Hub (HUBG) 8-K Hub Group, Inc. Reports Second Quarter 2010 Earnings

Exhibit 99.1

Hub Group, Inc. Reports Second Quarter 2010 Earnings

DOWNERS GROVE, IL, July 21, 2010, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended June 30, 2010.

“The return of a robust freight market coupled with the retention of our long-standing customer relationships and success in the bids this year, helped drive our impressive volume and earnings growth this quarter” said David P. Yeager, Chairman and Chief Executive Officer.  “With the additional density, we have improved our drayage efficiencies and equipment utilization and look forward to meeting what we expect will be healthy demand in the second half of this year.”

Hub Group reported income of $9.6 million for the second quarter ended June 30, 2010, an increase of 16% compared to the second quarter of 2009.  Hub Group’s diluted earnings per share was $0.26 for the second quarter of 2010, which represents an increase of 18% when compared with the prior year period.

Each of the three business lines contributed to Hub Group’s overall revenue increase of 26% to $458 million.  Second quarter intermodal revenue increased 26% to $320 million.  The increase was attributable to a 25% volume increase and an 8% increase for fuel, partially offset by a 7% decrease for price and mix.  Truck brokerage revenue increased 21% to $86 million this quarter.  Second quarter Unyson Logistics revenue increased 38% to $52 million.

Hub Group ended the quarter with $128 million in cash.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, July 21, 2010 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) 680-0892.  The conference call participant code is 73375487. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PB9UXETR8.  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 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, 2009 and the report on Form 10-Q for the period ended March 31, 2010.  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 CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2010			2009			2010			2009
Revenue	$	458,113		$	362,613		$	875,407		$	714,308
Transportation costs		407,537			316,850			776,013			623,376
Gross margin		50,576			45,763			99,394			90,932
Costs and expenses:
Salaries and benefits		23,863			22,063			47,321			45,277
General and administrative		10,064			9,130			20,209			19,253
Depreciation and amortization		934			1,124			1,907			2,280
Total costs and expenses		34,861			32,317			69,437			66,810
Operating income		15,715			13,446			29,957			24,122
Other income (expense):
Interest expense		(12	)		(25	)		(26	)		(50	)
Interest and dividend income		23			36			48			91
Other, net		84			62			152			72
Total other income		95			73			174			113
Income before provision for income taxes		15,810			13,519			30,131			24,235
Provision for income taxes		6,180			5,214			11,799			9,752
Net income	$	9,630		$	8,305		$	18,332		$	14,483
Basic earnings per common share	$	0.26		$	0.22		$	0.49		$	0.39
Diluted earnings per common share	$	0.26		$	0.22		$	0.49		$	0.39
Basic weighted average number of shares outstanding		37,429			37,344			37,478			37,333
Diluted weighted average number of shares outstanding		37,580			37,480			37,611			37,446

HUB GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
	June 30, 2010			December 31, 2009
ASSETS	(unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	128,356		$	126,863
Accounts receivable trade, net		195,134			145,317
Accounts receivable other		14,621			11,932
Prepaid taxes		354			593
Deferred taxes		955			2,874
Prepaid expenses and other current assets		6,867			6,801
TOTAL CURRENT ASSETS		346,287			294,380
Restricted investments		9,294			9,583
Property and equipment, net		27,577			28,510
Other intangibles, net		5,941			6,164
Goodwill, net		232,782			232,892
Other assets		2,340			1,819
TOTAL ASSETS	$	624,221		$	573,348
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade	$	146,872		$	110,626
Accounts payable other		9,237			7,695
Accrued payroll		9,003			8,253
Accrued other		21,762			18,958
TOTAL CURRENT LIABILITIES		186,874			145,532
Non-current liabilities		11,640			12,002
Deferred taxes		64,509			61,973
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;  2,000,000 shares authorized;  no shares issued or outstanding in 2010 and 2009		-			-
Common stock
Class A:  $.01 par value;  97,337,700 shares authorized and 41,224,792 shares issued in 2010 and 2009;  37,016,157 shares outstanding in 2010 and 37,253,330 shares outstanding in 2009		412			412
Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2010 and 2009		7			7
Additional paid-in capital		168,343			171,470
Purchase price in excess of predecessor basis, net of tax benefit of $10,306		(15,458	)		(15,458	)
Retained earnings		317,884			299,552
Other comprehensive income (loss)		2			(9	)
Treasury stock; at cost, 4,208,635 shares in 2010 and 3,971,462 shares in 2009		(109,992	)		(102,133	)
TOTAL STOCKHOLDERS' EQUITY		361,198			353,841
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	624,221		$	573,348

HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Six Months Ended June 30,
	2010			2009
Cash flows from operating activities:
Net income	$	18,332		$	14,483
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,945			4,320
Deferred taxes		4,644			3,227
Compensation expense related to share-based compensation plans		1,822			2,152
Loss (gain) on sale of assets		19			(16	)
Changes in operating assets and liabilities:
Restricted investments		289			(1,570	)
Accounts receivable, net		(52,505	)		1,709
Prepaid expenses and other current assets		174			(2,260	)
Other assets		(520	)		63
Accounts payable		36,312			11,047
Accrued expenses		2,939			(3,362	)
Non-current liabilities		(441	)		288
Net cash provided by operating activities		15,010			30,081
Cash flows from investing activities:
Proceeds from sale of equipment		720			53
Purchases of property and equipment		(2,051	)		(1,951	)
Net cash used in investing activities		(1,331	)		(1,898	)
Cash flows from financing activities:
Proceeds from stock options exercised		14			44
Purchase of treasury stock		(12,365	)		(1,082	)
Excess tax benefits from share-based compensation		154			147
Net cash used in financing activities		(12,197	)		(891	)
Effect of exchange rate changes on cash and cash equivalents		11			-
Net increase in cash and cash equivalents		1,493			27,292
Cash and cash equivalents beginning of period		126,863			85,799
Cash and cash equivalents end of period	$	128,356		$	113,091