DOWNERS GROVE, Ill., Feb. 6 /PRNewswire-FirstCall/ — Hub Group, Inc.
(Nasdaq: HUBG) today reported record income for the quarter ended
December 31, 2007 of $18.0 million, a 33% increase versus income for the
fourth quarter of 2006. Hub Group’s diluted earnings per share was $0.47 for
the fourth quarter of 2007. This represents an increase of 38% compared to
last year’s fourth quarter diluted earnings per share of $0.34. Fourth
quarter 2007 diluted earnings per share included a $0.04 tax benefit related
to the resolution of a dispute with the IRS. Hub Group’s operating margin
increased to 5.7% in the fourth quarter 2007 from 5.2% in 2006 due to growth,
improved operational efficiencies and cost controls.
Hub Group’s revenue increased 4.7% to $445.5 million compared to
$425.5 million in the fourth quarter of 2006. Fourth quarter intermodal
revenue increased 2.4% to $314.4 million. The increase was attributable to a
3% volume increase partially offset by a 1% decrease related to mix. Truck
brokerage revenue was up 15.2% to $93.9 million this quarter. Fourth quarter
logistics revenue increased 0.9% to $37.2 million. Gross margin increased
3.7% to $60.4 million compared to the fourth quarter of 2006.
Commenting on the results, David P. Yeager, Vice-Chairman and Chief
Executive Officer of Hub Group stated, “Given the current economic environment
we are pleased with our operating results. We grew in all of our service
lines and achieved operating margin of 5.7% compared to 5.2% last year.”
FULL YEAR 2007
Income from continuing operations increased 25.4% to $59.8 million for
2007 compared to last year’s income from continuing operations of
$47.7 million. Hub Group’s diluted earnings per share from continuing
operations for the year ended December 31, 2007 was $1.53. This represents an
increase of 31% compared to diluted earnings per share from continuing
operations for the year ended December 31, 2006 of $1.17.
Revenue from continuing operations increased 3% for the year to
$1,658.2 million. Gross margin from continuing operations grew 6% to
$232.3 million.
Costs and expenses from continuing operations increased 0.3% in 2007 to
$141.6 million compared to $141.2 million in 2006.
As of December 31, 2007, the Company had $38.0 million of cash.
FULL YEAR 2008
Given the current operating environment, we are comfortable that the
earnings for 2008 will be within the current analysts’ range of $1.50 to $1.62
per diluted share.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time (4:00 p.m.
Central Time) on Wednesday, February 6, 2008 to discuss its fourth quarter and
full year 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 by Thomson/CCBN and can be accessed through the
Investors link at Hub Group’s Web site at https://www.hubgroup.com or
individual investors can access the audio webcast at http://www.earnings.com
and institutional investors can access the webcast at
http://www.streetevents.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 call ten
minutes early by dialing (800) 706-7745. The conference call participant code
is 22579500. 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, 2006 and the report on Form 10-Q for the periods ended
March 31, 2007, June 30, 2007 and September 30, 2007. 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 Twelve Months Ended December 31, Ended December 31, 2007 2006 2007 2006 Revenue $445,464 $425,460 $1,658,168 $1,609,529 Transportation costs 385,074 367,242 1,425,844 1,391,111 Gross margin 60,390 58,218 232,324 218,418 Costs and expenses: Salaries and benefits 23,791 23,881 95,678 95,152 General and administrative 10,001 10,949 41,416 39,929 Depreciation and amortization 1,035 1,467 4,490 6,101 Total costs and expenses 34,827 36,297 141,584 141,182 Operating income 25,563 21,921 90,740 77,236 Other income (expense): Interest expense (30) (50) (108) (115) Interest income 513 643 2,480 2,311 Other, net 34 13 116 76 Total other income 517 606 2,488 2,272 Income from continuing operations before provision for income taxes 26,080 22,527 93,228 79,508 Provision for income taxes 8,083 9,008 33,429 31,803 Income from continuing operations 17,997 13,519 59,799 47,705 Discontinued operations: Income from discontinued operations of HGDS - - - 1,634 Provision for income taxes - - - 653 Income from discontinued operations - - - 981 Net income $17,997 $13,519 $59,799 $48,686 Basic earnings per common share Income from continuing operations $0.48 $0.35 $1.55 $1.19 Income from discontinued operations - - - 0.03 Net income $0.48 $0.35 $1.55 $1.22 Diluted earnings per common share Income from continuing operations $0.47 $0.34 $1.53 $1.17 Income from discontinued operations - - - 0.02 Net income $0.47 $0.34 $1.53 $1.19 Basic weighted average number of shares outstanding 37,562 39,095 38,660 39,958 Diluted weighted average number of shares outstanding 37,978 39,810 39,128 40,823 HUB GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) December 31, December 31, 2007 2006 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $38,002 $43,491 Accounts receivable Trade, net 160,944 158,284 Other 9,828 8,369 Prepaid taxes 86 2,119 Deferred taxes 5,044 3,433 Prepaid expenses and other current assets 4,318 4,450 TOTAL CURRENT ASSETS 218,222 220,146 Restricted investments 5,206 3,017 Property and equipment, net 29,662 26,974 Other intangibles, net 7,056 7,502 Goodwill, net 230,448 225,448 Other assets 1,373 1,461 TOTAL ASSETS $491,967 $484,548 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable Trade $123,020 $117,676 Other 6,683 7,783 Accrued expenses Payroll 16,446 18,294 Other 33,063 25,673 Related party payable 5,000 5,000 TOTAL CURRENT LIABILITIES 184,212 174,426 Non-current liabilities 9,708 7,691 Deferred taxes 47,148 43,587 STOCKHOLDERS' EQUITY: Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2007 and 2006 - - Common stock Class A: $.01 par value; 97,337,700 shares authorized in 2007; 41,224,792 shares issued and 36,666,731 outstanding in 2007; 47,337,700 shares authorized in 2006; 412 412 41,224,792 shares issued and 38,943,122 outstanding in 2006 Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2007 and 2006 7 7 Additional paid-in capital 176,657 179,203 Purchase price in excess of predecessor basis, net of tax benefit of $10,306 (15,458) (15,458) Retained earnings 206,042 146,243 Treasury stock; at cost, 4,558,061 shares in 2007 and 2,281,670 shares in 2006 (116,761) (51,563) TOTAL STOCKHOLDERS' EQUITY 250,899 258,844 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $491,967 $484,548 HUB GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Twelve Months Ended December 31, 2007 2006 Cash flows from operating activities: Income from continuing operations $59,799 $47,705 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 7,195 8,170 Deferred taxes 3,523 690 Compensation expense related to share-based compensation plans 3,853 3,405 Gain on sale of assets (160) (131) Changes in operating assets and liabilities excluding effects of purchase transaction: Restricted investments (2,189) (1,630) Accounts receivable, net (4,119) 393 Prepaid taxes 2,033 3,317 Prepaid expenses and other current assets 132 (297) Other assets 88 (837) Accounts payable 4,223 5,698 Accrued expenses 4,441 8,496 Deferred compensation 1,761 1,608 Net cash provided by operating activities 80,580 76,587 Cash flows from investing activities: Proceeds from sale of equipment 725 394 Purchases of property and equipment (10,197) (8,372) Cash used in acquisition of Comtrak, Inc. (5,000) (39,942) Proceeds from disposal of discontinued operations - 12,203 Net cash used in investing activities (14,472) (35,717) Cash flows from financing activities: Proceeds from stock options exercised 760 1,963 Purchase of treasury stock (76,309) (49,622) Excess tax benefits from share-based compensation 3,952 12,337 Net cash used in financing activities (71,597) (35,322) Cash flows from operating activities of discontinued operations - 1,848 Cash flows used in investing activities of discontinued operations - (38) Net cash provided by discontinued operations - 1,810 Net (decrease) increase in cash and cash equivalents (5,489) 7,358 Cash and cash equivalents beginning of year 43,491 36,133 Cash and cash equivalents end of year $38,002 $43,491
SOURCE Hub Group, Inc. -0- 02/06/2008 /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 CCA ERP SH-JR -- AQW020 -- 0420 02/06/2008 16:01 EST http://www.prnewswire.com