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Hub Group, Inc. Reports First Quarter 2015 Earnings per Share of $0.32 Excluding One-time Costs

04/23/15

OAK BROOK, Ill., April 23, 2015 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended March 31, 2015.

Hub Group reported income of $10.3 million for the first quarter ended March 31, 2015 compared to $12.0 million for the first quarter of 2014.  Hub Group's diluted earnings per share was $0.28 for the quarter.  Hub Group's pre-tax income included one-time costs of $2.3 million including a $1.4 million Canadian currency translation loss and $0.9 million of severance.  Excluding the effect of these items, non-GAAP earnings per share was $0.32 for the quarter (see table below).  Non-GAAP earnings per share decreased 3% when compared with the prior year period.  Hub Group's revenue decreased 1.5% to $836 million. 

The Hub segment's revenue decreased 1.5% to $643 million.  First quarter intermodal revenue decreased 3% to $421 million due to a decrease in fuel revenue.  Intermodal volume increased 1%.  Truck brokerage revenue increased 6% to $89 million this quarter.  First quarter Unyson Logistics revenue decreased 1% to $133 million.  The Hub segment's operating income was $13.7 million. 

The Mode segment's revenue increased 2% to $214 million.  Operating income was $5.1 million, an increase of 11% compared to the prior year period.

Hub Group ended the quarter with $129 million in cash.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday, April 23, 2015 to discuss its first quarter results.

Hosting the conference call will be David Yeager, Chairman and Chief Executive Officer, Mark Yeager, Vice-Chairman, President and Chief Operating Officer, and Terri 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 www.hubgroup.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 register at http://www.yourconferencecenter.com/r.aspx?p=1&a=UuaITmZViChKOr.  Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference.  You may register at any time, including up to and after the call start time.  On the day of the call, dial (888) 206-4074 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration.   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 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 intermodal, truck brokerage and logistics services. The Company operates through a network of offices and independent agents 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 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'sSEC reports including, but not limited to, our annual report on Form 10-K for the year ended December 31, 2014. 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




Ended March 31,




2015

2014

Revenue

$ 835,941

$ 848,449







Transportation costs

746,813

759,705

Gross margin

89,128

88,744







Costs and expenses:



Salaries and benefits

39,476

37,092

Agent fees and commissions

14,826

13,666

General and administrative

14,071

15,432

Depreciation and amortization

1,960

2,058


Total costs and expenses

70,333

68,248







Operating income

18,795

20,496







Other income (expense):



Interest expense

(741)

(407)

Interest and dividend income

6

14

Other, net 

(1,404)

(205)


Total other expense 

(2,139)

(598)







Income before provision for income taxes

16,656

19,898







Provision for income taxes

6,380

7,863







Net income

$  10,276

$  12,035







Basic earnings per common share

$      0.28

$      0.33







Diluted earnings per common share

$      0.28

$      0.33







Basic weighted average number of shares outstanding

36,156

36,661

Diluted weighted average number of shares outstanding

36,169

36,724

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)















Three Months




Ended March 31, 2015




Hub

Mode

Inter-Segment Elims

Hub Group Consolidated

Revenue

$ 643,443

$ 213,522

$         (21,024)

$      835,941











Transportation costs

580,258

187,579

(21,024)

746,813

Gross margin

63,185

25,943

-

89,128











Costs and expenses:







Salaries and benefits

35,660

3,816

-

39,476

Agent fees and commissions

15

14,811

-

14,826

General and administrative

12,198

1,873

-

14,071

Depreciation and amortization

1,618

342

-

1,960


Total costs and expenses

49,491

20,842

-

70,333











Operating income

13,694

5,101

-

18,795

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)















Three Months




Ended March 31, 2014




Hub

Mode

Inter-Segment Elims

Hub Group Consolidated

Revenue

$ 653,409

$ 208,906

$         (13,866)

$      848,449











Transportation costs

588,912

184,659

(13,866)

759,705

Gross margin

64,497

24,247

-

88,744











Costs and expenses:







Salaries and benefits

33,337

3,755

-

37,092

Agent fees and commissions

11

13,655

-

13,666

General and administrative

13,739

1,693

-

15,432

Depreciation and amortization

1,517

541

-

2,058


Total costs and expenses

48,604

19,644

-

68,248











Operating income

15,893

4,603

-

20,496

 

HUB GROUP, INC.

UNAUDITED NON-GAAP TO GAAP RECONCILIATION

(earnings per share)









Three Months

Ended, March 31,



Change

Change

2015

2014

$

%





Diluted GAAP EPS

$    0.28

$    0.33

$   (0.05)

-15.2%





Canadian currency translation loss, net of tax

0.02

-

0.02





Severance costs, net of tax

0.02

-

0.02





Diluted non-GAAP EPS (adjusted)

$    0.32

$    0.33

$   (0.01)

-3.0%





Diluted shares

36,169

36,724

In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance. This table and Hub's internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.

HUB GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)
























March 31,

December 31,






2015

2014






(unaudited)

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$    129,261

$       109,769


Accounts receivable trade, net

409,506

401,803


Accounts receivable other

14,299

24,886


Prepaid taxes

10,380

14,937


Deferred taxes

6,216

4,816


Prepaid expenses and other current assets

17,600

14,355




TOTAL CURRENT ASSETS

587,262

570,566










Restricted investments

21,846

21,944

Property and equipment, net

332,637

338,327

Other intangibles, net

14,110

14,434

Goodwill, net

262,759

262,813

Other assets

3,713

4,043





TOTAL ASSETS

$ 1,222,327

$    1,212,127


















LIABILITIES AND STOCKHOLDERS' EQUITY



CURRENT LIABILITIES:




Accounts payable trade

$    269,354

$       256,345


Accounts payable other

21,736

21,333


Accrued payroll

16,991

16,192


Accrued other

36,180

43,523


Current portion of capital lease

2,538

2,504


Current portion of long term debt

21,921

19,619




TOTAL CURRENT LIABILITIES

368,720

359,516










Long term debt

76,085

72,460

Non-current liabilities

21,885

22,929

Long term portion of capital lease

15,298

15,937

Deferred taxes

143,386

140,501










STOCKHOLDERS' EQUITY:




Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2015 and 2014




-

-


Common stock





Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2015 and 2014; 36,062,587 shares outstanding in 2015 and 36,247,324 shares outstanding in 2014











412

412



Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2015 and 2014





7

7


Additional paid-in capital

166,941

171,235


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




(15,458)

(15,458)


Retained earnings

600,085

589,809


Accumulated other comprehensive loss

(74)

(77)


Treasury stock; at cost, 5,162,205 shares in 2015 and 4,977,468 shares in 2014




(154,960)

(145,144)



TOTAL STOCKHOLDERS' EQUITY

596,953

600,784




TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 1,222,327

$    1,212,127

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)





















Three Months Ended









March 31,









2015

2014
























Cash flows from operating activities:




Net income


$   10,276

$ 12,035

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











Depreciation and amortization 

8,731

6,779



Deferred taxes

1,593

1,991



Compensation expense related to share-based compensation plans

2,034

2,143



Gain on sale of assets

-

(6)



Excess tax benefits from share-based compensation

(13)

-

Changes in operating assets and liabilities:






Restricted investments

98

(117)



Accounts receivable, net

2,874

(31,471)



Prepaid taxes

4,557

86



Prepaid expenses and other current assets

(3,246)

(597)



Other assets


330

(837)



Accounts payable

13,414

29,286



Accrued expenses

5,733

1,128



Non-current liabilities

(1,052)

(1,839)





Net cash provided by operating activities

45,329

18,581












Cash flows from investing activities:




Proceeds from sale of equipment

26

85

Purchases of property and equipment

(15,057)

(33,035)




Net cash used in investing activities

(15,031)

(32,950)












Cash flows from financing activities:




Proceeds from issuance of debt

11,480

25,361

Repayments of long term debt

(5,553)

(1,124)

Stock tendered for payments of withholding taxes

(2,754)

(3,023)

Purchase of treasury stock

(13,419)

-

Capital lease payments

(605)

(616)

Excess tax benefits from share-based compensation

42

104




Net cash (used in) provided by financing activities

(10,809)

20,702

























Effect of exchange rate changes on cash and cash equivalents

3

-












Net increase in cash and cash equivalents

19,492

6,333

Cash and cash equivalents beginning of period

109,769

68,964

Cash and cash equivalents end of period

$ 129,261

$ 75,297

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hub-group-inc-reports-first-quarter-2015-earnings-per-share-of-032-excluding-one-time-costs-300071299.html

SOURCE Hub Group, Inc.

Maralee Volchko of Hub Group, Inc., +1-630-271-3745