hg8kq32012.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES AND EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported) October 22, 2012
 

HUB GROUP, INC.
(Exact name of registrant as specified in its charter)
 
DELAWARE
(State or Other Jurisdiction of Incorporation)
 
0-27754
36-4007085
(Commission File Number)   (I.R.S. Employer Identification No.)
 
 
3050 Highland Parkway, Suite 100
Downers Grove, Illinois 60515
(Address, including zip code, of principal executive offices)

(630) 271-3600
(Registrant’s telephone number, including area code)

NOT APPLICABLE
(Former Name or Former Address, If Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant any of the following provisions:
 
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

 
 
 
 


ITEM 2.02       RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On October 22, 2012, Hub Group, Inc. issued a press release announcing its third quarter 2012 operating results. The press release is furnished as Exhibit 99.1 to this Form 8-K.





 
 
 
 
Item 9.01        FINANCIAL STATEMENTS AND EXHIBITS
   
 
(a)  Not Applicable.
 
 
(b)  Not Applicable.
 
 
(c)  Not Applicable.
 
 
(d)  A list of exhibits filed herewith is contained on the Exhibit
 
       Index which immediately precedes such exhibits and is
 
 
       incorporated herein by reference.
 
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 

 

 
  HUB GROUP, INC.
   
DATE: October 23, 2012 /s/ Terri A. Pizzuto
  By: Terri A. Pizzuto
  Title: Executive Vice President, Chief Financial Officer
            and Treasurer
 
                                                                                                           
 



 
 
 
 

 
EXHIBIT INDEX
 
 
 
Exhibit No.
 
 
99.1    Press release, issued on October 22, 2012, announcing third quarter 2012 operating results for Hub Group, Inc.

hgq3pressrelease.htm
Exhibit 99.1
Hub Group, Inc. Reports Record Third Quarter 2012 Earnings
 
 
DOWNERS GROVE, IL, October 22, 2012, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended September 30, 2012.

Hub Group reported record net income of $18.5 million for the third quarter ended September 30, 2012, an increase of 14% compared to the third quarter of 2011.  Diluted earnings per share for the third quarter of 2012 was $0.50.

Hub Group’s third quarter 2011 pre-tax income included approximately $1.1 million of costs related to the Mode Transportation integration and Hub’s Truck Brokerage restructuring.  Excluding the effects of these costs, non-GAAP earnings per share was $0.46 for the 2011 third quarter (see table below).  Earnings per share increased 9% when compared with the non-GAAP earnings per share in the prior year period.

The Hub segment’s revenue increased 10% to $619 million.  Third quarter intermodal revenue increased 11% to $444 million.  The increase was primarily attributable to 9% volume growth.  Truck brokerage revenue increased 6% to $88 million this quarter.  Third quarter Unyson Logistics revenue increased 14% to $87 million.  The Hub segment’s operating income was $25.3 million.

The Mode segment’s revenue increased 1% to $200 million for the third quarter.  Operating income was $5.0 million.

Hub Group ended the quarter with $80 million in cash.


CONFERENCE CALL

Hub will hold a conference call at 5:30 p.m. Eastern Time on Monday, October 22, 2012 to discuss its third quarter results and outlook for the year.

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.  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 call ten minutes early by dialing (888) 679-8038.  The conference call participant code is 96710868. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PR6K8D8R8 .  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 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 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, 2011 and the reports on Form 10-Q for the periods ended March 31, 2012 and June 30, 2012.  Hub Group assumes no liability to update any such forward-looking statements.


SOURCE: Hub Group, Inc.


CONTACT: Amy Lisek of Hub Group, Inc., +1-630-795-2214

 
 
 

HUB GROUP, INC.
 
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
 
(in thousands, except per share amounts)
 
               
   
Three Months
   
Nine Months
   
   
Ended September 30,
   
Ended September 30,
   
   
2012
   
2011
     2012    
2011
     
                     
Revenue
  $ 804,888     $ 752,179     $ 2,323,085     $ 1,988,759  
Transportation costs
    713,301       665,478       2,060,398       1,760,022  
Gross margin
    91,587       86,701       262,687       228,737  
                           
Costs and expenses:
                         
Salaries and benefits
    31,385       32,002       96,120       91,525  
Agent fees and commissions
    13,810       13,884       41,106       28,400  
General and administrative
    14,430       12,612       39,741       37,523  
Depreciation and amortization
    1,611       1,560       5,008       3,968  
Total costs and expenses
    61,236       60,058       181,975       161,416  
                           
Operating income
    30,351       26,643       80,712       67,321  
                           
Other income (expense):
                         
Interest expense
    (300 )     (236 )     (908 )     (319 )
Interest and dividend income
    37       41       104       118  
Other, net
    (17 )     17       (58 )     286  
Total other (expense) income
    (280 )     (178 )     (862 )     85  
                           
Income before provision for income taxes
    30,071       26,465       79,850       67,406  
                           
Provision for income taxes
    11,576       10,189       30,741       26,242  
                           
Net income
  $ 18,495     $ 16,276     $ 49,109     $ 41,164  
                           
                           
Basic earnings per common share
  $ 0.50     $ 0.44     $ 1.32     $ 1.12  
                           
Diluted earnings per common share
  $ 0.50     $ 0.44     $ 1.32     $ 1.11  
                           
Basic weighted average number of shares outstanding
    37,079       36,923       37,064       36,903  
                           
Diluted weighted average number of shares outstanding
    37,206       37,065       37,180       37,049  
                           



 
 
 
 

HUB GROUP, INC.  
UNAUDITED FINANCIAL INFORMATION BY SEGMENT  
(in thousands)  
   
   
Three Months
   
Three Months
 
   
Ended September 30, 2012
   
Ended September 30, 2011
 
               
Inter-
   
Hub
               
Inter-
   
Hub
 
               
Segment
   
Group
               
Segment
   
Group
 
   
Hub
   
Mode
   
Elims
   
Total
   
Hub
   
Mode
   
Elims
   
Total
 
Revenue
  $ 619,336     $ 199,903     $ (14,351 )   $ 804,888     $ 560,810     $ 197,761     $ (6,392 )   $ 752,179  
Transportation costs
    552,071       175,581       (14,351 )     713,301       497,204       174,666       (6,392 )     665,478  
Gross margin
    67,265       24,322       -       91,587       63,606       23,095       -       86,701  
                                                                 
Costs and expenses:
                                                               
Salaries and benefits
    27,852       3,533       -       31,385       26,884       5,118       -       32,002  
Agent fees and commissions
    401       13,409       -       13,810       660       13,224       -       13,884  
General and administrative
    12,566       1,864       -       14,430       10,141       2,471       -       12,612  
Depreciation and amortization
    1,118       493       -       1,611       1,003       557       -       1,560  
Total costs and expenses
    41,937       19,299       -       61,236       38,688       21,370       -       60,058  
                                                                 
Operating income
  $ 25,328     $ 5,023     $ -     $ 30,351     $ 24,918     $ 1,725     $ -     $ 26,643  
                                                                 
                                                                 


 
 
 
 

 HUB GROUP, INC  
UNAUDITED FINANCIAL INFORMATION BY SEGMENT  
 (in thousands)  
   
   
Nine Months
   
Nine Months
 
   
Ended September 30, 2012
   
Ended September 30, 2011
 
               
Inter-
   
Hub
               
Inter-
   
Hub
 
               
Segment
   
Group
               
Segment
   
Group
 
   
Hub
   
Mode
   
Elims
   
Total
   
Hub
   
Mode
   
Elims
   
Total
 
Revenue
  $ 1,778,436     $ 581,378     $ (36,729 )   $ 2,323,085     $ 1,606,607     $ 391,009     $ (8,857 )   $ 1,988,759  
Transportation costs
    1,584,844       512,283       (36,729 )     2,060,398       1,423,108       345,771       (8,857 )     1,760,022  
Gross margin
    193,592       69,095       -       262,687       183,499       45,238       -       228,737  
                                                                 
Costs and expenses:
                                                               
Salaries and benefits
    84,523       11,597       -       96,120       81,796       9,729       -       91,525  
Agent fees and commissions
    1,526       39,580       -       41,106       2,049       26,351       -       28,400  
General and administrative
    34,004       5,737       -       39,741       32,464       5,059       -       37,523  
Depreciation and amortization
    3,338       1,670       -       5,008       2,890       1,078       -       3,968  
Total costs and expenses
    123,391       58,584       -       181,975       119,199       42,217       -       161,416  
                                                                 
Operating income
  $ 70,201     $ 10,511     $ -     $ 80,712     $ 64,300     $ 3,021     $ -     $ 67,321  
                                                                 
                                                                 

 
 
 


HUB GROUP, INC.
 
UNAUDITED NON-GAAP TO GAAP RECONCILIATION
 
(earnings per share)
 
                                               
                                               
    Three Months      Nine Months    
    Ended September 30,        Ended September 30,  
               
Change
 
Change
               
Change
   
Change
 
   
2012
   
2011
    $   %     2012     2011     $     %  
                                                     
Diluted GAAP EPS
  $ 0.50     $ 0.44     $ 0.06   13.6 %   $ 1.32     $ 1.11     $ 0.21       18.9 %
                                                             
Integration expenses and
                                                           
restructuring costs
  $ -     $ 0.02     $ (0.02 )       $ -     $ 0.06     $ (0.06 )        
                                                             
Diluted NON-GAAP EPS (adjusted)
  $ 0.50     $ 0.46     $ 0.04   8.7 %   $ 1.32     $ 1.17     $ 0.15       12.8 %
                                                             
                                                             
                                                             
Diluted Shares
    37,206       37,065                   37,180       37,049                  




 

In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance.  This table and Hub’s internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.










 
 
 

HUB GROUP, INC.
 
CONSOLIDATED BALANCE SHEETS
 
(in thousands, except share amounts)
 
       
   
September 30,
2012
   
December 31,
2011
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 79,585     $ 49,091  
Accounts receivable trade, net
    385,821       326,537  
Accounts receivable other
    22,060       23,878  
Prepaid taxes
    139       2,392  
Deferred taxes
    4,329       4,838  
Prepaid expenses and other current assets
    10,972       9,056  
TOTAL CURRENT ASSETS
    502,906       415,792  
                 
Restricted investments
    16,529       14,323  
Property and equipment, net
    151,195       124,587  
Other intangibles, net
    20,445       21,667  
Goodwill, net
    263,306       263,470  
Other assets
    2,161       2,845  
TOTAL ASSETS
  $ 956,542     $ 842,684  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Accounts payable trade
  $ 237,790     $ 204,693  
Accounts payable other
    22,579       17,289  
Accrued  payroll
    15,551       16,721  
Accrued other
    47,248       29,962  
Current portion of capital lease
    2,292       2,237  
TOTAL CURRENT LIABILITIES
    325,460       270,902  
                 
Non-current liabilities
    19,239       17,717  
Non-current portion of capital lease
    21,684       23,436  
    Deferred taxes
    98,769       91,764  
                 
STOCKHOLDERS' EQUITY:
               
Preferred stock, $.01 par value;  2,000,000 shares authorized;  no shares issued or outstanding in 2012 and 2011
    -       -  
Common stock
               
Class A:  $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2012 and 2011; 37,105,441 outstanding in 2012 and 36,860,260 shares outstanding in 2011
    412       412  
Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2012 and 2011
    7       7  
Additional paid-in capital
    166,148       168,800  
Purchase price in excess of predecessor basis, net of tax benefit of $10,306
    (15,458 )     (15,458 )
Retained earnings
    450,297       401,188  
Other comprehensive income
    2       4  
Treasury stock; at cost 4,119,351 shares in 2012 and 4,364,532 shares in 2011
    (110,018 )     (116,088 )
TOTAL STOCKHOLDERS' EQUITY
    491,390       438,865  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 956,542     $ 842,684  
   



 
 
 
 


HUB GROUP, INC.
 
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(in thousands)
 
       
   
Nine Months Ended September 30,
 
   
2012
   
2011
 
Cash flows from operating activities:
           
    Net income
  $ 49,109     $ 41,164  
    Adjustments to reconcile net income to net cash provided by operating activities:
               
       Depreciation and amortization
    16,300       10,944  
       Deferred taxes
    7,693       7,189  
       Compensation expense related to share-based compensation plans
    4,826       3,675  
        Loss (gain) on sale of assets
    42       (16 )
        Excess tax benefits from share-based compensation
    (97 )     -  
    Changes in operating assets and liabilities, net of effects of acquisition:
               
       Restricted investments
    (2,206 )     362  
       Accounts receivable, net
    (57,417 )     (57,275 )
       Prepaid taxes
    2,253       167  
       Prepaid expenses and other current assets
    (1,913 )     (2,275 )
       Other assets
    685       406  
       Accounts payable
    38,386       29,316  
       Accrued expenses
    8,917       12,881  
       Non-current liabilities
    1,210       (344 )
            Net cash provided by operating activities
    67,788       46,194  
                 
Cash flows from investing activities:
               
       Proceeds from sale of equipment
    819       316  
       Purchases of property and equipment
    (34,671 )     (35,382 )
       Cash used in acquisitions, net of cash acquired
    (425 )     (83,057 )
            Net cash used in investing activities
    (34,277 )     (118,123 )
                 
Cash flows from financing activities:
               
     Proceeds from stock options exercised
    46       78  
     Stock tendered for payments of withholding taxes
    (1,800 )     (1,513 )
     Capital lease payments
    (1,697 )     (185 )
     Excess tax benefits from share-based compensation
    443       1,069  
            Net cash used in financing activities
    (3,008 )     (551 )
                 
     Effect of exchange rate changes on cash and cash equivalents
    (9 )     (12 )
                 
Net increase (decrease) in cash and cash equivalents
    30,494       (72,492 )
Cash and cash equivalents beginning of period
    49,091       115,144  
Cash and cash equivalents end of period
  $ 79,585     $ 42,652