Hub Group, Inc. Reports Second Quarter 2009 Earnings
DOWNERS GROVE, Ill., July 22, 2009 /PRNewswire-FirstCall via COMTEX/ — Hub Group, Inc. (Nasdaq: HUBG) today reported income for the quarter ended June 30, 2009 of $8.3 million. Hub Group’s diluted earnings per share was $0.22 for the second quarter of 2009.
Hub Group’s revenue decreased 26% to $363 million compared to $491 million in the second quarter of 2008. Second quarter intermodal revenue decreased 28% to $254 million. The decrease was attributable to a 10% volume decrease and an 18% decrease related primarily to fuel. Truck brokerage revenue decreased 28% to $72 million this quarter. Second quarter logistics revenue decreased 9% to $37 million.
Hub Group ended the quarter with $113 million in cash.
“Each of our business lines continues to generate respectable returns even in this difficult freight environment,” said David P. Yeager, Chairman and Chief Executive Officer. “Although revenue is down, we continue to focus aggressively on productivity enhancements to reduce our costs while maintaining a high level of customer service.”
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, July 22, 2009 to discuss its second quarter results.
Hosting the conference call will be David P. Yeager, Chairman and Chief Executive Officer and Terri A. Pizzuto, Executive Vice-President, Chief Financial Officer and Treasurer.
This call is being webcast and can be accessed through the Investors link on Hub Group’s Web site at www.hubgroup.com . 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 (888) 680-0890. The conference call participant code is 53036098. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P3NHPE4DX. 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 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, 2008 and the report on Form 10-Q for the period ended March 31, 2009. 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 Six Months
Ended June 30, Ended June 30,
2009 2008 2009 2008
Revenue $362,613 $490,929 $714,308 $915,924
Transportation costs 316,850 431,090 623,376 798,583
Gross margin 45,763 59,839 90,932 117,341
Costs and expenses:
Salaries and benefits 22,063 24,301 45,277 49,664
General and administrative 9,130 10,477 19,253 20,627
Depreciation and amortization 1,124 991 2,280 1,992
Total costs and expenses 32,317 35,769 66,810 72,283
Operating income 13,446 24,070 24,122 45,058
Other income (expense):
Interest expense (25) (26) (50) (52)
Interest and dividend income 36 340 91 678
Other, net 62 (9) 72 86
Total other income 73 305 113 712
Income before provision for
income taxes 13,519 24,375 24,235 45,770
Provision for income taxes 5,214 9,405 9,752 17,665
Net income $8,305 $14,970 $14,483 $28,105
Basic earnings per common share $0.22 $0.40 $0.39 $0.76
Diluted earnings per common share $0.22 $0.40 $0.39 $0.75
Basic weighted average number of
shares outstanding 37,344 37,191 37,333 37,146
Diluted weighted average number
of shares outstanding 37,480 37,489 37,446 37,447
HUB GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
June 30, December 31,
2009 2008
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $113,091 $ 85,799
Accounts receivable
Trade, net 143,368 145,362
Other 10,603 10,318
Prepaid taxes 123 123
Deferred taxes 5,683 5,430
Prepaid expenses and other current
assets 6,606 4,346
TOTAL CURRENT ASSETS 279,474 251,378
Restricted investments 7,688 6,118
Property and equipment, net 29,968 32,713
Other intangibles, net 6,387 6,610
Goodwill, net 233,001 233,110
Other assets 1,684 1,747
TOTAL ASSETS $558,202 $531,676
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade $114,093 $105,064
Other 8,125 6,107
Accrued expenses
Payroll 6,890 9,988
Other 25,562 26,388
TOTAL CURRENT LIABILITIES 154,670 147,547
Non-current liabilities 9,760 9,535
Deferred taxes 62,844 59,410
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
2,000,000 shares authorized; no shares
issued or outstanding in 2009 and 2008 - -
Common stock
Class A: $.01 par value; 97,337,700
shares authorized and 41,224,792
shares issued in 2009 and 2008;
37,162,919 shares outstanding in
2009 and 36,970,347 shares outstanding
in 2008 412 412
Class B: $.01 par value; 662,300 shares
authorized; 662,296 shares issued and
outstanding in 2009 and 2008 7 7
Additional paid-in capital 170,654 174,355
Purchase price in excess of predecessor
basis, net of tax benefit of $10,306 (15,458) (15,458)
Retained earnings 279,770 265,287
Treasury stock; at cost, 4,061,873
shares in 2009 and 4,254,445 shares
in 2008 (104,457) (109,419)
TOTAL STOCKHOLDERS' EQUITY 330,928 315,184
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $558,202 $531,676
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
2009 2008
Cash flows from operating activities:
Net income $14,483 $28,105
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 4,320 3,395
Deferred taxes 3,227 5,149
Compensation expense related to
share-based compensation plans 2,152 2,257
Gain on sale of assets (16) (197)
Changes in operating assets and
liabilities:
Restricted investments (1,570) (2,540)
Accounts receivable, net 1,709 (31,826)
Prepaid expenses and other current
assets (2,260) (1,607)
Other assets 63 122
Accounts payable 11,047 26,608
Accrued expenses (3,362) (8,938)
Non-current liabilities 288 45
Net cash provided by operating
activities 30,081 20,573
Cash flows from investing activities:
Proceeds from sale of equipment 53 364
Purchases of property and equipment (1,951) (1,858)
Cash used in acquisition of Comtrak, Inc. - (5,000)
Net cash used in investing activities (1,898) (6,494)
Cash flows from financing activities:
Proceeds from stock options exercised 44 355
Purchase of treasury stock (1,082) (796)
Excess tax benefits from share-based
compensation 147 2,398
Net cash (used in) provided by
financing activities (891) 1,957
Net increase in cash and cash equivalents 27,292 16,036
Cash and cash equivalents beginning
of period 85,799 38,002
Cash and cash equivalents end of period $113,091 $54,038
SOURCE Hub Group, Inc.
https://www.hubgroup.com