HUB GROUP, INC. 
By DOWNERS GROVE, Ill., Jan. 27, 2011 /PRNewswire/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported income of $13 million for the fourth quarter of 2010, an increase of 26% compared to the fourth quarter of 2009. Hub Group's diluted earnings per share was $0.34 for the fourth quarter of 2010, which represents an increase of 31% when compared with the prior year period.
Hub Group's revenue increased 18% to $480 million compared to $408 million in the fourth quarter of 2009. Fourth quarter intermodal revenue increased 19% to $340 million. The increase was attributable to a 14% volume increase, a 4% increase for fuel and a 4% increase in pricing, partially offset by a 3% decrease for mix. Truck brokerage revenue was $79 million this quarter, which is equal to revenue in the fourth quarter of 2009. Fourth quarter Unyson Logistics revenue increased 38% to $61 million.
"The fourth quarter was a solid finish to an outstanding year," remarked David P. Yeager, Chairman and Chief Executive Officer of Hub Group. "For the year we grew all three business lines, with our intermodal volume up 19%. Going into our 40th anniversary year, we are well positioned for continued growth."
FULL YEAR 2010
Income for the year ended December 31, 2010 was $43 million. Hub Group's diluted earnings per share for 2010 was $1.16.
As of December 31, 2010, the Company had $115 million of cash and no debt.
CONFERENCE CALL
Hub Group will hold its conference call at 5:00 p.m. Eastern Time on January 27, 2011 to discuss its fourth quarter and full year results and provide 2011 guidance.
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 at Hub Group's Web site at http://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 73276818. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PB7HQ39MX . 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 http://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 reports on Form 10-Q for the periods ended March 31, 2010, June 30, 2010 and September 30, 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 Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
2010 2009 2010 2009
---- ---- ---- ----
Revenue $479,913 $407,881 $1,833,737 $1,510,970
Transportation
costs 423,271 361,323 1,620,304 1,325,280
------- ------- --------- ---------
Gross margin 56,642 46,558 213,433 185,690
Costs and
expenses:
Salaries and
benefits 26,270 21,004 99,138 88,518
General and
administrative 10,207 9,092 40,621 37,467
Depreciation and
amortization 947 945 3,792 4,174
--- --- ----- -----
Total costs and
expenses 37,424 31,041 143,551 130,159
Operating
income 19,218 15,517 69,882 55,531
Other income
(expense):
Interest
expense (16) (15) (54) (91)
Interest
income 36 26 119 146
Other, net 62 111 146 299
--- --- --- ---
Total other
(expense)
income 82 122 211 354
Income before
provision for
income taxes 19,300 15,639 70,093 55,885
Provision for
income taxes 6,791 5,688 26,635 21,620
----- ----- ------ ------
Net income $12,509 $9,951 $43,458 $34,265
======= ====== ======= =======
Basic earnings
per common
share $0.34 $0.27 $1.17 $0.92
===== ===== ===== =====
Diluted earnings
per common
share $0.34 $0.26 $1.16 $0.91
===== ===== ===== =====
Basic weighted
average number of
shares outstanding 36,817 37,428 37,223 37,367
====== ====== ====== ======
Diluted weighted
average number of
shares outstanding 37,027 37,657 37,385 37,525
====== ====== ====== ======
HUB GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December December
31, 31,
2010 2009
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $115,144 $126,863
Accounts receivable trade, net 185,879 145,317
Accounts receivable trade other 17,958 11,932
Prepaid taxes 296 593
Deferred taxes 3,314 2,874
Prepaid expenses and other current assets 6,569 6,801
----- -----
TOTAL CURRENT ASSETS 329,160 294,380
Restricted investments 11,421 9,583
Property and equipment, net 47,806 28,510
Other intangibles, net 5,856 6,164
Goodwill, net 233,029 232,892
Other assets 2,135 1,819
----- -----
TOTAL ASSETS $629,407 $573,348
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade $121,078 $110,626
Accounts payable other 10,064 7,695
Accrued payroll 14,378 8,253
Accrued other 21,898 18,958
------ ------
TOTAL CURRENT LIABILITIES 167,418 145,532
Non-current liabilities 13,950 12,002
Deferred taxes 71,739 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 412 412
41,224,792 shares issued in 2010 and
2009; 36,638,359
outstanding in 2010 and 37,253,330
outstanding in 2009
Class B: $.01 par value; 662,300 shares
authorized; 7 7
662,296 shares issued and outstanding in
2010 and 2009
Additional paid-in capital 169,722 171,470
Purchase price in excess of predecessor
basis, net of tax (15,458) (15,458)
benefit of $10,306
Retained earnings 343,010 299,552
Accumulated other comprehensive income
(loss) 6 (9)
Treasury stock; at cost, 4,586,433 shares
in 2010 and (121,399) (102,133)
3,971,462 shares in 2009 -------- --------
TOTAL STOCKHOLDERS' EQUITY 376,300 353,841
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $629,407 $573,348
======== ========
HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
------------
2010 2009
---- ----
Cash flows from operating activities:
Net income $43,458 $34,265
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 8,572 8,199
Deferred taxes 9,545 5,519
Compensation expense related to share-based
compensation plans 3,576 4,394
Loss on sale of assets 85 50
Changes in operating assets and liabilities:
Restricted investments (1,838) (3,465)
Accounts receivable, net (46,582) (1,569)
Prepaid taxes 298 (470)
Prepaid expenses and other current assets 233 (2,455)
Other assets 298 (72)
Accounts payable 12,822 7,150
Accrued expenses 5,277 (8,603)
Non-current liabilities 1,910 2,285
----- -----
Net cash provided by operating activities 37,654 45,228
------ ------
Cash flows from investing activities:
Proceeds from sale of equipment 988 84
Purchases of property and equipment (25,616) (4,246)
Cash used in acquisitions (170) -
---- ---
Net cash used in investing activities (24,798) (4,162)
------- ------
Cash flows from financing activities:
Proceeds from stock options exercised 46 256
Purchase of treasury stock (25,070) (1,101)
Excess tax benefits from share-based
compensation 434 852
--- ---
Net cash (used in) provided by financing
activities (24,590) 7
------- ---
Effect of exchange rate changes on cash and cash
equivalents 15 (9)
Net (decrease) increase in cash and cash
equivalents (11,719) 41,064
Cash and cash equivalents beginning of year 126,863 85,799
------- ------
Cash and cash equivalents end of year $115,144 $126,863
======== ========
SOURCE Hub Group, Inc.
