Hub Group, Inc. Reports Second Quarter 2010 Earnings
DOWNERS GROVE, Ill., July 21, 2010 /PRNewswire via COMTEX/ —
Hub Group, Inc. (Nasdaq: HUBG) today announced financial results for the quarter ended June 30, 2010.
“The return of a robust freight market coupled with the retention of our long-standing customer relationships and success in the bids this year helped drive our impressive volume and earnings growth this quarter,” said David P. Yeager, Chairman and Chief Executive Officer. “With the additional density, we have improved our drayage efficiencies and equipment utilization and look forward to meeting what we expect will be healthy demand in the second half of this year.”
Hub Group reported income of $9.6 million for the second quarter ended June 30, 2010, an increase of 16% compared to the second quarter of 2009. Hub Group’s diluted earnings per share was $0.26 for the second quarter of 2010, which represents an increase of 18% when compared with the prior year period.
Each of the three business lines contributed to Hub Group’s overall revenue increase of 26% to $458 million. Second quarter intermodal revenue increased 26% to $320 million. The increase was attributable to a 25% volume increase and an 8% increase for fuel, partially offset by a 7% decrease for price and mix. Truck brokerage revenue increased 21% to $86 million this quarter. Second quarter Unyson Logistics revenue increased 38% to $52 million.
Hub Group ended the quarter with $128 million in cash.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, July 21, 2010 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) 680-0892. The conference call participant code is 73375487. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PB9UXETR8. 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, 2009 and the report on Form 10-Q for the period ended March 31, 2010. Hub Group assumes no liability to update any such forward-looking statements.
HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
2010 2009 2010 2009
---- ---- ---- ----
Revenue $458,113 $362,613 $875,407 $714,308
Transportation costs 407,537 316,850 776,013 623,376
------- ------- ------- -------
Gross margin 50,576 45,763 99,394 90,932
Costs and expenses:
Salaries and benefits 23,863 22,063 47,321 45,277
General and administrative 10,064 9,130 20,209 19,253
Depreciation and amortization 934 1,124 1,907 2,280
Total costs and expenses 34,861 32,317 69,437 66,810
Operating income 15,715 13,446 29,957 24,122
Other income (expense):
Interest expense (12) (25) (26) (50)
Interest and dividend income 23 36 48 91
Other, net 84 62 152 72
Total other income 95 73 174 113
Income before provision for
income taxes 15,810 13,519 30,131 24,235
Provision for income taxes 6,180 5,214 11,799 9,752
----- ----- ------ -----
Net income $9,630 $8,305 $18,332 $14,483
====== ====== ======= =======
Basic earnings per common share $0.26 $0.22 $0.49 $0.39
===== ===== ===== =====
Diluted earnings per common
share $0.26 $0.22 $0.49 $0.39
===== ===== ===== =====
Basic weighted average number
of shares outstanding 37,429 37,344 37,478 37,333
====== ====== ====== ======
Diluted weighted average number
of shares outstanding 37,580 37,480 37,611 37,446
====== ====== ====== ======
HUB GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
June 30, December 31,
2010 2009
---- ----
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $128,356 $126,863
Accounts receivable trade, net 195,134 145,317
Accounts receivable other 14,621 11,932
Prepaid taxes 354 593
Deferred taxes 955 2,874
Prepaid expenses and other current
assets 6,867 6,801
----- -----
TOTAL CURRENT ASSETS 346,287 294,380
Restricted investments 9,294 9,583
Property and equipment, net 27,577 28,510
Other intangibles, net 5,941 6,164
Goodwill, net 232,782 232,892
Other assets 2,340 1,819
----- -----
TOTAL ASSETS $624,221 $573,348
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade $146,872 $110,626
Accounts payable other 9,237 7,695
Accrued payroll 9,003 8,253
Accrued other 21,762 18,958
------ ------
TOTAL CURRENT LIABILITIES 186,874 145,532
Non-current liabilities 11,640 12,002
Deferred taxes 64,509 61,973
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
2,000,000 shares authorized; no shares
issued or outstanding in 2010 and 2009 - -
Common stock
Class A: $.01 par value; 97,337,700
shares authorized and 41,224,792
shares issued in 2010 and 2009;
37,016,157 shares outstanding in
2010 and 37,253,330 shares outstanding
in 2009 412 412
Class B: $.01 par value; 662,300
shares authorized; 662,296 shares issued
and outstanding in 2010 and 2009 7 7
Additional paid-in capital 168,343 171,470
Purchase price in excess of predecessor
basis, net of tax benefit of $10,306 (15,458) (15,458)
Retained earnings 317,884 299,552
Other comprehensive income (loss) 2 (9)
Treasury stock; at cost, 4,208,635
shares in 2010 and 3,971,462 shares
in 2009 (109,992) (102,133)
------- -------
TOTAL STOCKHOLDERS' EQUITY 361,198 353,841
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $624,221 $573,348
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HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
--------
2010 2009
---- ----
Cash flows from operating activities:
Net income $18,332 $14,483
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 3,945 4,320
Deferred taxes 4,644 3,227
Compensation expense related to share-based
compensation plans 1,822 2,152
Loss (gain) on sale of assets 19 (16)
Changes in operating assets and liabilities:
Restricted investments 289 (1,570)
Accounts receivable, net (52,505) 1,709
Prepaid expenses and other current assets 174 (2,260)
Other assets (520) 63
Accounts payable 36,312 11,047
Accrued expenses 2,939 (3,362)
Non-current liabilities (441) 288
---- ---
Net cash provided by operating activities 15,010 30,081
Cash flows from investing activities:
Proceeds from sale of equipment 720 53
Purchases of property and equipment (2,051) (1,951)
------ ------
Net cash used in investing activities (1,331) (1,898)
------ ------
Cash flows from financing activities:
Proceeds from stock options exercised 14 44
Purchase of treasury stock (12,365) (1,082)
Excess tax benefits from share-based
compensation 154 147
--- ---
Net cash used by financing activities (12,197) (891)
------- ----
Effect of exchange rate changes on cash and
cash equivalents 11 -
--- ---
Net increase in cash and cash equivalents 1,493 27,292
Cash and cash equivalents beginning of period 126,863 85,799
Cash and cash equivalents end of period $128,356 $113,091
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SOURCE Hub Group, Inc.