Press Release

Hub Group, Inc. Reports First Quarter 2015 Earnings per Share of $0.32 Excluding One-time Costs

OAK BROOK, Ill., April 23, 2015 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended March 31, 2015.

Hub Group reported income of $10.3 million for the first quarter ended March 31, 2015 compared to $12.0 million for the first quarter of 2014.  Hub Group's diluted earnings per share was $0.28 for the quarter.  Hub Group's pre-tax income included one-time costs of $2.3 million including a $1.4 million Canadian currency translation loss and $0.9 million of severance.  Excluding the effect of these items, non-GAAP earnings per share was $0.32 for the quarter (see table below).  Non-GAAP earnings per share decreased 3% when compared with the prior year period.  Hub Group's revenue decreased 1.5% to $836 million

The Hub segment's revenue decreased 1.5% to $643 million.  First quarter intermodal revenue decreased 3% to $421 million due to a decrease in fuel revenue.  Intermodal volume increased 1%.  Truck brokerage revenue increased 6% to $89 million this quarter.  First quarter Unyson Logistics revenue decreased 1% to $133 million.  The Hub segment's operating income was $13.7 million

The Mode segment's revenue increased 2% to $214 million.  Operating income was $5.1 million, an increase of 11% compared to the prior year period.

Hub Group ended the quarter with $129 million in cash.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday, April 23, 2015 to discuss its first quarter results.

Hosting the conference call will be David Yeager, Chairman and Chief Executive Officer, Mark Yeager, Vice-Chairman, President and Chief Operating Officer, and Terri 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.  The webcast is listen-only.  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 register at http://www.yourconferencecenter.com/r.aspx?p=1&a=UuaITmZViChKOr.  Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference.  You may register at any time, including up to and after the call start time.  On the day of the call, dial (888) 206-4074 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration.   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 intermodal, truck brokerage and logistics services. The Company operates through a network of offices and independent agents 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 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'sSEC reports including, but not limited to, our annual report on Form 10-K for the year ended December 31, 2014. 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,





2015


2014

Revenue

$ 835,941


$ 848,449








Transportation costs

746,813


759,705


Gross margin

89,128


88,744








Costs and expenses:





Salaries and benefits

39,476


37,092


Agent fees and commissions

14,826


13,666


General and administrative

14,071


15,432


Depreciation and amortization

1,960


2,058



Total costs and expenses

70,333


68,248








Operating income

18,795


20,496








Other income (expense):





Interest expense

(741)


(407)


Interest and dividend income

6


14


Other, net 

(1,404)


(205)



Total other expense 

(2,139)


(598)








Income before provision for income taxes

16,656


19,898








Provision for income taxes

6,380


7,863








Net income

$  10,276


$  12,035








Basic earnings per common share

$      0.28


$      0.33








Diluted earnings per common share

$      0.28


$      0.33








Basic weighted average number of shares outstanding

36,156


36,661

Diluted weighted average number of shares outstanding

36,169


36,724

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)
















Three Months





Ended March 31, 2015





Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue

$ 643,443


$ 213,522


$         (21,024)


$      835,941












Transportation costs

580,258


187,579


(21,024)


746,813


Gross margin

63,185


25,943


-


89,128












Costs and expenses:









Salaries and benefits

35,660


3,816


-


39,476


Agent fees and commissions

15


14,811


-


14,826


General and administrative

12,198


1,873


-


14,071


Depreciation and amortization

1,618


342


-


1,960



Total costs and expenses

49,491


20,842


-


70,333












Operating income

13,694


5,101


-


18,795

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)
















Three Months





Ended March 31, 2014





Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue

$ 653,409


$ 208,906


$         (13,866)


$      848,449












Transportation costs

588,912


184,659


(13,866)


759,705


Gross margin

64,497


24,247


-


88,744












Costs and expenses:









Salaries and benefits

33,337


3,755


-


37,092


Agent fees and commissions

11


13,655


-


13,666


General and administrative

13,739


1,693


-


15,432


Depreciation and amortization

1,517


541


-


2,058



Total costs and expenses

48,604


19,644


-


68,248












Operating income

15,893


4,603


-


20,496

 

HUB GROUP, INC.

UNAUDITED NON-GAAP TO GAAP RECONCILIATION

(earnings per share)










Three Months


Ended, March 31,




Change

Change


2015

2014

$

%






Diluted GAAP EPS

$    0.28

$    0.33

$   (0.05)

-15.2%






Canadian currency translation loss, net of tax

0.02

-

0.02







Severance costs, net of tax

0.02

-

0.02







Diluted non-GAAP EPS (adjusted)

$    0.32

$    0.33

$   (0.01)

-3.0%






Diluted shares

36,169

36,724



In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance. This table and Hub's internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.

HUB GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)

























March 31,


December 31,







2015


2014







(unaudited)



ASSETS






CURRENT ASSETS:






Cash and cash equivalents

$    129,261


$       109,769



Accounts receivable trade, net

409,506


401,803



Accounts receivable other

14,299


24,886



Prepaid taxes

10,380


14,937



Deferred taxes

6,216


4,816



Prepaid expenses and other current assets

17,600


14,355





TOTAL CURRENT ASSETS

587,262


570,566











Restricted investments

21,846


21,944


Property and equipment, net

332,637


338,327


Other intangibles, net

14,110


14,434


Goodwill, net

262,759


262,813


Other assets

3,713


4,043






TOTAL ASSETS

$ 1,222,327


$    1,212,127



















LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:






Accounts payable trade

$    269,354


$       256,345



Accounts payable other

21,736


21,333



Accrued payroll

16,991


16,192



Accrued other

36,180


43,523



Current portion of capital lease

2,538


2,504



Current portion of long term debt

21,921


19,619





TOTAL CURRENT LIABILITIES

368,720


359,516











Long term debt

76,085


72,460


Non-current liabilities

21,885


22,929


Long term portion of capital lease

15,298


15,937


Deferred taxes

143,386


140,501











STOCKHOLDERS' EQUITY:






Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2015 and 2014






-


-



Common stock







Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2015 and 2014; 36,062,587 shares outstanding in 2015 and 36,247,324 shares outstanding in 2014













412


412




Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2015 and 2014







7


7



Additional paid-in capital

166,941


171,235



Purchase price in excess of predecessor basis, net of tax benefit of $10,306






(15,458)


(15,458)



Retained earnings

600,085


589,809



Accumulated other comprehensive loss

(74)


(77)



Treasury stock; at cost, 5,162,205 shares in 2015 and 4,977,468 shares in 2014






(154,960)


(145,144)




TOTAL STOCKHOLDERS' EQUITY

596,953


600,784





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 1,222,327


$    1,212,127

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)






















Three Months Ended










March 31,










2015


2014

























Cash flows from operating activities:






Net income




$   10,276


$ 12,035


Adjustments to reconcile net income to net cash provided by operating activities:













Depreciation and amortization 


8,731


6,779




Deferred taxes



1,593


1,991




Compensation expense related to share-based compensation plans

2,034


2,143




Gain on sale of assets



-


(6)




Excess tax benefits from share-based compensation


(13)


-


Changes in operating assets and liabilities:








Restricted investments



98


(117)




Accounts receivable, net


2,874


(31,471)




Prepaid taxes



4,557


86




Prepaid expenses and other current assets


(3,246)


(597)




Other assets




330


(837)




Accounts payable



13,414


29,286




Accrued expenses



5,733


1,128




Non-current liabilities



(1,052)


(1,839)






Net cash provided by operating activities


45,329


18,581













Cash flows from investing activities:






Proceeds from sale of equipment


26


85


Purchases of property and equipment


(15,057)


(33,035)





Net cash used in investing activities


(15,031)


(32,950)













Cash flows from financing activities:






Proceeds from issuance of debt


11,480


25,361


Repayments of long term debt


(5,553)


(1,124)


Stock tendered for payments of withholding taxes


(2,754)


(3,023)


Purchase of treasury stock



(13,419)


-


Capital lease payments



(605)


(616)


Excess tax benefits from share-based compensation


42


104





Net cash (used in) provided by financing activities


(10,809)


20,702


























Effect of exchange rate changes on cash and cash equivalents


3


-













Net increase in cash and cash equivalents


19,492


6,333

Cash and cash equivalents beginning of period


109,769


68,964

Cash and cash equivalents end of period


$ 129,261


$ 75,297

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hub-group-inc-reports-first-quarter-2015-earnings-per-share-of-032-excluding-one-time-costs-300071299.html

SOURCE Hub Group, Inc.

Maralee Volchko of Hub Group, Inc., +1-630-271-3745