Press Release

Hub Group, Inc. Reports Record Third Quarter 2008 Earnings

DOWNERS GROVE, Ill., Oct. 22 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record diluted earnings per share for the quarter ended September 30, 2008 of $0.45. This represents an increase of 7% compared to last year's third quarter diluted earnings per share of $0.42. Earnings per share for the third quarter of 2007 included a one-time $1.2 million tax benefit or $0.03 per share. Excluding this benefit, earnings per share increased 15% this quarter. Hub Group's operating income for the third quarter was $27.3 million, a 10% increase versus operating income for the third quarter of 2007.

Hub Group's revenue increased 23% to $514.2 million compared to $417.8 million in the third quarter of 2007. Third quarter intermodal revenue increased 22% to $369.7 million. The increase was attributable to a 9% volume increase and a 13% increase in pricing, related primarily to fuel. Truck brokerage revenue was up 29% to $101.2 million this quarter. Third quarter logistics revenue increased 20% to $43.3 million. Gross margin increased by 10% or $5.7 million to $63.2 million compared to the third quarter of 2007.

Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer of Hub Group stated, "We are pleased with our performance in the third quarter. Strong intermodal volume growth contributed to the highest third quarter earnings per share in the Company's history. Our asset light business model continues to give us the ability to perform well in both strong and weak freight markets."

FULL YEAR 2008

Given the current operating environment, we are comfortable that the earnings for 2008 will be within the current analysts' range of $1.65 to $1.70 per diluted share.

CONFERENCE CALL

Hub will hold a conference call at 4:30 p.m. Eastern Time on Wednesday, October 22, 2008 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 and can be accessed through the Investors link on Hub Group's Web site at http://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) 713-4213. The conference call participant code is 79012655. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PL4YELEYA. 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 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, 2007 and the reports on Form 10-Q for the periods ended March 31, 2008 and June 30, 2008. 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,
                                    2008      2007       2008        2007
    Revenue                       $514,212  $417,842  $1,430,136  $1,212,704

    Transportation costs           451,052   360,332   1,249,635   1,040,770
      Gross margin                  63,160    57,510     180,501     171,934

    Costs and expenses:
      Salaries and benefits         24,116    22,100      73,780      71,887
      General and administrative    10,766     9,596      31,393      31,415
      Depreciation and
       amortization                    995     1,080       2,987       3,455
        Total costs and expenses    35,877    32,776     108,160     106,757

    Operating income                27,283    24,734      72,341      65,177

    Other income (expense):
      Interest expense                 (31)      (33)        (83)        (78)
      Interest and dividend income     362       711       1,040       1,967
      Other, net                       (58)       24          28          82
        Total other income             273       702         985       1,971

    Income before provision for
     income taxes                   27,556    25,436      73,326      67,148

    Provision for income taxes      10,626     8,828      28,291      25,346

    Net income                     $16,930   $16,608     $45,035     $41,802

    Basic earnings per common
     share                           $0.45     $0.43       $1.21       $1.07

    Diluted earnings per common
     share                           $0.45     $0.42       $1.20       $1.06

    Basic weighted average number
     of shares outstanding          37,209    38,777      37,167      39,026
    Diluted weighted average
     number of shares outstanding   37,541    39,230      37,478      39,511



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

                                               September 30,      December 31,
                                                   2008                2007
                                                (Unaudited)
    ASSETS
     CURRENT ASSETS:
       Cash and cash equivalents                  $63,378             $38,002
       Accounts receivable
         Trade, net                               202,901             160,944
         Other                                     12,594               9,828
       Prepaid taxes                                   86                  86
       Deferred taxes                               4,024               5,044
       Prepaid expenses and other
        current assets                              5,734               4,318
          TOTAL CURRENT ASSETS                    288,717             218,222

     Restricted investments                         7,089               5,206
     Property and equipment, net                   30,955              29,662
     Other intangibles, net                         6,722               7,056
     Goodwill, net                                230,448             230,448
     Other assets                                   1,165               1,373
       TOTAL ASSETS                              $565,096            $491,967


    LIABILITIES AND STOCKHOLDERS'
     EQUITY
      CURRENT LIABILITIES:
        Accounts payable
          Trade                                  $150,434            $123,020
          Other                                     9,189               6,683
        Accrued expenses
          Payroll                                  13,537              16,446
          Other                                    28,067              32,408
        Related party payable                         -                 5,000
          TOTAL CURRENT LIABILITIES               201,227             183,557
      Non-current liabilities                      10,121              10,363
      Deferred taxes                               53,587              47,148
      STOCKHOLDERS' EQUITY:
        Preferred stock, $.01 par value;
         2,000,000 shares authorized;
         no shares issued or outstanding
         in 2008 and 2007                            -                   -
        Common stock
           Class A: $.01 par value;
            97,337,700 shares authorized
            and 41,224,792 shares issued in
            2008 and 2007; 36,986,767
            shares outstanding in 2008 and
            36,666,731 outstanding in
            2007                                      412                 412
           Class B:  $.01 par value;
            662,300 shares authorized;
            662,296 shares issued and
            outstanding in 2008 and 2007                7                   7
        Additional paid-in capital                173,158             176,657
        Purchase price in excess of
         predecessor basis, net of tax
         benefit of $10,306                       (15,458)            (15,458)
        Retained earnings                         251,077             206,042
        Treasury stock; at cost,
         4,238,025 shares in 2008
         and 4,558,061 shares in 2007            (109,035)           (116,761)
           TOTAL STOCKHOLDERS' EQUITY             300,161             250,899
             TOTAL LIABILITIES AND
              STOCKHOLDERS' EQUITY               $565,096            $491,967



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

                                                        Nine Months Ended
                                                          September 30,
                                                    2008               2007


    Cash flows from operating
     activities:
      Net income                                  $45,035            $41,802
      Adjustments to reconcile net
       income to net cash provided by
       operating activities:
        Depreciation and amortization               5,326              5,475
        Deferred taxes                              7,459              3,178
        Compensation expense related to
         share-based compensation plans             3,332              2,893
        Loss (gain) on sale of assets                  77               (156)
      Changes in operating assets and
       liabilities:
        Restricted investments                     (1,883)            (2,099)
        Accounts receivable, net                  (44,723)           (26,244)
        Prepaid taxes                                 -                2,033
        Prepaid expenses and other
         current assets                            (1,416)              (794)
        Other assets                                  208                 21
        Accounts payable                           29,920             12,724
        Accrued expenses                           (7,250)             1,909
        Non-current liabilities                      (242)               662
          Net cash provided by operating
           activities                              35,843             41,404

    Cash flows from investing
     activities:
      Proceeds from sale of equipment                 857                715
      Purchases of property and
       equipment                                   (7,219)            (8,203)
      Cash used in acquisition of
       Comtrak, Inc.                               (5,000)            (5,000)
         Net cash used in investing
          activities                              (11,362)           (12,488)

    Cash flows from financing
     activities:
      Proceeds from stock options
       exercised                                      401                703
      Purchase of treasury stock                   (2,215)           (37,142)
      Excess tax benefits from
       share-based compensation                     2,709              3,856
         Net cash provided by (used in)
          financing activities                        895            (32,583)


    Net increase (decrease) in cash and
     cash equivalents                              25,376             (3,667)
    Cash and cash equivalents beginning
     of period                                     38,002             43,491
    Cash and cash equivalents end of
     period                                       $63,378            $39,824

SOURCE Hub Group, Inc.