
Preferred stock,
2,000,000 shares authorized;
no shares issued or outstanding
in 2008 and 2007 - -
Common stock
Class A:
97,337,700 shares authorized
and
41,224,792 shares issued in
2008 and 2007; 36,970,347
outstanding in 2008 and
36,666,731 outstanding in
2007 412 412
Class B:
662,300 shares authorized;
662,296 shares issued and
outstanding in 2008 and 2007 7 7
Additional paid-in capital 174,355 176,657
Purchase price in excess of
predecessor basis, net of tax
benefit of $10,306 (15,458) (15,458)
Retained earnings 265,287 206,042
Treasury stock; at cost,
4,254,445 shares in 2008 and
4,558,061 shares in 2007 (109,419) (116,761)
TOTAL STOCKHOLDERS' EQUITY 315,184 250,899
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $531,676 $491,967
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
2008 2007
Cash flows from operating
activities:
Net income $59,245 $59,799
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 7,369 7,195
Deferred taxes 9,294 3,523
Compensation expense related to
share-based compensation plans 4,360 3,853
Gain on sale of assets (22) (160)
Changes in operating assets and
liabilities:
Restricted investments (912) (2,189)
Accounts receivable, net 15,092 (4,119)
Prepaid taxes (37) 2,033
Prepaid expenses and other
current assets (28) 132
Other assets (374) 88
Accounts payable (18,532) 4,223
Accrued expenses (13,040) 4,094
Non-current liabilities (908) 2,108
Net cash provided by operating
activities 61,507 80,580
Cash flows from investing
activities:
Proceeds from sale of equipment 1,342 725
Purchases of property and
equipment (10,732) (10,197)
Cash used in acquisition of
Comtrak, Inc. (5,000) (5,000)
Net cash used in investing
activities (14,390) (14,472)
Cash flows from financing
activities:
Proceeds from stock options
exercised 407 760
Purchase of treasury stock (2,630) (76,309)
Excess tax benefits from share-
based compensation 2,903 3,952
Net cash provided by (used in)
financing activities 680 (71,597)
Net increase (decrease) in cash and
cash equivalents 47,797 (5,489)
Cash and cash equivalents beginning
of year 38,002 43,491
Cash and cash equivalents end of
year $85,799 $38,002
SOURCE
CONTACT: Amy Lisek of