36822409 662296 141736000 134903000 150538000 12833000 214269000 6000 165817000 669302000 369587000 2480000 72118000 8714000 232975000 5725000 669302000 195649000 23564000 2105000 14395000 12981000 0.01 2000000 0 0 123000 46782000 12128000 353508000 387140000 4410910 117152000 4831000 15458000 10306000 0.01 97337700 41224792 36813882 412000 0.01 662300 662296 662296 7000 126863000 115144000 121078000 10064000 185879000 6000 169722000 629407000 329160000 3314000 71739000 14378000 233029000 5856000 629407000 167418000 21898000 2135000 13950000 17958000 0.01 2000000 0 0 296000 47806000 11421000 343010000 376300000 4586433 121399000 6569000 15458000 10306000 0.01 97337700 41224792 36638359 412000 0.01 662300 662296 662296 7000 14873000 368476000 3401000 973000 1952000 0.23 0.23 12000 133000 -63000 48818000 14321000 122000 5619000 25784000 26457000 -545000 -461000 -41000 125000 -2659000 14000 14000 25000 23458000 -2774000 -640000 18275000 8702000 79000 34576000 14242000 10145000 68000 2919000 647000 7000 12000 417294000 931000 37643000 37527000 188000 --12-31 HUBG HUB GROUP INC Q1 2011 2011-03-31 10-Q 0000940942 Large Accelerated Filer false 19759000 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>NOTE&#xA0;4.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Commitments and Contingencies</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">We are a party to litigation incident to our business, including claims for freight lost or damaged in-transit, freight improperly shipped or improperly billed, property damage and personal injury. Some of the lawsuits to which we are a party are covered by insurance and are being defended by our insurance carriers. Some of the lawsuits are not covered by insurance and we are defending them. Management does not believe that the outcome of this litigation will have a material adverse effect on our financial position or results of operations.</font></p> </div> <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>NOTE&#xA0;7.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Comprehensive Income</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Foreign subsidiaries&#x2019; assets and liabilities are translated to United States dollars at the end of period exchange rates. Revenues and expenses are translated at average rates for the period. Translation adjustments are reported as a separate component of stockholders&#x2019; equity in accumulated other comprehensive income. Total comprehensive income was $10.5 million and $8.7 million for the three months ended March&#xA0;31, 2011 and 2010, respectively.</font></p> </div> 428072000 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>NOTE&#xA0;3.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Debt</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">On March&#xA0;31, 2011, we amended our Credit Agreement which increased our maximum unsecured borrowing capacity from $10.0 million to $50.0 million and extended the term until March 2014.&#xA0;The interest rate under the Credit Agreement is equal to LIBOR plus 1.75%. The financial covenants require a minimum net worth of $300.0 million and a cash flow leverage ratio of not more than 2.0 to 1.0. The commitment fee charged on the unused line of credit is 0.375%.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">We have standby letters of credit that expire at various dates in 2011 to 2012. As of March&#xA0;31, 2011, the outstanding letters of credit totaled $2.6 million.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">We had $47.4 million of unused and available borrowings under our bank revolving line of credit as of March&#xA0;31, 2011. We were in compliance with our debt covenants as of March&#xA0;31, 2011.</font></p> </div> 1266000 936000 2629000 0.28 0.28 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>NOTE&#xA0;2.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Earnings Per Share</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The following is a reconciliation of our earnings per share (in thousands, except for per share data):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table border="0" cellspacing="0" cellpadding="0" width="76%" align="center"> <tr> <td width="79%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: Times New Roman" size="1"><b>Three&#xA0;Months&#xA0;Ended,&#xA0;March&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: Times New Roman" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: Times New Roman" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Net income for basic and diluted earnings per share</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">10,498</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">8,702</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Weighted average shares outstanding - basic</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">36,886</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">37,527</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Dilutive effect of stock options and restricted stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">136</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">116</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Weighted average shares outstanding - diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">37,022</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">37,643</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Earnings per share - basic</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">0.28</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">0.23</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Earnings per share - diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">0.28</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">0.23</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td style="BORDER-TOP: #000000 3px double" valign="bottom"> &#xA0;</td> <td>&#xA0;</td> </tr> </table> </div> 4000 540000 <div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="10%" valign="top" align="left"><font style="font-family:Times New Roman" size="2"><b>NOTE&#xA0;5.</b></font></td> <td align="left" valign="top"><font style="font-family:Times New Roman" size="2"><b>Fair Value Measurement</b></font></td> </tr> </table> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximated fair value as of March&#xA0;31, 2011 and December&#xA0;31, 2010 due to their short-term nature.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">Cash and cash equivalents included $128.7 million and $114.6 million as of March&#xA0;31, 2011 and December&#xA0;31, 2010, respectively, invested in a money market fund comprised of U.S. treasury securities and repurchase agreements for these securities.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">Restricted investments included $12.1 million and $11.4 million as of March&#xA0;31, 2011 and December&#xA0;31, 2010, respectively, of mutual funds which are reported at fair value.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">The fair value measurement of these securities is based on quoted prices in active markets for identical assets which are defined as &#x201C;Level 1&#x201D; of the fair value hierarchy in the Fair Value Measurements and Disclosures Topic of the Codification.</font></p> </div> 13000 57307000 16987000 1335000 6489000 23411000 32229000 -560000 -173000 -31000 407000 -1738000 14000 14000 32000 26801000 -883000 -4867000 25505000 10498000 227000 40547000 16760000 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>NOTE&#xA0;1.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Interim Financial Statements</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Our accompanying unaudited consolidated financial statements of Hub Group, Inc. (&#x201C;we&#x201D;, &#x201C;us&#x201D; or &#x201C;our&#x201D;) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to those rules and regulations. However, we believe that the disclosures contained herein are adequate to make the information presented not misleading.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The financial statements reflect, in our opinion, all material adjustments (which include only normal recurring adjustments) necessary to fairly present our financial position as of March&#xA0;31, 2011 and results of operations for the three months ended March&#xA0;31, 2011 and 2010.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">These unaudited consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December&#xA0;31, 2010. Results of operations in interim periods are not necessarily indicative of results to be expected for a full year due partially to seasonality.</font></p> </div> 12810000 209000 1447000 55000 4880000 68000 24000 485379000 <div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="10%" valign="top" align="left"><font style="font-family:Times New Roman" size="2"><b>NOTE&#xA0;6.</b></font></td> <td align="left" valign="top"><font style="font-family:Times New Roman" size="2"><b>Guarantees</b></font></td> </tr> </table> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">In 2008 the California Air Resources Board (CARB) approved regulations that require significantly reduced emissions from existing on-road diesel vehicles operating in California. The regulations require older model tractors to be modified to comply with the new regulations.&#xA0;In response to the costs associated with complying with these new emission laws, we developed a guaranty program with a leasing company. As part of this program, we are guaranteeing certain owner operators&#x2019; lease payments for these tractors. The guarantees expire at various dates beginning 2012 thru 2017.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">The potential maximum exposure under these lease guarantees was approximately $9.8 million and $6.8 million as of March&#xA0;31, 2011 and December&#xA0;31, 2010, respectively. The potential maximum exposure represents the amount of the remaining lease payments on all outstanding guaranteed leases as of March&#xA0;31, 2011 and December&#xA0;31, 2010. However, upon default, we have the option to purchase the tractors. We could then sell the tractors and use the proceeds to recover all or a portion of the amounts paid under the guarantees. Alternatively, we can contract with another owner operator who would assume the lease. There were no material defaults during the quarter ended March&#xA0;31, 2011.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">As of March&#xA0;31, 2011 and December&#xA0;31, 2010, respectively, the liability was approximately $0.2 million and $0.1 million, for the guarantees representing the fair value of the guarantees based on a discounted cash-flow analysis. We are amortizing the liability over the remaining lives of the respective guarantees.</font></p> </div> <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>NOTE&#xA0;8.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Subsequent Events</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">On April&#xA0;1, 2011 (the &#x201C;Acquisition Date&#x201D;) we entered into a definitive agreement pursuant to which we acquired all of the capital stock of Exel Transportation Services, Inc. (&#x201C;ETS&#x201D;). The purchase price for the ETS stock was $83.4 million before post closing adjustments, which we paid with cash on hand. ETS is now our wholly-owned subsidiary, operating independently and renamed Mode Transportation, LLC (&#x201C;Mode Transportation&#x201D;).</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Mode Transportation has approximately 300 Independent Business Owners who sell and operate the business throughout North America. Mode Transportation also has a company managed operation in Dallas, a temperature protected services division, Temstar, located in Lombard, IL and corporate offices in Dallas and Memphis. We believe this acquisition brings us highly complementary service offerings, more scale and a talented sales channel that allows us to better reach small and midsize customers.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Due to limitations on access to ETS information prior to the Acquisition Date and the limited time since the Acquisition Date, the initial accounting for the business combination is incomplete at this time. As a result, we are unable to provide the amounts recognized as of the Acquisition Date for the major classes of assets acquired and liabilities assumed, pre-acquisition contingencies and goodwill.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">We incurred certain due diligence, integration and financing costs associated with the transaction prior to the Acquisition Date that are reflected in the Unaudited Consolidated Statements of Income for the three months ended March&#xA0;31, 2011. We recorded approximately $1.7 million of these acquisition costs which are included in General and administrative costs in the Unaudited Consolidated Statements of Income for the three months ended March&#xA0;31, 2011.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">On April&#xA0;8, 2011, we entered into an Equipment Purchase Contract with&#xA0;Singamas Management Services, Ltd. for the acquisition of 1,000 53&#x2019; containers. We expect the costs of purchasing the containers to be approximately $13.5 million. We expect to take delivery of the equipment between May and August 2011.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">We have considered subsequent events through the date of the filing and there were no other subsequent events that required recognition or disclosure except as noted above.</font></p> </div> 1225000 37022000 36886000 707000 0000940942 2011-01-01 2011-03-31 0000940942 2010-01-01 2010-03-31 0000940942 us-gaap:CommonClassBMember 2010-12-31 0000940942 us-gaap:CommonClassAMember 2010-12-31 0000940942 2010-12-31 0000940942 2009-12-31 0000940942 us-gaap:CommonClassBMember 2011-03-31 0000940942 us-gaap:CommonClassAMember 2011-03-31 0000940942 2011-03-31 0000940942 2010-03-31 0000940942 us-gaap:CommonClassBMember 2011-04-18 0000940942 us-gaap:CommonClassAMember 2011-04-18 shares iso4217:USD iso4217:USD shares