Hub Group, Inc. Reports 21% EPS Growth and Another Record First Quarter
DOWNERS GROVE, Ill., April 24 /PRNewswire-FirstCall/ -- Hub Group, Inc. (Nasdaq: HUBG) today reported record diluted earnings per share for the quarter ended March 31, 2008 of $0.35. This represents an increase of 21% compared to last year's first quarter diluted earnings per share of $0.29. Hub Group's operating margin increased to 4.9% in the first quarter 2008 from 4.6% in 2007 due to growth, purchasing transportation more cost effectively, and cost control.
Hub Group's revenue increased 8.1% to $425.0 million compared to $393.3 million in the first quarter of 2007. First quarter intermodal revenue increased 5.2% to $302.8 million. Truck brokerage revenue was up 19.9% to $89.9 million this quarter. First quarter logistics revenue increased 6.1% to $32.3 million. Gross margin increased to $57.5 million compared to $56.7 million in the first quarter of 2007.
Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer of Hub Group stated, "We are very pleased with our earnings per share growth and the performance of all three business lines. Our efforts to increase productivity continue to help us control our costs. Thanks to our scalable, asset-light model, we were able to generate impressive returns despite the weak economic conditions."
FULL YEAR 2008
Given the current operating environment, we are comfortable that the earnings for 2008 will be within the current analysts' range of $1.58 to $1.70 per diluted share.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time (4:00 p.m. Central Time) on Thursday, April 24, 2008 to discuss its first quarter results.
Hosting the conference call will be David P. Yeager, Vice-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 http://www.hubgroup.com. 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) 680-0879. The conference call participant code is 46298316. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PWYE8NGWR. 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 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 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 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, 2007. Hub Group assumes no liability to update any such forward-looking statements.
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months
Ended March 31,
2008 2007
Revenue $424,995 $393,297
Transportation costs 367,493 336,636
Gross margin 57,502 56,661
Costs and expenses:
Salaries and benefits 25,363 25,610
General and administrative 10,150 11,601
Depreciation and amortization 1,001 1,172
Total costs and expenses 36,514 38,383
Operating income 20,988 18,278
Other income (expense):
Interest expense (26) (21)
Interest and dividend income 338 645
Other, net 95 3
Total other income 407 627
Income before provision for income taxes 21,395 18,905
Provision for income taxes 8,260 7,486
Net income $13,135 $11,419
Basic earnings per common share $0.35 $0.29
Diluted earnings per common share $0.35 $0.29
Basic weighted average number of
shares outstanding 37,101 39,257
Diluted weighted average number of
shares outstanding 37,405 39,766
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
March 31, December 31,
2008 2007
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $38,878 $38,002
Accounts receivable
Trade, net 164,170 160,944
Other 7,325 9,828
Prepaid taxes 86 86
Deferred taxes 3,945 5,044
Prepaid expenses and other
current assets 3,740 4,318
TOTAL CURRENT ASSETS 218,144 218,222
Restricted investments 7,452 5,206
Property and equipment, net 28,858 29,662
Other intangibles, net 6,945 7,056
Goodwill, net 230,448 230,448
Other assets 1,237 1,373
TOTAL ASSETS $493,084 $491,967
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade $123,815 $123,020
Other 8,387 6,683
Accrued expenses
Payroll 8,372 16,446
Other 27,157 33,063
Related party payable - 5,000
TOTAL CURRENT LIABILITIES 167,731 184,212
Non-current liabilities 9,407 9,708
Deferred taxes 49,281 47,148
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
2,000,000 shares authorized;
no shares issued or outstanding
in 2008 and 2007 - -
Common stock
Class A: $.01 par value;
97,337,700 shares authorized
and 41,224,792 shares issued in
2008 and 2007; 36,975,979
shares outstanding in 2008 and
36,666,731 outstanding in
2007 412 412
Class B: $.01 par value;
662,300 shares authorized;
662,296 shares issued and
outstanding in 2008 and 2007 7 7
Additional paid-in capital 171,401 176,657
Purchase price in excess of
predecessor basis, net of tax
benefit of $10,306 (15,458) (15,458)
Retained earnings 219,177 206,042
Treasury stock; at cost,
4,248,813 shares in 2008
and 4,558,061 shares in 2007 (108,874) (116,761)
TOTAL STOCKHOLDERS' EQUITY 266,665 250,899
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $493,084 $491,967
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
2008 2007
Cash flows from operating activities:
Net income $13,135 $11,419
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 1,706 1,804
Deferred taxes 3,232 1,652
Compensation expense related to
share-based compensation plans 1,171 960
Loss on sale of assets 29 2
Changes in operating assets and
liabilities:
Restricted investments (2,246) (1,261)
Accounts receivable, net (723) 7,803
Prepaid taxes - 2,033
Prepaid expenses and other
current assets 578 (2,344)
Other assets 136 30
Accounts payable 2,499 (6,416)
Accrued expenses (13,980) (5,631)
Deferred compensation (301) (637)
Net cash provided by operating
activities 5,236 9,414
Cash flows from investing activities:
Proceeds from sale of equipment 29 15
Purchases of property and
equipment (849) (2,078)
Cash used in acquisition of
Comtrak, Inc. (5,000) (5,000)
Net cash used in investing
activities (5,820) (7,063)
Cash flows from financing activities:
Proceeds from stock options exercised 315 248
Purchase of treasury stock (672) (12,740)
Excess tax benefits from share-
based compensation 1,817 1,380
Net cash provided by (used in)
financing activities 1,460 (11,112)
Net increase (decrease) in
cash and cash equivalents 876 (8,761)
Cash and cash equivalents beginning
of period 38,002 43,491
Cash and cash equivalents end of
period $38,878 $34,730
SOURCE Hub Group, Inc.
-0- 04/24/2008
/CONTACT: Amy Lisek of Hub Group, Inc., +1-630-795-2214/
/Web site: http://www.hubgroup.com /
(HUBG)
CO: Hub Group, Inc.
ST: Illinois
IN: TRN
SU: ERN ERP CCA
CB-AM
-- AQTH003 --
1241 04/24/2008 16:01 EDT http://www.prnewswire.com