Press Release

Hub Group, Inc. Reports First Quarter 2010 Earnings

DOWNERS GROVE, Ill., April 21, 2010 /PRNewswire via COMTEX/ --Hub Group, Inc. (Nasdaq: HUBG) today reported net income for the quarter ended March 31, 2010 of $8.7 million. Hub Group's diluted earnings per share was $0.23 for the first quarter of 2010. This represents an increase of 35% compared to last year's first quarter diluted earnings per share of $0.17.

Hub Group's revenue increased 19% to $417 million compared to $352 million in the first quarter of 2009. First quarter intermodal revenue increased 17% to $287 million. The increase was attributable to a 16% volume increase and a 6% increase for fuel, partially offset by a 5% decrease for price and mix. Truck brokerage revenue increased 23% to $83 million this quarter. First quarter logistics revenue increased 23% to $47 million.

Hub Group generated $18 million of cash flow from operations and ended the quarter with $142 million in cash.

"We have started 2010 with a good first quarter," said David P. Yeager, Chairman and Chief Executive Officer. "All three business lines showed solid growth, and we look forward to taking this positive momentum into the quarters ahead."

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, April 21, 2010 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) 679-8040. The conference call participant code is 87694604. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PJVNV8V4R. 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, 2009. 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,
                                                      ---------------
                                                      2010         2009
                                                      ----         ----
    Revenue                                       $417,294     $351,695

    Transportation costs                           368,476      306,526
                                                   -------      -------
      Gross margin                                  48,818       45,169

    Costs and expenses:
      Salaries and benefits                         23,458       23,214
      General and administrative                    10,145       10,123
      Depreciation and amortization                    973        1,156
                                                       ---        -----
        Total costs and expenses                    34,576       34,493


    Operating income                                14,242       10,676

    Other income (expense):
      Interest expense                                 (14)         (25)
      Interest and dividend income                      25           55
      Other, net                                        68           10
                                                       ---          ---
        Total other income                              79           40

    Income before provision for income taxes        14,321       10,716

    Provision for income taxes                       5,619        4,538
                                                     -----        -----

    Net income                                      $8,702       $6,178
                                                    ======       ======

    Basic earnings per common share                  $0.23        $0.17
                                                     =====        =====

    Diluted earnings per common share                $0.23        $0.17
                                                     =====        =====

    Basic weighted average number of shares
     outstanding                                    37,527       37,321
                                                    ======       ======
    Diluted weighted average number of shares
     outstanding                                    37,643       37,412
                                                    ======       ======



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



                                                March 31,   December 31,
                                                       2010         2009
                                                       ----         ----
                                               (Unaudited)
    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents                  $141,736     $126,863
        Accounts receivable
          Trade, net                                173,878      145,317
          Other                                       9,155       11,932
        Prepaid taxes                                   132          593
        Deferred taxes                                766        2,874
        Prepaid expenses and other current
         assets                                     4,142        6,801
                                                    -----        -----
            TOTAL CURRENT ASSETS                  329,809      294,380

      Restricted investments                        9,771        9,583
      Property and equipment, net                  27,246       28,510
      Other intangibles, net                        6,053        6,164
      Goodwill, net                               232,837      232,892
      Other assets                                  1,778        1,819
                                                    -----        -----
                TOTAL ASSETS                     $607,494     $573,348
                                                 ========


    LIABILITIES AND STOCKHOLDERS'
     EQUITY
      CURRENT LIABILITIES:
        Accounts payable
          Trade                                  $134,958     $110,626
          Other                                     9,820        7,695
        Accrued expenses
          Payroll                                   7,849        8,253
          Other                                    18,817       18,958
                                                   ------       ------
            TOTAL CURRENT LIABILITIES             171,444      145,532
      Non-current liabilities                      12,166       12,002
      Deferred taxes                               63,172       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
            41,224,792 shares issued in 2010
             and 2009;  37,362,570 shares
            outstanding in 2010 and 37,253,330
             outstanding in 2009                      412          412
          Class B:  $.01 par value; 662,300
           shares authorized;
            662,296 shares issued and
             outstanding in 2010 and 2009               7            7
        Additional paid-in capital                166,970      171,470
        Purchase price in excess of
         predecessor basis, net of tax
         benefit of $10,306                       (15,458)     (15,458)
        Retained earnings                         308,254      299,552
        Other comprehensive income (loss)               3           (9)
        Treasury stock; at cost, 3,862,222
         shares in 2010
          and 3,971,462 shares in 2009            (99,476)    (102,133)
                                                  -------     --------
          TOTAL STOCKHOLDERS' EQUITY              360,712      353,841
                                                  -------      -------
                 TOTAL LIABILITIES AND
                  STOCKHOLDERS' EQUITY           $607,494     $573,348
                                                 ========     ========



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


                                                         Three Months Ended
                                                             March 31,
                                                             ---------
                                                          2010           2009
                                                          ----           ----


    Cash flows from operating activities:
      Net income                                        $8,702         $6,178
      Adjustments to reconcile net income
        to net cash provided by operating
         activities:
          Depreciation and amortization                1,952          2,184
          Deferred taxes                               3,401          3,088
          Compensation expense related to share-
           based compensation plans                      931          1,078
          Loss (gain) on sale of assets                   63            (27)
      Changes in operating assets and
       liabilities:
          Restricted investments                        (188)          (455)
          Accounts receivable, net                   (25,784)        15,494
          Prepaid taxes                                  461              -
          Prepaid expenses and other current assets    2,659            584
          Other assets                                    41             57
          Accounts payable                            26,457          6,300
          Accrued expenses                              (545)        (4,401)
          Non-current liabilities                        125           (940)
                                                         ---           ----
                Net cash provided by operating
                activities                            18,275         29,140
                                                      ------

    Cash flows from investing activities:
      Proceeds from sale of equipment                      7             48
      Purchases of property and equipment               (647)        (1,429)
                                                        ----         ------
            Net cash used in investing activities       (640)        (1,381)
                                                        ----         ------

    Cash flows from financing activities:
      Proceeds from stock options exercised               12             40
      Purchase of treasury stock                      (2,919)        (1,042)
      Excess tax benefits from share-based
       compensation                                      133            117
                                                         ---            ---
            Net cash used in financing activities     (2,774)          (885)
                                                      ------           ----



      Effect of exchange rate changes on cash
       and cash equivalents                               12              -
                                                         ---            ---

    Net increase in cash and cash equivalents         14,873         26,874
    Cash and cash equivalents beginning of
     period                                          126,863         85,799
    Cash and cash equivalents end of period         $141,736       $112,673
                                                    ========       ========




SOURCE Hub Group, Inc.