Hub Group, Inc. Reports Second Quarter 2015 Earnings
The Hub segment’s revenue increased 1% to
The Mode segment’s revenue increased 1% to
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 register at http://www.yourconferencecenter.com/r.aspx?p=1&a=UWHyXScrivrkgm. Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference. You may register at any time, including up to and after the call start time. On the day of the call, dial (888) 206-4074 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration. 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
CONTACT:
HUB GROUP, INC. |
||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||||
Three Months |
Six Months |
|||||||||||||||||
Ended June 30, |
Ended June 30, |
|||||||||||||||||
2015 |
2014 |
2015 |
2014 |
|||||||||||||||
Revenue |
$ 899,513 |
$ 893,930 |
$ 1,735,454 |
$ 1,742,379 |
||||||||||||||
Transportation costs |
797,784 |
795,345 |
1,544,597 |
1,555,050 |
||||||||||||||
Gross margin |
101,729 |
98,585 |
190,857 |
187,329 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Salaries and benefits |
38,837 |
35,556 |
78,313 |
72,648 |
||||||||||||||
Agent fees and commissions |
16,686 |
15,544 |
31,512 |
29,210 |
||||||||||||||
General and administrative |
14,763 |
14,681 |
28,834 |
30,113 |
||||||||||||||
Depreciation and amortization |
1,967 |
1,877 |
3,927 |
3,935 |
||||||||||||||
Total costs and expenses |
72,253 |
67,658 |
142,586 |
135,906 |
||||||||||||||
Operating income |
29,476 |
30,927 |
48,271 |
51,423 |
||||||||||||||
Other income (expense): |
||||||||||||||||||
Interest expense |
(720) |
(398) |
(1,461) |
(805) |
||||||||||||||
Interest and dividend income |
19 |
11 |
25 |
25 |
||||||||||||||
Other, net |
261 |
(25) |
(1,143) |
(230) |
||||||||||||||
Total other expense |
(440) |
(412) |
(2,579) |
(1,010) |
||||||||||||||
Income before provision for income taxes |
29,036 |
30,515 |
45,692 |
50,413 |
||||||||||||||
Provision for income taxes |
10,569 |
11,839 |
16,949 |
19,702 |
||||||||||||||
Net income |
$ 18,467 |
$ 18,676 |
$ 28,743 |
$ 30,711 |
||||||||||||||
Basic earnings per common share |
$ 0.51 |
$ 0.51 |
$ 0.80 |
$ 0.84 |
||||||||||||||
Diluted earnings per common share |
$ 0.51 |
$ 0.51 |
$ 0.80 |
$ 0.84 |
||||||||||||||
Basic weighted average number of shares outstanding |
35,986 |
36,674 |
36,071 |
36,667 |
||||||||||||||
Diluted weighted average number of shares outstanding |
36,075 |
36,814 |
36,122 |
36,769 |
HUB GROUP, INC. |
||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
||||||||||||||||||
(in thousands) |
||||||||||||||||||
Three Months |
||||||||||||||||||
Ended June 30, 2015 |
||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Total |
|||||||||||||||
Revenue |
$ 686,451 |
$ 233,847 |
$ (20,785) |
$ 899,513 |
||||||||||||||
Transportation costs |
614,289 |
204,280 |
(20,785) |
797,784 |
||||||||||||||
Gross margin |
72,162 |
29,567 |
– |
101,729 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Salaries and benefits |
35,288 |
3,549 |
– |
38,837 |
||||||||||||||
Agent fees and commissions |
14 |
16,672 |
– |
16,686 |
||||||||||||||
General and administrative |
13,194 |
1,569 |
– |
14,763 |
||||||||||||||
Depreciation and amortization |
1,647 |
320 |
– |
1,967 |
||||||||||||||
Total costs and expenses |
50,143 |
22,110 |
– |
72,253 |
||||||||||||||
Operating income |
$ 22,019 |
$ 7,457 |
$ – |
$ 29,476 |
||||||||||||||
HUB GROUP, INC. |
||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
||||||||||||||||||
(in thousands) |
||||||||||||||||||
Three Months |
||||||||||||||||||
Ended June 30, 2014 |
||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Total |
|||||||||||||||
Revenue |
$ 682,049 |
$ 231,538 |
$ (19,657) |
$ 893,930 |
||||||||||||||
Transportation costs |
611,351 |
203,651 |
(19,657) |
795,345 |
||||||||||||||
Gross margin |
70,698 |
27,887 |
– |
98,585 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Salaries and benefits |
32,047 |
3,509 |
– |
35,556 |
||||||||||||||
Agent fees and commissions |
5 |
15,539 |
– |
15,544 |
||||||||||||||
General and administrative |
12,817 |
1,864 |
– |
14,681 |
||||||||||||||
Depreciation and amortization |
1,538 |
339 |
– |
1,877 |
||||||||||||||
Total costs and expenses |
46,407 |
21,251 |
– |
67,658 |
||||||||||||||
Operating income |
$ 24,291 |
$ 6,636 |
$ – |
$ 30,927 |
HUB GROUP, INC. |
||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
||||||||||||||||||
(in thousands) |
||||||||||||||||||
Six Months |
||||||||||||||||||
Ended June 30, 2015 |
||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Total |
|||||||||||||||
Revenue |
$ 1,329,894 |
$ 447,369 |
$ (41,809) |
$ 1,735,454 |
||||||||||||||
Transportation costs |
1,194,547 |
391,859 |
(41,809) |
1,544,597 |
||||||||||||||
Gross margin |
135,347 |
55,510 |
– |
190,857 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Salaries and benefits |
70,948 |
7,365 |
– |
78,313 |
||||||||||||||
Agent fees and commissions |
29 |
31,483 |
– |
31,512 |
||||||||||||||
General and administrative |
25,392 |
3,442 |
– |
28,834 |
||||||||||||||
Depreciation and amortization |
3,265 |
662 |
– |
3,927 |
||||||||||||||
Total costs and expenses |
99,634 |
42,952 |
– |
142,586 |
||||||||||||||
Operating income |
$ 35,713 |
$ 12,558 |
$ – |
$ 48,271 |
||||||||||||||
HUB GROUP, INC. |
||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT |
||||||||||||||||||
(in thousands) |
||||||||||||||||||
Six Months |
||||||||||||||||||
Ended June 30, 2014 |
||||||||||||||||||
Hub |
Mode |
Inter-Segment Elims |
Hub Group Total |
|||||||||||||||
Revenue |
$ 1,335,458 |
$ 440,444 |
$ (33,523) |
$ 1,742,379 |
||||||||||||||
Transportation costs |
1,200,262 |
388,311 |
(33,523) |
1,555,050 |
||||||||||||||
Gross margin |
135,196 |
52,133 |
– |
187,329 |
||||||||||||||
Costs and expenses: |
||||||||||||||||||
Salaries and benefits |
65,384 |
7,264 |
– |
72,648 |
||||||||||||||
Agent fees and commissions |
16 |
29,194 |
– |
29,210 |
||||||||||||||
General and administrative |
26,557 |
3,556 |
– |
30,113 |
||||||||||||||
Depreciation and amortization |
3,055 |
880 |
– |
3,935 |
||||||||||||||
Total costs and expenses |
95,012 |
40,894 |
– |
135,906 |
||||||||||||||
Operating income |
$ 40,184 |
$ 11,239 |
$ – |
$ 51,423 |
HUB GROUP, INC. |
||||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||||||
(in thousands, except share amounts) |
||||||||||
June 30, |
December 31, |
|||||||||
2015 |
2014 |
|||||||||
ASSETS |
||||||||||
CURRENT ASSETS: |
||||||||||
Cash and cash equivalents |
$ 156,780 |
$ 109,769 |
||||||||
Accounts receivable trade, net |
420,951 |
401,803 |
||||||||
Accounts receivable other |
18,022 |
24,886 |
||||||||
Prepaid taxes |
1,653 |
14,937 |
||||||||
Deferred taxes |
8,229 |
4,816 |
||||||||
Prepaid expenses and other current assets |
11,325 |
14,355 |
||||||||
TOTAL CURRENT ASSETS |
616,960 |
570,566 |
||||||||
Restricted investments |
22,239 |
21,944 |
||||||||
Property and equipment, net |
332,532 |
338,327 |
||||||||
Other intangibles, net |
13,786 |
14,434 |
||||||||
Goodwill, net |
262,704 |
262,813 |
||||||||
Other assets |
3,827 |
4,043 |
||||||||
TOTAL ASSETS |
$ 1,252,048 |
$ 1,212,127 |
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||
CURRENT LIABILITIES: |
||||||||||
Accounts payable trade |
$ 270,189 |
$ 256,345 |
||||||||
Accounts payable other |
22,629 |
21,333 |
||||||||
Accrued payroll |
19,644 |
16,192 |
||||||||
Accrued other |
37,401 |
43,523 |
||||||||
Current portion of capital lease |
2,560 |
2,504 |
||||||||
Current portion of long term debt |
23,387 |
19,619 |
||||||||
TOTAL CURRENT LIABILITIES |
375,810 |
359,516 |
||||||||
Long term debt |
76,302 |
72,460 |
||||||||
Non-current liabilities |
21,731 |
22,929 |
||||||||
Long term portion of capital lease |
14,638 |
15,937 |
||||||||
Deferred taxes |
146,188 |
140,501 |
||||||||
STOCKHOLDERS’ EQUITY: |
||||||||||
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2015 and 2014 |
||||||||||
– |
– |
|||||||||
Common stock |
||||||||||
Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2015 and 2014; 36,072,126 shares outstanding in 2015 and 36,247,324 shares outstanding in 2014 |
||||||||||
412 |
412 |
|||||||||
Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2015 and 2014 |
||||||||||
7 |
7 |
|||||||||
Additional paid-in capital |
168,785 |
171,235 |
||||||||
Purchase price in excess of predecessor basis, net of tax |
||||||||||
benefit of $10,306 |
(15,458) |
(15,458) |
||||||||
Retained earnings |
618,552 |
589,809 |
||||||||
Accumulated other comprehensive loss |
(97) |
(77) |
||||||||
Treasury stock; at cost, 5,152,666 shares in 2015 and 4,977,468 shares in 2014 |
||||||||||
(154,822) |
(145,144) |
|||||||||
TOTAL STOCKHOLDERS’ EQUITY |
617,379 |
600,784 |
||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ 1,252,048 |
$ 1,212,127 |
HUB GROUP, INC. |
|||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
(in thousands) |
|||||||||||
Six Months Ended |
|||||||||||
June 30, |
|||||||||||
2015 |
2014 |
||||||||||
Cash flows from operating activities: |
|||||||||||
Net income |
$ 28,743 |
$ 30,711 |
|||||||||
Adjustments to reconcile net income |
|||||||||||
to net cash provided by operating activities: |
|||||||||||
Depreciation and amortization |
17,526 |
13,780 |
|||||||||
Deferred taxes |
2,489 |
5,557 |
|||||||||
Compensation expense related to share-based compensation plans |
4,110 |
4,191 |
|||||||||
Gain on sale of assets |
(60) |
(10) |
|||||||||
Excess tax benefits from share-based compensation |
(33) |
– |
|||||||||
Changes in operating assets and liabilities: |
|||||||||||
Restricted investments |
(295) |
(1,206) |
|||||||||
Accounts receivable, net |
(11,407) |
(40,654) |
|||||||||
Prepaid taxes |
13,284 |
(165) |
|||||||||
Prepaid expenses and other current assets |
3,030 |
(2,063) |
|||||||||
Other assets |
216 |
(601) |
|||||||||
Accounts payable |
15,132 |
21,756 |
|||||||||
Accrued expenses |
8,943 |
882 |
|||||||||
Non-current liabilities |
(1,226) |
(537) |
|||||||||
Net cash provided by operating activities |
80,452 |
31,641 |
|||||||||
Cash flows from investing activities: |
|||||||||||
Proceeds from sale of equipment |
136 |
319 |
|||||||||
Purchases of property and equipment |
(23,716) |
(46,443) |
|||||||||
Net cash used in investing activities |
(23,580) |
(46,124) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Proceeds from issuance of debt |
18,548 |
25,361 |
|||||||||
Repayments of long term debt |
(10,938) |
(2,535) |
|||||||||
Stock tendered for payments of withholding taxes |
(2,877) |
(3,151) |
|||||||||
Purchase of treasury stock |
(13,419) |
– |
|||||||||
Capital lease payments |
(1,243) |
(1,219) |
|||||||||
Excess tax benefits from share-based compensation |
89 |
228 |
|||||||||
Net cash (used in) provided by financing activities |
(9,840) |
18,684 |
|||||||||
Effect of exchange rate changes on cash and cash equivalents |
(21) |
(1) |
|||||||||
Net increase in cash and cash equivalents |
47,011 |
4,200 |
|||||||||
Cash and cash equivalents beginning of period |
109,769 |
68,964 |
|||||||||
Cash and cash equivalents end of period |
$ 156,780 |
$ 73,164 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hub-group-inc-reports-second-quarter-2015-earnings-300116392.html
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