Hub Group, Inc. Reports Fourth Quarter, Full Year 2003 Results
DOWNERS GROVE, Ill., Feb. 18 /PRNewswire-FirstCall/ — Hub Group, Inc.
(Nasdaq: HUBG – ) today reported an 87.6% increase in fourth quarter net income
versus the prior year. Hub Group earned net income of $2.6 million for the
quarter ended December 31, 2003 or 33 cents diluted earnings per share
compared to last year’s net income of $1.4 million or 18 cents diluted
earnings per share.
Revenue in the fourth quarter was $359.2 million, an increase of 3.8%
compared with the $346.1 million reported for the fourth quarter of 2002.
Intermodal revenue for the fourth quarter was $259.5 million up 3% from the
prior year. Supply Chain Solutions logistics revenue was $37.2 million, which
represents a 79.6% increase from the prior year. Truckload brokerage revenue
of $48.1 million and Hub Group Distribution Services revenue of $14.4 million
were down 6.6% and 34.3%, respectively. Gross margin was down from 12.4% to
11.6% solely due to Hub Group Distribution Services. Costs and expenses
decreased 9.6% in the fourth quarter of 2003 to $34.9 million compared to
$38.6 million in 2002, reflecting the benefits from the Company’s cost
reduction efforts. Other expense, which primarily includes interest expense,
decreased to $1.6 million in the fourth quarter of 2003 compared to $2.3
million in the same period of 2002, due to lower debt levels in 2003.
FULL YEAR 2003
Revenue for the year was $1,359.6 million compared to $1,335.7 million in
2002, or an increase of 1.8%. Gross margin increased to 12.6% of revenue
compared to 12.2% in 2002 and costs and expenses decreased to 10.8% of revenue
versus 11.4% in 2002.
Net income was $8.4 million for 2003 or $1.07 diluted earnings per share
compared to last year’s net income of $1.5 million or 19 cents diluted
earnings per share.
Commenting on the results, David P. Yeager, Vice-Chairman and Chief
Executive Officer of Hub Group stated, “Our results demonstrate further
evidence of our ongoing turnaround. With our field realignment in place, we
are now positioned more than ever to improve our business for our
FULL YEAR 2004
Hub expects its 2004 diluted earnings per share to be in the range of
$1.25 to $1.40.
ABOUT HUB GROUP: Hub Group, Inc. is a leading non-asset based freight
transportation management company providing comprehensive intermodal,
truckload, LTL, railcar, airfreight and related logistics and distribution
services. The Company operates through a network of over 30 offices
throughout the United States, Canada and Mexico.
Certain prior year amounts have been reclassified to conform to the
current year presentation.
CERTAIN FORWARD LOOKING STATEMENTS: Statements in this press release that
are not historical, including statements regarding Hub Group’s or management’s
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,
2002, and the quarterly reports on Form 10-Q for the quarters ended March 31,
2003, June 30, 2003 and September 30, 2003. Hub Group assumes no liability to
update any such forward-looking statements.
HUB GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Unaudited Three Months Ended December 31, Years Ended December 31, 2003 2002 2003 2002 Revenue $359,196 $346,100 $1,359,614 $1,335,660 Transportation costs 317,485 303,174 1,188,932 1,172,848 Gross margin 41,711 42,926 170,682 162,812 Costs and expenses: Salaries and benefits 21,291 23,237 89,980 93,476 Selling, general and administrative 10,718 11,879 45,650 46,824 Depreciation and amortization of property and equipment 2,892 3,512 10,757 11,371 Total costs and expenses 34,901 38,628 146,387 151,671 Operating income 6,810 4,298 24,295 11,141 Other income (expense): Interest expense (1,711) (2,146) (7,691) (9,453) Interest income 43 64 160 230 Other, net 72 (178) 131 97 Total other expense (1,596) (2,260) (7,400) (9,126) Income before minority interest and provision for income taxes 5,214 2,038 16,895 2,015 Minority interest - - - (524) Income before provision for income taxes 5,214 2,038 16,895 2,539 Provision for income taxes 2,576 632 8,465 1,041 Net Income $2,638 $1,406 $8,430 $1,498 Diluted EPS $0.33 $0.18 $1.07 $0.19