Press Release

Hub Group, Inc. Reports Record Earnings for the Fourth Quarter and Full Year 2007 and Provides 2008 Guidance

DOWNERS GROVE, Ill., Feb. 6 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record income for the quarter ended December 31, 2007 of $18.0 million, a 33% increase versus income for the fourth quarter of 2006. Hub Group's diluted earnings per share was $0.47 for the fourth quarter of 2007. This represents an increase of 38% compared to last year's fourth quarter diluted earnings per share of $0.34. Fourth quarter 2007 diluted earnings per share included a $0.04 tax benefit related to the resolution of a dispute with the IRS. Hub Group's operating margin increased to 5.7% in the fourth quarter 2007 from 5.2% in 2006 due to growth, improved operational efficiencies and cost controls.

Hub Group's revenue increased 4.7% to $445.5 million compared to $425.5 million in the fourth quarter of 2006. Fourth quarter intermodal revenue increased 2.4% to $314.4 million. The increase was attributable to a 3% volume increase partially offset by a 1% decrease related to mix. Truck brokerage revenue was up 15.2% to $93.9 million this quarter. Fourth quarter logistics revenue increased 0.9% to $37.2 million. Gross margin increased 3.7% to $60.4 million compared to the fourth quarter of 2006.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer of Hub Group stated, "Given the current economic environment we are pleased with our operating results. We grew in all of our service lines and achieved operating margin of 5.7% compared to 5.2% last year."

FULL YEAR 2007

Income from continuing operations increased 25.4% to $59.8 million for 2007 compared to last year's income from continuing operations of $47.7 million. Hub Group's diluted earnings per share from continuing operations for the year ended December 31, 2007 was $1.53. This represents an increase of 31% compared to diluted earnings per share from continuing operations for the year ended December 31, 2006 of $1.17.

Revenue from continuing operations increased 3% for the year to $1,658.2 million. Gross margin from continuing operations grew 6% to $232.3 million.

Costs and expenses from continuing operations increased 0.3% in 2007 to $141.6 million compared to $141.2 million in 2006.

As of December 31, 2007, the Company had $38.0 million of cash.

FULL YEAR 2008

Given the current operating environment, we are comfortable that the earnings for 2008 will be within the current analysts' range of $1.50 to $1.62 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 Wednesday, February 6, 2008 to discuss its fourth quarter and full year 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 by Thomson/CCBN and can be accessed through the Investors link at Hub Group's Web site at http://www.hubgroup.com or individual investors can access the audio webcast at http://www.earnings.com and institutional investors can access the webcast at http://www.streetevents.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 call ten minutes early by dialing (800) 706-7745. The conference call participant code is 22579500. 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, 2006 and the report on Form 10-Q for the periods ended March 31, 2007, June 30, 2007 and September 30, 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          Twelve Months
                                    Ended December 31,    Ended December 31,
                                     2007      2006        2007       2006
    Revenue                        $445,464  $425,460  $1,658,168  $1,609,529

    Transportation costs            385,074   367,242   1,425,844   1,391,111
      Gross margin                   60,390    58,218     232,324     218,418

    Costs and expenses:
      Salaries and benefits          23,791    23,881      95,678      95,152
      General and administrative     10,001    10,949      41,416      39,929
      Depreciation and amortization   1,035     1,467       4,490       6,101
        Total costs and expenses     34,827    36,297     141,584     141,182

    Operating income                 25,563    21,921      90,740      77,236

    Other income (expense):
      Interest expense                  (30)      (50)       (108)       (115)
      Interest income                   513       643       2,480       2,311
      Other, net                         34        13         116          76
        Total other income              517       606       2,488       2,272

    Income from continuing
     operations before provision
     for income taxes                26,080    22,527      93,228      79,508

    Provision for income taxes        8,083     9,008      33,429      31,803

    Income from continuing
     operations                      17,997    13,519      59,799      47,705

    Discontinued operations:
      Income from discontinued
       operations of HGDS                 -         -           -       1,634
      Provision for income taxes          -         -           -         653
    Income from discontinued
     operations                           -         -           -         981

    Net income                      $17,997   $13,519     $59,799     $48,686

    Basic earnings per common share
      Income from continuing
       operations                     $0.48     $0.35       $1.55       $1.19
      Income from discontinued
       operations                         -         -           -        0.03
      Net income                      $0.48     $0.35       $1.55       $1.22

    Diluted earnings per common share
      Income from continuing
       operations                     $0.47     $0.34       $1.53       $1.17
      Income from discontinued
       operations                         -         -           -        0.02
      Net income                      $0.47     $0.34       $1.53       $1.19

    Basic weighted average number
     of shares outstanding           37,562    39,095      38,660      39,958
    Diluted weighted average
     number of shares outstanding    37,978    39,810      39,128      40,823



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

                                                    December 31,  December 31,
                                                       2007          2006
                                                    (Unaudited)
    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents                     $38,002       $43,491
        Accounts receivable
          Trade, net                                  160,944       158,284
          Other                                         9,828         8,369
        Prepaid taxes                                      86         2,119
        Deferred taxes                                  5,044         3,433
        Prepaid expenses and other current assets       4,318         4,450
            TOTAL CURRENT ASSETS                      218,222       220,146

      Restricted investments                            5,206         3,017
      Property and equipment, net                      29,662        26,974
      Other intangibles, net                            7,056         7,502
      Goodwill, net                                   230,448       225,448
      Other assets                                      1,373         1,461
              TOTAL ASSETS                           $491,967      $484,548

    LIABILITIES AND STOCKHOLDERS' EQUITY
      CURRENT LIABILITIES:
        Accounts payable
          Trade                                      $123,020      $117,676
          Other                                         6,683         7,783
        Accrued expenses
          Payroll                                      16,446        18,294
          Other                                        33,063        25,673
        Related party payable                           5,000         5,000
            TOTAL CURRENT LIABILITIES                 184,212       174,426
      Non-current liabilities                           9,708         7,691
      Deferred taxes                                   47,148        43,587
      STOCKHOLDERS' EQUITY:
        Preferred stock, $.01 par value; 2,000,000
         shares authorized; no shares issued or
         outstanding in 2007 and 2006                       -             -
        Common stock
          Class A: $.01 par value; 97,337,700 shares
           authorized in 2007; 41,224,792 shares issued
           and 36,666,731 outstanding in 2007;
           47,337,700 shares authorized in 2006;          412           412
           41,224,792 shares issued and
           38,943,122 outstanding in 2006
          Class B:  $.01 par value; 662,300 shares
           authorized; 662,296 shares issued and
           outstanding in 2007 and 2006                     7             7
        Additional paid-in capital                    176,657       179,203
        Purchase price in excess of predecessor
         basis, net of tax benefit of $10,306         (15,458)      (15,458)
        Retained earnings                             206,042       146,243
        Treasury stock; at cost, 4,558,061 shares
         in 2007 and 2,281,670 shares in 2006        (116,761)      (51,563)
          TOTAL STOCKHOLDERS' EQUITY                  250,899       258,844
              TOTAL LIABILITIES AND
               STOCKHOLDERS' EQUITY                  $491,967      $484,548



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

                                                        Twelve Months Ended
                                                             December 31,
                                                          2007         2006
    Cash flows from operating activities:
      Income from continuing operations                 $59,799      $47,705
      Adjustments to reconcile income from continuing
       operations to net cash provided by operating
       activities:
        Depreciation and amortization                     7,195        8,170
        Deferred taxes                                    3,523          690
        Compensation expense related to share-based
         compensation plans                               3,853        3,405
        Gain on sale of assets                             (160)        (131)
      Changes in operating assets and liabilities
       excluding effects of purchase transaction:
        Restricted investments                           (2,189)      (1,630)
        Accounts receivable, net                         (4,119)         393
        Prepaid taxes                                     2,033        3,317
        Prepaid expenses and other current assets           132         (297)
        Other assets                                         88         (837)
        Accounts payable                                  4,223        5,698
        Accrued expenses                                  4,441        8,496
        Deferred compensation                             1,761        1,608
              Net cash provided by operating activities  80,580       76,587

    Cash flows from investing activities:
      Proceeds from sale of equipment                       725          394
      Purchases of property and equipment               (10,197)      (8,372)
      Cash used in acquisition of Comtrak, Inc.          (5,000)     (39,942)
      Proceeds from disposal of discontinued operations       -       12,203
          Net cash used in investing activities         (14,472)     (35,717)

    Cash flows from financing activities:
      Proceeds from stock options exercised                 760        1,963
      Purchase of treasury stock                        (76,309)     (49,622)
      Excess tax benefits from share-based compensation   3,952       12,337
          Net cash used in financing activities         (71,597)     (35,322)

    Cash flows from operating activities of discontinued
     operations                                               -        1,848
    Cash flows used in investing activities of discontinued
     operations                                               -          (38)
          Net cash provided by discontinued operations        -        1,810

    Net (decrease) increase in cash and cash equivalents (5,489)       7,358
    Cash and cash equivalents beginning of year          43,491       36,133
    Cash and cash equivalents end of year               $38,002      $43,491

SOURCE  Hub Group, Inc.
    -0-                             02/06/2008
    /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 CCA ERP

SH-JR
-- AQW020 --
0420 02/06/2008 16:01 EST http://www.prnewswire.com