Press Release

Hub Group, Inc. Reports Earnings for the Fourth Quarter and Full Year 2010

DOWNERS GROVE, Ill., Jan. 27, 2011 /PRNewswire via COMTEX/ --

Hub Group, Inc. (Nasdaq: HUBG) today reported income of $13 million for the fourth quarter of 2010, an increase of 26% compared to the fourth quarter of 2009. Hub Group's diluted earnings per share was $0.34 for the fourth quarter of 2010, which represents an increase of 31% when compared with the prior year period.

Hub Group's revenue increased 18% to $480 million compared to $408 million in the fourth quarter of 2009. Fourth quarter intermodal revenue increased 19% to $340 million. The increase was attributable to a 14% volume increase, a 4% increase for fuel and a 4% increase in pricing, partially offset by a 3% decrease for mix. Truck brokerage revenue was $79 million this quarter, which is equal to revenue in the fourth quarter of 2009. Fourth quarter Unyson Logistics revenue increased 38% to $61 million.

"The fourth quarter was a solid finish to an outstanding year," remarked David P. Yeager, Chairman and Chief Executive Officer of Hub Group. "For the year we grew all three business lines, with our intermodal volume up 19%. Going into our 40th anniversary year, we are well positioned for continued growth."

FULL YEAR 2010

Income for the year ended December 31, 2010 was $43 million. Hub Group's diluted earnings per share for 2010 was $1.16.

As of December 31, 2010, the Company had $115 million of cash and no debt.

CONFERENCE CALL

Hub Group will hold its conference call at 5:00 p.m. Eastern Time on January 27, 2011 to discuss its fourth quarter and full year results and provide 2011 guidance.

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) 713-4218. The conference call participant code is 73276818. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PB7HQ39MX . 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, 2009 and the reports on Form 10-Q for the periods ended March 31, 2010, June 30, 2010 and September 30, 2010. Hub Group assumes no liability to update any such forward-looking statements.

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)






















Three Months


Twelve Months








Ended December 31,


Ended December 31,








2010


2009


2010


2009

Revenue




$ 479,913


$ 407,881


$ 1,833,737


$ 1,510,970















Transportation costs




423,271


361,323


1,620,304


1,325,280


Gross margin




56,642


46,558


213,433


185,690















Costs and expenses:












Salaries and benefits




26,270


21,004


99,138


88,518


General and administrative



10,207


9,092


40,621


37,467


Depreciation and amortization



947


945


3,792


4,174



Total costs and expenses



37,424


31,041


143,551


130,159















Operating income




19,218


15,517


69,882


55,531















Other income (expense):











Interest expense




(16)


(15)


(54)


(91)


Interest income




36


26


119


146


Other, net




62


111


146


299



Total other (expense) income



82


122


211


354















Income before provision for income taxes



19,300


15,639


70,093


55,885















Provision for income taxes



6,791


5,688


26,635


21,620















Net income




$ 12,509


$ 9,951


$ 43,458


$ 34,265















Basic earnings per common share



$ 0.34


$ 0.27


$ 1.17


$ 0.92















Diluted earnings per common share



$ 0.34


$ 0.26


$ 1.16


$ 0.91















Basic weighted average number of shares outstanding


36,817


37,428


37,223


37,367

Diluted weighted average number of shares outstanding

37,027


37,657


37,385


37,525

HUB GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)































December 31,


December 31,









2010


2009












ASSETS








CURRENT ASSETS:







Cash and cash equivalents

$ 115,144


$ 126,863



Accounts receivable trade, net

185,879


145,317



Accounts receivable trade other

17,958


11,932



Prepaid taxes



296


593



Deferred taxes



3,314


2,874



Prepaid expenses and other current assets

6,569


6,801




TOTAL CURRENT ASSETS

329,160


294,380













Restricted investments


11,421


9,583


Property and equipment, net

47,806


28,510


Other intangibles, net


5,856


6,164


Goodwill, net



233,029


232,892


Other assets



2,135


1,819





TOTAL ASSETS


$ 629,407


$ 573,348























LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:







Accounts payable trade


$ 121,078


$ 110,626



Accounts payable other


10,064


7,695



Accrued payroll



14,378


8,253



Accrued other



21,898


18,958




TOTAL CURRENT LIABILITIES

167,418


145,532













Non-current liabilities


13,950


12,002


Deferred taxes



71,739


61,973


STOCKHOLDERS' EQUITY:







Preferred stock, $.01 par value; 2,000,000 shares authorized;
no shares issued or outstanding in 2010 and 2009

-


-



Common stock









Class A: $.01 par value; 97,337,700 shares authorized and
41,224,792 shares issued in 2010 and 2009; 36,638,359
outstanding in 2010 and 37,253,330 outstanding in 2009

412


412




Class B: $.01 par value; 662,300 shares authorized;
662,296 shares issued and outstanding in 2010 and 2009

7


7



Additional paid-in capital


169,722


171,470



Purchase price in excess of predecessor basis, net of tax
benefit of $10,306


(15,458)


(15,458)



Retained earnings


343,010


299,552



Accumulated other comprehensive income (loss)

6


(9)



Treasury stock; at cost, 4,586,433 shares in 2010 and
3,971,462 shares in 2009

(121,399)


(102,133)




TOTAL STOCKHOLDERS' EQUITY

376,300


353,841





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 629,407


$ 573,348

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)




















Twelve Months Ended









December 31,









2010


2009























Cash flows from operating activities:





Net income



$ 43,458


$ 34,265


Adjustments to reconcile net income to net cash provided by operating activities:






Depreciation and amortization


8,572


8,199



Deferred taxes



9,545


5,519



Compensation expense related to share-based compensation plans

3,576


4,394



Loss on sale of assets



85


50


Changes in operating assets and liabilities:






Restricted investments



(1,838)


(3,465)



Accounts receivable, net


(46,582)


(1,569)



Prepaid taxes



298


(470)



Prepaid expenses and other current assets


233


(2,455)



Other assets




298


(72)



Accounts payable



12,822


7,150



Accrued expenses



5,277


(8,603)



Non-current liabilities



1,910


2,285





Net cash provided by operating activities


37,654


45,228












Cash flows from investing activities:





Proceeds from sale of equipment

988


84


Purchases of property and equipment

(25,616)


(4,246)


Cash used in acquisitions

(170)


-




Net cash used in investing activities


(24,798)


(4,162)












Cash flows from financing activities:





Proceeds from stock options exercised

46


256


Purchase of treasury stock

(25,070)


(1,101)


Excess tax benefits from share-based compensation

434


852




Net cash (used in) provided by financing activities


(24,590)


7























Effect of exchange rate changes on cash and cash equivalents

15


(9)












Net (decrease) increase in cash and cash equivalents

(11,719)


41,064

Cash and cash equivalents beginning of year

126,863


85,799

Cash and cash equivalents end of year

$ 115,144


$ 126,863

SOURCE Hub Group, Inc.