Hub (HUBG) 8-K Hub Group, Inc. Reports Record Fourth Quarter and Full Year 2012 Earnings

Exhibit 99.1

Hub Group, Inc. Reports Record Fourth Quarter and Full Year 2012 Earnings

DOWNERS GROVE, IL, January 29, 2013, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2012.

Hub Group reported record net income of $18.8 million for the fourth quarter ended December 31, 2012, an increase of 11% compared to the fourth quarter of 2011.  Diluted earnings per share for the fourth quarter of 2012 was $0.51 compared to diluted earnings per share of $0.46 in the fourth quarter of 2011.  Earnings per share increased 6% when compared with the non-GAAP earnings per share of $0.48 in the prior year period, which excludes $1 million of pre-tax expense related to integration and restructuring (see table below).

The Hub segment’s revenue increased 6% to $614 million.  Fourth quarter intermodal revenue increased 8% to $451 million.  The increase was primarily attributable to 7% volume growth.  Truck brokerage revenue increased 7% to $87 million this quarter.  Fourth quarter Unyson Logistics revenue decreased 1% to $76 million.  The Hub segment’s operating income was $27.5 million.

The Mode segment’s revenue increased 2% to $199 million for the fourth quarter.  Operating income was $4.1 million.

FULL YEAR 2012

Net income for the year ended December 31, 2012 was $68 million.  Hub Group's diluted earnings per share for 2012 was $1.83 compared to $1.57 for 2011.  Earnings per share increased 11% when compared with the non-GAAP earnings per share of $1.65 in the prior year period, which excludes $4.6 million of pre-tax expense related to integration and restructuring (see table below).  Hub Group’s revenue increased 14% to $3.1 billion.

Hub Group ended the year with $71 million in cash.

“Despite the challenging business environment, 2012 was a record year for Hub Group.  For the first time in our history, we surpassed $3 billion in annual revenue.  We also achieved record earnings with growth coming from all of our business units.  We are proud of our results this year and expect to deliver another year of solid operating performance in 2013," said David P. Yeager, Chairman and Chief Executive Officer of Hub Group.

CONFERENCE CALL

Hub will hold a conference call at 5:00 p.m. Eastern Time on Tuesday, January 29, 2013 to discuss its fourth quarter and full year results and provide 2013 guidance.

Hosting the conference call will be David P. Yeager, Chairman and Chief Executive Officer, Mark A. Yeager, Vice-Chairman, President and Chief Operating 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) 679-8035.  The conference call participant code is 70579010. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PA674RJ6Y.  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 offices and independent agents 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, 2011 and the reports on Form 10-Q for the periods ended March 31, 2012, June 30, 2012 and September 30, 2012.  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						Twelve Months
	Ended December 31,						Ended December 31,
	2012			2011			2012			2011
Revenue	$	801,023		$	762,775		$	3,124,108		$	2,751,534
Transportation costs		707,644			678,964			2,768,042			2,438,986
Gross margin		93,379			83,811			356,066			312,548
Costs and expenses:
Salaries and benefits		33,023			29,522			129,143			121,044
Agent fees and commissions		14,006			13,091			55,112			41,491
General and administrative		13,091			12,425			52,832			49,951
Depreciation and amortization		1,611			1,635			6,619			5,603
Total costs and expenses		61,731			56,673			243,706			218,089
Operating income		31,648			27,138			112,360			94,459
Other income (expense):
Interest expense		(299	)		(319	)		(1,207	)		(638	)
Interest and dividend income		30			30			134			148
Other, net		28			42			(30	)		328
Total other (expense) income		(241	)		(247	)		(1,103	)		(162	)
Income before provision for income taxes		31,407			26,891			111,257			94,297
Provision for income taxes		12,563			9,877			43,304			36,119
Net income	$	18,844		$	17,014		$	67,953		$	58,178
Basic earnings per common share	$	0.51		$	0.46		$	1.83		$	1.58
Diluted earnings per common share	$	0.51		$	0.46		$	1.83		$	1.57
Basic weighted average number of shares outstanding		37,021			36,943			37,053			36,913
Diluted weighted average number of shares outstanding		37,199			37,104			37,185			37,063

HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
	Three Months
	Ended December 31, 2012
	Hub		Mode		Inter-Segment Elims			Hub Group Consolidated
Revenue	$	613,853	$	198,550	$	(11,380	)	$	801,023
Transportation costs		544,098		174,926		(11,380	)		707,644
Gross margin		69,755		23,624		-			93,379
Costs and expenses:
Salaries and benefits		29,332		3,691		-			33,023
Agent fees and commissions		374		13,632		-			14,006
General and administrative		11,407		1,684		-			13,091
Depreciation and amortization		1,110		501		-			1,611
Total costs and expenses		42,223		19,508		-			61,731
Operating income		27,532		4,116		-			31,648

HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
	Twelve Months
	Ended December 31, 2012
	Hub		Mode		Inter-Segment Elims			Hub Group Consolidated
Revenue	$	2,392,289	$	779,928	$	(48,109	)	$	3,124,108
Transportation costs		2,128,942		687,209		(48,109	)		2,768,042
Gross margin		263,347		92,719		-			356,066
Costs and expenses:
Salaries and benefits		113,855		15,288		-			129,143
Agent fees and commissions		1,900		53,212		-			55,112
General and administrative		45,411		7,421		-			52,832
Depreciation and amortization		4,448		2,171		-			6,619
Total costs and expenses		165,614		78,092		-			243,706
Operating income		97,733		14,627		-			112,360

HUB GROUP, INC.
UNAUDITED NON-GAAP TO GAAP RECONCILIATION
(earnings per share)
	Three Months									Twelve Months
	Ended December 31,									Ended December 31,
					Change			Change						Change			Change
	2012		2011		$			%		2012		2011		$			%
Diluted GAAP EPS	$	0.51	$	0.46	$	0.05		10.9	%	$	1.83	$	1.57	$	0.26			16.6	%
Integration expenses and
restructuring costs	$	-	$	0.02	$	(0.02	)			$	-	$	0.08	$	(0.08	)
Diluted NON-GAAP EPS (adjusted)	$	0.51	$	0.48	$	0.03		6.2	%	$	1.83	$	1.65	$	0.18			10.9	%
Diluted Shares		37,199		37,104							37,185		37,063

In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance.  This table and Hub’s internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.

HUB GROUP, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
	December 31,
	2012			2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	70,760		$	49,091
Accounts receivable trade, net		346,917			326,537
Accounts receivable other		25,945			23,878
Prepaid taxes		139			2,392
Deferred taxes		4,965			4,838
Prepaid expenses and other current assets		10,619			9,056
TOTAL CURRENT ASSETS		459,345			415,792
Restricted investments		17,218			14,323
Property and equipment, net		157,584			124,587
Other intangibles, net		20,068			21,667
Goodwill, net		263,251			263,470
Other assets		2,387			2,845
TOTAL ASSETS	$	919,853		$	842,684
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade	$	206,497		$	204,693
Accounts payable other		22,925			17,289
Accrued payroll		17,210			16,721
Accrued other		28,633			29,962
Current portion of capital lease		2,120			2,237
TOTAL CURRENT LIABILITIES		277,385			270,902
Non-current liabilities		20,041			17,717
Non-current portion of capital lease		21,099			23,436
Deferred taxes		100,431			91,764
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;  2,000,000 shares authorized;  no shares issued or outstanding in 2012 and 2011		-			-
Common stock
Class A:  $.01 par value;  97,337,700 shares authorized and 41,224,792 shares issued in 2012 and 2011; 36,767,485 outstanding in 2012 and 36,860,260 shares outstanding in 2011		412			412
Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2012 and 2011		7			7
Additional paid-in capital		167,765			168,800
Purchase price in excess of predecessor basis, net of tax benefit of $10,306		(15,458	)		(15,458	)
Retained earnings		469,141			401,188
Other comprehensive income		1			4
Treasury stock; at cost, 4,457,307 shares in 2012 and 4,364,532 shares in 2011		(120,971	)		(116,088	)
TOTAL STOCKHOLDERS' EQUITY		500,897			438,865
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	919,853		$	842,684

HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Twelve Months Ended
	December 31,
	2012			2011
Cash flows from operating activities:
Net Income	$	67,953		$	58,178
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		21,575			16,340
Deferred taxes		8,786			18,821
Compensation expense related to share-based compensation plans		6,539			4,788
Loss (gain) on sale of assets		108			(17	)
Excess tax benefits from share based compensation		(29	)		-
Changes in operating assets and liabilities, net of effects of acquisitions:
Restricted investments		(2,895	)		(724	)
Accounts receivable, net		(22,429	)		(45,047	)
Prepaid taxes		2,253			(2,097	)
Prepaid expenses and other current assets		(1,562	)		(1,728	)
Other assets		459			(33	)
Accounts payable		7,438			23,095
Accrued expenses		2,779			2,989
Non-current liabilities		1,942			301
Net cash provided by operating activities		92,917			74,866
Cash flows from investing activities:
Proceeds from sale of equipment		1,071			410
Purchases of property and equipment		(56,882	)		(55,010	)
Cash used in acquisitions, net of cash acquired		(550	)		(85,182	)
Net cash used in investing activities		(56,361	)		(139,782	)
Cash flows from financing activities:
Proceeds from stock options exercised		69			86
Purchase of treasury stock		(13,020	)		(1,523	)
Capital lease payments		(2,454	)		(729	)
Excess tax benefits from share-based compensation		523			1,034
Net cash used in financing activities		(14,882	)		(1,132	)
Effect of exchange rate changes on cash and cash equivalents		(5	)		(5	)
Net increase (decrease) in cash and cash equivalents		21,669			(66,053	)
Cash and cash equivalents beginning of the year		49,091			115,144
Cash and cash equivalents end of the year	$	70,760		$	49,091