Hub Group, Inc. Reports Third Quarter 2009 Earnings
"We think that the third quarter results were reasonable considering the economic environment. During this downturn, we have focused on reducing our costs and believe that the efficiencies we have realized will continue to improve our competitive position as the economy recovers," said
CONFERENCE CALL
Hub will hold a conference call at
Hosting the conference call will be
This call is being webcast and can be accessed through the Investors link on
To participate in the conference call by telephone, please call ten minutes early by dialing (888) 679-8040. The conference call participant code is 99408542. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PDR38R4AP. 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
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about
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,
------------------- -------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue $388,781 $514,212 $1,103,089 $1,430,136
Transportation costs 340,581 451,052 963,958 1,249,635
------- ------- ------- ---------
Gross margin 48,200 63,160 139,131 180,501
Costs and expenses:
Salaries and benefits 22,237 24,116 67,514 73,780
General and administrative 9,122 10,766 28,374 31,393
Depreciation and amortization 949 995 3,229 2,987
--- --- ----- -----
Total costs and expenses 32,308 35,877 99,117 108,160
------ ------ ------ -------
Operating income 15,892 27,283 40,014 72,341
Other income (expense):
Interest expense (26) (31) (76) (83)
Interest and dividend income 29 362 120 1,040
Other, net 116 (58) 188 28
--- --- --- --
Total other income 119 273 232 985
Income before provision for
income taxes 16,011 27,556 40,246 73,326
Provision for income taxes 6,180 10,626 15,932 28,291
----- ------ ------ ------
Net income $9,831 $16,930 $24,314 $45,035
====== ======= ======= =======
Basic earnings per common share $0.26 $0.45 $0.65 $1.21
===== ===== ===== =====
Diluted earnings per common share $0.26 $0.45 $0.65 $1.20
===== ===== ===== =====
Basic weighted average number
of shares outstanding 37,373 37,209 37,346 37,167
====== ====== ====== ======
Diluted weighted average number
of shares outstanding 37,550 37,541 37,481 37,478
====== ====== ====== ======
HUB GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
September 30, December 31,
------------- ------------
2009 2008
---- ----
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $122,808 $ 85,799
Accounts receivable
Trade, net 158,629 145,362
Other 9,606 10,318
Prepaid taxes 132 123
Deferred taxes 6,064 5,430
Prepaid expenses and other current assets 6,155 4,346
----- -----
TOTAL CURRENT ASSETS 303,394 251,378
Restricted investments 8,951 6,118
Property and equipment, net 28,686 32,713
Other intangibles, net 6,276 6,610
Goodwill, net 232,946 233,110
Other assets 1,648 1,747
----- -----
TOTAL ASSETS $581,901 $531,676
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade $124,044 $105,064
Other 7,669 6,107
Accrued expenses
Payroll 9,691 9,988
Other 22,579 26,388
------ ------
TOTAL CURRENT LIABILITIES 163,983 147,547
Non-current liabilities 11,073 9,535
Deferred taxes 64,408 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;
37,225,313 shares outstanding in
2009 and 36,970,347 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 170,725 174,355
Purchase price in excess of
predecessor basis, net of tax
benefit of $10,306 (15,458) (15,458)
Retained earnings 289,601 265,287
Accumulated other comprehensive income 2 -
Treasury stock; at cost, 3,999,479
shares in 2009 and 4,254,445 shares
in 2008 (102,852) (109,419)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 342,437 315,184
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $581,901 $531,676
======== ========
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30,
----------------------
2009 2008
---- ----
Cash flows from operating activities:
Net income $24,314 $45,035
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 6,282 5,326
Deferred taxes 4,465 7,459
Compensation expense related to
share-based compensation plans 3,218 3,332
(Gain) loss on sale of assets (21) 77
Changes in operating assets and
liabilities:
Restricted investments (2,833) (1,883)
Accounts receivable, net (12,555) (44,723)
Prepaid taxes (9) -
Prepaid expenses and other current
assets (1,809) (1,416)
Other assets 99 208
Accounts payable 20,542 29,920
Accrued expenses (3,544) (7,250)
Non-current liabilities 1,601 (242)
----- ----
Net cash provided by operating
activities 39,750 35,843
------ ------
Cash flows from investing activities:
Proceeds from sale of equipment 72 857
Purchases of property and equipment (2,534) (7,219)
Cash used in acquisition of Comtrak, Inc. - (5,000)
--- ------
Net cash used in investing activities (2,462) (11,362)
------ -------
Cash flows from financing activities:
Proceeds from stock options exercised 155 401
Purchase of treasury stock (1,096) (2,215)
Excess tax benefits from share-based
compensation 660 2,709
--- -----
Net cash (used in) provided by
financing activities (281) 895
---- ---
Effect of exchange rate changes on cash
and cash equivalents 2 -
Net increase in cash and cash equivalents 37,009 25,376
Cash and cash equivalents beginning of
period 85,799 38,002
-------- -------
Cash and cash equivalents end of period $122,808 $63,378
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SOURCE
Amy Lisek of Hub Group, Inc., +1-630-795-2214