Press Release

Hub Group, Inc. Reports 21% EPS Growth and Another Record First Quarter

DOWNERS GROVE, Ill., April 24 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record diluted earnings per share for the quarter ended March 31, 2008 of $0.35. This represents an increase of 21% compared to last year's first quarter diluted earnings per share of $0.29. Hub Group's operating margin increased to 4.9% in the first quarter 2008 from 4.6% in 2007 due to growth, purchasing transportation more cost effectively, and cost control.

Hub Group's revenue increased 8.1% to $425.0 million compared to $393.3 million in the first quarter of 2007. First quarter intermodal revenue increased 5.2% to $302.8 million. Truck brokerage revenue was up 19.9% to $89.9 million this quarter. First quarter logistics revenue increased 6.1% to $32.3 million. Gross margin increased to $57.5 million compared to $56.7 million in the first quarter of 2007.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer of Hub Group stated, "We are very pleased with our earnings per share growth and the performance of all three business lines. Our efforts to increase productivity continue to help us control our costs. Thanks to our scalable, asset-light model, we were able to generate impressive returns despite the weak economic conditions."

FULL YEAR 2008

Given the current operating environment, we are comfortable that the earnings for 2008 will be within the current analysts' range of $1.58 to $1.70 per diluted share.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time (4:00 p.m. Central Time) on Thursday, April 24, 2008 to discuss its first 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) 680-0879. The conference call participant code is 46298316. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PWYE8NGWR. 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. 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
                                                         Ended March 31,
                                                     2008              2007
    Revenue                                        $424,995          $393,297

    Transportation costs                            367,493           336,636
      Gross margin                                   57,502            56,661

    Costs and expenses:
      Salaries and benefits                          25,363            25,610
      General and administrative                     10,150            11,601
      Depreciation and amortization                   1,001             1,172
        Total costs and expenses                     36,514            38,383

    Operating income                                 20,988            18,278

    Other income (expense):
      Interest expense                                  (26)              (21)
      Interest and dividend income                      338               645
      Other, net                                         95                 3
        Total other income                              407               627


    Income before provision for income taxes         21,395            18,905

    Provision for income taxes                        8,260             7,486

    Net income                                      $13,135           $11,419

    Basic earnings per common share                   $0.35             $0.29

    Diluted earnings per common share                 $0.35             $0.29

    Basic weighted average number of
     shares outstanding                              37,101            39,257
    Diluted weighted average number of
     shares outstanding                              37,405            39,766



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


                                                  March 31,       December 31,
                                                    2008               2007
                                                (Unaudited)
    ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                   $38,878             $38,002
      Accounts receivable
        Trade, net                                164,170             160,944
        Other                                       7,325               9,828
      Prepaid taxes                                    86                  86
      Deferred taxes                                3,945               5,044
      Prepaid expenses and other
       current assets                               3,740               4,318
         TOTAL CURRENT ASSETS                     218,144             218,222

     Restricted investments                         7,452               5,206
     Property and equipment, net                   28,858              29,662
     Other intangibles, net                         6,945               7,056
     Goodwill, net                                230,448             230,448
     Other assets                                   1,237               1,373
         TOTAL ASSETS                            $493,084            $491,967


    LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
       Accounts payable
         Trade                                   $123,815            $123,020
         Other                                      8,387               6,683
       Accrued expenses
         Payroll                                    8,372              16,446
         Other                                     27,157              33,063
       Related party payable                          -                 5,000
           TOTAL CURRENT LIABILITIES              167,731             184,212
     Non-current liabilities                        9,407               9,708
     Deferred taxes                                49,281              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;  36,975,979
         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                 171,401             176,657
       Purchase price in excess of
        predecessor basis, net of tax
        benefit of $10,306                        (15,458)            (15,458)
       Retained earnings                          219,177             206,042
       Treasury stock; at cost,
        4,248,813 shares in 2008
        and 4,558,061 shares in 2007             (108,874)           (116,761)
           TOTAL STOCKHOLDERS' EQUITY             266,665             250,899
             TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY               $493,084            $491,967



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

                                                    Three Months Ended
                                                         March 31,
                                                   2008              2007


    Cash flows from operating activities:
      Net income                                  $13,135            $11,419
      Adjustments to reconcile net income to
       net cash provided by operating activities:
         Depreciation and amortization              1,706              1,804
         Deferred taxes                             3,232              1,652
         Compensation expense related to
          share-based compensation plans            1,171                960
         Loss on sale of assets                        29                  2
      Changes in operating assets and
       liabilities:
         Restricted investments                    (2,246)            (1,261)
         Accounts receivable, net                    (723)             7,803
         Prepaid taxes                                -                2,033
         Prepaid expenses and other
          current assets                              578             (2,344)
         Other assets                                 136                 30
         Accounts payable                           2,499             (6,416)
         Accrued expenses                         (13,980)            (5,631)
         Deferred compensation                       (301)              (637)
             Net cash provided by operating
              activities                            5,236              9,414

    Cash flows from investing activities:
      Proceeds from sale of equipment                  29                 15
      Purchases of property and
       equipment                                     (849)            (2,078)
      Cash used in acquisition of
       Comtrak, Inc.                               (5,000)            (5,000)
             Net cash used in investing
              activities                           (5,820)            (7,063)

    Cash flows from financing activities:
      Proceeds from stock options exercised           315                248
      Purchase of treasury stock                     (672)           (12,740)
      Excess tax benefits from share-
       based compensation                           1,817              1,380
             Net cash provided by (used in)
              financing activities                  1,460            (11,112)


    Net increase (decrease) in
     cash and cash equivalents                        876             (8,761)
    Cash and cash equivalents beginning
     of period                                     38,002             43,491
    Cash and cash equivalents end of
     period                                       $38,878            $34,730
SOURCE  Hub Group, Inc.
    -0-                             04/24/2008
    /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

CB-AM
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1241 04/24/2008 16:01 EDT http://www.prnewswire.com