Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.48 Excluding One-Time Costs

01/26/12

DOWNERS GROVE, Ill., Jan. 26, 2012 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2011.

Hub Group reported income of $17.0 million for the fourth quarter ended December 31, 2011, an increase of 36% compared to the fourth quarter of 2010. Hub Group's diluted earnings per share was $0.46 for the fourth quarter of 2011, which represents an increase of 35% when compared with the prior year period. Hub Group's pre-tax income includes integration and restructuring costs of $1.0 million. Excluding the effects of these items, non-GAAP earnings per share was $0.48 for the quarter (see table below). Non-GAAP earnings per share increased 41% when compared with the prior year period. Hub Group's revenue increased 59% to $763 million.

The Hub segment's revenue increased 20% to $577 million. Fourth quarter intermodal revenue increased 23% to $419 million. The increase was attributable to a 16% volume increase and a 7% increase for fuel, price and mix. Truck brokerage revenue increased 3% to $82 million this quarter. Fourth quarter Unyson Logistics revenue increased 27% to $76 million. Hub's operating income increased $4.5 million to $23.7 million, which represents an increase of 23% when compared with the prior year period. The Hub results include approximately $500,000 of restructuring costs.

The Mode segment's revenue was $195 million for the fourth quarter. Operating income was $3.4 million. The Mode results include approximately $500,000 of costs related to integration.

FULL YEAR 2011

Income for the year ended December 31, 2011 was $58 million. Hub Group's diluted earnings per share for 2011 was $1.57. Full year 2011 pre-tax income includes integration and restructuring costs of $4.6 million. Excluding the effects of these items, non-GAAP earnings per share was $1.65 for the year (see table below). Full year non-GAAP earnings per share increased 42% when compared with the prior year. Hub Group's revenue increased 50% to $2.8 billion.

Hub Group ended the year with $49 million in cash.

"Despite the uncertain economic environment, Hub Group closed out 2011 with another quarter of strong operating results," said David P. Yeager, Chairman and Chief Executive Officer of Hub Group.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Thursday, January 26, 2011 to discuss its fourth quarter and full year results and provide 2012 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 on Hub Group's Web site at 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) 679-8018. The conference call participant code is 44109733. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PX3PNJTNA . 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 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 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 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, 2010 and the reports on Form 10-Q for the periods ended March 31, 2011, June 30, 2011 and September 30, 2011. 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,
			2011	2010	2011	2010
Revenue			$ 762,775	$ 479,913	$ 2,751,534	$ 1,833,737

Transportation costs			678,964	423,271	2,438,986	1,620,304
	Gross margin		83,811	56,642	312,548	213,433

Costs and expenses:
	Salaries and benefits		29,522	26,270	121,044	99,138
	Agent fees and commissions		13,091	635	41,491	2,410
	General and administrative		12,425	9,572	49,951	38,211
	Depreciation and amortization		1,635	947	5,603	3,792
		Total costs and expenses	56,673	37,424	218,089	143,551

Operating income			27,138	19,218	94,459	69,882

Other income (expense):
	Interest expense		(319)	(16)	(638)	(54)
	Interest and dividend income		30	36	148	119
	Other, net		42	62	328	146
		Total other (expense) income	(247)	82	(162)	211

Income before provision for income taxes			26,891	19,300	94,297	70,093

Provision for income taxes			9,877	6,791	36,119	26,635

Net income			$ 17,014	$ 12,509	$ 58,178	$ 43,458

Basic earnings per common share			$ 0.46	$ 0.34	$ 1.58	$ 1.17

Diluted earnings per common share			$ 0.46	$ 0.34	$ 1.57	$ 1.16

Basic weighted average number of shares outstanding			36,943	36,817	36,913	37,223
Diluted weighted average number of shares outstanding			37,104	37,027	37,063	37,385


HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)

		Three Months
		Ended December 31, 2011
		Hub	Mode	Inter-Segment Elims	Hub Group Consolidated
Revenue		$ 577,306	$ 195,242	$ (9,773)	$ 762,775

Transportation costs		516,157	172,580	(9,773)	678,964
	Gross margin	61,149	22,662	-	83,811

Costs and expenses:
	Salaries and benefits	25,582	3,940	-	29,522
	Agent fees and commissions	722	12,369	-	13,091
	General and administrative	10,055	2,370	-	12,425
	Depreciation and amortization	1,085	550	-	1,635
		37,444	19,229	-	56,673

Operating income		23,705	3,433	-	27,138


HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)

			Twelve Months
			Ended December 31, 2011
			Hub	Mode	Inter-Segment Elims	Hub Group Consolidated
Revenue			$ 2,183,914	$ 586,251	$ (18,631)	$ 2,751,534

Transportation costs			1,939,263	518,354	(18,631)	2,438,986
	Gross margin		244,651	67,897	-	312,548

Costs and expenses:
	Salaries and benefits		107,378	13,666	-	121,044
	Agent fees and commissions		2,771	38,720	-	41,491
	General and administrative		42,523	7,428	-	49,951
	Depreciation and amortization		3,975	1,628	-	5,603
		Total costs and expenses	156,647	61,442	-	218,089

Operating income			88,004	6,455	-	94,459


HUB GROUP, INC.
UNAUDITED NON-GAAP TO GAAP RECONCILIATION
(earnings per share)


	Three Months				Twelve Months
	Ended, Dec. 31,				Ended, Dec. 31,
			Change	Change			Change	Change
	2011	2010	$	%	2011	2010	$	%

Diluted GAAP EPS	$ 0.46	$ 0.34	$ 0.12	35.3%	$ 1.57	$ 1.16	$ 0.41	35.3%

Integration expenses and
restructuring costs	$ 0.02	$ -	$ 0.02		$ 0.08	$ -	$ 0.08

Diluted NON-GAAP EPS (adjusted)	$ 0.48	$ 0.34	$ 0.14	41.2%	$ 1.65	$ 1.16	$ 0.49	42.2%



Diluted Shares	37,104	37,027			37,063	37,385

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.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)


						December 31,	December 31,
						2011	2010

ASSETS
	CURRENT ASSETS:
		Cash and cash equivalents				$ 49,091	$ 115,144
		Accounts receivable trade, net				326,537	185,879
		Accounts receivable other				23,878	17,958
		Prepaid taxes				2,392	296
		Deferred taxes				4,838	3,314
		Prepaid expenses and other current assets				9,056	6,569
				TOTAL CURRENT ASSETS		415,792	329,160

	Restricted investments					14,323	11,421
	Property and equipment, net					124,587	47,806
	Other intangibles, net					21,667	5,856
	Goodwill, net					263,470	233,029
	Other assets					2,845	2,135
					TOTAL ASSETS	$ 842,684	$ 629,407


LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES:
		Accounts payable trade				$ 204,693	$ 121,078
		Accounts payable other				17,289	10,064
		Accrued payroll				16,721	14,378
		Accrued other				29,962	21,898
		Current portion of capital lease				2,237	-
				TOTAL CURRENT LIABILITIES		270,902	167,418

	Non-current liabilities					17,717	13,950
	Deferred taxes					91,764	71,739
	Non-current portion of capital lease					23,436	-

	STOCKHOLDERS' EQUITY:
		Preferred stock, $.01 par value; 2,000,000 shares authorized;
			no shares issued or outstanding in 2011 and 2010			-	-
		Common stock
			Class A: $.01 par value; 97,337,700 shares authorized and
				41,224,792 shares issued in 2011 and 2010; 36,860,260 shares
				outstanding in 2011 and 36,638,359 shares outstanding in 2010		412	412
			Class B: $.01 par value; 662,300 shares authorized;
				662,296 shares issued and outstanding in 2011 and 2010		7	7
		Additional paid-in capital				168,800	169,722
		Purchase price in excess of predecessor basis, net of tax
		benefit of $10,306				(15,458)	(15,458)
		Retained earnings				401,188	343,010
		Other comprehensive income				4	6
		Treasury stock; at cost, 4,364,532 shares in 2011
			and 4,586,433 shares in 2010			(116,088)	(121,399)
			TOTAL STOCKHOLDERS' EQUITY			438,865	376,300
				TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$ 842,684	$ 629,407


HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

						Twelve Months Ended
						December 30,
						2011	2010


Cash flows from operating activities:
	Net income					$ 58,178	$ 43,458
	Adjustments to reconcile net income
		to net cash provided by operating activities:
			Depreciation and amortization			16,340	8,572
			Deferred taxes			18,821	9,545
			Compensation expense related to share-based compensation plans			4,788	3,576
			(Gain) loss on sale of assets			(17)	85
	Changes in operating assets and liabilities, net of effects of acquisition:
			Restricted investments			(724)	(1,838)
			Accounts receivable, net			(45,047)	(46,582)
			Prepaid taxes			(2,097)	298
			Prepaid expenses and other current assets			(1,728)	233
			Other assets			(33)	298
			Accounts payable			23,095	12,822
			Accrued expenses			2,989	5,277
			Non-current liabilities			301	1,910
					Net cash provided by operating activities	74,866	37,654

Cash flows from investing activities:
	Proceeds from sale of equipment					410	988
	Purchases of property and equipment					(55,010)	(25,616)
	Cash used in acquisitions, net of cash acquired					(85,182)	(170)
				Net cash used in investing activities		(139,782)	(24,798)

Cash flows from financing activities:
	Proceeds from stock options exercised					86	46
	Purchase of treasury stock					(1,523)	(25,070)
	Capital lease payments					(729)	-
	Excess tax benefits from share-based compensation					1,034	434
				Net cash used in financing activities		(1,132)	(24,590)


	Effect of exchange rate changes on cash and cash equivalents					(5)	15

Net decrease in cash and cash equivalents						(66,053)	(11,719)
Cash and cash equivalents beginning of period						115,144	126,863
Cash and cash equivalents end of period						$ 49,091	$ 115,144

SOURCE Hub Group, Inc.

Amy Lisek of Hub Group, Inc., +1-630-795-2214

Press Releases

Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.48 Excluding One-Time Costs