Exhibit 99.1
Hub Group, Inc. Reports Second Quarter 2009 Earnings
DOWNERS GROVE, IL, July 22, 2009, -- Hub Group, Inc. (NASDAQ: HUBG) today reported income for the quarter ended June 30, 2009 of $8.3 million. Hub Group’s diluted earnings per share was $0.22 for the second quarter of 2009.
Hub Group’s revenue decreased 26% to $363 million compared to $491 million in the second quarter of 2008. Second quarter intermodal revenue decreased 28% to $254 million. The decrease was attributable to a 10% volume decrease and an 18% decrease related primarily to fuel. Truck brokerage revenue decreased 28% to $72 million this quarter. Second quarter logistics revenue decreased 9% to $37 million.
Hub Group ended the quarter with $113 million in cash.
“Each of our business lines continues to generate respectable returns even in this difficult freight environment,” said David P. Yeager, Chairman and Chief Executive Officer. “Although revenue is down, we continue to focus aggressively on productivity enhancements to reduce our costs while maintaining a high level of customer service.”
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, July 22, 2009 to discuss its second quarter 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 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) 680-0890. The conference call participant code is 53036098. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P3NHPE4DX. 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 report on Form 10-Q for the period ended March 31, 2009. Hub Group assumes no liability to update any such forward-looking statements.
SOURCE: Hub Group, Inc.
CONTACT: Amy Lisek of Hub Group, Inc., +1-630-795-2214
| HUB GROUP, INC. | ||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Three Months | Six Months | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Revenue | $ | 362,613 | $ | 490,929 | $ | 714,308 | $ | 915,924 | ||||||||
| Transportation costs | 316,850 | 431,090 | 623,376 | 798,583 | ||||||||||||
| Gross margin | 45,763 | 59,839 | 90,932 | 117,341 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Salaries and benefits | 22,063 | 24,301 | 45,277 | 49,664 | ||||||||||||
| General and administrative | 9,130 | 10,477 | 19,253 | 20,627 | ||||||||||||
| Depreciation and amortization | 1,124 | 991 | 2,280 | 1,992 | ||||||||||||
| Total costs and expenses | 32,317 | 35,769 | 66,810 | 72,283 | ||||||||||||
| Operating income | 13,446 | 24,070 | 24,122 | 45,058 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (25 | ) | (26 | ) | (50 | ) | (52 | ) | ||||||||
| Interest and dividend income | 36 | 340 | 91 | 678 | ||||||||||||
| Other, net | 62 | (9 | ) | 72 | 86 | |||||||||||
| Total other income | 73 | 305 | 113 | 712 | ||||||||||||
| Income before provision for income taxes | 13,519 | 24,375 | 24,235 | 45,770 | ||||||||||||
| Provision for income taxes | 5,214 | 9,405 | 9,752 | 17,665 | ||||||||||||
| Net income | $ | 8,305 | $ | 14,970 | $ | 14,483 | $ | 28,105 | ||||||||
| Basic earnings per common share | $ | 0.22 | $ | 0.40 | $ | 0.39 | $ | 0.76 | ||||||||
| Diluted earnings per common share | $ | 0.22 | $ | 0.40 | $ | 0.39 | $ | 0.75 | ||||||||
| Basic weighted average number of shares outstanding | 37,344 | 37,191 | 37,333 | 37,146 | ||||||||||||
| Diluted weighted average number of shares outstanding | 37,480 | 37,489 | 37,446 | 37,447 | ||||||||||||
HUB GROUP, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share amounts) | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
| ASSETS | (unaudited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 113,091 | $ | 85,799 | ||||
| Accounts receivable | ||||||||
| Trade, net | 143,368 | 145,362 | ||||||
| Other | 10,603 | 10,318 | ||||||
| Prepaid taxes | 123 | 123 | ||||||
| Deferred taxes | 5,683 | 5,430 | ||||||
| Prepaid expenses and other current assets | 6,606 | 4,346 | ||||||
| TOTAL CURRENT ASSETS | 279,474 | 251,378 | ||||||
| Restricted investments | 7,688 | 6,118 | ||||||
| Property and equipment, net | 29,968 | 32,713 | ||||||
| Other intangibles, net | 6,387 | 6,610 | ||||||
| Goodwill, net | 233,001 | 233,110 | ||||||
| Other assets | 1,684 | 1,747 | ||||||
| TOTAL ASSETS | $ | 558,202 | $ | 531,676 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | ||||||||
| Trade | $ | 114,093 | $ | 105,064 | ||||
| Other | 8,125 | 6,107 | ||||||
| Accrued expenses | ||||||||
| Payroll | 6,890 | 9,988 | ||||||
| Other | 25,562 | 26,388 | ||||||
| TOTAL CURRENT LIABILITIES | 154,670 | 147,547 | ||||||
| Non-current liabilities | 9,760 | 9,535 | ||||||
| Deferred taxes | 62,844 | 59,410 | ||||||
| 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; 37,162,919 shares outstanding in 2009 and 36,970,347 shares 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 | 170,654 | 174,355 | ||||||
| Purchase price in excess of predecessor basis, net of tax benefit of $10,306 | (15,458 | ) | (15,458 | ) | ||||
| Retained earnings | 279,770 | 265,287 | ||||||
| Treasury stock; at cost, 4,061,873 shares in 2009 and 4,254,445 shares in 2008 | (104,457 | ) | (109,419 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 330,928 | 315,184 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 558,202 | $ | 531,676 | ||||
| HUB GROUP, INC. | ||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2009 | 2008 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 14,483 | $ | 28,105 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 4,320 | 3,395 | ||||||
| Deferred taxes | 3,227 | 5,149 | ||||||
| Compensation expense related to share-based compensation plans | 2,152 | 2,257 | ||||||
| Gain on sale of assets | (16 | ) | (197 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Restricted investments | (1,570 | ) | (2,540 | ) | ||||
| Accounts receivable, net | 1,709 | (31,826 | ) | |||||
| Prepaid expenses and other current assets | (2,260 | ) | (1,607 | ) | ||||
| Other assets | 63 | 122 | ||||||
| Accounts payable | 11,047 | 26,608 | ||||||
| Accrued expenses | (3,362 | ) | (8,938 | ) | ||||
| Non-current liabilities | 288 | 45 | ||||||
| Net cash provided by operating activities | 30,081 | 20,573 | ||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of equipment | 53 | 364 | ||||||
| Purchases of property and equipment | (1,951 | ) | (1,858 | ) | ||||
| Cash used in acquisition of Comtrak, Inc. | - | (5,000 | ) | |||||
| Net cash used in investing activities | (1,898 | ) | (6,494 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from stock options exercised | 44 | 355 | ||||||
| Purchase of treasury stock | (1,082 | ) | (796 | ) | ||||
| Excess tax benefits from share-based compensation | 147 | 2,398 | ||||||
| Net cash (used in) provided by financing activities | (891 | ) | 1,957 | |||||
| Net increase in cash and cash equivalents | 27,292 | 16,036 | ||||||
| Cash and cash equivalents beginning of period | 85,799 | 38,002 | ||||||
| Cash and cash equivalents end of period | $ | 113,091 | $ | 54,038 | ||||