The Hub segment’s revenue increased 8% to
The Mode segment’s revenue increased 5% to
“All of our business lines contributed to a record second quarter. We remain focused on growing profitably and expect continued growth in the second half of the year,” said
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
To participate in the conference call by telephone, please call ten minutes early by dialing (888) 713-4209. The conference call participant code is 65076828#. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PUU983CAH. 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
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about
HUB GROUP, INC. |
||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||||
Three Months |
Six Months |
|||||||||||||||||
Ended June 30, |
Ended June 30, |
|||||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||||
Revenue |
$ 836,685 |
$ 778,312 |
$ 1,605,665 |
$ 1,518,197 |
||||||||||||||
Transportation costs |
741,212 |
690,954 |
1,422,854 |
1,347,097 |
||||||||||||||
Gross margin |
95,473 |
87,358 |
182,811 |
171,100 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Salaries and benefits |
35,002 |
31,436 |
69,585 |
64,735 |
||||||||||||||
Agent fees and commissions |
13,686 |
13,601 |
26,960 |
27,296 |
||||||||||||||
General and administrative |
14,728 |
12,734 |
27,919 |
25,311 |
||||||||||||||
Depreciation and amortization |
1,593 |
1,737 |
3,146 |
3,397 |
||||||||||||||
Total costs and expenses |
65,009 |
59,508 |
127,610 |
120,739 |
||||||||||||||
Operating income |
30,464 |
27,850 |
55,201 |
50,361 |
||||||||||||||
Other income (expense): |
||||||||||||||||||
Interest expense |
(305) |
(301) |
(595) |
(608) |
||||||||||||||
Interest and dividend income |
15 |
33 |
44 |
67 |
||||||||||||||
Other, net |
23 |
(18) |
12 |
(41) |
||||||||||||||
Total other (expense) income |
(267) |
(286) |
(539) |
(582) |
||||||||||||||
Income before provision for income taxes |
30,197 |
27,564 |
54,662 |
49,779 |
||||||||||||||
Provision for income taxes |
11,587 |
10,612 |
20,688 |
19,165 |
||||||||||||||
Net income |
$ 18,610 |
$ 16,952 |
$ 33,974 |
$ 30,614 |
||||||||||||||
Basic earnings per common share |
$ 0.50 |
$ 0.46 |
$ 0.92 |
$ 0.83 |
||||||||||||||
Diluted earnings per common share |
$ 0.50 |
$ 0.46 |
$ 0.92 |
$ 0.82 |
||||||||||||||
Basic weighted average number of shares outstanding |
36,870 |
37,070 |
36,863 |
37,057 |
||||||||||||||
Diluted weighted average number of shares outstanding |
36,989 |
37,190 |
36,969 |
37,167 |
HUB GROUP, INC. |
||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
||||||||||||||||||
(in thousands) |
||||||||||||||||||
Three Months |
||||||||||||||||||
Ended June 30, 2013 |
||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Consolidated |
|||||||||||||||
Revenue |
$ 644,924 |
$ 203,918 |
$ (12,157) |
$ 836,685 |
||||||||||||||
Transportation costs |
573,498 |
179,871 |
(12,157) |
741,212 |
||||||||||||||
Gross margin |
71,426 |
24,047 |
– |
95,473 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Salaries and benefits |
31,208 |
3,794 |
– |
35,002 |
||||||||||||||
Agent fees and commissions |
350 |
13,336 |
– |
13,686 |
||||||||||||||
General and administrative |
13,338 |
1,390 |
– |
14,728 |
||||||||||||||
Depreciation and amortization |
1,061 |
532 |
– |
1,593 |
||||||||||||||
Total costs and expenses |
45,957 |
19,052 |
– |
65,009 |
||||||||||||||
Operating income |
$ 25,469 |
$ 4,995 |
$ – |
$ 30,464 |
||||||||||||||
HUB GROUP, INC. |
|||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
Three Months |
|||||||||||||||||||
Ended June 30, 2012 |
|||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Consolidated |
||||||||||||||||
Revenue |
$ 595,888 |
$ 194,292 |
$ (11,868) |
$ 778,312 |
|||||||||||||||
Transportation costs |
531,080 |
171,742 |
(11,868) |
690,954 |
|||||||||||||||
Gross margin |
64,808 |
22,550 |
– |
87,358 |
|||||||||||||||
Costs and expenses: |
|||||||||||||||||||
Salaries and benefits |
27,590 |
3,846 |
– |
31,436 |
|||||||||||||||
Agent fees and commissions |
490 |
13,111 |
– |
13,601 |
|||||||||||||||
General and administrative |
10,707 |
2,027 |
– |
12,734 |
|||||||||||||||
Depreciation and amortization |
1,099 |
638 |
– |
1,737 |
|||||||||||||||
Total costs and expenses |
39,886 |
19,622 |
– |
59,508 |
|||||||||||||||
Operating income |
$ 24,922 |
$ 2,928 |
$ – |
$ 27,850 |
|||||||||||||||
HUB GROUP, INC. |
|||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
Six Months |
|||||||||||||||||||
Ended June 30, 2013 |
|||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Consolidated |
||||||||||||||||
Revenue |
$ 1,237,575 |
$ 391,378 |
$ (23,288) |
$ 1,605,665 |
|||||||||||||||
Transportation costs |
1,100,969 |
345,173 |
(23,288) |
1,422,854 |
|||||||||||||||
Gross margin |
136,606 |
46,205 |
– |
182,811 |
|||||||||||||||
Costs and expenses: |
|||||||||||||||||||
Salaries and benefits |
61,985 |
7,600 |
– |
69,585 |
|||||||||||||||
Agent fees and commissions |
799 |
26,161 |
– |
26,960 |
|||||||||||||||
General and administrative |
25,036 |
2,883 |
– |
27,919 |
|||||||||||||||
Depreciation and amortization |
2,081 |
1,065 |
– |
3,146 |
|||||||||||||||
Total costs and expenses |
89,901 |
37,709 |
– |
127,610 |
|||||||||||||||
Operating income |
$ 46,705 |
$ 8,496 |
$ – |
$ 55,201 |
HUB GROUP, INC. |
|||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
|||||||||||||||||||
(in thousands) |
|||||||||||||||||||
Six Months |
|||||||||||||||||||
Ended June 30, 2012 |
|||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Consolidated |
||||||||||||||||
Revenue |
$ 1,159,100 |
$ 381,475 |
$ (22,378) |
$ 1,518,197 |
|||||||||||||||
Transportation costs |
1,032,773 |
336,702 |
(22,378) |
1,347,097 |
|||||||||||||||
Gross margin |
126,327 |
44,773 |
– |
171,100 |
|||||||||||||||
Costs and expenses: |
|||||||||||||||||||
Salaries and benefits |
56,671 |
8,064 |
– |
64,735 |
|||||||||||||||
Agent fees and commissions |
1,125 |
26,171 |
– |
27,296 |
|||||||||||||||
General and administrative |
21,438 |
3,873 |
– |
25,311 |
|||||||||||||||
Depreciation and amortization |
2,221 |
1,176 |
– |
3,397 |
|||||||||||||||
Total costs and expenses |
81,455 |
39,284 |
– |
120,739 |
|||||||||||||||
Operating income |
$ 44,872 |
$ 5,489 |
$ – |
$ 50,361 |
|||||||||||||||
HUB GROUP, INC. |
||||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||||||
(in thousands, except share amounts) |
||||||||||
June 30, |
December 31, |
|||||||||
2013 |
2012 |
|||||||||
ASSETS |
||||||||||
CURRENT ASSETS: |
||||||||||
Cash and cash equivalents |
$ 72,000 |
$ 70,760 |
||||||||
Accounts receivable trade, net |
395,387 |
346,917 |
||||||||
Accounts receivable other |
22,955 |
25,945 |
||||||||
Prepaid taxes |
173 |
139 |
||||||||
Deferred taxes |
5,432 |
4,965 |
||||||||
Prepaid expenses and other current assets |
11,033 |
10,619 |
||||||||
TOTAL CURRENT ASSETS |
506,980 |
459,345 |
||||||||
Restricted investments |
17,759 |
17,218 |
||||||||
Property and equipment, net |
189,396 |
157,584 |
||||||||
Other intangibles, net |
19,319 |
20,068 |
||||||||
Goodwill, net |
263,142 |
263,251 |
||||||||
Other assets |
2,504 |
2,387 |
||||||||
TOTAL ASSETS |
$ 999,100 |
$ 919,853 |
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||
CURRENT LIABILITIES: |
||||||||||
Accounts payable trade |
$ 234,224 |
$ 206,497 |
||||||||
Accounts payable other |
25,875 |
22,925 |
||||||||
Accrued payroll |
14,822 |
17,210 |
||||||||
Accrued other |
30,309 |
28,633 |
||||||||
Current portion of capital lease |
2,367 |
2,120 |
||||||||
Current portion of long term debt |
1,755 |
– |
||||||||
TOTAL CURRENT LIABILITIES |
309,352 |
277,385 |
||||||||
Long term debt |
7,365 |
– |
||||||||
Non-current liabilities |
19,847 |
20,041 |
||||||||
Long term capital lease |
19,709 |
21,099 |
||||||||
Deferred taxes |
107,510 |
100,431 |
||||||||
STOCKHOLDERS’ EQUITY: |
||||||||||
Preferred stock, $.01 par value; 2,000,000 shares authorized; |
||||||||||
no shares issued or outstanding in 2013 and 2012 |
– |
– |
||||||||
Common stock |
||||||||||
Class A: $.01 par value; 97,337,700 shares authorized and |
||||||||||
41,224,792 shares issued in 2013 and 2012; 36,984,705 shares outstanding in 2013 and 36,767,485 shares outstanding in 2012 |
412 |
412 |
||||||||
Class B: $.01 par value; 662,300 shares authorized; |
||||||||||
662,296 shares issued and outstanding in 2013 and 2012 |
7 |
7 |
||||||||
Additional paid-in capital |
163,104 |
167,765 |
||||||||
Purchase price in excess of predecessor basis, net of tax |
||||||||||
benefit of $10,306 |
(15,458) |
(15,458) |
||||||||
Retained earnings |
503,115 |
469,141 |
||||||||
Other comprehensive (loss) income |
(32) |
1 |
||||||||
Treasury stock; at cost, 4,240,087 shares in 2013 |
||||||||||
and 4,457,307 shares in 2012 |
(115,831) |
(120,971) |
||||||||
TOTAL STOCKHOLDERS’ EQUITY |
535,317 |
500,897 |
||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ 999,100 |
$ 919,853 |
HUB GROUP, INC. |
|||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
(in thousands) |
|||||||||||
Six Months Ended |
|||||||||||
June 30, |
|||||||||||
2013 |
2012 |
||||||||||
Cash flows from operating activities: |
|||||||||||
Net income |
$ 33,974 |
$ 30,614 |
|||||||||
Adjustments to reconcile net income |
|||||||||||
to net cash provided by operating activities: |
|||||||||||
Depreciation and amortization |
9,954 |
11,004 |
|||||||||
Deferred taxes |
6,548 |
4,432 |
|||||||||
Compensation expense related to share-based compensation plans |
3,757 |
3,229 |
|||||||||
Gain on sale of assets |
(287) |
(48) |
|||||||||
Excess tax benefits from share-based compensation |
(8) |
(83) |
|||||||||
Changes in operating assets and liabilities, net of effects of acquisition: |
|||||||||||
Restricted investments |
(541) |
(1,113) |
|||||||||
Accounts receivable, net |
(45,558) |
(29,883) |
|||||||||
Prepaid taxes |
(48) |
1,389 |
|||||||||
Prepaid expenses and other current assets |
(417) |
(3,329) |
|||||||||
Other assets |
(120) |
589 |
|||||||||
Accounts payable |
30,685 |
9,877 |
|||||||||
Accrued expenses |
(3,680) |
(741) |
|||||||||
Non-current liabilities |
118 |
200 |
|||||||||
Net cash provided by operating activities |
34,377 |
26,137 |
|||||||||
Cash flows from investing activities: |
|||||||||||
Proceeds from sale of equipment |
1,358 |
643 |
|||||||||
Purchases of property and equipment |
(39,202) |
(21,043) |
|||||||||
Cash used in acquisitions, net of cash acquired |
– |
(300) |
|||||||||
Net cash used in investing activities |
(37,844) |
(20,700) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Proceeds from issuance of debt |
9,120 |
– |
|||||||||
Proceeds from stock options exercised |
41 |
45 |
|||||||||
Stock tendered for payments of withholding taxes |
(2,585) |
(1,770) |
|||||||||
Purchase of treasury stock |
(903) |
– |
|||||||||
Capital lease payments |
(1,143) |
(1,107) |
|||||||||
Excess tax benefits from share-based compensation |
177 |
492 |
|||||||||
Net cash provided by (used in) financing activities |
4,707 |
(2,340) |
|||||||||
Effect of exchange rate changes on cash and cash equivalents |
– |
(3) |
|||||||||
Net increase in cash and cash equivalents |
1,240 |
3,094 |
|||||||||
Cash and cash equivalents beginning of period |
70,760 |
49,091 |
|||||||||
Cash and cash equivalents end of period |
$ 72,000 |
$ 52,185 |
SOURCE
Amy Lisek of Hub Group, Inc., +1-630-795-2214