Hub Group, Inc. Reports Earnings for the Fourth Quarter and Full Year 2008 and Provides 2009 Guidance
DOWNERS GROVE, Ill.,
Commenting on the results,
FULL YEAR 2008
Income for the year ended
Revenue increased 12% for the year to
Costs and expenses decreased 2% in 2008 to
As of
FULL YEAR 2009
Given the current operating environment, we are comfortable that the
earnings for 2009 will be within the current analysts' range of
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
at
To participate in the conference call by telephone, please call ten minutes early by dialing (888) 680-0893. The conference call participant code is 26743830. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PTQYQKFKW . 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 Twelve Months Ended December 31, Ended December 31, 2008 2007 2008 2007 Revenue $430,472 $445,464 $1,860,608 $1,658,168 Transportation costs 376,662 385,074 1,626,297 1,425,844 Gross margin 53,810 60,390 234,311 232,324 Costs and expenses: Salaries and benefits 19,878 23,791 93,658 95,678
General and administrative 9,841 10,001 41,234 41,416
Depreciation and
amortization 970 1,035 3,957 4,490
Total costs and expenses 30,689 34,827 138,849 141,584
Operating income 23,121 25,563 95,462 90,740 Other income (expense): Interest expense (19) (30) (102) (108) Interest income 113 513 1,153 2,480 Other, net (215) 34 (187) 116 Total other (expense) income (121) 517 864 2,488
Income before provision for
income taxes 23,000 26,080 96,326 93,228
Provision for income taxes 8,790 8,083 37,081 33,429
Net income $14,210 $17,997 $59,245 $59,799
Basic earnings per common
share $0.38 $0.48 $1.59 $1.55
Diluted earnings per common
share $0.38 $0.47 $1.58 $1.53
Basic weighted average number
of shares outstanding 37,195 37,562 37,174 38,660
Diluted weighted average
number of shares outstanding 37,501 37,978 37,484 39,128
HUB GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts)December 31 ,December 31, 2008 2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $85,799 $38,002 Accounts receivable Trade, net 145,362 160,944 Other 10,318 9,828 Prepaid taxes 123 86 Deferred taxes 5,430 5,044
Prepaid expenses and other
current assets 4,346 4,318 TOTAL CURRENT ASSETS 251,378 218,222 Restricted investments 6,118 5,206 Property and equipment, net 32,713 29,662 Other intangibles, net 6,610 7,056 Goodwill, net 233,110 230,448 Other assets 1,747 1,373 TOTAL ASSETS $531,676 $491,967
LIABILITIES AND STOCKHOLDERS'
EQUITY CURRENT LIABILITIES: Accounts payable Trade $105,064 $123,020 Other 6,107 6,683 Accrued expenses Payroll 9,988 16,446 Other 26,388 32,408 Related party payable - 5,000 TOTAL CURRENT LIABILITIES 147,547 183,557 Non-current liabilities 9,535 10,363 Deferred taxes 59,410 47,148
STOCKHOLDERS' EQUITY:
Preferred stock,
2,000,000 shares authorized;
no shares issued or outstanding
in 2008 and 2007 - -
Common stock
Class A:
97,337,700 shares authorized
and
41,224,792 shares issued in
2008 and 2007; 36,970,347
outstanding in 2008 and
36,666,731 outstanding in
2007 412 412
Class B:
662,300 shares authorized;
662,296 shares issued and
outstanding in 2008 and 2007 7 7 Additional paid-in capital 174,355 176,657
Purchase price in excess of
predecessor basis, net of tax
benefit of $10,306 (15,458) (15,458) Retained earnings 265,287 206,042
Treasury stock; at cost,
4,254,445 shares in 2008 and
4,558,061 shares in 2007 (109,419) (116,761) TOTAL STOCKHOLDERS' EQUITY 315,184 250,899 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $531,676 $491,967 HUB GROUP, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Twelve Months Ended December 31, 2008 2007
Cash flows from operating
activities:
Net income $59,245 $59,799
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 7,369 7,195 Deferred taxes 9,294 3,523
Compensation expense related to
share-based compensation plans 4,360 3,853 Gain on sale of assets (22) (160)
Changes in operating assets and
liabilities:
Restricted investments (912) (2,189) Accounts receivable, net 15,092 (4,119) Prepaid taxes (37) 2,033
Prepaid expenses and other
current assets (28) 132 Other assets (374) 88 Accounts payable (18,532) 4,223 Accrued expenses (13,040) 4,094 Non-current liabilities (908) 2,108
Net cash provided by operating
activities 61,507 80,580
Cash flows from investing
activities:
Proceeds from sale of equipment 1,342 725
Purchases of property and
equipment (10,732) (10,197)
Cash used in acquisition of
Comtrak, Inc. (5,000) (5,000)
Net cash used in investing
activities (14,390) (14,472)
Cash flows from financing
activities:
Proceeds from stock options
exercised 407 760 Purchase of treasury stock (2,630) (76,309)
Excess tax benefits from share-
based compensation 2,903 3,952
Net cash provided by (used in)
financing activities 680 (71,597)
Net increase (decrease) in cash and
cash equivalents 47,797 (5,489)
Cash and cash equivalents beginning
of year 38,002 43,491
Cash and cash equivalents end of
year $85,799 $38,002
SOURCE
CONTACT: Amy Lisek of