Hub Group, Inc. Reports Earnings for the Fourth Quarter and Full Year 2009 and Provides 2010 Guidance
Hub Group's revenue decreased 5% to $408 million compared to $430 million in the fourth quarter of 2008. Fourth quarter intermodal revenue decreased 7% to $285 million. The decrease was attributable to a 7% decrease for price and mix and a 6% decrease for fuel, partially offset by 6% higher volume. Truck brokerage revenue was down 4% to $79 million this quarter. Fourth quarter logistics revenue increased 2% to $44 million.
Commenting on the results, David P. Yeager, Chairman and Chief Executive Officer of Hub Group stated, "We are pleased with our fourth quarter results and strong finish to 2009. While 2009 was a challenging year due to the economy, we are starting 2010 with positive momentum."
FULL YEAR 2009
Income for the year ended December 31, 2009 was $34 million. Hub Group's diluted earnings per share for 2009 was $0.91.
As of December 31, 2009, the Company had $127 million of cash and no debt.
FULL YEAR 2010
Assuming there is no further deterioration in the economy, we are comfortable that earnings for 2010 will be within the current analysts' range of $1.00 to $1.15 per diluted share.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Thursday, January 28, 2010 to discuss its fourth quarter and full year results.
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 at 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) 680-0860. The conference call participant code is 99782403. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P7CQFP8K7. 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, 2008 and the reports on Form 10-Q for the periods ended March 31, 2009, June 30, 2009 and September 30, 2009. 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 Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue $407,881 $430,472 $1,510,970 $1,860,608
Transportation costs 361,323 376,662 1,325,280 1,626,297
------- ------- --------- ---------
Gross margin 46,558 53,810 185,690 234,311
Costs and expenses:
Salaries and benefits 21,004 19,878 88,518 93,658
General and administrative 9,092 9,841 37,467 41,234
Depreciation and amortization 945 970 4,174 3,957
--- --- ----- -----
Total costs and expenses 31,041 30,689 130,159 138,849
------ ------ ------- -------
Operating income 15,517 23,121 55,531 95,462
Other income (expense):
Interest expense (15) (19) (91) (102)
Interest income 26 113 146 1,153
Other, net 111 (215) 299 (187)
--- ---- --- ----
Total other income
(expense) 122 (121) 354 864
Income before provision
for income taxes 15,639 23,000 55,885 96,326
Provision for income taxes 5,688 8,790 21,620 37,081
----- ----- ------ ------
Net income $9,951 $14,210 $34,265 $59,245
====== ======= ======= =======
Basic earnings per common
share $0.27 $0.38 $0.92 $1.59
===== ===== ===== =====
Diluted earnings per common
share $0.26 $0.38 $0.91 $1.58
===== ===== ===== =====
Basic weighted average number
of shares outstanding 37,428 37,195 37,367 37,174
====== ====== ====== ======
Diluted weighted average number
of shares outstanding 37,657 37,501 37,525 37,484
====== ====== ====== ======
HUB GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, December 31,
------------ ------------
2009 2008
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $126,863 $85,799
Accounts receivable
Trade, net 145,317 145,362
Other 11,932 10,318
Prepaid taxes 593 123
Deferred taxes 2,874 1,985
Prepaid expenses and
other current assets 6,801 4,346
----- -----
TOTAL CURRENT ASSETS 294,380 247,933
Restricted investments 9,583 6,118
Property and equipment, net 28,510 32,713
Other intangibles, net 6,164 6,610
Goodwill, net 232,892 233,110
Other assets 1,819 1,747
----- -----
TOTAL ASSETS $573,348 $528,231
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade $110,626 $105,064
Other 7,695 6,107
Accrued expenses
Payroll 8,253 9,988
Other 18,958 26,388
------ ------
TOTAL CURRENT LIABILITIES 145,532 147,547
Non-current liabilities 12,002 9,535
Deferred taxes 61,973 55,965
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;
2,000,000 shares authorized;
no shares issued or outstanding
in 2009 and 2008 - -
Common stock
Class A: $.01 par value;
97,337,700 shares authorized and
41,224,792 shares issued in 2009
and 2008; 37,253,330 outstanding
in 2009 and 36,970,347
outstanding in 2008 412 412
Class B: $.01 par value;
662,300 shares authorized;
662,296 shares issued and
outstanding in 2009 and 2008 7 7
Additional paid-in capital 171,470 174,355
Purchase price in excess
of predecessor basis,
net of tax benefit of $10,306 (15,458) (15,458)
Retained earnings 299,552 265,287
Other comprehensive income (loss) (9) -
Treasury stock; at cost,
3,971,462 shares in 2009 and
4,254,445 shares in 2008 (102,133) (109,419)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 353,841 315,184
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $573,348 $528,231
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HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
------------
2009 2008
---- ----
Cash flows from operating activities:
Net income $34,265 $59,245
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 8,199 7,369
Deferred taxes 5,519 9,294
Compensation expense related to share-
based compensation plans 4,394 4,360
Loss (gain) on sale of assets 50 (22)
Changes in operating assets and liabilities:
Restricted investments (3,465) (912)
Accounts receivable, net (1,569) 15,092
Prepaid taxes (470) (37)
Prepaid expenses and other current
assets (2,455) (28)
Other assets (72) (374)
Accounts payable 7,150 (18,532)
Accrued expenses (8,603) (13,040)
Non-current liabilities 2,285 (908)
----- ----
Net cash provided by operating
activities 45,228 61,507
------ ------
Cash flows from investing activities:
Proceeds from sale of equipment 84 1,342
Purchases of property and equipment (4,246) (10,732)
Cash used in acquisition of
Comtrak, Inc. 0 (5,000)
--- ------
Net cash used in investing
activities (4,162) (14,390)
------ -------
Cash flows from financing activities:
Proceeds from stock options exercised 256 407
Purchase of treasury stock (1,101) (2,630)
Excess tax benefits from share-
based compensation 852 2,903
--- -----
Net cash provided by financing
activities 7 680
--- ---
Effect of exchange rate changes on
cash and cash equivalents (9) -
Net increase in cash and cash equivalents 41,064 47,797
Cash and cash equivalents beginning of year 85,799 38,002
------ ------
Cash and cash equivalents end of year $126,863 $85,799
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SOURCE Hub Group, Inc.