Press Release

Hub Group, Inc. Reports Second Quarter 2015 Earnings

OAK BROOK, Ill., July 21, 2015 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended June 30, 2015.

Hub Group reported net income of $18.5 million for the second quarter ended June 30, 2015 compared to $18.7 million in the second quarter of 2014.  Hub Group's diluted earnings per share was $0.51 for the second quarter of 2015 and 2014.  Hub Group's revenue increased 1% to $900 million

The Hub segment's revenue increased 1% to $686 million.  Second quarter intermodal revenue increased 2% to $465 million.  Truck brokerage revenue increased 8% to $93 million this quarter.  Second quarter Unyson Logistics revenue declined 8% to $128 million.  The Hub segment's operating income was $22 million

The Mode segment's revenue increased 1% to $234 million.  Operating income was $7.5 million, an increase of 12% compared to the prior year period.

Hub Group ended the quarter with $157 million in cash.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Tuesday, July 21, 2015 to discuss its second quarter results.

Hosting the conference call will be David Yeager, Chairman and Chief Executive Officer, Mark Yeager, Vice-Chairman, President and Chief Operating Officer, and Terri 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.  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 register at http://www.yourconferencecenter.com/r.aspx?p=1&a=UWHyXScrivrkgm.  Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference.  You may register at any time, including up to and after the call start time.  On the day of the call, dial (888) 206-4074 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration.   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 intermodal, truck brokerage and logistics services. The Company operates through a network of offices and independent agents 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 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'sSEC reports including, but not limited to, our annual report on Form 10-K for the year ended December 31, 2014 and our report on Form 10-Q for the period ended March 31, 2015. Hub Group assumes no liability to update any such forward-looking statements.

CONTACT: Maralee Volchko of Hub Group, Inc., +1-630-271-3745

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)
















Three Months


Six Months





Ended June 30,


Ended June 30,





2015


2014


2015


2014

Revenue


$ 899,513


$ 893,930


$ 1,735,454


$ 1,742,379












Transportation costs


797,784


795,345


1,544,597


1,555,050


Gross margin


101,729


98,585


190,857


187,329












Costs and expenses:










Salaries and benefits


38,837


35,556


78,313


72,648


Agent fees and commissions


16,686


15,544


31,512


29,210


General and administrative


14,763


14,681


28,834


30,113


Depreciation and amortization


1,967


1,877


3,927


3,935



Total costs and expenses


72,253


67,658


142,586


135,906












Operating income


29,476


30,927


48,271


51,423












Other income (expense):










Interest expense


(720)


(398)


(1,461)


(805)


Interest and dividend income


19


11


25


25


Other, net 


261


(25)


(1,143)


(230)



Total other expense


(440)


(412)


(2,579)


(1,010)












Income before provision for income taxes


29,036


30,515


45,692


50,413












Provision for income taxes


10,569


11,839


16,949


19,702












Net income


$   18,467


$   18,676


$      28,743


$      30,711























Basic earnings per common share


$       0.51


$       0.51


$         0.80


$         0.84












Diluted earnings per common share


$       0.51


$       0.51


$         0.80


$         0.84












Basic weighted average number of shares outstanding


35,986


36,674


36,071


36,667

Diluted weighted average number of shares outstanding


36,075


36,814


36,122


36,769

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)
















Three Months





Ended June 30, 2015





Hub


Mode


Inter-Segment Elims


Hub Group Total

Revenue


$       686,451


$       233,847


$           (20,785)


$       899,513












Transportation costs


614,289


204,280


(20,785)


797,784


Gross margin


72,162


29,567


-


101,729












Costs and expenses:










Salaries and benefits


35,288


3,549


-


38,837


Agent fees and commissions


14


16,672


-


16,686


General and administrative


13,194


1,569


-


14,763


Depreciation and amortization


1,647


320


-


1,967



Total costs and expenses


50,143


22,110


-


72,253












Operating income


$        22,019


$          7,457


$                   -


$        29,476





HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)
















Three Months





Ended June 30, 2014





Hub


Mode


Inter-Segment Elims


Hub Group Total

Revenue


$ 682,049


$ 231,538


$                (19,657)


$          893,930












Transportation costs


611,351


203,651


(19,657)


795,345


Gross margin


70,698


27,887


-


98,585












Costs and expenses:










Salaries and benefits


32,047


3,509


-


35,556


Agent fees and commissions


5


15,539


-


15,544


General and administrative


12,817


1,864


-


14,681


Depreciation and amortization


1,538


339


-


1,877



Total costs and expenses


46,407


21,251


-


67,658












Operating income


$  24,291


$    6,636


$                        -


$            30,927

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)
















Six Months





Ended June 30, 2015





Hub


Mode


Inter-Segment Elims


Hub Group Total

Revenue


$ 1,329,894


$ 447,369


$          (41,809)


$    1,735,454












Transportation costs


1,194,547


391,859


(41,809)


1,544,597


Gross margin


135,347


55,510


-


190,857












Costs and expenses:










Salaries and benefits


70,948


7,365


-


78,313


Agent fees and commissions


29


31,483


-


31,512


General and administrative


25,392


3,442


-


28,834


Depreciation and amortization


3,265


662


-


3,927



Total costs and expenses


99,634


42,952


-


142,586












Operating income


$     35,713


$  12,558


$                  -


$        48,271





HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)
















Six Months





Ended June 30, 2014





Hub


Mode


Inter-Segment Elims


Hub Group Total

Revenue


$    1,335,458


$       440,444


$          (33,523)


$    1,742,379












Transportation costs


1,200,262


388,311


(33,523)


1,555,050


Gross margin


135,196


52,133


-


187,329












Costs and expenses:










Salaries and benefits


65,384


7,264


-


72,648


Agent fees and commissions


16


29,194


-


29,210


General and administrative


26,557


3,556


-


30,113


Depreciation and amortization


3,055


880


-


3,935



Total costs and expenses


95,012


40,894


-


135,906












Operating income


$        40,184


$        11,239


$                  -


$        51,423

 

 


HUB GROUP, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)




























June 30,


December 31,








2015


2014











ASSETS








CURRENT ASSETS:









Cash and cash equivalents


$         156,780


$         109,769



Accounts receivable trade, net


420,951


401,803



Accounts receivable other


18,022


24,886



Prepaid taxes


1,653


14,937



Deferred taxes


8,229


4,816



Prepaid expenses and other current assets


11,325


14,355




TOTAL CURRENT ASSETS


616,960


570,566










Restricted investments


22,239


21,944


Property and equipment, net


332,532


338,327


Other intangibles, net


13,786


14,434


Goodwill, net


262,704


262,813


Other assets


3,827


4,043




TOTAL ASSETS


$      1,252,048


$      1,212,127





















LIABILITIES AND STOCKHOLDERS' EQUITY






CURRENT LIABILITIES:







Accounts payable trade


$         270,189


$         256,345



Accounts payable other


22,629


21,333



Accrued payroll


19,644


16,192



Accrued other


37,401


43,523



Current portion of capital lease


2,560


2,504



Current portion of long term debt


23,387


19,619




TOTAL CURRENT LIABILITIES


375,810


359,516












Long term debt



76,302


72,460


Non-current liabilities


21,731


22,929


Long term portion of capital lease


14,638


15,937


Deferred taxes



146,188


140,501












STOCKHOLDERS' EQUITY:







Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2015 and 2014








-


-



Common stock









Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2015 and 2014; 36,072,126 shares outstanding in 2015 and 36,247,324 shares outstanding in 2014
















412


412




Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2015 and 2014









7


7



Additional paid-in capital


168,785


171,235



Purchase price in excess of predecessor basis, net of tax







 benefit of $10,306


(15,458)


(15,458)



Retained earnings


618,552


589,809



Accumulated other comprehensive loss


(97)


(77)



Treasury stock; at cost, 5,152,666 shares in 2015 and 4,977,468 shares in 2014








(154,822)


(145,144)




TOTAL STOCKHOLDERS' EQUITY


617,379


600,784





     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$      1,252,048


$      1,212,127

 


HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)
















Six Months Ended







June 30,







2015


2014



















Cash flows from operating activities:






Net income


$        28,743


$        30,711


Adjustments to reconcile net income







to net cash provided by operating activities:








Depreciation and amortization 


17,526


13,780




Deferred taxes


2,489


5,557




Compensation expense related to share-based compensation plans


4,110


4,191




Gain on sale of assets


(60)


(10)




Excess tax benefits from share-based compensation


(33)


-


Changes in operating assets and liabilities:








Restricted investments


(295)


(1,206)




Accounts receivable, net


(11,407)


(40,654)




Prepaid taxes


13,284


(165)




Prepaid expenses and other current assets


3,030


(2,063)




Other assets


216


(601)




Accounts payable


15,132


21,756




Accrued expenses


8,943


882




Non-current liabilities


(1,226)


(537)





Net cash provided by operating activities


80,452


31,641










Cash flows from investing activities:






Proceeds from sale of equipment


136


319


Purchases of property and equipment


(23,716)


(46,443)





Net cash used in investing activities


(23,580)


(46,124)










Cash flows from financing activities:






Proceeds from issuance of debt


18,548


25,361


Repayments of long term debt


(10,938)


(2,535)


Stock tendered for payments of withholding taxes


(2,877)


(3,151)


Purchase of treasury stock


(13,419)


-


Capital lease payments


(1,243)


(1,219)


Excess tax benefits from share-based compensation


89


228





Net cash (used in) provided by financing activities


(9,840)


18,684




















Effect of exchange rate changes on cash and cash equivalents


(21)


(1)










Net increase in cash and cash equivalents


47,011


4,200

Cash and cash equivalents beginning of period


109,769


68,964

Cash and cash equivalents end of period


$      156,780


$        73,164

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hub-group-inc-reports-second-quarter-2015-earnings-300116392.html

SOURCE Hub Group, Inc.