Press Release

Hub Group, Inc. Reports Second Quarter 2009 Earnings
DOWNERS GROVE, Ill., July 22, 2009 /PRNewswire-FirstCall via COMTEX/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported income for the quarter ended June 30, 2009 of $8.3 million. Hub Group's diluted earnings per share was $0.22 for the second quarter of 2009.

Hub Group's revenue decreased 26% to $363 million compared to $491 million in the second quarter of 2008. Second quarter intermodal revenue decreased 28% to $254 million. The decrease was attributable to a 10% volume decrease and an 18% decrease related primarily to fuel. Truck brokerage revenue decreased 28% to $72 million this quarter. Second quarter logistics revenue decreased 9% to $37 million.

Hub Group ended the quarter with $113 million in cash.

"Each of our business lines continues to generate respectable returns even in this difficult freight environment," said David P. Yeager, Chairman and Chief Executive Officer. "Although revenue is down, we continue to focus aggressively on productivity enhancements to reduce our costs while maintaining a high level of customer service."

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, July 22, 2009 to discuss its second quarter results.

Hosting the conference call will be David P. Yeager, 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 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) 680-0890. The conference call participant code is 53036098. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P3NHPE4DX. 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 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, 2008 and the report on Form 10-Q for the period ended March 31, 2009. 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         Six Months
                                        Ended June 30,      Ended June 30,
                                       2009      2008      2009      2008

    Revenue                         $362,613  $490,929  $714,308  $915,924

    Transportation costs             316,850   431,090   623,376   798,583
      Gross margin                    45,763    59,839    90,932   117,341
    Costs and expenses:
      Salaries and benefits           22,063    24,301    45,277    49,664
      General and administrative       9,130    10,477    19,253    20,627
      Depreciation and amortization    1,124       991     2,280     1,992
        Total costs and expenses      32,317    35,769    66,810    72,283

    Operating income                  13,446    24,070    24,122    45,058

    Other income (expense):
      Interest expense                   (25)      (26)      (50)      (52)
      Interest and dividend income        36       340        91       678
      Other, net                          62        (9)       72        86
        Total other income                73       305       113       712

    Income before provision for
     income taxes                     13,519    24,375    24,235    45,770

    Provision for income taxes         5,214     9,405     9,752    17,665

    Net income                        $8,305   $14,970   $14,483   $28,105

    Basic earnings per common share    $0.22     $0.40     $0.39     $0.76

    Diluted earnings per common share  $0.22     $0.40     $0.39     $0.75

    Basic weighted average number of
     shares outstanding               37,344    37,191    37,333    37,146
    Diluted weighted average number
     of shares outstanding            37,480    37,489    37,446    37,447

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

                                               June 30,      December 31,
                                                 2009              2008
                                             (Unaudited)

    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents              $113,091          $ 85,799
        Accounts receivable
          Trade, net                            143,368           145,362
          Other                                  10,603            10,318
        Prepaid taxes                               123               123
        Deferred taxes                            5,683             5,430
        Prepaid expenses and other current
         assets                                   6,606             4,346
            TOTAL CURRENT ASSETS                279,474           251,378

    Restricted investments                        7,688             6,118
    Property and equipment, net                  29,968            32,713
    Other intangibles, net                        6,387             6,610
    Goodwill, net                               233,001           233,110
    Other assets                                  1,684             1,747
            TOTAL ASSETS                       $558,202          $531,676


    LIABILITIES AND STOCKHOLDERS' EQUITY
      CURRENT LIABILITIES:
        Accounts payable
          Trade                                $114,093          $105,064
          Other                                   8,125             6,107
        Accrued expenses
          Payroll                                 6,890             9,988
          Other                                  25,562            26,388
            TOTAL CURRENT LIABILITIES           154,670           147,547
    Non-current liabilities                       9,760             9,535
    Deferred taxes                               62,844            59,410
    STOCKHOLDERS' EQUITY:
      Preferred stock, $.01 par value;
       2,000,000 shares authorized; no shares
       issued or outstanding in 2009 and 2008         -                 -
      Common stock
        Class A: $.01 par value; 97,337,700
         shares authorized and 41,224,792
         shares issued in 2009 and 2008;
         37,162,919 shares outstanding in
         2009 and 36,970,347 shares outstanding
         in 2008                                    412               412
        Class B:  $.01 par value; 662,300 shares
         authorized; 662,296 shares issued and
         outstanding in 2009 and 2008                 7                 7
      Additional paid-in capital                170,654           174,355
      Purchase price in excess of predecessor
       basis, net of tax benefit of $10,306     (15,458)          (15,458)
      Retained earnings                         279,770           265,287
      Treasury stock; at cost, 4,061,873
       shares in 2009 and 4,254,445 shares
       in 2008                                 (104,457)         (109,419)
        TOTAL STOCKHOLDERS' EQUITY              330,928           315,184
            TOTAL LIABILITIES AND
             STOCKHOLDERS' EQUITY              $558,202          $531,676

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

                                                      Six Months Ended
                                                           June 30,
                                                   2009              2008

    Cash flows from operating activities:
      Net income                                $14,483           $28,105
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
        Depreciation and amortization             4,320             3,395
        Deferred taxes                            3,227             5,149
        Compensation expense related to
         share-based compensation plans           2,152             2,257
        Gain on sale of assets                      (16)             (197)
      Changes in operating assets and
       liabilities:
        Restricted investments                   (1,570)           (2,540)
        Accounts receivable, net                  1,709           (31,826)
        Prepaid expenses and other current
         assets                                  (2,260)           (1,607)
        Other assets                                 63               122
        Accounts payable                         11,047            26,608
        Accrued expenses                         (3,362)           (8,938)
        Non-current liabilities                     288                45
          Net cash provided by operating
           activities                            30,081            20,573

    Cash flows from investing activities:
      Proceeds from sale of equipment                53               364
      Purchases of property and equipment        (1,951)           (1,858)
      Cash used in acquisition of Comtrak, Inc.       -            (5,000)
          Net cash used in investing activities  (1,898)           (6,494)

    Cash flows from financing activities:
      Proceeds from stock options exercised          44               355
      Purchase of treasury stock                 (1,082)             (796)
      Excess tax benefits from share-based
       compensation                                 147             2,398
          Net cash (used in) provided by
           financing activities                    (891)            1,957


    Net increase in cash and cash equivalents    27,292            16,036
    Cash and cash equivalents beginning
     of period                                   85,799            38,002
    Cash and cash equivalents end of period    $113,091           $54,038

SOURCE Hub Group, Inc.


http://www.hubgroup.com