Fourth Quarter Results
- Revenue of
$978.6 million increased 10% - Operating income totaled
$30.8 million , down 13% - Diluted earnings per share of
$0.55 declined 13%
Full Year 2016 Results
- Revenue of
$3.6 billion increased 1% - Operating income totaled
$123.8 million , up 6% - Diluted earnings per share of
$2.20 increased 12%
Revenue for the current quarter was
Operating income for the current quarter decreased to
Segment Information:
Hub
- Fourth quarter 2016 Segment Revenue:
$754.1 million , up 13% - Fourth quarter 2016 Operating Income:
$24.3 million , down 14%
The fourth quarter started out slowly but gained momentum as the quarter progressed. We were successful executing our strategy of targeting specific verticals and customers and providing our customers with multimodal solutions. This resulted in growth in all of our service lines. The Hub segment’s revenue increased 13% to
Fourth quarter intermodal revenue increased 5% to
Truck brokerage revenue increased 46% to
Fourth quarter Unyson Logistics revenue increased 17% to
Costs and expenses increased
Operating income was
Mode
- Fourth quarter 2016 Segment Revenue:
$256.4 million , up 6% - Fourth quarter 2016 Operating Income:
$6.5 million , down 6%
Mode managed through a competitive environment and saw revenue increase 6% to
Gross margin decreased
Mode’s costs and expenses decreased
Mode added 3 new IBO’s to the network during the quarter along with 23 salespeople. Mode’s pipeline remains strong for new recruits in 2017.
Operating income was
2017 Outlook
“We are pleased with the results for 2016 and the progress we have made on our goals and objectives. Looking to 2017, we remain committed to our strategy to increase market share by providing multimodal solutions for our customers,” said
Cash Flow and Capitalization:
At
Our capital expenditures for 2016 approximated
CONFERENCE CALL
Hub will hold a conference call at
Hosting the conference call will be
This call is being webcast and can be accessed through the Investors link on Hub Group’s Web site at www.hubgroup.com. The webcast is listen-only. 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 register at http://www.yourconferencecenter.com/r.aspx?p=1&a=UXfABcEEofgJcl. Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference. You may register at any time, including up to and after the call start time. On the day of the call, dial (888) 206-4064 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration. 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.
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about
HUB GROUP, INC. | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Three Months Ended December 31 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||
% of | % of | |||||||||||||||||
Amount | Revenue | Amount | Revenue | |||||||||||||||
Revenue | $ | 978,560 | 100.0 | % | $ | 890,272 | 100.0 | % | ||||||||||
Transportation costs | 858,106 | 87.7 | % | 773,498 | 86.9 | % | ||||||||||||
Gross margin | 120,454 | 12.3 | % | 116,774 | 13.1 | % | ||||||||||||
Costs and expenses: | ||||||||||||||||||
Salaries and benefits | 50,384 | 5.1 | % | 44,268 | 5.0 | % | ||||||||||||
Agent fees and commissions | 18,562 | 1.9 | % | 19,350 | 2.1 | % | ||||||||||||
General and administrative | 18,262 | 1.9 | % | 15,720 | 1.8 | % | ||||||||||||
Depreciation and amortization | 2,407 | 0.2 | % | 2,095 | 0.2 | % | ||||||||||||
Total costs and expenses | 89,615 | 9.1 | % | 81,433 | 9.1 | % | ||||||||||||
Operating income | 30,839 | 3.2 | % | 35,341 | 4.0 | % | ||||||||||||
Other income (expense): | ||||||||||||||||||
Interest expense | (970 | ) | -0.1 | % | (753 | ) | -0.1 | % | ||||||||||
Interest and dividend income | 107 | 0.0 | % | 36 | 0.0 | % | ||||||||||||
Other, net | (359 | ) | 0.0 | % | (465 | ) | -0.1 | % | ||||||||||
Total other expense | (1,222 | ) | -0.1 | % | (1,182 | ) | -0.2 | % | ||||||||||
Income before provision for income taxes | 29,617 | 3.1 | % | 34,159 | 3.8 | % | ||||||||||||
Provision for income taxes | 11,373 | 1.2 | % | 11,785 | 1.3 | % | ||||||||||||
Net income | $ | 18,244 | 1.9 | % | $ | 22,374 | 2.5 | % | ||||||||||
Basic earnings per common share | $ | 0.55 | $ | 0.63 | ||||||||||||||
Diluted earnings per common share | $ | 0.55 | $ | 0.63 | ||||||||||||||
Basic weighted average number of shares outstanding | 33,069 | 35,595 | ||||||||||||||||
Diluted weighted average number of shares outstanding | 33,281 | 35,726 | ||||||||||||||||
HUB GROUP, INC. | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Twelve Months Ended December 31 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||
% of | % of | |||||||||||||||||
Amount | Revenue | Amount | Revenue | |||||||||||||||
Revenue | $ | 3,572,790 | 100.0 | % | $ | 3,525,595 | 100.0 | % | ||||||||||
Transportation costs | 3,118,005 | 87.3 | % | 3,112,900 | 88.3 | % | ||||||||||||
Gross margin | 454,785 | 12.7 | % | 412,695 | 11.7 | % | ||||||||||||
Costs and expenses: | ||||||||||||||||||
Salaries and benefits | 180,459 | 5.1 | % | 158,938 | 4.5 | % | ||||||||||||
Agent fees and commissions | 72,896 | 2.0 | % | 68,724 | 2.0 | % | ||||||||||||
General and administrative | 68,630 | 1.9 | % | 60,015 | 1.7 | % | ||||||||||||
Depreciation and amortization | 8,966 | 0.2 | % | 7,988 | 0.2 | % | ||||||||||||
Total costs and expenses | 330,951 | 9.2 | % | 295,665 | 8.4 | % | ||||||||||||
Operating income | 123,834 | 3.5 | % | 117,030 | 3.3 | % | ||||||||||||
Other income (expense): | ||||||||||||||||||
Interest expense | (3,625 | ) | -0.1 | % | (2,971 | ) | -0.1 | % | ||||||||||
Interest and dividend income | 393 | 0.0 | % | 83 | 0.0 | % | ||||||||||||
Other, net | 819 | 0.0 | % | (2,560 | ) | -0.1 | % | |||||||||||
Total other expense | (2,413 | ) | -0.1 | % | (5,448 | ) | -0.1 | % | ||||||||||
Income before provision for income taxes | 121,421 | 3.4 | % | 111,582 | 3.2 | % | ||||||||||||
Provision for income taxes | 46,616 | 1.3 | % | 40,633 | 1.2 | % | ||||||||||||
Net income | $ | 74,805 | 2.1 | % | $ | 70,949 | 2.0 | % | ||||||||||
Basic earnings per common share | $ | 2.21 | $ | 1.98 | ||||||||||||||
Diluted earnings per common share | $ | 2.20 | $ | 1.97 | ||||||||||||||
Basic weighted average number of shares outstanding | 33,841 | 35,876 | ||||||||||||||||
Diluted weighted average number of shares outstanding | 33,949 | 35,968 | ||||||||||||||||
HUB GROUP, INC. | |||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended December 31, 2016 | |||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||||
Revenue | $ | 754,091 | $ | 256,369 | $ | (31,900 | ) | $ | 978,560 | ||||||||||
Transportation costs | 665,270 | 224,736 | (31,900 | ) | 858,106 | ||||||||||||||
Gross margin | 88,821 | 31,633 | – | 120,454 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Salaries and benefits | 46,478 | 3,906 | – | 50,384 | |||||||||||||||
Agent fees and commissions | 19 | 18,543 | – | 18,562 | |||||||||||||||
General and administrative | 15,894 | 2,368 | – | 18,262 | |||||||||||||||
Depreciation and amortization | 2,095 | 312 | – | 2,407 | |||||||||||||||
Total costs and expenses | 64,486 | 25,129 | – | 89,615 | |||||||||||||||
Operating income | $ | 24,335 | $ | 6,504 | $ | – | $ | 30,839 | |||||||||||
HUB GROUP, INC. | |||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended December 31, 2015 | |||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||||
Revenue | $ | 668,865 | $ | 241,917 | $ | (20,510 | ) | $ | 890,272 | ||||||||||
Transportation costs | 584,569 | 209,439 | (20,510 | ) | 773,498 | ||||||||||||||
Gross margin | 84,296 | 32,478 | – | 116,774 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Salaries and benefits | 40,128 | 4,140 | – | 44,268 | |||||||||||||||
Agent fees and commissions | 13 | 19,337 | – | 19,350 | |||||||||||||||
General and administrative | 13,972 | 1,748 | – | 15,720 | |||||||||||||||
Depreciation and amortization | 1,775 | 320 | – | 2,095 | |||||||||||||||
Total costs and expenses | 55,888 | 25,545 | – | 81,433 | |||||||||||||||
Operating income | $ | 28,408 | $ | 6,933 | $ | – | $ | 35,341 | |||||||||||
HUB GROUP, INC. | |||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Twelve Months | |||||||||||||||||||
Ended December 31, 2016 | |||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||||
Revenue | $ | 2,734,541 | $ | 948,735 | $ | (110,486 | ) | $ | 3,572,790 | ||||||||||
Transportation costs | 2,404,946 | 823,545 | (110,486 | ) | 3,118,005 | ||||||||||||||
Gross margin | 329,595 | 125,190 | – | 454,785 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Salaries and benefits | 165,136 | 15,323 | – | 180,459 | |||||||||||||||
Agent fees and commissions | 66 | 72,830 | – | 72,896 | |||||||||||||||
General and administrative | 60,811 | 7,819 | – | 68,630 | |||||||||||||||
Depreciation and amortization | 7,698 | 1,268 | – | 8,966 | |||||||||||||||
Total costs and expenses | 233,711 | 97,240 | – | 330,951 | |||||||||||||||
Operating income | $ | 95,884 | $ | 27,950 | $ | – | $ | 123,834 | |||||||||||
HUB GROUP, INC. | |||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Twelve Months | |||||||||||||||||||
Ended December 31, 2015 | |||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||||
Revenue | $ | 2,679,318 | $ | 928,661 | $ | (82,384 | ) | $ | 3,525,595 | ||||||||||
Transportation costs | 2,385,197 | 810,087 | (82,384 | ) | 3,112,900 | ||||||||||||||
Gross margin | 294,121 | 118,574 | – | 412,695 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Salaries and benefits | 143,993 | 14,945 | – | 158,938 | |||||||||||||||
Agent fees and commissions | 56 | 68,668 | – | 68,724 | |||||||||||||||
General and administrative | 53,023 | 6,992 | – | 60,015 | |||||||||||||||
Depreciation and amortization | 6,688 | 1,300 | – | 7,988 | |||||||||||||||
Total costs and expenses | 203,760 | 91,905 | – | 295,665 | |||||||||||||||
Operating income | $ | 90,361 | $ | 26,669 | $ | – | $ | 117,030 | |||||||||||
HUB GROUP, INC. | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||||
(in thousands, except share data) | |||||||||||||||
(unaudited) | |||||||||||||||
December 31, | December 31, | ||||||||||||||
2016 | 2015 | ||||||||||||||
ASSETS | |||||||||||||||
CURRENT ASSETS: | |||||||||||||||
Cash and cash equivalents | $ | 127,404 | $ | 207,749 | |||||||||||
Accounts receivable trade, net | 473,608 | 379,987 | |||||||||||||
Accounts receivable other | 4,331 | 10,344 | |||||||||||||
Prepaid taxes | 294 | 362 | |||||||||||||
Deferred taxes | – | 8,412 | |||||||||||||
Prepaid expenses and other current assets | 16,653 | 17,756 | |||||||||||||
TOTAL CURRENT ASSETS | 622,290 | 624,610 | |||||||||||||
Restricted investments | 20,877 | 21,108 | |||||||||||||
Property and equipment, net | 438,594 | 374,847 | |||||||||||||
Other intangibles, net | 11,844 | 13,139 | |||||||||||||
Goodwill, net | 262,376 | 262,594 | |||||||||||||
Other assets | 4,278 | 4,848 | |||||||||||||
TOTAL ASSETS | $ | 1,360,259 | $ | 1,301,146 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||
Accounts payable trade | $ | 266,555 | $ | 230,432 | |||||||||||
Accounts payable other | 21,070 | 21,495 | |||||||||||||
Accrued payroll | 36,223 | 33,020 | |||||||||||||
Accrued other | 46,013 | 38,733 | |||||||||||||
Current portion of capital lease | 2,697 | 2,608 | |||||||||||||
Current portion of long term debt | 45,163 | 32,409 | |||||||||||||
TOTAL CURRENT LIABILITIES | 417,721 | 358,697 | |||||||||||||
Long term debt | 115,529 | 100,895 | |||||||||||||
Non-current liabilities | 23,595 | 20,233 | |||||||||||||
Long term capital lease | 10,576 | 13,299 | |||||||||||||
Deferred taxes | 164,659 | 160,182 | |||||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||||||
Preferred stock, $.01 par value; 2,000,000 shares authorized; | |||||||||||||||
no shares issued or outstanding in 2016 and 2015 | – | – | |||||||||||||
Common stock | |||||||||||||||
Class A: $.01 par value; 97,337,700 shares authorized and | |||||||||||||||
41,224,792 shares issued in 2016 and 2015; 33,192,982 shares | |||||||||||||||
outstanding in 2016 and 35,633,961 shares outstanding in 2015 | 412 | 412 | |||||||||||||
Class B: $.01 par value; 662,300 shares authorized; | |||||||||||||||
662,296 shares issued and outstanding in 2016 and 2015 | 7 | 7 | |||||||||||||
Additional paid-in capital | 173,565 | 174,285 | |||||||||||||
Purchase price in excess of predecessor basis, net of tax | |||||||||||||||
benefit of $10,306 | (15,458 | ) | (15,458 | ) | |||||||||||
Retained earnings | 735,563 | 660,758 | |||||||||||||
Accumulated other comprehensive loss | (273 | ) | (178 | ) | |||||||||||
Treasury stock; at cost, 8,031,810 shares in 2016 | |||||||||||||||
and 5,590,831 shares in 2015 | (265,637 | ) | (171,986 | ) | |||||||||||
TOTAL STOCKHOLDERS’ EQUITY | 628,179 | 647,840 | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,360,259 | $ | 1,301,146 | |||||||||||
HUB GROUP, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(in thousands) | |||||||||||||||
(unaudited) | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2016 | 2015 | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 74,805 | $ | 70,949 | |||||||||||
Adjustments to reconcile net income | |||||||||||||||
to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 44,712 | 37,042 | |||||||||||||
Deferred taxes | 13,801 | 16,378 | |||||||||||||
Compensation expense related to share-based compensation plans | 8,479 | 7,833 | |||||||||||||
Gain on sale of assets | (573 | ) | (129 | ) | |||||||||||
Excess tax benefits from share-based compensation | (733 | ) | (81 | ) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Restricted investments | 231 | 836 | |||||||||||||
Accounts receivable, net | (87,629 | ) | 36,373 | ||||||||||||
Prepaid taxes | 66 | 14,575 | |||||||||||||
Prepaid expenses and other current assets | 1,099 | (3,401 | ) | ||||||||||||
Other assets | 570 | (805 | ) | ||||||||||||
Accounts payable | 35,709 | (25,736 | ) | ||||||||||||
Accrued expenses | 9,238 | 20,505 | |||||||||||||
Non-current liabilities | 2,698 | (2,642 | ) | ||||||||||||
Net cash provided by operating activities | 102,473 | 171,697 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of equipment | 2,061 | 2,309 | |||||||||||||
Purchases of property and equipment | (107,409 | ) | (83,042 | ) | |||||||||||
Net cash used in investing activities | (105,348 | ) | (80,733 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of debt | 62,155 | 64,442 | |||||||||||||
Repayments of long term debt | (34,767 | ) | (23,217 | ) | |||||||||||
Stock tendered for payments of withholding taxes | (2,489 | ) | (2,916 | ) | |||||||||||
Purchase of treasury stock | (100,000 | ) | (28,823 | ) | |||||||||||
Capital lease payments | (2,634 | ) | (2,534 | ) | |||||||||||
Excess tax benefits from share-based compensation | 372 | 195 | |||||||||||||
Net cash (used in) provided by financing activities | (77,363 | ) | 7,147 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (107 | ) | (131 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (80,345 | ) | 97,980 | ||||||||||||
Cash and cash equivalents beginning of period | 207,749 | 109,769 | |||||||||||||
Cash and cash equivalents end of period | $ | 127,404 | $ | 207,749 | |||||||||||
CONTACT:Maralee Volchko ofHub Group, Inc. , +1-630-271-3745