Press Release

Hub Group, Inc. Reports 14% EPS Growth and Another Record Second Quarter

DOWNERS GROVE, Ill., July 24 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record diluted earnings per share for the quarter ended June 30, 2008 of $0.40. This represents an increase of 14% compared to last year's second quarter diluted earnings per share of $0.35. Hub Group's income for the second quarter was $15.0 million, a 9% increase versus income for the second quarter of 2007.

Hub Group's revenue increased 22% to $490.9 million compared to $401.6 million in the second quarter of 2007. Second quarter intermodal revenue increased 17% to $351.6 million. The increase was attributable to a 5% volume increase and a 12% increase in pricing, related primarily to fuel. Truck brokerage revenue was up 34% to $98.7 million this quarter. Second quarter logistics revenue increased 50% to $40.6 million. Gross margin increased $2.1 million to $59.8 million compared to the second quarter of 2007.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer of Hub Group stated, "We are proud of our record earnings for the second quarter. The results demonstrate that our strategy and business model continue to be effective in any economic environment."

FULL YEAR 2008

Given the current operating environment, we are comfortable that the earnings for 2008 will be within the current analysts' range of $1.59 to $1.69 per diluted share.

CONFERENCE CALL

Hub will hold a conference call at 1:00 p.m. Eastern Time (12:00 p.m. Central Time) on Thursday, July 24, 2008 to discuss its second quarter results.

Hosting the conference call will be David P. Yeager, Vice-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 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) 679-8037. The conference call participant code is 37878566. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PMP9UTGD9. 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, 2007 and the report on Form 10-Q for the period ended March 31, 2008. 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,
                                         2008      2007      2008      2007
    Revenue                            $490,929  $401,565  $915,924  $794,862

    Transportation costs                431,090   343,802   798,583   680,438
      Gross margin                       59,839    57,763   117,341   114,424

    Costs and expenses:
      Salaries and benefits              24,301    24,177    49,664    49,787
      General and administrative         10,477    10,218    20,627    21,819
      Depreciation and amortization         991     1,203     1,992     2,375
        Total costs and expenses         35,769    35,598    72,283    73,981

    Operating income                     24,070    22,165    45,058    40,443

    Other income (expense):
      Interest expense                      (26)      (24)      (52)      (45)
      Interest and dividend income          340       611       678     1,256
      Other, net                             (9)       55        86        58
        Total other income                  305       642       712     1,269

    Income before provision for income
     taxes                               24,375    22,807    45,770    41,712

    Provision for income taxes            9,405     9,032    17,665    16,518

    Net income                          $14,970   $13,775   $28,105   $25,194

    Basic earnings per common share       $0.40     $0.35     $0.76     $0.64

    Diluted earnings per common share     $0.40     $0.35     $0.75     $0.64

    Basic weighted average number of
     shares outstanding                  37,191    39,043    37,146    39,150
    Diluted weighted average number of
     shares outstanding                  37,489    39,538    37,447    39,652



                               HUB GROUP, INC.
               UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                     (in thousands, except share amounts)

                                                 June 30,        December 31,
                                                   2008              2007
                                               (Unaudited)
    ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                   $54,038          $38,002
      Accounts receivable
       Trade, net                                 191,878          160,944
       Other                                       10,720            9,828
      Prepaid taxes                                    86               86
      Deferred taxes                                3,876            5,044
      Prepaid expenses and other current assets     5,925            4,318
        TOTAL CURRENT ASSETS                      266,523          218,222

     Restricted investments                         7,746            5,206
     Property and equipment, net                   28,181           29,662
     Other intangibles, net                         6,833            7,056
     Goodwill, net                                230,448          230,448
     Other assets                                   1,251            1,373
         TOTAL ASSETS                            $540,982         $491,967


    LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
      Accounts payable
       Trade                                     $147,282         $123,020
       Other                                        9,029            6,683
      Accrued expenses
       Payroll                                     12,137           16,446
       Other                                       28,434           33,063
      Related party payable                           -              5,000
        TOTAL CURRENT LIABILITIES                 196,882          184,212
     Non-current liabilities                        9,753            9,708
     Deferred taxes                                51,129           47,148
     STOCKHOLDERS' EQUITY:
      Preferred stock, $.01 par value;
       2,000,000 shares authorized; no shares
       issued or outstanding in 2008 and 2007         -                -
      Common stock
       Class A: $.01 par value; 97,337,700
        shares authorized and 41,224,792 shares
        issued in 2008 and 2007;  37,001,494
        shares outstanding in 2008 and
        36,666,731 outstanding in 2007                412              412
       Class B:  $.01 par value; 662,300 shares
        authorized; 662,296 shares issued and
        outstanding in 2008 and 2007                    7                7
      Additional paid-in capital                  172,357          176,657
      Purchase price in excess of predecessor
       basis, net of tax benefit of $10,306       (15,458)         (15,458)
      Retained earnings                           234,147          206,042
      Treasury stock; at cost, 4,223,298 shares
       in 2008 and 4,558,061 shares in 2007      (108,247)        (116,761)
       TOTAL STOCKHOLDERS' EQUITY                 283,218          250,899
             TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY               $540,982         $491,967



                               HUB GROUP, INC.
          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)

                                                      Six Months Ended
                                                           June 30,
                                                   2008               2007

    Cash flows from operating activities:
     Net income                                   $28,105            $25,194
     Adjustments to reconcile net income
      to net cash provided by operating
      activities:
       Depreciation and amortization                3,395              3,706
       Deferred taxes                               5,149              3,034
       Compensation expense related to
        share-based compensation plans              2,257              1,923
       Gain on sale of assets                        (197)              (117)
     Changes in operating assets and
      liabilities:
       Restricted investments                      (2,540)            (1,786)
       Accounts receivable, net                   (31,826)             1,667
       Prepaid taxes                                  -                2,033
       Prepaid expenses and other current
        assets                                     (1,607)              (345)
       Other assets                                   122                  4
       Accounts payable                            26,608             (4,388)
       Accrued expenses                            (8,938)              (174)
       Deferred compensation                           45                180
         Net cash provided by operating
          activities                               20,573             30,931

    Cash flows from investing activities:
     Proceeds from sale of equipment                  364                550
     Purchases of property and equipment           (1,858)            (7,453)
     Cash used in acquisition of Comtrak, Inc.     (5,000)            (5,000)
        Net cash used in investing activities      (6,494)           (11,903)

    Cash flows from financing activities:
     Proceeds from stock options exercised            355                329
     Purchase of treasury stock                      (796)           (12,898)
     Excess tax benefits from share-based
      compensation                                  2,398              2,430
        Net cash provided by (used in)
         financing activities                       1,957            (10,139)


    Net increase in cash and cash equivalents      16,036              8,889
    Cash and cash equivalents beginning
     of period                                     38,002             43,491
    Cash and cash equivalents end of period       $54,038            $52,380
SOURCE  Hub Group, Inc.
    -0-                             07/24/2008
    /CONTACT:  Amy Lisek of Hub Group, Inc., +1-630-795-2214/
    /Web site:  http://www.hubgroup.com /
    (HUBG)

CO:  Hub Group, Inc.
ST:  Illinois
IN:  TRN
SU:  ERN ERP CCA

SS-AM
-- AQTH004 --
8228 07/24/2008 09:00 EDT http://www.prnewswire.com