Hub Group, Inc. Reports First Quarter 2010 Earnings
DOWNERS GROVE, Ill., April 21, 2010 /PRNewswire via COMTEX/ –Hub Group, Inc. (Nasdaq: HUBG) today reported net income for the quarter ended March 31, 2010 of $8.7 million. Hub Group’s diluted earnings per share was $0.23 for the first quarter of 2010. This represents an increase of 35% compared to last year’s first quarter diluted earnings per share of $0.17.
Hub Group’s revenue increased 19% to $417 million compared to $352 million in the first quarter of 2009. First quarter intermodal revenue increased 17% to $287 million. The increase was attributable to a 16% volume increase and a 6% increase for fuel, partially offset by a 5% decrease for price and mix. Truck brokerage revenue increased 23% to $83 million this quarter. First quarter logistics revenue increased 23% to $47 million.
Hub Group generated $18 million of cash flow from operations and ended the quarter with $142 million in cash.
“We have started 2010 with a good first quarter,” said David P. Yeager, Chairman and Chief Executive Officer. “All three business lines showed solid growth, and we look forward to taking this positive momentum into the quarters ahead.”
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, April 21, 2010 to discuss its first 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) 679-8040. The conference call participant code is 87694604. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PJVNV8V4R. 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. 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
Ended March 31,
---------------
2010 2009
---- ----
Revenue $417,294 $351,695
Transportation costs 368,476 306,526
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Gross margin 48,818 45,169
Costs and expenses:
Salaries and benefits 23,458 23,214
General and administrative 10,145 10,123
Depreciation and amortization 973 1,156
--- -----
Total costs and expenses 34,576 34,493
Operating income 14,242 10,676
Other income (expense):
Interest expense (14) (25)
Interest and dividend income 25 55
Other, net 68 10
--- ---
Total other income 79 40
Income before provision for income taxes 14,321 10,716
Provision for income taxes 5,619 4,538
----- -----
Net income $8,702 $6,178
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Basic earnings per common share $0.23 $0.17
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Diluted earnings per common share $0.23 $0.17
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Basic weighted average number of shares
outstanding 37,527 37,321
====== ======
Diluted weighted average number of shares
outstanding 37,643 37,412
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HUB GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
March 31, December 31,
2010 2009
---- ----
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $141,736 $126,863
Accounts receivable
Trade, net 173,878 145,317
Other 9,155 11,932
Prepaid taxes 132 593
Deferred taxes 766 2,874
Prepaid expenses and other current
assets 4,142 6,801
----- -----
TOTAL CURRENT ASSETS 329,809 294,380
Restricted investments 9,771 9,583
Property and equipment, net 27,246 28,510
Other intangibles, net 6,053 6,164
Goodwill, net 232,837 232,892
Other assets 1,778 1,819
----- -----
TOTAL ASSETS $607,494 $573,348
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LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade $134,958 $110,626
Other 9,820 7,695
Accrued expenses
Payroll 7,849 8,253
Other 18,817 18,958
------ ------
TOTAL CURRENT LIABILITIES 171,444 145,532
Non-current liabilities 12,166 12,002
Deferred taxes 63,172 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; 37,362,570 shares
outstanding in 2010 and 37,253,330
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 166,970 171,470
Purchase price in excess of
predecessor basis, net of tax
benefit of $10,306 (15,458) (15,458)
Retained earnings 308,254 299,552
Other comprehensive income (loss) 3 (9)
Treasury stock; at cost, 3,862,222
shares in 2010
and 3,971,462 shares in 2009 (99,476) (102,133)
------- --------
TOTAL STOCKHOLDERS' EQUITY 360,712 353,841
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $607,494 $573,348
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HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
---------
2010 2009
---- ----
Cash flows from operating activities:
Net income $8,702 $6,178
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 1,952 2,184
Deferred taxes 3,401 3,088
Compensation expense related to share-
based compensation plans 931 1,078
Loss (gain) on sale of assets 63 (27)
Changes in operating assets and
liabilities:
Restricted investments (188) (455)
Accounts receivable, net (25,784) 15,494
Prepaid taxes 461 -
Prepaid expenses and other current assets 2,659 584
Other assets 41 57
Accounts payable 26,457 6,300
Accrued expenses (545) (4,401)
Non-current liabilities 125 (940)
--- ----
Net cash provided by operating
activities 18,275 29,140
------
Cash flows from investing activities:
Proceeds from sale of equipment 7 48
Purchases of property and equipment (647) (1,429)
---- ------
Net cash used in investing activities (640) (1,381)
---- ------
Cash flows from financing activities:
Proceeds from stock options exercised 12 40
Purchase of treasury stock (2,919) (1,042)
Excess tax benefits from share-based
compensation 133 117
--- ---
Net cash used in financing activities (2,774) (885)
------ ----
Effect of exchange rate changes on cash
and cash equivalents 12 -
--- ---
Net increase in cash and cash equivalents 14,873 26,874
Cash and cash equivalents beginning of
period 126,863 85,799
Cash and cash equivalents end of period $141,736 $112,673
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SOURCE Hub Group, Inc.