EXHIBIT 99.1
Hub Group, Inc. Reports Earnings for the Fourth Quarter and Full Year 2009 and Provides 2010 Guidance
DOWNERS GROVE, IL, January 28, 2010, -- Hub Group, Inc. (NASDAQ: HUBG) today reported income for the quarter ended December 31, 2009 of $10 million. Hub Group’s diluted earnings per share was $0.26 for the fourth quarter of 2009.
Hub Group’s revenue decreased 5% to $408 million compared to $430 million in the fourth quarter of 2008. Fourth quarter intermodal revenue decreased 7% to $285 million. The decrease was attributable to a 7% decrease for price and mix and a 6% decrease for fuel, partially offset by 6% higher volume. Truck brokerage revenue was down 4% to $79 million this quarter. Fourth quarter logistics revenue increased 2% to $44 million.
Commenting on the results, David P. Yeager, Chairman and Chief Executive Officer of Hub Group stated, “We are pleased with our fourth quarter results and strong finish to 2009. While 2009 was a challenging year due to the economy, we are starting 2010 with positive momentum.”
FULL YEAR 2009
Income for the year ended December 31, 2009 was $34 million. Hub Group's diluted earnings per share for 2009 was $0.91.
As of December 31, 2009, the Company had $127 million of cash and no debt.
FULL YEAR 2010
Assuming there is no further deterioration in the economy, we are comfortable that earnings for 2010 will be within the current analysts’ range of $1.00 to $1.15 per diluted share.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Thursday, January 28, 2010 to discuss its fourth quarter and full year 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 at Hub Group's Web site at http://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) 680-0860. The conference call participant code is 99782403. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=P7CQFP8K7 . 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, June 30, 2009 and September 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 | | | Twelve Months | |
| | | Ended December 31, | | | Ended December 31, | |
| | | | | | | | | | | | | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | |
| Revenue | | $ | 407,881 | | | $ | 430,472 | | | $ | 1,510,970 | | | $ | 1,860,608 | |
| Transportation costs | | | 361,323 | | | | 376,662 | | | | 1,325,280 | | | | 1,626,297 | |
| Gross margin | | | 46,558 | | | | 53,810 | | | | 185,690 | | | | 234,311 | |
| | | | | | | | | | | | | | | | | |
| Costs and expenses: | | | | | | | | | | | | | | | | |
| Salaries and benefits | | | 21,004 | | | | 19,878 | | | | 88,518 | | | | 93,658 | |
| General and administrative | | | 9,092 | | | | 9,841 | | | | 37,467 | | | | 41,234 | |
| Depreciation and amortization | | | 945 | | | | 970 | | | | 4,174 | | | | 3,957 | |
| Total costs and expenses | | | 31,041 | | | | 30,689 | | | | 130,159 | | | | 138,849 | |
| | | | | | | | | | | | | | | | | |
| Operating income | | | 15,517 | | | | 23,121 | | | | 55,531 | | | | 95,462 | |
| | | | | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | | | | |
| Interest expense | | | (15 | ) | | | (19 | ) | | | (91 | ) | | | (102 | ) |
| Interest income | | | 26 | | | | 113 | | | | 146 | | | | 1,153 | |
| Other, net | | | 111 | | | | (215 | ) | | | 299 | | | | (187 | ) |
| Total other income (expense) | | | 122 | | | | (121 | ) | | | 354 | | | | 864 | |
| | | | | | | | | | | | | | | | | |
| Income before provision for income taxes | | | 15,639 | | | | 23,000 | | | | 55,885 | | | | 96,326 | |
| | | | | | | | | | | | | | | | | |
| Provision for income taxes | | | 5,688 | | | | 8,790 | | | | 21,620 | | | | 37,081 | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 9,951 | | | $ | 14,210 | | | $ | 34,265 | | | $ | 59,245 | |
| | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.27 | | | $ | 0.38 | | | $ | 0.92 | | | $ | 1.59 | |
| | | | | | | | | | | | | | | | | |
| Diluted earnings per common share | | $ | 0.26 | | | $ | 0.38 | | | $ | 0.91 | | | $ | 1.58 | |
| | | | | | | | | | | | | | | | | |
| Basic weighted average number of shares outstanding | | | 37,428 | | | | 37,195 | | | | 37,367 | | | | 37,174 | |
| | | | | | | | | | | | | | | | | |
| Diluted weighted average number of shares outstanding | | | 37,657 | | | | 37,501 | | | | 37,525 | | | | 37,484 | |
| HUB GROUP, INC. | |
| CONSOLIDATED BALANCE SHEETS | |
| (in thousands, except share amounts) | |
| | | | |
| | | | | | | |
| ASSETS | | | | | | |
| CURRENT ASSETS: | | | | | | |
| Cash and cash equivalents | | $ | 126,863 | | | $ | 85,799 | |
| Accounts receivable | | | | | | | | |
| Trade, net | | | 145,317 | | | | 145,362 | |
| Other | | | 11,932 | | | | 10,318 | |
| Prepaid taxes | | | 593 | | | | 123 | |
| Deferred taxes | | | 2,874 | | | | 1,985 | |
| Prepaid expenses and other current assets | | | 6,801 | | | | 4,346 | |
| TOTAL CURRENT ASSETS | | | 294,380 | | | | 247,933 | |
| | | | | | | | | |
| Restricted investments | | | 9,583 | | | | 6,118 | |
| Property and equipment, net | | | 28,510 | | | | 32,713 | |
| Other intangibles, net | | | 6,164 | | | | 6,610 | |
| Goodwill, net | | | 232,892 | | | | 233,110 | |
| Other assets | | | 1,819 | | | | 1,747 | |
| TOTAL ASSETS | | $ | 573,348 | | | $ | 528,231 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| CURRENT LIABILITIES: | | | | | | | | |
| Accounts payable | | | | | | | | |
| Trade | | $ | 110,626 | | | $ | 105,064 | |
| Other | | | 7,695 | | | | 6,107 | |
| Accrued expenses | | | | | | | | |
| Payroll | | | 8,253 | | | | 9,988 | |
| Other | | | 18,958 | | | | 26,388 | |
| TOTAL CURRENT LIABILITIES | | | 145,532 | | | | 147,547 | |
| Non-current liabilities | | | 12,002 | | | | 9,535 | |
| Deferred taxes | | | 61,973 | | | | 55,965 | |
| 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; 37,253,330 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 | | | 171,470 | | | | 174,355 | |
| Purchase price in excess of predecessor basis, net of tax benefit of $10,306 | | | (15,458 | ) | | | (15,458 | ) |
| Retained earnings | | | 299,552 | | | | 265,287 | |
| Other comprehensive income | | | (9 | ) | | | - | |
| Treasury stock; at cost, 3,971,462 shares in 2009 and 4,254,445 shares in 2008 | | | (102,133 | ) | | | (109,419 | ) |
| TOTAL STOCKHOLDERS' EQUITY | | | 353,841 | | | | 315,184 | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 573,348 | | | $ | 528,231 | |
| HUB GROUP, INC. | |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |
| (in thousands) | |
| | | Twelve Months Ended December 31, | |
| | | 2009 | | | 2008 | |
| Cash flows from operating activities: | | | | | | |
| Net Income | | $ | 34,265 | | | $ | 59,245 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 8,199 | | | | 7,369 | |
| Deferred taxes | | | 5,519 | | | | 9,294 | |
| Compensation expense related to share-based compensation plans | | | 4,394 | | | | 4,360 | |
| Loss (gain) on sale of assets | | | 50 | | | | (22 | ) |
| Changes in operating assets and liabilities: | | | | | | | | |
| Restricted investments | | | (3,465 | ) | | | (912 | ) |
| Accounts receivable, net | | | (1,569 | ) | | | 15,092 | |
| Prepaid taxes | | | (470 | ) | | | (37 | ) |
| Prepaid expenses and other current assets | | | (2,455 | ) | | | (28 | ) |
| Other assets | | | (72 | ) | | | (374 | ) |
| Accounts payable | | | 7,150 | | | | (18,532 | ) |
| Accrued expenses | | | (8,603 | ) | | | (13,040 | ) |
| Non-current liabilities | | | 2,285 | | | | (908 | ) |
| Net cash provided by operating activities | | | 45,228 | | | | 61,507 | |
| Cash flows from investing activities: | | | | | | | | |
| Proceeds from sale of equipment | | | 84 | | | | 1,342 | |
| Purchases of property and equipment | | | (4,246 | ) | | | (10,732 | ) |
| Cash used in acquisition of Comtrak, Inc. | | | - | | | | (5,000 | ) |
| Net cash used in investing activities | | | (4,162 | ) | | | (14,390 | ) |
| Cash flows from financing activities: | | | | | | | | |
| Proceeds from stock options exercised | | | 256 | | | | 407 | |
| Purchase of treasury stock | | | (1,101 | ) | | | (2,630 | ) |
| Excess tax benefits from share-based compensation | | | 852 | | | | 2,903 | |
| Net cash provided by (used in) financing activities | | | 7 | | | | 680 | |
| | | | | | | | | |
| Effect of exchange rate changes on cash and cash equivalents | | | (9 | ) | | | - | |
| | | | | | | | | |
| Net increase in cash and cash equivalents | | | 41,064 | | | | 47,797 | |
| Cash and cash equivalents beginning of year | | | 85,799 | | | | 38,002 | |
| Cash and cash equivalents end of year | | $ | 126,863 | | | $ | 85,799 | |
