Press Release

Hub Group, Inc. Reports First Quarter 2009 Earnings

DOWNERS GROVE, Ill., April 22 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported income for the quarter ended March 31, 2009 of $6.2 million. Hub Group's diluted earnings per share was $0.17 for the first quarter of 2009.

Hub Group's revenue decreased 17% to $352 million compared to $425 million in the first quarter of 2008. First quarter intermodal revenue decreased 19% to $246 million. The decrease was attributable to a 5% volume decrease and a 14% decrease related mostly to fuel. Truck brokerage revenue decreased 24% to $68 million this quarter. First quarter logistics revenue increased 18% to $38 million.

Hub Group generated $29 million of cash flow from operations and ended the quarter with $113 million in cash.

"We are pleased that we have been able to maintain our market share and generate strong cash flow, despite the challenging freight market," said David P. Yeager, Chairman and Chief Executive Officer. "We remain focused on providing excellent service to our customers as we drive multiple initiatives to improve efficiency and increase productivity. We are confident that we have the right strategy and team to weather this current economic downturn and thrive when conditions improve."

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, April 22, 2009 to discuss its first quarter results.

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 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) 680-0865. The conference call participant code is 15068357. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PX96NYBH7. 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 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, 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
                                                  Ended March 31,
                                              2009               2008
    Revenue                               $351,695             $424,995

    Transportation costs                   306,526              367,493
      Gross margin                          45,169               57,502

    Costs and expenses:
      Salaries and benefits                 23,214               25,363
      General and administrative            10,123               10,150
      Depreciation and amortization          1,156                1,001
        Total costs and expenses            34,493               36,514

    Operating income                       10,676               20,988

    Other income (expense):
      Interest expense                         (25)                 (26)
      Interest and dividend income              55                  338
      Other, net                                10                   95
        Total other income                      40                  407

    Income before provision for income
     taxes                                  10,716               21,395

    Provision for income taxes               4,538                8,260

    Net income                              $6,178              $13,135

    Basic earnings per common share          $0.17                $0.35

    Diluted earnings per common share        $0.17                $0.35

    Basic weighted average number of
     shares outstanding                     37,321               37,101
    Diluted weighted average number of
     shares outstanding                     37,412               37,405





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


                                           March 31,             December 31,
                                             2009                    2008
                                          (Unaudited)
    ASSETS
         CURRENT ASSETS:
           Cash and cash equivalents        $112,673                $85,799
           Accounts receivable
              Trade, net                     132,751                145,362
              Other                            7,435                 10,318
           Prepaid taxes                         123                    123
           Deferred taxes                      4,213                  5,430
           Prepaid expenses and other
            current assets                     3,762                  4,346
                TOTAL CURRENT ASSETS         260,957                251,378

         Restricted investments                6,573                  6,118
         Property and equipment, net          31,486                 32,713
         Other intangibles, net                6,499                  6,610
         Goodwill, net                       233,056                233,110
         Other assets                          1,690                  1,747
                TOTAL ASSETS                $540,261               $531,676

    LIABILITIES AND STOCKHOLDERS' EQUITY
         CURRENT LIABILITIES:
           Accounts payable
              Trade                         $110,070               $105,064
              Other                            7,401                  6,107
           Accrued expenses
              Payroll                          7,131                  9,988
              Other                           24,282                 26,388
                TOTAL CURRENT LIABILITIES    148,884                147,547
         Non-current liabilities               8,595                  9,535
         Deferred taxes                       61,227                 59,410
         STOCKHOLDERS' EQUITY:
           Preferred stock, $.01 par value;
             2,000,000 shares authorized;
              no shares issued or outstanding
              in 2009 and 2008                   -                      -
           Common stock
             Class A: $.01 par value;
              97,337,700 shares authorized
              and 41,224,792 shares issued
              in 2009 and 2008; 37,163,730
              shares outstanding in 2009 and
              36,975,979 outstanding in 2008     412                    412
             Class B: $.01 par value; 662,300
              shares authorized; 662,296 shares
              issued and outstanding in
              2009 and 2008                        7                      7
             Additional paid-in capital      169,572                174,355
             Purchase price in excess of
              predecessor basis, net of tax
              benefit of $10,306             (15,458)               (15,458)
             Retained earnings               271,465                265,287
             Treasury stock; at cost,
              4,061,062 shares in 2009
              and 4,254,445 shares in 2008  (104,443)              (109,419)
             TOTAL STOCKHOLDERS' EQUITY      321,555                315,184
               TOTAL LIABILITIES AND
               STOCKHOLDERS' EQUITY         $540,261               $531,676





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

                                                   Three Months Ended
                                                         March 31,
                                                   2009               2008

    Cash flows from operating activities:
       Net income                                $6,178            $13,135
       Adjustments to reconcile net income
        to net cash provided by operating
        activities:
         Depreciation and amortization            2,184              1,706
         Deferred taxes                           3,088              3,232
         Compensation expense related to
          share-based compensation plans          1,078              1,171
        (Gain) loss on sale of assets               (27)                29
       Changes in operating assets and
        liabilities:
         Restricted investments                    (455)            (2,246)
         Accounts receivable, net                15,494               (723)
         Prepaid expenses and other
          current assets                            584                578
         Other assets                                57                136
         Accounts payable                         6,300              2,499
         Accrued expenses                        (4,401)           (14,085)
         Non-current liabilities                   (940)              (196)
             Net cash provided by
              operating activities               29,140              5,236

    Cash flows from investing activities:
       Proceeds from sale of equipment               48                 29
       Purchases of property and equipment       (1,429)              (849)
       Cash used in acquisition of
        Comtrak, Inc.                               -               (5,000)
             Net cash used in
              investing activities               (1,381)            (5,820)

    Cash flows from financing
     activities:
       Proceeds from stock options exercised         40                315
       Purchase of treasury stock                (1,042)              (672)
       Excess tax benefits from share-based
        compensation                                117              1,817
             Net cash (used in) provided by
              financing activities                 (885)             1,460

    Net increase in cash and cash equivalents    26,874                876
    Cash and cash equivalents
     beginning of period                         85,799             38,002
    Cash and cash equivalents end of period    $112,673            $38,878

SOURCE  Hub Group, Inc.

    -0-                           04/22/2009
    /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 TRT
SU:  ERN CCA

PR
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5817 04/22/200916:01 EDThttp://www.prnewswire.com