OAK BROOK, Ill., April 17, 2014 /PRNewswire/ -- Hub Group, Inc.
(NASDAQ: HUBG) today announced financial results for the quarter
ended March 31, 2014.
Hub Group reported income of $12.0
million for the first quarter ended March 31, 2014 compared to $15.4 million for the first quarter of
2013. Hub Group's diluted earnings per share was $0.33 for the quarter. Hub Group's revenue
increased 10% to $848
million.
The Hub segment's revenue increased 10% to $653 million. First quarter intermodal
revenue increased 2% to $435 million
on a 2% increase in volume. Truck brokerage revenue increased
3% to $84 million this quarter.
First quarter Unyson Logistics revenue increased 64% to
$134 million. The Hub segment's
operating income was $15.9
million.
The Mode segment's revenue increased 11% to $209 million. Operating income was
$4.6 million, an increase of 31%
compared to the prior year period.
Hub Group ended the quarter with $75
million in cash.
"The first quarter of 2014 was marked by a truly challenging
operating environment due to the extreme weather in many
markets. While this negatively impacted our financial
results, we are pleased with the way our organization responded to
these challenges," said David P.
Yeager, Chairman and Chief Executive Officer of Hub
Group.
CONFERENCE CALL
Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday, April 17, 2014 to discuss its first
quarter results.
Hosting the conference call will be David Yeager, Chief Executive Officer,
Mark Yeager, Chief Operating
Officer, and Terri Pizzuto, Chief
Financial Officer.
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) 713-4218. The conference
call participant code is 82741607#. Participants may pre-register
for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PXFKJ89CD.
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 $3
billion 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. For more information, visit
www.hubgroup.com.
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,
2013. 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,
|
|
|
2014
|
|
2013
|
Revenue
|
|
$ 848,449
|
|
$ 768,980
|
|
|
|
|
|
Transportation
costs
|
|
759,705
|
|
681,642
|
|
Gross
margin
|
|
88,744
|
|
87,338
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
Salaries and
benefits
|
|
37,092
|
|
34,583
|
|
Agent fees and
commissions
|
|
13,666
|
|
13,274
|
|
General and
administrative
|
|
15,432
|
|
13,191
|
|
Depreciation and
amortization
|
|
2,058
|
|
1,553
|
|
|
Total costs and
expenses
|
|
68,248
|
|
62,601
|
|
|
|
|
|
Operating
income
|
|
20,496
|
|
24,737
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
expense
|
|
(407)
|
|
(290)
|
|
Interest and dividend
income
|
|
14
|
|
29
|
|
Other,
net
|
|
(205)
|
|
(11)
|
|
|
Total other (expense)
income
|
|
(598)
|
|
(272)
|
|
|
|
|
|
Income before
provision for income taxes
|
|
19,898
|
|
24,465
|
|
|
|
|
|
Provision for income
taxes
|
|
7,863
|
|
9,101
|
|
|
|
|
|
Net income
|
|
$
12,035
|
|
$
15,364
|
|
|
|
|
|
Basic earnings per
common share
|
|
$
0.33
|
|
$
0.42
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
0.33
|
|
$
0.42
|
|
|
|
|
|
Basic weighted
average number of shares outstanding
|
|
36,661
|
|
36,855
|
Diluted weighted
average number of shares outstanding
|
|
36,724
|
|
36,949
|
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
FINANCIAL INFORMATION BY SEGMENT
|
(in
thousands)
|
|
|
|
Three
Months
|
|
|
Ended March 31,
2013
|
|
|
Hub
|
|
Mode
|
|
Inter-Segment
Elims
|
|
Hub Group
Consolidated
|
Revenue
|
|
$ 592,651
|
|
$ 187,460
|
|
$
(11,131)
|
|
$
768,980
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
costs
|
|
527,471
|
|
165,302
|
|
(11,131)
|
|
681,642
|
|
Gross
margin
|
|
65,180
|
|
22,158
|
|
-
|
|
87,338
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
|
30,777
|
|
3,806
|
|
-
|
|
34,583
|
|
Agent fees and
commissions
|
|
449
|
|
12,825
|
|
-
|
|
13,274
|
|
General and
administrative
|
|
11,698
|
|
1,493
|
|
-
|
|
13,191
|
|
Depreciation and
amortization
|
|
1,020
|
|
533
|
|
-
|
|
1,553
|
|
|
Total costs and
expenses
|
|
43,944
|
|
18,657
|
|
-
|
|
62,601
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
21,236
|
|
3,501
|
|
-
|
|
24,737
|
HUB GROUP,
INC.
|
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share amounts)
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
75,297
|
|
$
68,964
|
|
|
Accounts receivable
trade, net
|
|
413,426
|
|
371,528
|
|
|
Accounts receivable
other
|
|
16,127
|
|
26,569
|
|
|
Prepaid
taxes
|
|
319
|
|
409
|
|
|
Deferred
taxes
|
|
7,227
|
|
5,826
|
|
|
Prepaid expenses and
other current assets
|
|
13,334
|
|
12,738
|
|
TOTAL CURRENT
ASSETS
|
|
525,730
|
|
486,034
|
|
|
|
|
|
|
Restricted
investments
|
|
20,871
|
|
20,754
|
|
Property and
equipment, net
|
|
276,743
|
|
260,400
|
|
Other intangibles,
net
|
|
15,405
|
|
15,729
|
|
Goodwill,
net
|
|
262,978
|
|
263,032
|
|
Other
assets
|
|
2,831
|
|
1,994
|
|
TOTAL
ASSETS
|
|
$
1,104,558
|
|
$ 1,047,943
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Accounts payable
trade
|
|
$
263,697
|
|
$
232,350
|
|
|
Accounts payable
other
|
|
22,589
|
|
24,957
|
|
|
Accrued
payroll
|
|
13,971
|
|
17,000
|
|
|
Accrued
other
|
|
37,201
|
|
42,834
|
|
|
Current portion of
capital lease
|
|
2,433
|
|
2,413
|
|
|
Current portion of
long term debt
|
|
5,974
|
|
1,771
|
|
TOTAL CURRENT
LIABILITIES
|
|
345,865
|
|
321,325
|
|
|
|
|
|
|
Long term
debt
|
|
26,509
|
|
6,475
|
|
Non-current
liabilities
|
|
20,399
|
|
22,304
|
|
Non-current portion
of capital lease
|
|
17,841
|
|
18,477
|
|
Deferred
taxes
|
|
121,171
|
|
117,835
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
Preferred stock, $.01
par value; 2,000,000 shares authorized; no shares issued or outstanding in 2014 and
2013
|
|
-
|
|
-
|
|
|
Common
stock
|
|
|
|
|
|
Class A: $.01 par value;
97,337,700 shares authorized and 41,224,792 shares issued in 2014 and 2013; 36,778,746
shares outstanding in 2014 and
36,626,384 shares outstanding in 2013
|
|
412
|
|
412
|
|
|
Class B: $.01 par value;
662,300 shares authorized; 662,296
shares issued and outstanding in 2014 and 2013
|
|
7
|
|
7
|
|
|
Additional paid-in
capital
|
|
163,481
|
|
167,357
|
|
|
Purchase price in
excess of predecessor basis, net of tax benefit of $10,306
|
|
(15,458)
|
|
(15,458)
|
|
|
Retained
earnings
|
|
550,286
|
|
538,251
|
|
|
Other comprehensive
income
|
|
(98)
|
|
(85)
|
|
|
Treasury stock; at
cost, 4,446,046 shares in 2014 and
4,598,408 shares in 2013
|
|
(125,857)
|
|
(128,957)
|
|
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
572,773
|
|
561,527
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
1,104,558
|
|
$
1,047,943
|
HUB GROUP,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
|
$ 12,035
|
|
$ 15,364
|
|
Adjustments to
reconcile net income
|
|
|
|
|
|
|
to net cash provided
by operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
6,779
|
|
5,096
|
|
|
|
Deferred
taxes
|
|
1,991
|
|
2,669
|
|
|
|
Compensation expense
related to share-based compensation plans
|
|
2,143
|
|
1,882
|
|
|
|
Gain on sale of
assets
|
|
(6)
|
|
(214)
|
|
|
|
Excess tax benefits
from share-based compensation
|
|
-
|
|
(3)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Restricted
investments
|
|
(117)
|
|
(181)
|
|
|
|
Accounts receivable,
net
|
|
(31,471)
|
|
(11,893)
|
|
|
|
Prepaid
taxes
|
|
86
|
|
(30)
|
|
|
|
Prepaid expenses and
other current assets
|
|
(597)
|
|
2,227
|
|
|
|
Other
assets
|
|
(837)
|
|
(146)
|
|
|
|
Accounts
payable
|
|
29,286
|
|
16,230
|
|
|
|
Accrued
expenses
|
|
1,128
|
|
(2,801)
|
|
|
|
Non-current
liabilities
|
|
(1,839)
|
|
(198)
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
18,581
|
|
28,002
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Proceeds from sale of
equipment
|
|
85
|
|
734
|
|
Purchases of property
and equipment
|
|
(33,035)
|
|
(9,456)
|
|
|
|
|
Net cash used in
investing activities
|
|
(32,950)
|
|
(8,722)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from
issuance of debt
|
|
25,361
|
|
-
|
|
Repayments of long
term debt
|
|
(1,124)
|
|
-
|
|
Proceeds from stock
options exercised
|
|
-
|
|
42
|
|
Stock tendered for
payments of withholding taxes
|
|
(3,023)
|
|
(2,469)
|
|
Purchase of treasury
stock
|
|
-
|
|
(903)
|
|
Capital lease
payments
|
|
(616)
|
|
(560)
|
|
Excess tax benefits
from share-based compensation
|
|
104
|
|
98
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
20,702
|
|
(3,792)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
-
|
|
3
|
|
|
|
|
|
Net increase in cash
and cash equivalents
|
|
6,333
|
|
15,491
|
Cash and cash
equivalents beginning of period
|
|
68,964
|
|
70,760
|
Cash and cash
equivalents end of period
|
|
$ 75,297
|
|
$ 86,251
|
SOURCE Hub Group, Inc.