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Hub Group, Inc. Reports First Quarter 2014 Earnings

OAK BROOK, Ill., April 17, 2014 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended March 31, 2014.

Hub Group reported income of $12.0 million for the first quarter ended March 31, 2014 compared to $15.4 million for the first quarter of 2013.  Hub Group's diluted earnings per share was $0.33 for the quarter.  Hub Group's revenue increased 10% to $848 million

The Hub segment's revenue increased 10% to $653 million.  First quarter intermodal revenue increased 2% to $435 million on a 2% increase in volume.  Truck brokerage revenue increased 3% to $84 million this quarter.  First quarter Unyson Logistics revenue increased 64% to $134 million.  The Hub segment's operating income was $15.9 million

The Mode segment's revenue increased 11% to $209 million.  Operating income was $4.6 million, an increase of 31% compared to the prior year period.

Hub Group ended the quarter with $75 million in cash.

"The first quarter of 2014 was marked by a truly challenging operating environment due to the extreme weather in many markets.  While this negatively impacted our financial results, we are pleased with the way our organization responded to these challenges," said David P. Yeager, Chairman and Chief Executive Officer of Hub Group.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday, April 17, 2014 to discuss its first quarter results.

Hosting the conference call will be David Yeager, Chief Executive Officer, Mark Yeager, Chief Operating Officer, and Terri Pizzuto, Chief Financial Officer.

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) 713-4218.  The conference call participant code is 82741607#. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PXFKJ89CD.  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 $3 billion asset light freight transportation management company providing comprehensive intermodal, truck brokerage and logistics services. The Company operates through a network of offices and independent agents throughout the United States, Canada and Mexico. For more information, visit www.hubgroup.com.

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, 2013.  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



Ended March 31,



2014


2013

Revenue


$ 848,449


$ 768,980






Transportation costs


759,705


681,642


Gross margin


88,744


87,338






Costs and expenses:






Salaries and benefits


37,092


34,583


Agent fees and commissions


13,666


13,274


General and administrative


15,432


13,191


Depreciation and amortization


2,058


1,553



Total costs and expenses


68,248


62,601






Operating income


20,496


24,737






Other income (expense):






Interest expense


(407)


(290)


Interest and dividend income


14


29


Other, net 


(205)


(11)



Total other (expense) income 


(598)


(272)






Income before provision for income taxes


19,898


24,465






Provision for income taxes


7,863


9,101






Net income


$  12,035


$   15,364






Basic earnings per common share


$      0.33


$      0.42






Diluted earnings per common share


$      0.33


$      0.42






Basic weighted average number of shares outstanding


36,661


36,855

Diluted weighted average number of shares outstanding


36,724


36,949

 

 


HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




Three Months



Ended March 31, 2014



Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue


$ 653,409


$ 208,906


$         (13,866)


$      848,449










Transportation costs


588,912


184,659


(13,866)


759,705


Gross margin


64,497


24,247


-


88,744










Costs and expenses:










Salaries and benefits


33,337


3,755


-


37,092


Agent fees and commissions


11


13,655


-


13,666


General and administrative


13,739


1,693


-


15,432


Depreciation and amortization


1,517


541


-


2,058



Total costs and expenses


48,604


19,644


-


68,248










Operating income


15,893


4,603


-


20,496

 

 


HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




Three Months



Ended March 31, 2013



Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue


$ 592,651


$ 187,460


$         (11,131)


$      768,980












Transportation costs


527,471


165,302


(11,131)


681,642


Gross margin


65,180


22,158


-


87,338












Costs and expenses:










Salaries and benefits


30,777


3,806


-


34,583


Agent fees and commissions


449


12,825


-


13,274


General and administrative


11,698


1,493


-


13,191


Depreciation and amortization


1,020


533


-


1,553



Total costs and expenses


43,944


18,657


-


62,601












Operating income


21,236


3,501


-


24,737

 

 


HUB GROUP, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)





March 31,


December 31,



2014


2013



(Unaudited)



ASSETS






CURRENT ASSETS:







Cash and cash equivalents


$      75,297


$          68,964



Accounts receivable trade, net


413,426


371,528



Accounts receivable other


16,127


26,569



Prepaid taxes


319


409



Deferred taxes


7,227


5,826



Prepaid expenses and other current assets


13,334


12,738


TOTAL CURRENT ASSETS


525,730


486,034







Restricted investments


20,871


20,754


Property and equipment, net


276,743


260,400


Other intangibles, net


15,405


15,729


Goodwill, net


262,978


263,032


Other assets


2,831


1,994


TOTAL ASSETS


$ 1,104,558


$ 1,047,943











LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:







Accounts payable trade


$    263,697


$        232,350



Accounts payable other


22,589


24,957



Accrued payroll


13,971


17,000



Accrued other


37,201


42,834



Current portion of capital lease


2,433


2,413



Current portion of long term debt


5,974


1,771


TOTAL CURRENT LIABILITIES


345,865


321,325







Long term debt


26,509


6,475


Non-current liabilities


20,399


22,304


Non-current portion of capital lease


17,841


18,477


Deferred taxes


121,171


117,835








STOCKHOLDERS' EQUITY:







Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2014 and 2013


-


-



Common stock






     Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2014 and 2013; 36,778,746 shares outstanding in 2014 and 36,626,384 shares outstanding in 2013


412


412



     Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2014 and 2013


7


7



Additional paid-in capital


163,481


167,357



Purchase price in excess of predecessor basis, net of tax benefit of $10,306


(15,458)


(15,458)



Retained earnings


550,286


538,251



Other comprehensive income


(98)


(85)



Treasury stock; at cost, 4,446,046 shares in 2014 and 4,598,408 shares in 2013


(125,857)


(128,957)




TOTAL STOCKHOLDERS' EQUITY


572,773


561,527




 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$ 1,104,558


$ 1,047,943

 

 


HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)




Three Months Ended



March 31,



2014


2013











Cash flows from operating activities:






Net income


$ 12,035


$ 15,364


Adjustments to reconcile net income







to net cash provided by operating activities:








Depreciation and amortization 


6,779


5,096




Deferred taxes


1,991


2,669




Compensation expense related to share-based compensation plans


2,143


1,882




Gain on sale of assets


(6)


(214)




Excess tax benefits from share-based compensation


-


(3)


Changes in operating assets and liabilities:








Restricted investments


(117)


(181)




Accounts receivable, net


(31,471)


(11,893)




Prepaid taxes


86


(30)




Prepaid expenses and other current assets


(597)


2,227




Other assets


(837)


(146)




Accounts payable


29,286


16,230




Accrued expenses


1,128


(2,801)




Non-current liabilities


(1,839)


(198)






Net cash provided by operating activities


18,581


28,002











Cash flows from investing activities:






Proceeds from sale of equipment


85


734


Purchases of property and equipment


(33,035)


(9,456)





Net cash used in investing activities


(32,950)


(8,722)






Cash flows from financing activities:






Proceeds from issuance of debt


25,361


-


Repayments of long term debt


(1,124)


-


Proceeds from stock options exercised


-


42


Stock tendered for payments of withholding taxes


(3,023)


(2,469)


Purchase of treasury stock


-


(903)


Capital lease payments


(616)


(560)


Excess tax benefits from share-based compensation


104


98





Net cash provided by (used in) financing activities


20,702


(3,792)












Effect of exchange rate changes on cash and cash equivalents


-


3






Net increase in cash and cash equivalents


6,333


15,491

Cash and cash equivalents beginning of period


68,964


70,760

Cash and cash equivalents end of period


$ 75,297


$ 86,251

 

SOURCE Hub Group, Inc.

Amy Lisek of Hub Group, Inc., +1-630-795-2214