Press Release

Hub Group, Inc. Reports Second Quarter 2010 Earnings

DOWNERS GROVE, Ill., July 21, 2010 /PRNewswire via COMTEX/ --

Hub Group, Inc. (Nasdaq: HUBG) today announced financial results for the quarter ended June 30, 2010.

"The return of a robust freight market coupled with the retention of our long-standing customer relationships and success in the bids this year helped drive our impressive volume and earnings growth this quarter," said David P. Yeager, Chairman and Chief Executive Officer. "With the additional density, we have improved our drayage efficiencies and equipment utilization and look forward to meeting what we expect will be healthy demand in the second half of this year."

Hub Group reported income of $9.6 million for the second quarter ended June 30, 2010, an increase of 16% compared to the second quarter of 2009. Hub Group's diluted earnings per share was $0.26 for the second quarter of 2010, which represents an increase of 18% when compared with the prior year period.

Each of the three business lines contributed to Hub Group's overall revenue increase of 26% to $458 million. Second quarter intermodal revenue increased 26% to $320 million. The increase was attributable to a 25% volume increase and an 8% increase for fuel, partially offset by a 7% decrease for price and mix. Truck brokerage revenue increased 21% to $86 million this quarter. Second quarter Unyson Logistics revenue increased 38% to $52 million.

Hub Group ended the quarter with $128 million in cash.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, July 21, 2010 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) 680-0892. The conference call participant code is 73375487. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PB9UXETR8. 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, 2009 and the report on Form 10-Q for the period ended March 31, 2010. Hub Group assumes no liability to update any such forward-looking statements.


                                             HUB GROUP, INC.
                               UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                                 (in thousands, except per share amounts)

                                       Three Months            Six Months
                                       Ended June 30,        Ended June 30,
                                       --------------        --------------
                                       2010      2009        2010      2009
                                       ----      ----        ----      ----
    Revenue                        $458,113  $362,613    $875,407  $714,308

    Transportation costs            407,537   316,850     776,013   623,376
                                    -------   -------     -------   -------
      Gross margin                   50,576    45,763      99,394    90,932

    Costs and expenses:
      Salaries and benefits          23,863    22,063      47,321   45,277
      General and administrative     10,064     9,130      20,209   19,253
      Depreciation and amortization     934     1,124       1,907    2,280

        Total costs and expenses     34,861    32,317      69,437   66,810


    Operating income                 15,715    13,446      29,957   24,122

    Other income (expense):
      Interest expense                  (12)      (25)        (26)     (50)
      Interest and dividend income       23        36          48       91
      Other, net                         84        62         152       72

        Total other income               95        73         174      113

    Income before provision for
     income taxes                    15,810    13,519      30,131   24,235

    Provision for income taxes        6,180     5,214      11,799    9,752
                                      -----     -----      ------    -----

    Net income                       $9,630    $8,305     $18,332  $14,483
                                     ======    ======     =======  =======

    Basic earnings per common share   $0.26     $0.22       $0.49    $0.39
                                      =====     =====       =====    =====

    Diluted earnings per common
     share                            $0.26     $0.22       $0.49    $0.39
                                      =====     =====       =====    =====

    Basic weighted average number
     of shares outstanding           37,429    37,344      37,478   37,333
                                     ======    ======      ======   ======

    Diluted weighted average number
     of shares outstanding           37,580    37,480      37,611   37,446
                                     ======    ======      ======   ======

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

                                                June 30,     December 31,
                                                  2010          2009
                                                  ----          ----
                                                (Unaudited)
    ASSETS
      CURRENT ASSETS:
        Cash and cash equivalents               $128,356      $126,863
        Accounts receivable trade, net           195,134       145,317
        Accounts receivable other                 14,621        11,932
        Prepaid taxes                                354           593
        Deferred taxes                               955         2,874
        Prepaid expenses and other current
         assets                                    6,867         6,801
                                                   -----         -----
                     TOTAL CURRENT ASSETS        346,287       294,380

      Restricted investments                       9,294         9,583
      Property and equipment, net                 27,577        28,510
      Other intangibles, net                       5,941         6,164
      Goodwill, net                              232,782       232,892
      Other assets                                 2,340         1,819
                                                   -----         -----
                     TOTAL ASSETS               $624,221      $573,348
                                                ========      ========


    LIABILITIES AND STOCKHOLDERS' EQUITY
      CURRENT LIABILITIES:
        Accounts payable trade                  $146,872      $110,626
        Accounts payable other                     9,237         7,695
        Accrued payroll                            9,003         8,253
        Accrued other                             21,762        18,958
                                                  ------        ------
                     TOTAL CURRENT LIABILITIES   186,874       145,532

      Non-current liabilities                     11,640        12,002
      Deferred taxes                              64,509        61,973

      STOCKHOLDERS' EQUITY:
        Preferred stock, $.01 par value;
         2,000,000 shares authorized; no shares
         issued or outstanding in 2010 and 2009        -             -
        Common stock
          Class A: $.01 par value; 97,337,700
           shares authorized and 41,224,792
           shares issued in 2010 and 2009;
           37,016,157 shares outstanding in
           2010 and 37,253,330 shares outstanding
           in 2009                                   412           412
          Class B:  $.01 par value; 662,300
           shares authorized; 662,296 shares issued
           and outstanding in 2010 and 2009            7             7
        Additional paid-in capital               168,343       171,470
        Purchase price in excess of predecessor
         basis, net of tax benefit of $10,306    (15,458)      (15,458)
        Retained earnings                        317,884       299,552
        Other comprehensive income (loss)              2            (9)
        Treasury stock; at cost, 4,208,635
         shares in 2010 and 3,971,462 shares
         in 2009                                (109,992)     (102,133)
                                                 -------       -------
                     TOTAL STOCKHOLDERS' EQUITY  361,198       353,841
                                                 -------       -------
                          TOTAL LIABILITIES AND
                           STOCKHOLDERS' EQUITY $624,221      $573,348
                                                ========      ========




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

                                                         Six Months Ended
                                                             June 30,
                                                             --------
                                                        2010          2009
                                                         ----         ----


    Cash flows from operating activities:
      Net income                                       $18,332      $14,483
      Adjustments to reconcile net income
        to net cash provided by operating activities:
          Depreciation and amortization                  3,945        4,320
          Deferred taxes                                 4,644        3,227
          Compensation expense related to share-based
           compensation plans                            1,822        2,152
          Loss (gain) on sale of assets                     19          (16)
      Changes in operating assets and liabilities:
          Restricted investments                           289       (1,570)
          Accounts receivable, net                     (52,505)       1,709
          Prepaid expenses and other current assets        174       (2,260)
          Other assets                                    (520)          63
          Accounts payable                              36,312       11,047
          Accrued expenses                               2,939       (3,362)
          Non-current liabilities                         (441)         288
                                                           ----         ---
            Net cash provided by operating activities   15,010       30,081


    Cash flows from investing activities:
      Proceeds from sale of equipment                      720           53
      Purchases of property and equipment               (2,051)      (1,951)
                                                         ------       ------
            Net cash used in investing activities       (1,331)      (1,898)
                                                         ------       ------

    Cash flows from financing activities:
      Proceeds from stock options exercised                 14           44
      Purchase of treasury stock                       (12,365)      (1,082)
      Excess tax benefits from share-based
       compensation                                        154          147
                                                           ---          ---
            Net cash used by financing activities      (12,197)        (891)
                                                        -------         ----



      Effect of exchange rate changes on cash and
       cash equivalents                                     11             -
                                                           ---           ---

    Net increase in cash and cash equivalents            1,493        27,292
    Cash and cash equivalents beginning of period      126,863        85,799
    Cash and cash equivalents end of period           $128,356      $113,091
                                                      ========      ========


SOURCE Hub Group, Inc.