Hub (HUBG) 8-K Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.50 Excluding Non-Cash Impairment Charge

EX. 99.1

Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.50 Excluding Non-Cash Impairment Charge

OAK BROOK, IL, January 28, 2014, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2013.

Hub Group reported income of $16.5 million for the fourth quarter ended December 31, 2013. Hub Group’s diluted earnings per share was $0.45 for the fourth quarter of 2013.  Hub Group’s pre-tax income included a non-cash impairment charge of $2.9 million related to changing the trade name of Comtrak Logistics to Hub Group Trucking.  Excluding the effect of this item, non-GAAP earnings per share was $0.50 for the quarter (see table below).  Non-GAAP earnings per share decreased 2% when compared with the prior year period.  Hub Group’s revenue increased 11% to $885 million.

The Hub segment’s revenue increased 11% to $684 million.  Fourth quarter intermodal revenue increased 3% to $466 million on a 4% increase in volume.  Truck brokerage revenue increased 1% to $88 million this quarter.  Fourth quarter Unyson Logistics revenue increased 72% to $130 million.  The Hub segment’s operating income was $22.6 million.

The Mode segment’s revenue increased 8% to $214 million for the fourth quarter.  Operating income was $4.6 million.

FULL YEAR 2013

Income for the year ended December 31, 2013 was $69.1 million.  Hub Group's diluted earnings per share for 2013 was $1.87.  Full year 2013 pre-tax income included the previously discussed non-cash impairment charge of $2.9 million.  Excluding the effect of this item, non-GAAP earnings per share was $1.92 for the year (see table below).  Full year non-GAAP earnings per share increased 5% when compared with the prior year.  Hub Group’s revenue increased 8% to $3.4 billion.

Hub Group ended the year with $69 million in cash.

“We had a solid year and are focused on our strategic initiatives to deliver strong results in 2014," 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 28, 2014 to discuss its fourth quarter and full year results and provide 2014 guidance.

Hosting the conference call will be David Yeager, Chairman and Chief Executive Officer, Mark Yeager, Vice-Chairman, President and Chief Operating Officer, and Terri 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) 713-4199.  The conference call participant code is 73244762. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PKKA9TATJ.  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 $3 billion 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. For more information, visit www.hubgroup.com.

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, 2012 and the reports on Form 10-Q for the periods ended March 31, 2013, June 30, 2013 and September 30, 2013.  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,
	2013			2012			2013			2012
Revenue	$	885,252		$	801,023		$	3,373,898		$	3,124,108
Transportation costs		790,164			707,644			3,002,875			2,768,042
Gross margin		95,088			93,379			371,023			356,066
Costs and expenses:
Salaries and benefits		33,868			33,023			135,341			129,143
Agent fees and commissions		14,272			14,006			55,789			55,112
General and administrative		15,096			13,091			56,772			52,832
Depreciation and amortization		1,697			1,611			6,470			6,619
Impairment of trade name		2,904			-			2,904			-
Total costs and expenses		67,837			61,731			257,276			243,706
Operating income		27,251			31,648			113,747			112,360
Other income (expense):
Interest expense		(328	)		(299	)		(1,246	)		(1,207	)
Interest and dividend income		13			30			82			134
Other, net		(5	)		28			(28	)		(30	)
Total other expense		(320	)		(241	)		(1,192	)		(1,103	)
Income before provision for income taxes		26,931			31,407			112,555			111,257
Provision for income taxes		10,395			12,563			43,445			43,304
Net income	$	16,536		$	18,844		$	69,110		$	67,953
Basic earnings per common share	$	0.45		$	0.51		$	1.88		$	1.83
Diluted earnings per common share	$	0.45		$	0.51		$	1.87		$	1.83
Basic weighted average number of shares outstanding		36,719			37,021			36,829			37,053
Diluted weighted average number of shares outstanding		36,942			37,199			36,982			37,185

HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
	Three Months									Three Months
	Ended December 31, 2013									Ended December 31, 2012
					Inter-			Hub						Inter-			Hub
					Segment			Group						Segment			Group
	Hub		Mode		Elims			Total		Hub		Mode		Elims			Total
Revenue	$	683,614	$	214,357	$	(12,719	)	$	885,252	$	613,853	$	198,550	$	(11,380	)	$	801,023
Transportation costs		613,198		189,685		(12,719	)		790,164		544,098		174,926		(11,380	)		707,644
Gross margin		70,416		24,672		-			95,088		69,755		23,624		-			93,379
Costs and expenses:
Salaries and benefits		30,219		3,649		-			33,868		29,332		3,691		-			33,023
Agent fees and commissions		148		14,124		-			14,272		374		13,632		-			14,006
General and administrative		13,383		1,713		-			15,096		11,407		1,684		-			13,091
Depreciation and amortization		1,157		540		-			1,697		1,110		501		-			1,611
Impairment of trade name		2,904		-		-			2,904		-		-		-			-
Total costs and expenses		47,811		20,026		-			67,837		42,223		19,508		-			61,731
Operating income	$	22,605	$	4,646	$	-		$	27,251	$	27,532	$	4,116	$	-		$	31,648

HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
	Twelve Months										Twelve Months
	Ended December 31, 2013										Ended December 31, 2012
					Inter-				Hub						Inter-			Hub
					Segment				Group						Segment			Group
	Hub		Mode		Elims				Total		Hub		Mode		Elims			Total
Revenue	$	2,599,763	$	823,159	$	(49,024	)		$	3,373,898	$	2,392,289	$	779,928	$	(48,109	)	$	3,124,108
Transportation costs		2,325,512		726,387		(49,024	)			3,002,875		2,128,942		687,209		(48,109	)		2,768,042
Gross margin		274,251		96,772		-				371,023		263,347		92,719		-			356,066
Costs and expenses:
Salaries and benefits		120,478		14,863		-		��		135,341		113,855		15,288		-			129,143
Agent fees and commissions		1,372		54,417		-				55,789		1,900		53,212		-			55,112
General and administrative		50,484		6,288		-				56,772		45,411		7,421		-			52,832
Depreciation and amortization		4,326		2,144		-				6,470		4,448		2,171		-			6,619
Impairment of trade name		2,904		-		-				2,904		-		-		-			-
Total costs and expenses		179,564		77,712		-				257,276		165,614		78,092		-			243,706
Operating income	$	94,687	$	19,060	$	-			$	113,747	$	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
	2013		2012		$			%		2013		2012		$		%
Diluted GAAP EPS	$	0.45	$	0.51	$	(0.06	)	-11.8	%	$	1.87	$	1.83	$	0.04		2.2	%
Impairment of trade name, net of tax	$	0.05	$	-	$	0.05				$	0.05	$	-	$	0.05
Diluted NON-GAAP EPS (adjusted)	$	0.50	$	0.51	$	(0.01	)	-2.0	%	$	1.92	$	1.83	$	0.09		4.9	%
Diluted Shares		36,942		37,199							36,982		37,185

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,
	2013			2012
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	68,964		$	70,760
Accounts receivable trade, net		371,528			346,917
Accounts receivable other		26,569			25,945
Prepaid taxes		409			139
Deferred taxes		5,826			4,965
Prepaid expenses and other current assets		12,738			10,619
TOTAL CURRENT ASSETS		486,034			459,345
Restricted investments		20,754			17,218
Property and equipment, net		260,400			157,584
Other intangibles, net		15,729			20,068
Goodwill, net		263,032			263,251
Other assets		1,994			2,387
TOTAL ASSETS	$	1,047,943		$	919,853
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade	$	232,350		$	206,497
Accounts payable other		24,957			22,925
Accrued payroll		17,000			17,210
Accrued other		42,834			28,633
Current portion of capital lease		2,413			2,120
Current portion of long term debt		1,771			-
TOTAL CURRENT LIABILITIES		321,325			277,385
Non-current liabilities		22,304			20,041
Non-current portion of capital lease		18,477			21,099
Long term debt		6,475			-
Deferred taxes		117,835			100,431
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value;  2,000,000 shares authorized;  no shares issued or outstanding in 2013 and 2012		-			-
Common stock
Class A:  $.01 par value;  97,337,700 shares authorized and 41,224,792 shares issued in 2013 and 2012; 36,626,384 shares outstanding in 2013 and 36,767,485 shares outstanding in 2012		412			412
Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2013 and 2012		7			7
Additional paid-in capital		167,357			167,765
Purchase price in excess of predecessor basis, net of tax benefit of $10,306		(15,458	)		(15,458	)
Retained earnings		538,251			469,141
Accumulated other comprehensive (loss) income		(85	)		1
Treasury stock; at cost, 4,598,408 shares in 2013 and 4,457,307 shares in 2012		(128,957	)		(120,971	)
TOTAL STOCKHOLDERS' EQUITY		561,527			500,897
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,047,943		$	919,853

HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Years Ended December 31,
	2013			2012
Cash flows from operating activities:
Net Income	$	69,110		$	67,953
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		21,302			21,575
Impairment of trade name		2,904			-
Deferred taxes		16,438			8,786
Compensation expense related to share-based compensation plans		7,667			6,539
(Gain) loss on sale of assets		(167	)		108
Excess tax benefits from share based compensation		(13	)		(29	)
Changes in operating assets and liabilities:
Restricted investments		(3,536	)		(2,895	)
Accounts receivable, net		(25,420	)		(22,429	)
Prepaid taxes		(308	)		2,253
Prepaid expenses and other current assets		(2,137	)		(1,562	)
Other assets		(682	)		459
Accounts payable		27,635			7,438
Accrued expenses		1,736			2,779
Non-current liabilities		2,888			1,942
Net cash provided by operating activities		117,417			92,917
Cash flows from investing activities:
Proceeds from sale of equipment		1,837			1,071
Purchases of property and equipment		(110,917	)		(56,882	)
Cash used in acquisitions		-			(550	)
Net cash used in investing activities		(109,080	)		(56,361	)
Cash flows from financing activities:
Proceeds from issuance of debt		9,120			-
Repayments of long term debt		(874	)		-
Proceeds from stock options exercised		41			69
Stock tendered for payments of withholding taxes		(2,634	)		(1,812	)
Purchase of treasury stock		(13,791	)		(11,208	)
Capital lease payments		(2,329	)		(2,454	)
Excess tax benefits from share-based compensation		336			523
Net cash used in financing activities		(10,131	)		(14,882	)
Effect of exchange rate changes on cash and cash equivalents		(2	)		(5	)
Net increase (decrease) in cash and cash equivalents		(1,796	)		21,669
Cash and cash equivalents beginning of the year		70,760			49,091
Cash and cash equivalents end of the year	$	68,964		$	70,760