Press Release

Hub Group, Inc. Reports Record Third Quarter 2007 Earnings

DOWNERS GROVE, Ill., Oct. 22 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record income for the quarter ended September 30, 2007 of $16.6 million, a 23% increase versus income for the third quarter of 2006. Hub Group's diluted earnings per share was $0.42 for the third quarter of 2007. This represents an increase of 27% compared to last year's third quarter diluted earnings per share of $0.33. Hub Group's operating margin increased to 5.9% in 2007 from 5.1% in 2006 due to improved operational efficiencies and cost controls.

Hub Group's revenue decreased 3.3% to $417.8 million compared to $432.0 million in the third quarter of 2006. Third quarter intermodal revenue decreased 4.9% to $303.3 million. The decrease was attributable to a 2% volume decline and a 3% decrease related to price and mix. Truck brokerage revenue was flat at $77.1 million this quarter. Third quarter logistics revenue increased 4.1% to $37.4 million. Gross margin increased 0.3% to $57.5 million compared to the third quarter of 2006.

Hub Group also announced that it has terminated its acquisition of DNJ Transportation. The closing was expected to occur around the beginning of October but was subject to certain conditions and approvals. Several of these conditions were not met and therefore Hub elected not to proceed with the transaction.

FULL YEAR 2007

Hub Group expects that its earnings for 2007 will be within a range of $1.39 to $1.44 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, October 22, 2007 to discuss its third quarter 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 (866) 700-6293. The conference call participant code is 38099567. 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 and June 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               Nine Months
                                Ended September 30,       Ended September 30,
                                 2007         2006         2007         2006

    Revenue                   $417,842     $432,009   $1,212,704    1,184,069

    Transportation costs       360,332      374,673    1,040,770    1,023,869
      Gross margin              57,510       57,336      171,934      160,200

    Costs and expenses:
      Salaries and benefits     22,100       23,965       71,887       71,271
      General and
       administrative            9,596        9,890       31,415       28,585
      Depreciation and
       amortization              1,080        1,642        3,455        5,029
         Total costs and
          expenses              32,776       35,497      106,757      104,885

    Operating income            24,734       21,839       65,177       55,315

    Other income (expense):
      Interest expense             (33)         (22)         (78)         (65)
      Interest income              711          670        1,967        1,668
      Other, net                    24            7           82           63
        Total other income         702          655        1,971        1,666

    Income from continuing
     operations before
     provision for income
     taxes                      25,436       22,494       67,148       56,981

    Provision for income
     taxes                       8,828        9,000       25,346       22,795

    Income from continuing
     operations                 16,608       13,494       41,802       34,186

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


    Net income                 $16,608      $13,494      $41,802      $35,167

    Basic earnings per common
     share
      Income from continuing
       operations                $0.43        $0.34        $1.07        $0.85
      Income from discontinued
       operations                  -            -            -           0.02
      Net income                 $0.43        $0.34        $1.07        $0.87

    Diluted earnings per common
     share
      Income from continuing
       operations                $0.42        $0.33        $1.06        $0.83
      Income from discontinued
       operations                  -            -            -           0.02
      Net income                 $0.42        $0.33        $1.06        $0.85

    Basic weighted average
     number of shares
     outstanding                38,777       39,773       39,026        40,246
    Diluted weighted average
     number of shares
     outstanding                39,230       40,572       39,511        41,161



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


                                             September 30,        December 31,
                                                 2007                 2006
                                             (Unaudited)

    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents                  $39,824            $43,491
        Accounts receivable
          Trade, net                               181,601            158,284
          Other                                     11,296              8,369
        Prepaid taxes                                   86              2,119
        Deferred taxes                               4,207              3,433
        Prepaid expenses and other
         current assets                              5,244              4,450
          TOTAL CURRENT ASSETS                     242,258            220,146

     Restricted investments                          5,116              3,017
     Property and equipment, net                    29,477             26,974
     Other intangibles, net                          7,168              7,502
     Goodwill, net                                 225,448            225,448
     Other assets                                    1,440              1,461
          TOTAL ASSETS                            $510,907           $484,548


    LIABILITIES AND STOCKHOLDERS'
     EQUITY
      CURRENT LIABILITIES:
        Accounts payable
          Trade                                   $129,986           $117,676
          Other                                      6,091              6,839
        Accrued expenses
          Payroll                                   12,484             18,294
          Other                                     35,742             26,617
        Related party payable                          -                5,000
          TOTAL CURRENT LIABILITIES                184,303            174,426
      Non-current liabilities                       13,400              7,691
      Deferred taxes                                42,248             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 38,217,278 outstanding
           in 2007; 47,337,700 shares
           authorized in 2006
           41,224,792 shares issued and
           38,943,122 outstanding in
           2006                                        412                412
          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                 176,317            179,203
      Purchase price in excess of
       predecessor basis, net of tax
       benefit of $10,306                          (15,458)           (15,458)
      Retained earnings                            188,045            146,243
      Treasury stock; at cost,
       3,007,514 shares in 2007
       and 2,281,670 shares in 2006                (78,367)           (51,563)
        TOTAL STOCKHOLDERS' EQUITY                 270,956            258,844
          TOTAL LIABILITIES AND
           STOCKHOLDERS' EQUITY                   $510,907           $484,548



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

                                                        Nine Months Ended
                                                           September 30,
                                                     2007               2006


    Cash flows from operating
     activities:
      Income from continuing operations            $41,802            $34,186
      Adjustments to reconcile income
       from continuing operations
       to net cash provided by operating
       activities:
        Depreciation and amortization                5,475              6,410
        Deferred taxes                               3,178                 12
        Compensation expense related to
         share-based compensation plans              2,893              2,649
        Gain on sale of assets                        (156)               (31)
      Changes in operating assets and
       liabilities excluding effects of
       purchase transaction:
        Restricted investments                      (2,099)            (1,163)
        Accounts receivable, net                   (26,244)            (6,325)
        Prepaid taxes                                2,033              5,295
        Prepaid expenses and other
         current assets                               (794)            (1,202)
        Other assets                                    21                234
        Accounts payable                            11,562             13,904
        Accrued expenses                             3,315              9,152
        Non-current liabilities                        418                -
          Net cash provided by operating
           activities                               41,404             63,121

    Cash flows from investing activities:
      Proceeds from sale of equipment                  715                228
      Purchases of property and
       equipment                                    (8,203)            (5,247)
      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                              (12,488)           (32,758)

    Cash flows from financing
     activities:
      Proceeds from stock options
       exercised                                       703              1,924
      Purchase of treasury stock                   (37,142)           (45,191)
      Excess tax benefits from share-
       based compensation                            3,856              7,897
          Net cash used in financing
           activities                              (32,583)           (35,370)

    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 in cash and cash
     equivalents                                    (3,667)            (3,197)
    Cash and cash equivalents beginning
     of period                                      43,491             36,133
    Cash and cash equivalents end of
     period                                        $39,824            $32,936

SOURCE  Hub Group, Inc.
    -0-                             10/22/2007
    /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 CCA ERP

EY-CD
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3293 10/22/2007 16:00 EDT http://www.prnewswire.com