Skip to content

Hub Group, Inc. Reports Record First Quarter 2004 Results

DOWNERS GROVE, Ill., April 28 /PRNewswire-FirstCall/ — Hub Group, Inc.
(Nasdaq: HUBG) today reported a record first quarter representing a 99.6%
increase in first quarter net income versus the first quarter of 2003. Hub
Group earned net income of $2.7 million or 33 cents diluted earnings per share
for the quarter ended March 31, 2004 compared to last year’s first quarter net
income of $1.4 million or 18 cents diluted earnings per share on 7.4% higher
average diluted shares outstanding in the 2004 period.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief
Executive Officer of Hub Group stated, “We are delighted with the improvement
in our profitability. We are making progress with our goals associated with
the organizational realignment, which became effective February 1, 2004.
During the remainder of the year, our management team will continue to focus
on leveraging our new structure to drive revenue growth, improve operating
efficiency and enhance customer service.”

Transportation-related revenue, generated by the Company’s intermodal,
truckload brokerage and logistics business units, increased 2.4% or
$7.4 million in the first quarter of 2004 compared to the first quarter of
2003. Intermodal revenue increased 1.1% to $230.5 million due primarily to an
increase in volume. Truckload brokerage revenue increased 0.7% to
$51.0 million due primarily to an increase in revenue per load. Logistics
revenue increased 12.5% to $39.7 million due primarily to an increase in
volume. Hub Group Distribution Services (“HGDS”) revenue decreased 54.1% to
$7.1 million in 2004 from $15.5 million in 2003 due primarily to lower
installation business. Total revenue in the first quarter 2004 was
$328.3 million, a decrease of 0.3% compared with the $329.3 million reported
for the first quarter of 2003. Gross margin as a percentage of revenue
decreased slightly from 12.8% in first quarter 2003 to 12.7% in first quarter
2004 due primarily to HGDS.

Costs and expenses decreased 5.8% in the first quarter of 2004 to
$35.5 million compared to $37.7 million in the first quarter of 2003,
reflecting the benefits from the Company’s cost reduction efforts. Other
expense, which primarily includes interest expense, decreased to $1.6 million
in the first quarter of 2004 compared to $2.1 million in the same period of
2003 due to lower debt levels. During the first quarter of 2004, the Company
paid down $5 million of debt and modified the debt agreement with its bank
group to provide for lower interest rates.


Hub is comfortable with the range of analysts’ estimates of diluted
earnings per share of $1.45 to $1.50 for 2004. This range represents an
increase of 35% to 40% compared with diluted earnings per share for 2003.

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 about analysts’ estimates and 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, 2003. Hub Group assumes no liability to update any
such forward-looking statements.

                                 HUB GROUP, INC.
                     (in thousands, except per share amounts)

                                                        Three Months
                                                        Ended March 31,
                                                     2004              2003

    Revenue                                        $328,302          $329,284

    Transportation costs                            286,498           287,234
        Gross margin                                 41,804            42,050

    Costs and expenses:
      Salaries and benefits                          22,342            23,328
      Selling, general and administrative            10,281            11,788
      Depreciation and amortization of
       property and equipment                         2,884             2,561
        Total costs and expenses                     35,507            37,677

           Operating income                           6,297             4,373

    Other income (expense):
      Interest expense                               (1,713)           (2,084)
      Interest income                                    53                50
      Other, net                                         41               (36)
        Total other expense                          (1,619)           (2,070)

    Income before provision for income
     taxes                                            4,678             2,303

    Provision for income taxes                        1,965               944

    Net Income                                       $2,713            $1,359

    Basic EPS                                         $0.35             $0.18
    Diluted EPS                                       $0.33             $0.18

    Basic weighted average number of
     shares outstanding                               7,746             7,709
    Diluted weighted average number of
     shares outstanding                               8,294             7,722
SOURCE  Hub Group, Inc.
    -0-                             04/28/2004
    /CONTACT: Amy Lisek of Hub Group, Inc., +1-630-795-2214/
    /Web site:

CO:  Hub Group, Inc.
ST:  Illinois

-- CGW063 --
1415 04/28/2004 16:16 EDT

Subscribe for More Hub Group News