Hub (HUBG) 8-K Results of Operations and Financial Condition

EX 99.1

Hub Group, Inc. Reports Third Quarter 2009 Earnings

DOWNERS GROVE, IL, October 21, 2009, -- Hub Group, Inc. (NASDAQ: HUBG) today reported income for the quarter ended September 30, 2009 of $9.8 million.  Hub Group’s diluted earnings per share was $0.26 for the third quarter of 2009.

Hub Group’s revenue of $389 million was down 24% compared to $514 million in the third quarter of 2008.  Third quarter intermodal revenue decreased 27% to $270 million.  The decrease was attributable to 9% lower volume, 12% lower fuel and a 6% decrease for price and mix.  Truck brokerage revenue decreased 27% to $74 million this quarter.  Third quarter logistics revenue increased 2% to $45 million.

Hub Group ended the quarter with $123 million in cash.

“We think that the third quarter results were reasonable considering the economic environment.  During this downturn, we have focused on reducing our costs and believe that the efficiencies we have realized will continue to improve our competitive position as the economy recovers,” said David P. Yeager, Chairman and Chief Executive Officer.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, October 21, 2009 to discuss its third quarter results and provide an update on 2009 earnings 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) 679-8040.  The conference call participant code is 99408542. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PDR38R4AP. 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 reports on Form 10-Q for the periods ended March 31, 2009 and June 30, 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						Nine Months
	Ended September 30,						Ended September 30,
	2009			2008			2009			2008
Revenue	$	388,781		$	514,212		$	1,103,089		$	1,430,136
Transportation costs		340,581			451,052			963,958			1,249,635
Gross margin		48,200			63,160			139,131			180,501
Costs and expenses:
Salaries and benefits		22,237			24,116			67,514			73,780
General and administrative		9,122			10,766			28,374			31,393
Depreciation and amortization		949			995			3,229			2,987
Total costs and expenses		32,308			35,877			99,117			108,160
Operating income		15,892			27,283			40,014			72,341
Other income (expense):
Interest expense		(26	)		(31	)		(76	)		(83	)
Interest and dividend income		29			362			120			1,040
Other, net		116			(58	)		188			28
Total other income		119			273			232			985
Income before provision for income taxes		16,011			27,556			40,246			73,326
Provision for income taxes		6,180			10,626			15,932			28,291
Net income	$	9,831		$	16,930		$	24,314		$	45,035
Basic earnings per common share	$	0.26		$	0.45		$	0.65		$	1.21
Diluted earnings per common share	$	0.26		$	0.45		$	0.65		$	1.20
Basic weighted average number of shares outstanding		37,373			37,209			37,346			37,167
Diluted weighted average number of shares outstanding		37,550			37,541			37,481			37,478

HUB GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
	September 30, 2009			December 31, 2008
ASSETS	(unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	122,808		$	85,799
Accounts receivable
Trade, net		158,629			145,362
Other		9,606			10,318
Prepaid taxes		132			123
Deferred taxes		6,064			5,430
Prepaid expenses and other current assets		6,155			4,346
TOTAL CURRENT ASSETS		303,394			251,378
Restricted investments		8,951			6,118
Property and equipment, net		28,686			32,713
Other intangibles, net		6,276			6,610
Goodwill, net		232,946			233,110
Other assets		1,648			1,747
TOTAL ASSETS	$	581,901		$	531,676
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
Trade	$	124,044		$	105,064
Other		7,669			6,107
Accrued expenses
Payroll		9,691			9,988
Other		22,579			26,388
TOTAL CURRENT LIABILITIES		163,983			147,547
Non-current liabilities		11,073			9,535
Deferred taxes		64,408			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;  37,225,313 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		170,725			174,355
Purchase price in excess of predecessor basis, net of tax benefit of $10,306		(15,458	)		(15,458	)
Retained earnings		289,601			265,287
Accumulated other comprehensive income		2			-
Treasury stock; at cost, 3,999,479 shares in 2009 and 4,254,445 shares in 2008		(102,852	)		(109,419	)
TOTAL STOCKHOLDERS' EQUITY		342,437			315,184
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	581,901		$	531,676

HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Nine Months Ended September 30,
	2009			2008
Cash flows from operating activities:
Net income	$	24,314		$	45,035
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,282			5,326
Deferred taxes		4,465			7,459
Compensation expense related to share-based compensation plans		3,218			3,332
(Gain) loss on sale of assets		(21	)		77
Changes in operating assets and liabilities:
Restricted investments		(2,833	)		(1,883	)
Accounts receivable, net		(12,555	)		(44,723	)
Prepaid taxes		(9	)		-
Prepaid expenses and other current assets		(1,809	)		(1,416	)
Other assets		99			208
Accounts payable		20,542			29,920
Accrued expenses		(3,544	)		(7,250	)
Non-current liabilities		1,601			(242	)
Net cash provided by operating activities		39,750			35,843
Cash flows from investing activities:
Proceeds from sale of equipment		72			857
Purchases of property and equipment		(2,534	)		(7,219	)
Cash used in acquisition of Comtrak, Inc.		-			(5,000	)
Net cash used in investing activities		(2,462	)		(11,362	)
Cash flows from financing activities:
Proceeds from stock options exercised		155			401
Purchase of treasury stock		(1,096	)		(2,215	)
Excess tax benefits from share-based compensation		660			2,709
Net cash (used in) provided by financing activities		(281	)		895
Effect of exchange rate changes on cash and cash equivalents		2			-
Net increase in cash and cash equivalents		37,009			25,376
Cash and cash equivalents beginning of period		85,799			38,002
Cash and cash equivalents end of period	$	122,808		$	63,378