Hub (HUBG) 8-K Hub Group, Inc. Reports First Quarter 2015 Earnings per Share of $0.32 Excluding One-time Costs

EX. 99.1

Hub Group, Inc. Reports First Quarter 2015 Earnings per Share of $0.32 Excluding One-time Costs

OAK BROOK, IL, April 23, 2015, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended March 31, 2015.

Hub Group reported income of $10.3 million for the first quarter ended March 31, 2015 compared to $12.0 million for the first quarter of 2014.  Hub Group’s diluted earnings per share was $0.28 for the quarter.  Hub Group’s pre-tax income included one-time costs of $2.3 million including a $1.4 million Canadian currency translation loss and $0.9 million of severance.  Excluding the effect of these items, non-GAAP earnings per share was $0.32 for the quarter (see table below).  Non-GAAP earnings per share decreased 3% when compared with the prior year period.  Hub Group’s revenue decreased 1.5% to $836 million.  

The Hub segment’s revenue decreased 1.5% to $643 million.  First quarter intermodal revenue decreased 3% to $421 million due to a decrease in fuel revenue.  Intermodal volume increased 1%.  Truck brokerage revenue increased 6% to $89 million this quarter.  First quarter Unyson Logistics revenue decreased 1% to $133 million.  The Hub segment’s operating income was $13.7 million.  

The Mode segment’s revenue increased 2% to $214 million.  Operating income was $5.1 million, an increase of 11% compared to the prior year period.

Hub Group ended the quarter with $129 million in cash.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday, April 23, 2015 to discuss its first quarter results.

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.  The webcast is listen-only.  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 register at http://www.yourconferencecenter.com/r.aspx?p=1&a=UuaITmZViChKOr .  Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference.  You may register at any time, including up to and after the call start time.  On the day of the call, dial (888) 206-4074 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration.  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 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 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, our annual report on Form 10-K for the year ended December 31, 2014. Hub Group assumes no liability to update any such forward-looking statements.

SOURCE:  Hub Group, Inc.

CONTACT: Maralee Volchko of Hub Group, Inc., +1-630-271-3745

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

	Three Months
	Ended March 31,
	2015			2014
Revenue	$	835,941		$	848,449
Transportation costs		746,813			759,705
Gross margin		89,128			88,744
Costs and expenses:
Salaries and benefits		39,476			37,092
Agent fees and commissions		14,826			13,666
General and administrative		14,071			15,432
Depreciation and amortization		1,960			2,058
Total costs and expenses		70,333			68,248
Operating income		18,795			20,496
Other income (expense):
Interest expense		(741	)		(407	)
Interest and dividend income		6			14
Other, net		(1,404	)		(205	)
Total other expense		(2,139	)		(598	)
Income before provision for income taxes		16,656			19,898
Provision for income taxes		6,380			7,863
Net income	$	10,276		$	12,035
Basic earnings per common share	$	0.28		$	0.33
Diluted earnings per common share	$	0.28		$	0.33
Basic weighted average number of shares outstanding		36,156			36,661
Diluted weighted average number of shares outstanding		36,169			36,724

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)

	Three Months
	Ended March 31, 2015
	Hub		Mode		Inter-Segment Elims			Hub Group Consolidated
Revenue	$	643,443	$	213,522	$	(21,024	)	$	835,941
Transportation costs		580,258		187,579		(21,024	)		746,813
Gross margin		63,185		25,943		-			89,128
Costs and expenses:
Salaries and benefits		35,660		3,816		-			39,476
Agent fees and commissions		15		14,811		-			14,826
General and administrative		12,198		1,873		-			14,071
Depreciation and amortization		1,618		342		-			1,960
Total costs and expenses		49,491		20,842		-			70,333
Operating income		13,694		5,101		-			18,795

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)

	Three Months
	Ended March 31, 2014
	Hub		Mode		Inter-Segment Elims			Hub Group Consolidated
Revenue	$	653,409	$	208,906	$	(13,866	)	$	848,449
Transportation costs		588,912		184,659		(13,866	)		759,705
Gross margin		64,497		24,247		-			88,744
Costs and expenses:
Salaries and benefits		33,337		3,755		-			37,092
Agent fees and commissions		11		13,655		-			13,666
General and administrative		13,739		1,693		-			15,432
Depreciation and amortization		1,517		541		-			2,058
Total costs and expenses		48,604		19,644		-			68,248
Operating income		15,893		4,603		-			20,496

HUB GROUP, INC.

UNAUDITED NON-GAAP TO GAAP RECONCILIATION

(earnings per share)

	Three Months
	Ended, March 31,
					Change			Change
	2015		2014		$			%
Diluted GAAP EPS	$	0.28	$	0.33	$	(0.05	)		-15.2	%
Canadian currency translation loss, net of tax		0.02		-		0.02
	��
Severance costs, net of tax		0.02		-		0.02
Diluted non-GAAP EPS (adjusted)	$	0.32	$	0.33	$	(0.01	)		-3.0	%
Diluted shares		36,169		36,724

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.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts

	March 31,			December 31,
	2015			2014
	(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	129,261		$	109,769
Accounts receivable trade, net		409,506			401,803
Accounts receivable other		14,299			24,886
Prepaid taxes		10,380			14,937
Deferred taxes		6,216			4,816
Prepaid expenses and other current assets		17,600			14,355
TOTAL CURRENT ASSETS		587,262			570,566
Restricted investments		21,846			21,944
Property and equipment, net		332,637			338,327
Other intangibles, net		14,110			14,434
Goodwill, net		262,759			262,813
Other assets		3,713			4,043
TOTAL ASSETS	$	1,222,327		$	1,212,127
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade	$	269,354		$	256,345
Accounts payable other		21,736			21,333
Accrued payroll		16,991			16,192
Accrued other		36,180			43,523
Current portion of capital lease		2,538			2,504
Current portion of long term debt		21,921			19,619
TOTAL CURRENT LIABILITIES		368,720			359,516
Long term debt		76,085			72,460
Non-current liabilities		21,885			22,929
Long term portion of capital lease		15,298			15,937
Deferred taxes		143,386			140,501
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; 2,000,000 shares authorized;
no shares issued or outstanding in 2015 and 2014		-			-
Common stock
Class A: $.01 par value; 97,337,700 shares authorized and    41,224,792 shares issued in 2015 and 2014; 36,062,587 shares    outstanding in 2015 and 36,247,324 shares outstanding in 2014		412			412
Class B:  $.01 par value; 662,300 shares authorized;
662,296 shares issued and outstanding in 2015 and 2014		7			7
Additional paid-in capital		166,941			171,235
Purchase price in excess of predecessor basis, net of tax    benefit of $10,306		(15,458	)		(15,458	)
Retained earnings		600,085			589,809
Accumulated other comprehensive loss		(74	)		(77	)
Treasury stock; at cost, 5,162,205 shares in 2015    and 4,977,468 shares in 2014		(154,960	)		(145,144	)
TOTAL STOCKHOLDERS' EQUITY		596,953			600,784
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,222,327		$	1,212,127

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended
	March 31,
	2015			2014
Cash flows from operating activities:
Net income	$	10,276		$	12,035
Adjustments to reconcile net income    to net cash provided by operating activities:
Depreciation and amortization		8,731			6,779
Deferred taxes		1,593			1,991
Compensation expense related to share-based compensation plans		2,034			2,143
Gain on sale of assets		-			(6	)
Excess tax benefits from share-based compensation		(13	)		-
Changes in operating assets and liabilities:
Restricted investments		98			(117	)
Accounts receivable, net		2,874			(31,471	)
Prepaid taxes		4,557			86
Prepaid expenses and other current assets		(3,246	)		(597	)
Other assets		330			(837	)
Accounts payable		13,414			29,286
Accrued expenses		5,733			1,128
Non-current liabilities		(1,052	)		(1,839	)
Net cash provided by operating activities		45,329			18,581
Cash flows from investing activities:
Proceeds from sale of equipment		26			85
Purchases of property and equipment		(15,057	)		(33,035	)
Net cash used in investing activities		(15,031	)		(32,950	)
Cash flows from financing activities:
Proceeds from issuance of debt		11,480			25,361
Repayments of long term debt		(5,553	)		(1,124	)
Stock tendered for payments of withholding taxes		(2,754	)		(3,023	)
Purchase of treasury stock		(13,419	)		-
Capital lease payments		(605	)		(616	)
Excess tax benefits from share-based compensation		42			104
Net cash (used in) provided by financing activities		(10,809	)		20,702
Effect of exchange rate changes on cash and cash equivalents		3			-
Net increase in cash and cash equivalents		19,492			6,333
Cash and cash equivalents beginning of period		109,769			68,964
Cash and cash equivalents end of period	$	129,261		$	75,297