Hub Group, Inc. Increases 2004 EPS Guidance
DOWNERS GROVE, Ill., Sep 20, 2004 /PRNewswire-FirstCall via COMTEX/ -- Hub Group, Inc. (Nasdaq: HUBG) today raised its projections for 2004 adjusted earnings per share to be in the range of $1.87 - $1.97. This adjusted earnings per share excludes a $4.2 million one-time, after-tax charge in connection with Hub's public offering of Class A common stock which closed on July 2, 2004. The net proceeds of the offering were used to prepay $50 million of 9.14% debt. As a result of the prepayment, the Company will record a pre-tax charge of $7.3 million (approximately $4.2 million after taxes), consisting of $6.8 million in pre-payment penalties and $0.5 million write-off of deferred financing costs, during the third quarter of 2004.
A tabular reconciliation of the differences between the adjusted full year 2004 guidance which excludes the $4.2 million one-time charge, and projected financial results determined in accordance with generally accepted accounting principles (GAAP) in the United States of America is below.
Projected GAAP EPS EPS Adjustments Adjusted Full Year 2004 Guidance $1.42 to $1.52 .45 $1.87 to $1.97
The adjustments represent the $4.2 million after-tax charge divided by 9,466,000 estimated diluted weighted average shares outstanding during the year ended December 31, 2004.
"Our increased guidance is being driven by our ability to manage our business volumes with a more disciplined approach to pricing, yield management and margin enhancement," said David P. Yeager, Vice-Chairman and CEO of Hub Group. "I am pleased that our new organizational model allows us to operate very effectively in today's challenging environment."
Hub Group will report its third quarter earnings on Wednesday, October 20, 2004 after market close and hold its quarterly conference call to discuss those results and the outlook for the remainder of 2004 at 10:00 a.m. Eastern Time on Thursday, October 21, 2004. This call is being webcast by Thomson/CCBN and can be accessed through the Investor Relations link at Hub Group's Web site at http://www.hubgroup.com or individual investors can access the audio webcast at http://www.fulldisclosure.com and institutional investors can access the webcast at http://www.streetevents.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 (800) 510-0146. The conference call participant code is 34545895. The call will be limited to 60 minutes, including questions and answers.
An audio replay will be available through the Investor Relations link on the Company's Web site at http://www.hubgroup.com . This replay will be available for 30 days.
ABOUT HUB GROUP: Hub Group, Inc. is a leading non-asset based freight transportation management company providing comprehensive intermodal, truckload brokerage and logistics and distribution 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 projections regarding 2004 earnings, 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, 2003, our reports on Form 10-Q for the periods ended March 31, 2004 and June 30, 2004 and our Prospectus dated June 28, 2004. Hub Group assumes no liability to update any such forward- looking statements.
SOURCE Hub Group, Inc.
Erin Koops of Hub Group, Inc., +1-630-271-3656