Press Release

Hub Group, Inc. Reports Record Revenue and Earnings for the Fourth Quarter and Full Year 2006 and Provides 2007 Guidance

DOWNERS GROVE, Ill., Feb. 12 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record income from continuing operations for the quarter ended December 31, 2006 of $13.5 million, a 54% increase versus income from continuing operations for the fourth quarter of 2005. Hub Group's diluted earnings per share from continuing operations was $0.34 for the fourth quarter 2006. This represents an increase of 55% compared to last year's fourth quarter diluted earnings per share from continuing operations of $0.22. Hub Group's operating margin increased to 5.2% in 2006 from 3.5% in 2005 due to yield enhancement efforts, improved operational efficiencies, and growth in drayage and truck brokerage.

Hub Group's revenue grew by 5.5% to $425.5 million compared to $403.2 million in the fourth quarter of 2005. Fourth quarter intermodal revenue increased 1.6% to $307.1 million, which includes the addition of Comtrak for the entire quarter. Truck brokerage revenue increased 14.5% to $81.5 million this quarter. Fourth quarter logistics revenue increased 24.2% to $36.9 million. Gross margin from continuing operations grew 27.8% to $58.2 million compared to the fourth quarter of 2005.

FULL YEAR 2006

Revenue from continuing operations for the year was $1,609.5 million compared to $1,481.9 million in 2005, or an increase of 8.6%. Gross margin from continuing operations grew 25% to $218.4 million compared to 2005.

Costs and expenses from continuing operations increased 11.3% in 2006 to $141.2 million compared to $126.8 million in 2005 due primarily to the Comtrak acquisition. Other income from continuing operations was $2.3 million in 2006 compared to $1.0 million in 2005.

Income from continuing operations increased 63.5% to $47.7 million for 2006 compared to last year's income from continuing operations of $29.2 million. Hub Group's diluted earnings per share from continuing operations for the year ended December 31, 2006 was $1.17. This represents an increase of 65% compared to diluted earnings per share from continuing operations for the year ended December 31, 2005 of $0.71.

As of December 31, 2006, the Company had $43.5 million of cash compared to $36.1 million at December 31, 2005.

FULL YEAR 2007

Given the current operating environment, we are comfortable that the earnings for 2007 will be within the current analysts' range of $1.25 to $1.40 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 Monday, February 12, 2007 to discuss its fourth quarter and full year results.

Hosting the conference call will be David P. Yeager, Vice-Chairman and CEO and Thomas M. White, Senior 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) 510-0219. The conference call participant code is 35092717. 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, truckload 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, 2005 and Form 10-Q for the periods ended March 31, 2006, June 30, 2006 and September 30, 2006. 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,
                                     2006      2005       2006        2005
    Revenue                        $425,460  $403,217  $1,609,529  $1,481,878

    Transportation costs            367,242   357,663   1,391,111   1,307,136
      Gross margin                   58,218    45,554     218,418     174,742

    Costs and expenses:
      Salaries and benefits          23,881    21,267      95,152      83,392
      General and administrative     11,344     7,952      39,929      34,541
      Depreciation and amortization   1,072     2,169       6,101       8,905
        Total costs and expenses     36,297    31,388     141,182     126,838

          Operating income           21,921    14,166      77,236      47,904

    Other income (expense):
      Interest expense                  (50)      (15)       (115)       (124)
      Interest income                   643       369       2,311         971
      Other, net                         13        30          76         120
        Total other income              606       384       2,272         967

    Income from continuing
     operations before provision
     for income taxes                22,527    14,550      79,508      48,871

    Provision for income taxes        9,008     5,743      31,803      19,695

    Income from continuing
     operations                      13,519     8,807      47,705      29,176

    Discontinued operations:
    Income from discontinued
     operations of HGDS (including
     loss on disposal of $70 in
     2006)                              -       2,088       1,634       6,315
    Provision for income taxes          -         832         653       2,545
    Income from discontinued
     operations                         -       1,256         981       3,770

    Net income                      $13,519   $10,063     $48,686     $32,946

    Basic earnings per common
     share
      Income from continuing
       operations                     $0.35     $0.22       $1.19       $0.73
      Income from discontinued
       operations                       -        0.03        0.03        0.10
      Net income                      $0.35     $0.25       $1.22       $0.83

    Diluted earnings per common
     share
      Income from continuing
       operations                     $0.34     $0.22       $1.17       $0.71
      Income from discontinued
       operations                       -        0.03        0.02        0.09
      Net income                      $0.34     $0.25       $1.19       $0.80

    Basic weighted average number
     of shares outstanding           39,095    39,640      39,958      39,860
    Diluted weighted average
     number of shares outstanding    39,810    40,850      40,823      41,392



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


                                              December 31,        December 31,
                                                  2006                2005
    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents                 $43,491             $36,133
        Accounts receivable
          Trade, net                              158,284             147,004
          Other                                     8,369              10,603
        Prepaid taxes                               3,202               6,040
        Deferred taxes                              3,433                 -
        Prepaid expenses and other current
         assets                                     4,450               3,860
        Assets of discontinued operations             -                17,855
          TOTAL CURRENT ASSETS                    221,229             221,495

      Restricted investments                        3,017               1,387
      Property and equipment, net                  26,974              12,767
      Other intangibles, net                        7,502                 -
      Goodwill, net                               225,448             208,150
      Other assets                                    378                 619
            TOTAL ASSETS                         $484,548            $444,418


    LIABILITIES AND STOCKHOLDERS' EQUITY
      CURRENT LIABILITIES:
        Accounts payable
          Trade                                  $117,676            $114,094
          Other                                     6,839               3,668
        Accrued expenses
          Payroll                                  15,901              14,826
          Other                                    29,010              18,917
        Related party payable                       5,000                 -
        Deferred taxes                                -                   960
        Liabilities of discontinued operations        -                 5,341
          TOTAL CURRENT LIABILITIES               174,426             157,806
      Deferred compensation                         7,691               6,083
      Deferred taxes                               43,587              38,454
      STOCKHOLDERS' EQUITY:
        Preferred stock, $.01 par value;
         2,000,000 shares authorized; no
         shares issued or outstanding in 2006
         and 2005                                     -                   -
        Common stock
         Class A: $.01 par value; 47,337,700
          shares authorized; 41,224,792 shares
          issued and 38,943,122 outstanding in
          2006; 41,224,792 shares issued and
          39,962,484 outstanding in 2005              412                 412
         Class B:  $.01 par value; 662,300
          shares authorized; 662,296 shares
          issued and outstanding in 2006 and
          2005                                          7                   7
        Additional paid-in capital                179,203             183,524
        Purchase price in excess of predecessor
         basis, net of tax benefit of $10,306     (15,458)            (15,458)
        Retained earnings                         146,243              97,557
        Unearned compensation                         -                (6,259)
        Treasury stock; at cost, 2,281,670
         shares in 2006 and 1,262,308 shares in
         2005                                     (51,563)            (17,708)
          TOTAL STOCKHOLDERS' EQUITY              258,844             242,075
            TOTAL LIABILITIES AND
             STOCKHOLDERS' EQUITY                $484,548            $444,418



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

                                                      Twelve Months Ended
                                                          December 31,
                                                    2006               2005


    Cash flows from operating activities:
      Income from continuing operations            $47,705            $29,176
      Adjustments to reconcile income from
       continuing operations to net cash
       provided by operating activities:
        Depreciation and amortization                8,170              9,319
        Deferred taxes                                 690             18,382
        Compensation expense related to
         share-based compensation plans              3,405              2,148
        Gain on sale of assets                        (131)              (271)
      Changes in operating assets and
       liabilities excluding effects of
       purchase transaction:
        Restricted investments                      (1,630)            (1,387)
        Accounts receivable, net                       393            (18,931)
        Prepaid taxes                                2,234             (6,151)
        Prepaid expenses and other current
         assets                                       (297)               722
        Other assets                                   246                200
        Accounts payable                             4,754              3,039
        Accrued expenses                             9,440              8,497
        Deferred compensation                        1,608             (1,534)
            Net cash provided by operating
             activities                             76,587             43,209

    Cash flows from investing activities:
      Proceeds from sale of equipment                  394                579
      Purchases of property and equipment           (8,372)            (4,078)
      Cash used in acquisition of Comtrak, Inc.    (39,942)               -
      Proceeds from the disposal of
       discontinued operations                      12,203                -
        Net cash used in investing activities      (35,717)            (3,499)

    Cash flows from financing activities:
      Proceeds from stock options exercised          1,963              4,738
      Purchase of treasury stock                   (49,622)           (33,245)
      Excess tax benefits from share-based
       compensation                                 12,337                -
        Net cash used in financing activities      (35,322)           (28,507)

    Cash flows from operating activities of
     discontinued operations                         1,848              8,416
    Cash flows used in investing activities
     of discontinued operations                        (38)              (292)
        Net cash provided by discontinued
         operations                                  1,810              8,124

    Net increase in cash and cash equivalents        7,358             19,327
    Cash and cash equivalents beginning of
     period                                         36,133             16,806
    Cash and cash equivalents end of period        $43,491            $36,133

    Supplemental disclosures of cash paid for:
        Interest                                      $114               $124
        Income taxes                               $16,801             $6,811
SOURCE  Hub Group, Inc.
    -0-                             02/12/2007
    /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

SA-AM
-- CGM003 --
5381 02/12/2007 16:01 EST http://www.prnewswire.com