Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q/A | |
Amendment Flag | true | |
Amendment Description | Hub Group, Inc. is filing this Amendment No. 1 to its Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 (“Form 10-Q”) to add a date to the Section 906 certification in Exhibit 32.1. | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HUBG | |
Entity Registrant Name | Hub Group, Inc. | |
Entity Central Index Key | 940,942 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 33,451,445 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 662,296 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 18,558 | $ 127,404 |
Accounts receivable trade, net | 532,538 | 473,608 |
Accounts receivable other | 10,017 | 4,331 |
Prepaid taxes | 12,134 | 294 |
Prepaid expenses and other current assets | 21,216 | 16,653 |
TOTAL CURRENT ASSETS | 594,463 | 622,290 |
Restricted investments | 24,066 | 20,877 |
Property and equipment, net | 547,881 | 438,594 |
Other intangibles, net | 75,772 | 11,844 |
Goodwill, net | 348,506 | 262,376 |
Other assets | 9,175 | 4,278 |
TOTAL ASSETS | 1,599,863 | 1,360,259 |
CURRENT LIABILITIES: | ||
Accounts payable trade | 313,511 | 266,555 |
Accounts payable other | 30,115 | 21,070 |
Accrued payroll | 25,245 | 36,223 |
Accrued other | 53,609 | 46,013 |
Current portion of capital lease | 2,754 | 2,697 |
Current portion of long term debt | 73,052 | 45,163 |
TOTAL CURRENT LIABILITIES | 498,286 | 417,721 |
Long term debt | 214,032 | 115,529 |
Non-current liabilities | 29,181 | 23,595 |
Long term portion of capital lease | 8,418 | 10,576 |
Deferred taxes | 182,464 | 164,659 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2017 and 2016 | ||
Additional paid-in capital | 170,355 | 173,565 |
Purchase price in excess of predecessor basis, net of tax benefit of $10,306 | (15,458) | (15,458) |
Retained earnings | 770,773 | 735,563 |
Accumulated other comprehensive loss | (172) | (273) |
Treasury stock; at cost, 7,773,347 shares in 2017 and 8,031,810 shares in 2016 | (258,435) | (265,637) |
TOTAL STOCKHOLDERS' EQUITY | 667,482 | 628,179 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,599,863 | 1,360,259 |
Class A Common Stock [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Common stock | 412 | 412 |
Class B Common Stock [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Common stock | $ 7 | $ 7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Purchase price in excess of predecessor basis, tax benefit | $ 10,306 | |
Treasury stock, shares | 7,773,347 | 8,031,810 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 97,337,700 | 97,337,700 |
Common stock, shares issued | 41,224,792 | 41,224,792 |
Common stock, shares outstanding | 33,451,445 | 33,192,982 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 662,300 | 662,300 |
Common stock, shares issued | 662,296 | 662,296 |
Common stock, shares outstanding | 662,296 | 662,296 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,054,360 | $ 932,814 | $ 2,872,321 | $ 2,594,230 |
Transportation costs | 937,836 | 821,360 | 2,552,895 | 2,259,899 |
Gross margin | 116,524 | 111,454 | 319,426 | 334,331 |
Costs and expenses: | ||||
Salaries and benefits | 49,126 | 42,610 | 137,343 | 130,075 |
Agent fees and commissions | 19,072 | 19,072 | 54,103 | 54,334 |
General and administrative | 22,403 | 17,641 | 63,341 | 50,368 |
Depreciation and amortization | 4,254 | 2,276 | 9,215 | 6,559 |
Total costs and expenses | 94,855 | 81,599 | 264,002 | 241,336 |
Operating income | 21,669 | 29,855 | 55,424 | 92,995 |
Other income (expense): | ||||
Interest expense | (2,345) | (888) | (4,474) | (2,655) |
Interest and dividend income | 58 | 104 | 388 | 286 |
Other, net | 404 | 27 | 597 | 1,178 |
Total other expense | (1,883) | (757) | (3,489) | (1,191) |
Income before provision for income taxes | 19,786 | 29,098 | 51,935 | 91,804 |
Provision for income taxes | 4,452 | 11,174 | 16,725 | 35,243 |
Net income | 15,334 | 17,924 | 35,210 | 56,561 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 9 | (10) | 101 | (63) |
Total comprehensive income | $ 15,343 | $ 17,914 | $ 35,311 | $ 56,498 |
Basic earnings per common share | $ 0.46 | $ 0.54 | $ 1.06 | $ 1.66 |
Diluted earnings per common share | $ 0.46 | $ 0.54 | $ 1.06 | $ 1.66 |
Basic weighted average number of shares outstanding | 33,227 | 33,212 | 33,217 | 34,098 |
Diluted weighted average number of shares outstanding | 33,335 | 33,366 | 33,323 | 34,172 |
UNAUDITED CONSOLIDATED STATEME5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 35,210 | $ 56,561 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43,531 | 32,665 |
Deferred taxes | 19,983 | 13,269 |
Compensation expense related to share-based compensation plans | 7,402 | 6,318 |
Loss (gain) on sale of assets | 360 | (382) |
Excess tax benefits from share based compensation | (524) | |
Changes in operating assets and liabilities: | ||
Restricted investments | (3,189) | 545 |
Accounts receivable, net | (37,448) | (62,324) |
Prepaid taxes | (11,839) | (1,609) |
Prepaid expenses and other current assets | (3,059) | 1,244 |
Other assets | (3,505) | 961 |
Accounts payable | 51,459 | 37,080 |
Accrued expenses | (13,179) | (6,968) |
Non-current liabilities | 1,419 | 2,181 |
Net cash provided by operating activities | 87,145 | 79,017 |
Cash flows from investing activities: | ||
Proceeds from sale of equipment | 3,052 | 1,573 |
Purchases of property and equipment | (39,936) | (59,883) |
Acquisitions, net of cash acquired | (165,933) | |
Net cash used in investing activities | (202,817) | (58,310) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 73,606 | 36,100 |
Repayments of long term debt | (59,921) | (25,074) |
Stock tendered for payments of withholding taxes | (3,410) | (2,484) |
Purchase of treasury stock | (100,000) | |
Capital lease payments | (2,101) | (1,965) |
Excess tax benefits from share-based compensation | 212 | |
Payment of debt issuance costs | (1,397) | |
Net cash provided by (used in) financing activities | 6,777 | (93,211) |
Effect of exchange rate changes on cash and cash equivalents | 49 | (50) |
Net decrease in cash and cash equivalents | (108,846) | (72,554) |
Cash and cash equivalents beginning of the period | 127,404 | 207,749 |
Cash and cash equivalents end of the period | 18,558 | 135,195 |
Supplemental disclosures of cash paid for: | ||
Interest | 4,033 | 2,636 |
Income taxes | $ 12,880 | $ 26,826 |
Interim Financial Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Statements | NOTE 1. Interim Financial Statements Our accompanying unaudited consolidated financial statements of Hub Group, Inc. (“we”, “us” or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to those rules and regulations. However, we believe that the disclosures contained herein are adequate to make the information presented not misleading. The financial statements reflect, in our opinion, all material adjustments (which include only normal recurring adjustments) necessary to fairly present our financial position as of September 30, 2017 and results of operations for the three and nine months ended September 30, 2017 and 2016. These unaudited consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. Results of operations in interim periods are not necessarily indicative of results to be expected for a full year due partially to seasonality. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisition | NOTE 2. Acquisition Hub Group Trucking (HGT), a wholly owned subsidiary of Hub Group, Inc., acquired all of the outstanding equity interests of Estenson Logistics, LLC (“Estenson”) on July 1, 2017 (the “Estenson Acquisition”). Estenson is now our wholly owned subsidiary, operating under the name Hub Group Dedicated (“HGD”). As a result of the Estenson Acquisition, HGT acquired substantially all of the assets of Estenson, which include tractors and trailers, as well as assumed certain liabilities, including equipment debt. HGD is included in the Hub segment. HGD has an operating fleet of approximately 1,000 tractors and over 3,600 trailers. Dedicated services have been requested by our customers and we believe HGD is an excellent service offering that we can provide to our customers. The base purchase price for Estenson was approximately $285 million, including contingent consideration related to an earn-out provision included in the Purchase Agreement, which will not exceed $6 million and is based on Estenson’s EBITDA results through June 30, 2019. In accordance with the agreement, the base purchase price was adjusted by the assumed debt to arrive at the final consideration of $172 million. To facilitate the acquisition, we assumed $113 million of Estenson debt and paid $166 million in cash, including $55 million of cash, which was borrowed under our new line of credit (See Note 6). The following table summarizes the total purchase price allocated to the net assets acquired (in thousands): Cash paid $ 165,945 Consideration payable 1,366 Contingent consideration, fair value 4,703 Total consideration 172,014 Equipment debt assumed 112,677 Total base purchase price $ 284,691 Pending finalization of the fair market value of assets acquired and liabilities assumed, revenue and lease contracts, and deferred taxes related to tax valuation/tax goodwill the measurement period remains open. The following table summarizes the preliminary allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): July 1, 2017 Cash and cash equivalents $ 12 Accounts receivable trade 27,000 Accounts receivable other 165 Prepaid expenses and other current assets 1,500 Property and equipment 128,477 Other intangibles 66,400 Goodwill 86,294 Other assets 64 Total assets acquired $ 309,912 Accounts payable trade $ 4,542 Accrued payroll 5,661 Accrued other 15,018 Equipment debt 112,677 Total liabilities assumed $ 137,898 Total consideration $ 172,014 The Estenson acquisition was accounted for as a purchase business combination in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed were recorded in the accompanying consolidated balance sheet at their estimated fair values as of July 1, 2017 with the remaining unallocated purchase price recorded as goodwill. The goodwill recognized in the Estenson acquisition was primarily attributable to potential expansion and future development of the acquired business. The fair value assigned to the customer relationships identifiable intangible was determined using an income approach based on management’s estimates and assumptions. The fair value assigned to the property and equipment was determined based on a market approach. A probability weighted expected return model was used to estimate the value of the contingent consideration. Equipment debt was valued using a discounted cash flow analysis whereby future contractual principal repayments and interest payments for each instrument were discounted to the purchase date at a risk-adjusted discount rate. We incurred approximately $1.6 million of acquisition costs associated with this transaction prior to the closing date that are reflected in general and administrative expense in the Unaudited Consolidated Statements of Income for the nine months ended September 30, 2017. The components of “Other intangibles” listed in the above table as of the acquisition date are preliminarily estimated as follows (in thousands): Accumulated Balance at Estimated Useful Amount Amortization September 30, 2017 Life Customer relationships $ 66,000 $ 1,100 $ 64,900 15 years Trade name 400 400 - 3 months The above intangible assets are amortized using the straight-line method. Amortization expense related to this acquisition for both the three and nine month periods ended September 30, 2017 was $1.5 million. The intangible assets have a weighted average useful life of approximately 15 years. Amortization expense related to HGD for the next five years is as follows (in thousands): Remainder 2017 $ 1,100 2018 4,400 2019 4,400 2020 4,400 2021 4,400 The following unaudited pro forma consolidated results of operations for 2017 and 2016 assume that the acquisition of Estenson was completed as of January 1, 2016 (in thousands, except for per share amounts): Three Months Ended September 30, 2016 Revenue $ 988,345 Net income $ 20,249 Earnings per share Basic $ 0.61 Diluted $ 0.61 Nine Months Nine Months Ended Ended September 30, 2017 September 30, 2016 Revenue $ 2,986,342 $ 2,752,660 Net income $ 39,387 $ 62,212 Earnings per share Basic $ 1.19 $ 1.82 Diluted $ 1.18 $ 1.82 The unaudited pro forma consolidated results for the three and nine month periods were prepared using the acquisition method of accounting and are based on the historical financial information of Hub and HGD. The historical financial information has been adjusted to give effect to the pro forma adjustments that are: (i) directly attributable to the acquisition, (ii) factually supportable and (iii) expected to have a continuing impact on the combined results. The unaudited pro forma consolidated results are not necessarily indicative of what our consolidated results of operations actually would have been had we completed the acquisition on January 1, 2016. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 3 . Business Segments We report two distinct business segments. The first segment is Mode, which includes the Mode Transportation, LLC (“Mode LLC”) business we acquired on April 1, 2011. The second segment is Hub, which is all business other than Mode. Hub offers comprehensive intermodal, truck brokerage, dedicated and logistics services. Our employees operate the freight through a network of operating centers located in the United States, Canada and Mexico. Each operating center is strategically located in a market with a significant concentration of shipping customers and one or more railheads. Hub has full time employees located throughout the United States, Canada and Mexico. Mode LLC has Independent Business Owners (“IBOs”) who sell and operate the business throughout North America, as well as sales only agents. Mode LLC also has a corporate office in Dallas, TX, a temperature protected services division, Temstar, located in Oak Brook, IL and corporate offices in Memphis, TN. Mode LLC markets and operates its freight transportation services, consisting of intermodal, truck brokerage and logistics, primarily through agents who enter into contractual arrangements with Mode LLC. The following is a summary of operating results and certain other financial data for our business segments (in thousands): Three Months Three Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 820,802 $ 258,696 $ (25,138 ) $ 1,054,360 $ 716,699 $ 251,611 $ (35,496 ) $ 932,814 Transportation costs 734,747 228,227 (25,138 ) 937,836 638,154 218,702 (35,496 ) 821,360 Gross margin 86,055 30,469 - 116,524 78,545 32,909 - 111,454 Costs and expenses: Salaries and benefits 45,727 3,399 - 49,126 38,775 3,835 - 42,610 Agent fees and commissions 15 19,057 - 19,072 20 19,052 - 19,072 General and administrative 20,520 1,883 - 22,403 15,969 1,672 - 17,641 Depreciation and amortization 3,962 292 - 4,254 1,959 317 - 2,276 Total costs and expenses 70,224 24,631 - 94,855 56,723 24,876 - 81,599 Operating income $ 15,831 $ 5,838 $ - $ 21,669 $ 21,822 $ 8,033 $ - $ 29,855 Capital Expenditures $ 10,170 $ 173 $ - $ 10,343 $ 34,411 $ 255 $ - $ 34,666 The following tables summarize our revenue by segment and business line (in thousands) for the quarter ended September 30: Three Months Three Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 473,998 $ 123,194 $ (13,665 ) $ 583,527 $ 466,283 $ 126,052 $ (21,857 ) $ 570,478 Truck brokerage 113,179 87,242 (634 ) 199,787 96,906 79,627 (174 ) 176,359 Logistics 175,679 48,260 (10,794 ) 213,145 153,510 45,932 (13,465 ) 185,977 Dedicated 57,946 - (45 ) 57,901 - - - - Total revenue $ 820,802 $ 258,696 $ (25,138 ) $ 1,054,360 $ 716,699 $ 251,611 $ (35,496 ) $ 932,814 The following is a summary of operating results and certain other financial data for our business segments (in thousands): Nine Months Nine Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 2,203,142 $ 743,621 $ (74,442 ) $ 2,872,321 $ 1,980,450 $ 692,366 $ (78,586 ) $ 2,594,230 Transportation costs 1,972,725 654,612 (74,442 ) 2,552,895 1,739,676 598,809 (78,586 ) 2,259,899 Gross margin 230,417 89,009 - 319,426 240,774 93,557 - 334,331 Costs and expenses: Salaries and benefits 126,891 10,452 - 137,343 118,658 11,417 - 130,075 Agent fees and commissions 46 54,057 - 54,103 47 54,287 - 54,334 General and administrative 57,330 6,011 - 63,341 44,917 5,451 - 50,368 Depreciation and amortization 8,319 896 - 9,215 5,603 956 - 6,559 Total costs and expenses 192,586 71,416 - 264,002 169,225 72,111 - 241,336 Operating income $ 37,831 $ 17,593 $ - $ 55,424 $ 71,549 $ 21,446 $ - $ 92,995 Capital Expenditures $ 39,732 $ 204 $ - $ 39,936 $ 59,356 $ 527 $ - $ 59,883 As of September 30, 2017 As of December 31, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,421,628 $ 184,996 $ (6,761 ) $ 1,599,863 $ 1,178,110 $ 191,374 $ (9,225 ) $ 1,360,259 Goodwill 319,117 29,389 - 348,506 232,987 29,389 - 262,376 The following tables summarize our revenue by segment and business line (in thousands) for the nine months ended September 30: Nine Months Nine Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 1,350,187 $ 357,516 $ (41,768 ) $ 1,665,935 $ 1,318,223 $ 355,379 $ (61,974 ) $ 1,611,628 Truck brokerage 324,823 248,311 (1,330 ) 571,804 261,456 228,350 (676 ) 489,130 Logistics 470,186 137,794 (31,299 ) 576,681 400,771 108,637 (15,936 ) 493,472 Dedicated 57,946 - (45 ) 57,901 - - - - Total revenue $ 2,203,142 $ 743,621 $ (74,442 ) $ 2,872,321 $ 1,980,450 $ 692,366 $ (78,586 ) $ 2,594,230 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 4 . Earnings Per Share The following is a reconciliation of our earnings per share (in thousands, except for per share data): Three Months Ended, September 30, Nine Months Ended, September 30, 2017 2016 2017 2016 Net income for basic and diluted earnings per share $ 15,334 $ 17,924 $ 35,210 $ 56,561 Weighted average shares outstanding - basic 33,227 33,212 33,217 34,098 Dilutive effect of stock options and restricted stock 108 154 106 74 Weighted average shares outstanding - diluted 33,335 33,366 33,323 34,172 Earnings per share - basic $ 0.46 $ 0.54 $ 1.06 $ 1.66 Earnings per share - diluted $ 0.46 $ 0.54 $ 1.06 $ 1.66 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 5 . Fair Value Measurement The carrying value of cash and cash equivalents, accounts receivable and accounts payable and long term debt approximated fair value as of September 30, 2017 and December 31, 2016 due to their short-term nature. We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of September 30, 2017 and December 31, 2016, our cash and temporary investments were with high quality financial institutions in Demand Deposit Accounts (DDAs) and Savings Accounts. Restricted investments, as of September 30, 2017 of $24.1 million and December 31, 2016 of $20.9 million, included mutual funds which are reported at fair value. Our assets and liabilities measured at fair value are based on valuation techniques which consider prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. These valuation methods are based on either quoted market prices (Level 1) or inputs, other than quoted prices in active markets, that are observable either directly or indirectly (Level 2). Cash and cash equivalents, accounts receivable and accounts payable are defined as “Level 1”, while long term debt is defined as “Level 2” of the fair value hierarchy in the Fair Value Measurements and Disclosures Topic of the Codification. |
Long-Term Debt and Financing Ar
Long-Term Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | NOTE 6 . Long-Term Debt and Financing Arrangements We have standby letters of credit that expire at various dates in 2017 and 2018. As of September 30, 2017, our letters of credit were $13.5 million. On July 1, 2017, we entered into a $350 million unsecured credit agreement (the "Credit Agreement"). The Credit Agreement replaces the Amended and Restated Credit Agreement dated December 12, 2013 (“2013 Credit Agreement”). The Company used the Credit Agreement to finance, in part, the Estenson Acquisition. Our unused and available borrowings under our new Credit Agreement were $286.5 million as of September 30, 2017. Our unused and available borrowings under the 2013 Credit Agreement were $38.2 million as of December 31, 2016. We were in compliance with our debt covenants as of September 30, 2017. Borrowings under the Credit Agreement generally bear interest at a variable rate equal to (i) LIBOR plus a specified margin based upon the Borrowers' total net leverage ratio (as defined in the Credit Agreement) (the "Total Net Leverage Ratio"), or (ii) the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin based upon the Total Net Leverage Ratio. The specified margin for Eurodollar loans varies from 100.0 to 200.0 basis points per annum. The specified margin for base rate loans varies from 0.0 to 100.0 basis points per annum. The Borrowers must also pay (1) a commitment fee ranging from 10.0 to 25.0 basis points per annum (based upon the Total Net Leverage Ratio) on the aggregate unused commitments and (2) a letter of credit fee ranging from 100.0 to 200.0 basis points per annum (based upon the Total Net Leverage Ratio) on the undrawn amount of letters of credit. The Credit Agreement contains various restrictions and covenants, including negative covenants that limit or restrict dividends, indebtedness of subsidiaries, mergers and fundamental changes, asset sales, acquisitions, liens and encumbrances, transactions with affiliates, changes in fiscal year and other matters customarily restricted in such agreements. The Company must maintain a Total Net Leverage Ratio of (a) total funded debt as of such date, minus up to $50,000,000 in unrestricted cash and cash equivalents (each as defined in the Credit Agreement) to (b) consolidated EBITDA (as defined in the credit agreement) of not more than 3.00 to 1.00; provided that as of the close of each of the four fiscal quarters occurring after the consummation of a permitted acquisition (as defined in the Credit Agreement) with an aggregate consideration of $150,000,000 or more, such ratio shall not be more than 3.25 to 1.00. The Company must maintain an interest coverage ratio of consolidated EBITDA to consolidated cash interest expense of not less than 3.00 to 1.00. We incurred $1.4 million of financing costs related to the Credit Agreement during the third quarter of 2017, which we capitalized and will amortize to interest expense over the term of the agreement. The unamortized balance of $1.3 million is included in Other assets in the Unaudited Consolidated Balance Sheet as of September 30, 2017. In addition to borrowings under our new credit agreement, we have entered into various Equipment Notes (“Notes”) for the purchase of tractors and containers. The Notes are secured by the underlying equipment financed in the agreements. Period Ended September 30, December 31, 2017 2016 (in thousands except principal and interest payments) Revolving line of credit $ 50,000 $ - Secured Equipment Notes due on various dates in 2024 with monthly principal and interest payments between $403 and $83,000 commencing on various dates in 2017; interest is paid monthly at a fixed annual rate between 2.85% and 3.28% 12,388 - Secured Equipment Notes due on various dates in 2023 with monthly principal and interest payments between $669 and $41,238 commencing on various dates in 2016 and 2017; interest is paid monthly at a fixed annual rate between 2.23% and 3.12% 11,554 - Secured Equipment Notes due on various dates in 2022 with monthly principal and interest payments between $3,030 and $254,190 commencing on various dates from 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.87% 32,517 - Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $1,940 and $326,333 commencing on various dates from 2014 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 81,176 59,836 Secured Equipment Notes due on various dates in 2020 with monthly principal and interest payments between $6,175 and $398,496 commencing on various dates from 2013 to 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.78% 57,305 48,633 Secured Equipment Notes due on various dates in 2019 with monthly principal and interest payments between $1,594 and $444,000 commencing on various dates from 2013 to 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.62% 40,803 49,464 Secured Equipment Notes due in June 2018 with monthly or quarterly principal and interest payments between $542 and $480,000 commencing on various dates from 2012 to 2014; interest is paid quarterly at a fixed annual rate between 1.89% and 4.45% 1,280 2,759 Secured Equipment Notes due on various dates in 2017 with monthly principal and interest payments between $12,964 and $19,792 commencing on various dates in 2012 and 2013; interest is paid monthly at a fixed annual rate between 2.06% and 2.11% 61 - 287,084 160,692 Less current portion (73,052 ) (45,163 ) Total long-term debt $ 214,032 $ 115,529 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7 . Commitments and Contingencies In November 2016, we committed to acquire 4,000 53’ containers. We expect the total purchase price of these containers to be approximately $40 million. As of October 21, 2017, we have received 2,156 containers. We anticipate receiving another 394 containers by the end of the year, with the remaining 1,450 to be delivered in 2018. We will be financing the purchase of this equipment with secured fixed rate debt. We have entered in various agreements to purchase 154 tractors for a purchase price of approximately $18 million. The equipment is expected to be delivered from October 2017 to January 2018. We will be financing the purchase of this equipment with secured fixed rate debt. |
Legal Matters
Legal Matters | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Matters | NOTE 8 . Legal Matters Robles On January 25, 2013, a complaint was filed in the U.S. District Court for the Eastern District of California (Sacramento Division) by Salvador Robles against our subsidiary, Comtrak Logistics, Inc., now known as Hub Group Trucking, Inc. Mr. Robles drove a truck for Hub Group Trucking in California, first as an independent contractor and then as an employee. The action was brought on behalf of a class comprised of present and former California-based truck drivers for Hub Group Trucking who were classified as independent contractors, from January 2009 to August 2014. The complaint alleges Hub Group Trucking has misclassified such drivers as independent contractors and that such drivers were employees. The complaint asserts various violations of the California Labor Code and claims that Hub Group Trucking has engaged in unfair competition practices. The complaint seeks, among other things, declaratory and injunctive relief, compensatory damages and attorney’s fees. In May 2013, the complaint was amended to add similar claims based on Mr. Robles’ status as an employed company driver. These additional claims are only on behalf of Mr. Robles and not a putative class. The Company believes that the California independent contractor truck drivers were properly classified as independent contractors at all times. Nevertheless, because lawsuits are expensive, time-consuming and could interrupt our business operations, Hub Group Trucking decided to make settlement offers to individual drivers with respect to the claims alleged in this lawsuit, without admitting liability. As of September 30, 2017, 93% of the California drivers have accepted the settlement offers which were paid in 2015 or earlier. In late 2014, Hub Group Trucking decided to convert its model from independent contractors to employee drivers in California. In early 2016, Hub Group Trucking closed its operations in Southern California. On April 3, 2015, the Robles case was transferred to the U.S. District Court for the Western District of Tennessee (Western Division) in Memphis. In May 2015, the plaintiffs in the Robles case filed a Second Amended Complaint (“SAC”) which names 334 current and former Hub Group Trucking drivers as “interested putative class members.” In addition to reasserting their existing claims, the SAC includes claims post-conversion, added two new plaintiffs and seeks a judicial declaration that the settlement agreements are unenforceable. In June 2015, Hub Group Trucking filed a motion to dismiss the SAC and on July 19, 2016, Hub Group Trucking’s motion to dismiss was granted in part, and denied in part, by the District Court. The motion to dismiss was granted for the claims of all purported class members who have signed settlement agreements and on plaintiffs’ claims based on quantum merit and it was denied with respect to federal preemption and choice of law. On August 11, 2016, Plaintiffs filed a motion to clarify whether the Court’s dismissal of the claims of all purported class members who signed settlement agreements was with or without prejudice and, if the dismissal was with prejudice, Plaintiffs moved the Court to revise and reconsider the order. Plaintiffs’ motion to clarify is fully briefed and the parties are awaiting a decision by the Court. Adame On August 5, 2015, the Plaintiffs’ law firm in the Robles case filed a lawsuit in state court in San Bernardino County, California on behalf of 63 named Plaintiffs against Hub Group Trucking and five Company employees. The lawsuit alleges claims similar to those being made in Robles and seeks monetary penalties under the Private Attorneys General Act. Of the 63 named Plaintiffs, at least 58 of them previously accepted the settlement offers referenced above. On October 29, 2015, Defendants filed a notice of removal to remove the case from state court in San Bernardino to federal court in the Central District of California. On November 19, 2015, Defendants filed a motion to transfer the case to federal court in Memphis, Tennessee and also filed a motion to dismiss the case pursuant to a clause in the independent contractor agreement stating that Tennessee law applies. Also on November 19, 2015, Plaintiffs filed a motion to remand the case back to state court, claiming that the federal court lacks jurisdiction over the case. The court granted Plaintiffs’ motion to remand to the state court in San Bernardino County on April 7, 2016, mooting Defendants’ motions to transfer and dismiss. On July 11, 2016, Defendants filed several motions in state court, asking the court to dismiss and/or stay the Plaintiffs’ suit for various reasons. During a hearing on October 5, 2016, the judge issued an oral tentative ruling stating that the choice of forum provision was unenforceable. On Defendants’ motion to dismiss the individual defendants, the court allowed for supplemental briefing for additional arguments regarding individual liability under PAGA. The court did not reach a decision regarding the motion to stay pending the outcome in Robles. Plaintiffs filed their supplemental brief on November 9, 2016 to which Defendants responded on December 6, 2016. On February 17, 2017, with the stipulation of the parties, the Court entered an Order dismissing, without prejudice, all of the individual Defendants and accepting the parties’ agreement that jurisdiction and venue are proper in the San Bernardino Superior Court and that Defendants will not seek to remove the case to federal district court. On April 12, 2017, the Court denied Defendants’ motion to dismiss based on insufficiency of the PAGA letter notice. On October 5, 2017, Plaintiffs served an amended complaint, in part dismissing the previously named individuals as Defendants. Lubinski On September 12, 2014, a complaint was filed in the U.S. District Court for the Northern District of Illinois (Eastern Division) by Christian Lubinski against Hub Group Trucking. The action was brought on behalf of a class comprised of present and former owner-operators providing delivery services in Illinois for Hub Group Trucking. The complaint alleged Hub Group Trucking misclassified such drivers as independent contractors and that such drivers were employees. The complaint also alleged that Hub Group Trucking made illegal deductions from the drivers’ pay and failed to properly compensate the drivers for all hours worked, reimburse business expenses, pay employment taxes, and provide workers’ compensation and other employment benefits. The complaint asserted various violations of the Illinois Wage Payment and Collections Act and claimed that Hub Group Trucking was unjustly enriched. The complaint sought, among other things, monetary damages for the relevant statutory period and attorneys’ fees. On October 24, 2014, the Lubinski case was transferred to the U.S. District Court for the Western District of Tennessee (Western Division), in Memphis. On September 22, 2015, the court granted Hub Group Trucking’s motion to dismiss Lubinski’s Illinois law claims with prejudice based on the contractual choice of law provision, which provided that Tennessee law governed. The court denied as moot Hub Group Trucking’s motion to dismiss based on federal preemption. On October 2, 2015, Lubinski appealed this order to the United States Court of Appeals for the Sixth Circuit in Cincinnati. On December 17, 2015, Lubinski filed his brief in support of his appeal of the motion to dismiss, asserting for the first time that the federal court did not have jurisdiction over the case due to a lack of diversity of citizenship. Hub Group Trucking filed its response brief on January 19, 2016, in part arguing that Lubinski had himself alleged diversity of citizenship in his complaint. Lubinski filed his reply brief on February 5, 2016. On April 1, 2016, the Sixth Circuit remanded the case to the district court—without ruling on the merits—for the district court “to consider the argument and admit the evidence necessary to determine the question of federal subject-matter jurisdiction.” On July 11, 2016, with his federal district court case still pending, Lubinski filed an additional putative class action Complaint, with the same claims, in Illinois state court. On the same day, Hub Group Trucking filed a declaratory judgment complaint in Tennessee state court, seeking a declaration that Lubinski’s claims must be heard in Tennessee (based on the contractual choice-of-forum provision) and that the claims must be dismissed because Tennessee law controls and Lubinski’s claims are preempted by federal law. On October 26, 2016, Lubinski filed a motion to dismiss for lack of federal subject-matter jurisdiction and a motion for leave to file an amended complaint, attempting to “clarify” the putative class definition and arguing that the Class Action Fairness Act’s exceptions to jurisdiction apply. In early 2017, Plaintiff’s counsel advised Hub Group Trucking that Lubinski would no longer challenge federal jurisdiction. On February 15, 2017, the District Court adopted the parties’ stipulation and found that there is federal subject-matter jurisdiction. On March 22, 2017, the U.S. Court of Appeals for the Sixth Circuit granted Plaintiff’s motion to recall the mandate and reinstate Lubinski’s appeal of the district court’s order dismissing the case. On June 8, 2017, the Sixth Circuit issued an Opinion affirming the District Court’s dismissal of Plantiff’s claims. On June 30, 2017, the Sixth Circuit issued the Mandate in the case, which terminates the 6 th We cannot reasonably estimate at this time the possible loss or range of loss, if any, that may arise from the remaining unresolved claims in the above mentioned lawsuits. We are a party to other litigation incident to our business, including claims for personal injury and/or property damage, bankruptcy preference claims, and claims regarding freight lost or damaged in transit, improperly shipped or improperly billed. Some of the lawsuits to which we are party are covered by insurance and are being defended by our insurance carriers. Some of the lawsuits are not covered by insurance and we defend those ourselves. We do not believe that the outcome of this litigation will have a materially adverse effect on our financial position or results of operations. |
New Pronouncements
New Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
New Pronouncements | NOTE 9. New Pronouncements In May 2014, the FASB issued Update No. 2014-09—Revenue from Contracts with Customers (Topic 606). This Standard provides guidance on how to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on the accounting for principal vs agent and identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented, if material. We will elect to record sales tax on a net basis. We do not expect this election to have a material impact on our consolidated financial statements. Early application is permitted for annual reporting periods beginning after December 15, 2016. We plan to adopt this standard January 1, 2018, as required. While we are continuing to assess all potential impacts of the standard, other than additional disclosures, we do not anticipate that this standard will have a material impact on our consolidated financial statements. We have identified and analyzed our revenue streams and continue to analyze our current and historical contracts. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. The new standard will become effective beginning with the first quarter of 2019. Early adoption of the standard is permitted. We plan to adopt this standard January 1, 2019, as required. We are currently evaluating the impacts the adoption of this accounting guidance will have on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , In 2016, the FASB issued new guidance that requires credit losses on financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, not based on incurred losses . In 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and cash payments in the statement of cash flows, including debt prepayment or extinguishment costs, settlement of contingent consideration arising from a business combination, insurance settlement proceeds, and distributions from certain equity method investees. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10. Income Taxes The provision for income taxes is based on a current estimate of the annual effective income tax rate adjusted to reflect the impact of discrete items. Our effective income tax rate was 22.5% and 32.2% for the three and nine months ended September 30, 2017, respectively, as compared to 38.4% for both the three and nine months ended September 30, 2016. The lower tax rates for 2017 were driven primarily by the impact of domestic production activities deductions. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 11. Subsequent Event In October 2017, we entered into various agreements to purchase 38 tractors and 45 trailers for a purchase price of approximately $6 million. The equipment is expected to be delivered by the end of 2017. We will be financing the purchase of this equipment with secured fixed rate debt. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Preliminary Allocation of Total Consideration to Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of the total consideration to the assets acquired and liabilities assumed as of the date of the acquisition (in thousands): July 1, 2017 Cash and cash equivalents $ 12 Accounts receivable trade 27,000 Accounts receivable other 165 Prepaid expenses and other current assets 1,500 Property and equipment 128,477 Other intangibles 66,400 Goodwill 86,294 Other assets 64 Total assets acquired $ 309,912 Accounts payable trade $ 4,542 Accrued payroll 5,661 Accrued other 15,018 Equipment debt 112,677 Total liabilities assumed $ 137,898 Total consideration $ 172,014 |
Components of Other Intangibles Acquired | The components of “Other intangibles” listed in the above table as of the acquisition date are preliminarily estimated as follows (in thousands): Accumulated Balance at Estimated Useful Amount Amortization September 30, 2017 Life Customer relationships $ 66,000 $ 1,100 $ 64,900 15 years Trade name 400 400 - 3 months |
Unaudited Pro forma Consolidated Results of Operations | The following unaudited pro forma consolidated results of operations for 2017 and 2016 assume that the acquisition of Estenson was completed as of January 1, 2016 (in thousands, except for per share amounts): Three Months Ended September 30, 2016 Revenue $ 988,345 Net income $ 20,249 Earnings per share Basic $ 0.61 Diluted $ 0.61 Nine Months Nine Months Ended Ended September 30, 2017 September 30, 2016 Revenue $ 2,986,342 $ 2,752,660 Net income $ 39,387 $ 62,212 Earnings per share Basic $ 1.19 $ 1.82 Diluted $ 1.18 $ 1.82 |
Estenson Logistics, LLC [Member] | |
Summary of Total Purchase Price Allocated to Net Assets Acquired | The following table summarizes the total purchase price allocated to the net assets acquired (in thousands): Cash paid $ 165,945 Consideration payable 1,366 Contingent consideration, fair value 4,703 Total consideration 172,014 Equipment debt assumed 112,677 Total base purchase price $ 284,691 |
Amortization Expense of Intangible Assets Acquired | Amortization expense related to HGD for the next five years is as follows (in thousands): Remainder 2017 $ 1,100 2018 4,400 2019 4,400 2020 4,400 2021 4,400 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operating Results | The following is a summary of operating results and certain other financial data for our business segments (in thousands): Three Months Three Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 820,802 $ 258,696 $ (25,138 ) $ 1,054,360 $ 716,699 $ 251,611 $ (35,496 ) $ 932,814 Transportation costs 734,747 228,227 (25,138 ) 937,836 638,154 218,702 (35,496 ) 821,360 Gross margin 86,055 30,469 - 116,524 78,545 32,909 - 111,454 Costs and expenses: Salaries and benefits 45,727 3,399 - 49,126 38,775 3,835 - 42,610 Agent fees and commissions 15 19,057 - 19,072 20 19,052 - 19,072 General and administrative 20,520 1,883 - 22,403 15,969 1,672 - 17,641 Depreciation and amortization 3,962 292 - 4,254 1,959 317 - 2,276 Total costs and expenses 70,224 24,631 - 94,855 56,723 24,876 - 81,599 Operating income $ 15,831 $ 5,838 $ - $ 21,669 $ 21,822 $ 8,033 $ - $ 29,855 Capital Expenditures $ 10,170 $ 173 $ - $ 10,343 $ 34,411 $ 255 $ - $ 34,666 The following is a summary of operating results and certain other financial data for our business segments (in thousands): Nine Months Nine Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Revenue $ 2,203,142 $ 743,621 $ (74,442 ) $ 2,872,321 $ 1,980,450 $ 692,366 $ (78,586 ) $ 2,594,230 Transportation costs 1,972,725 654,612 (74,442 ) 2,552,895 1,739,676 598,809 (78,586 ) 2,259,899 Gross margin 230,417 89,009 - 319,426 240,774 93,557 - 334,331 Costs and expenses: Salaries and benefits 126,891 10,452 - 137,343 118,658 11,417 - 130,075 Agent fees and commissions 46 54,057 - 54,103 47 54,287 - 54,334 General and administrative 57,330 6,011 - 63,341 44,917 5,451 - 50,368 Depreciation and amortization 8,319 896 - 9,215 5,603 956 - 6,559 Total costs and expenses 192,586 71,416 - 264,002 169,225 72,111 - 241,336 Operating income $ 37,831 $ 17,593 $ - $ 55,424 $ 71,549 $ 21,446 $ - $ 92,995 Capital Expenditures $ 39,732 $ 204 $ - $ 39,936 $ 59,356 $ 527 $ - $ 59,883 |
Summary of Revenue by Segment and Business Line | The following tables summarize our revenue by segment and business line (in thousands) for the quarter ended September 30: Three Months Three Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 473,998 $ 123,194 $ (13,665 ) $ 583,527 $ 466,283 $ 126,052 $ (21,857 ) $ 570,478 Truck brokerage 113,179 87,242 (634 ) 199,787 96,906 79,627 (174 ) 176,359 Logistics 175,679 48,260 (10,794 ) 213,145 153,510 45,932 (13,465 ) 185,977 Dedicated 57,946 - (45 ) 57,901 - - - - Total revenue $ 820,802 $ 258,696 $ (25,138 ) $ 1,054,360 $ 716,699 $ 251,611 $ (35,496 ) $ 932,814 The following tables summarize our revenue by segment and business line (in thousands) for the nine months ended September 30: Nine Months Nine Months Ended September 30, 2017 Ended September 30, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Intermodal $ 1,350,187 $ 357,516 $ (41,768 ) $ 1,665,935 $ 1,318,223 $ 355,379 $ (61,974 ) $ 1,611,628 Truck brokerage 324,823 248,311 (1,330 ) 571,804 261,456 228,350 (676 ) 489,130 Logistics 470,186 137,794 (31,299 ) 576,681 400,771 108,637 (15,936 ) 493,472 Dedicated 57,946 - (45 ) 57,901 - - - - Total revenue $ 2,203,142 $ 743,621 $ (74,442 ) $ 2,872,321 $ 1,980,450 $ 692,366 $ (78,586 ) $ 2,594,230 |
Schedule of Assets | As of September 30, 2017 As of December 31, 2016 Inter- Hub Inter- Hub Segment Group Segment Group Hub Mode Elims Total Hub Mode Elims Total Total assets $ 1,421,628 $ 184,996 $ (6,761 ) $ 1,599,863 $ 1,178,110 $ 191,374 $ (9,225 ) $ 1,360,259 Goodwill 319,117 29,389 - 348,506 232,987 29,389 - 262,376 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | The following is a reconciliation of our earnings per share (in thousands, except for per share data): Three Months Ended, September 30, Nine Months Ended, September 30, 2017 2016 2017 2016 Net income for basic and diluted earnings per share $ 15,334 $ 17,924 $ 35,210 $ 56,561 Weighted average shares outstanding - basic 33,227 33,212 33,217 34,098 Dilutive effect of stock options and restricted stock 108 154 106 74 Weighted average shares outstanding - diluted 33,335 33,366 33,323 34,172 Earnings per share - basic $ 0.46 $ 0.54 $ 1.06 $ 1.66 Earnings per share - diluted $ 0.46 $ 0.54 $ 1.06 $ 1.66 |
Long-Term Debt and Financing 20
Long-Term Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | In addition to borrowings under our new credit agreement, we have entered into various Equipment Notes (“Notes”) for the purchase of tractors and containers. The Notes are secured by the underlying equipment financed in the agreements. Period Ended September 30, December 31, 2017 2016 (in thousands except principal and interest payments) Revolving line of credit $ 50,000 $ - Secured Equipment Notes due on various dates in 2024 with monthly principal and interest payments between $403 and $83,000 commencing on various dates in 2017; interest is paid monthly at a fixed annual rate between 2.85% and 3.28% 12,388 - Secured Equipment Notes due on various dates in 2023 with monthly principal and interest payments between $669 and $41,238 commencing on various dates in 2016 and 2017; interest is paid monthly at a fixed annual rate between 2.23% and 3.12% 11,554 - Secured Equipment Notes due on various dates in 2022 with monthly principal and interest payments between $3,030 and $254,190 commencing on various dates from 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.87% 32,517 - Secured Equipment Notes due on various dates in 2021 with monthly principal and interest payments between $1,940 and $326,333 commencing on various dates from 2014 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 81,176 59,836 Secured Equipment Notes due on various dates in 2020 with monthly principal and interest payments between $6,175 and $398,496 commencing on various dates from 2013 to 2016; interest is paid monthly at a fixed annual rate between 1.72% and 2.78% 57,305 48,633 Secured Equipment Notes due on various dates in 2019 with monthly principal and interest payments between $1,594 and $444,000 commencing on various dates from 2013 to 2015; interest is paid monthly at a fixed annual rate between 1.87% and 2.62% 40,803 49,464 Secured Equipment Notes due in June 2018 with monthly or quarterly principal and interest payments between $542 and $480,000 commencing on various dates from 2012 to 2014; interest is paid quarterly at a fixed annual rate between 1.89% and 4.45% 1,280 2,759 Secured Equipment Notes due on various dates in 2017 with monthly principal and interest payments between $12,964 and $19,792 commencing on various dates in 2012 and 2013; interest is paid monthly at a fixed annual rate between 2.06% and 2.11% 61 - 287,084 160,692 Less current portion (73,052 ) (45,163 ) Total long-term debt $ 214,032 $ 115,529 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) $ in Thousands | Jul. 01, 2017USD ($)TractorTrailer | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) |
Hub Group Dedicated [Member] | |||
Business Acquisition [Line Items] | |||
Number of tractors in operating fleet | Tractor | 1,000 | ||
Number of trailers in operating fleet | Trailer | 3,600 | ||
Estenson Logistics, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition date | Jul. 1, 2017 | ||
Business acquisition, purchase price | $ 284,691 | ||
Contingent consideration related to an earn-out provision | 6,000 | ||
Business acquisition, final consideration | 172,014 | ||
Business acquisition, debt assumed | 112,677 | ||
Business acquisition, cash paid | 165,945 | ||
Amount of cash borrowed under new line of credit | $ 55,000 | ||
Business acquisition costs | $ 1,600 | ||
Amortization expense of intangible assets | $ 1,500 | $ 1,500 | |
Intangible assets, weighted average useful life | 15 years |
Summary of Total Purchase Price
Summary of Total Purchase Price Allocated to Net Assets Acquired (Detail) - Estenson Logistics, LLC [Member] $ in Thousands | Jul. 01, 2017USD ($) |
Business Acquisition [Line Items] | |
Cash paid | $ 165,945 |
Consideration payable | 1,366 |
Contingent consideration, fair value | 4,703 |
Total consideration | 172,014 |
Equipment debt assumed | 112,677 |
Total base purchase price | $ 284,691 |
Summary of Preliminary Allocati
Summary of Preliminary Allocation of Total Purchase Price to Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 01, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 348,506 | $ 262,376 | |
Estenson Logistics, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 12 | ||
Accounts receivable trade | 27,000 | ||
Accounts receivable other | 165 | ||
Prepaid expenses and other current assets | 1,500 | ||
Property and equipment | 128,477 | ||
Other intangibles | 66,400 | ||
Goodwill | 86,294 | ||
Other assets | 64 | ||
Total assets acquired | 309,912 | ||
Accounts payable trade | 4,542 | ||
Accrued payroll | 5,661 | ||
Accrued other | 15,018 | ||
Equipment debt assumed | 112,677 | ||
Total liabilities assumed | 137,898 | ||
Total consideration | $ 172,014 |
Components of Other Intangible
Components of Other Intangible Assets (Detail) - Estenson Logistics, LLC [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Customer Relationships [Member] | |
Other Intangible Assets [Line Items] | |
Finite-lived intangible assets, Amount | $ 66,000 |
Finite-lived intangible assets, Accumulated Amortization | 1,100 |
Finite-lived intangible assets, Balance at September 30, 2017 | $ 64,900 |
Intangible assets estimated useful life | 15 years |
Trade Name [Member] | |
Other Intangible Assets [Line Items] | |
Finite-lived intangible assets, Amount | $ 400 |
Finite-lived intangible assets, Accumulated Amortization | $ 400 |
Intangible assets estimated useful life | 3 months |
Amortization Expense of Intangi
Amortization Expense of Intangible Assets (Detail) - Hub Group Dedicated [Member] $ in Thousands | Sep. 30, 2017USD ($) |
Finite Lived Intangible Assets [Line Items] | |
Remainder 2,017 | $ 1,100 |
2,018 | 4,400 |
2,019 | 4,400 |
2,020 | 4,400 |
2,021 | $ 4,400 |
Unaudited Pro forma Consolidate
Unaudited Pro forma Consolidated Results of Operations (Detail) - Estenson Logistics, LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | |||
Revenue | $ 988,345 | $ 2,986,342 | $ 2,752,660 |
Net income | $ 20,249 | $ 39,387 | $ 62,212 |
Earnings per share | |||
Basic | $ 0.61 | $ 1.19 | $ 1.82 |
Diluted | $ 0.61 | $ 1.18 | $ 1.82 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting Information [Line Items] | |
Reporting business segments | 2 |
Number of railheads | one or more |
Mode LLC [Member] | |
Segment Reporting Information [Line Items] | |
Business acquisition, date | Apr. 1, 2011 |
Summary of Operating Results (D
Summary of Operating Results (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,054,360 | $ 932,814 | $ 2,872,321 | $ 2,594,230 |
Transportation costs | 937,836 | 821,360 | 2,552,895 | 2,259,899 |
Gross margin | 116,524 | 111,454 | 319,426 | 334,331 |
Costs and expenses: | ||||
Salaries and benefits | 49,126 | 42,610 | 137,343 | 130,075 |
Agent fees and commissions | 19,072 | 19,072 | 54,103 | 54,334 |
General and administrative | 22,403 | 17,641 | 63,341 | 50,368 |
Depreciation and amortization | 4,254 | 2,276 | 9,215 | 6,559 |
Total costs and expenses | 94,855 | 81,599 | 264,002 | 241,336 |
Operating income | 21,669 | 29,855 | 55,424 | 92,995 |
Capital Expenditures | 10,343 | 34,666 | 39,936 | 59,883 |
Operating Segments [Member] | Hub [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 820,802 | 716,699 | 2,203,142 | 1,980,450 |
Transportation costs | 734,747 | 638,154 | 1,972,725 | 1,739,676 |
Gross margin | 86,055 | 78,545 | 230,417 | 240,774 |
Costs and expenses: | ||||
Salaries and benefits | 45,727 | 38,775 | 126,891 | 118,658 |
Agent fees and commissions | 15 | 20 | 46 | 47 |
General and administrative | 20,520 | 15,969 | 57,330 | 44,917 |
Depreciation and amortization | 3,962 | 1,959 | 8,319 | 5,603 |
Total costs and expenses | 70,224 | 56,723 | 192,586 | 169,225 |
Operating income | 15,831 | 21,822 | 37,831 | 71,549 |
Capital Expenditures | 10,170 | 34,411 | 39,732 | 59,356 |
Operating Segments [Member] | Mode LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 258,696 | 251,611 | 743,621 | 692,366 |
Transportation costs | 228,227 | 218,702 | 654,612 | 598,809 |
Gross margin | 30,469 | 32,909 | 89,009 | 93,557 |
Costs and expenses: | ||||
Salaries and benefits | 3,399 | 3,835 | 10,452 | 11,417 |
Agent fees and commissions | 19,057 | 19,052 | 54,057 | 54,287 |
General and administrative | 1,883 | 1,672 | 6,011 | 5,451 |
Depreciation and amortization | 292 | 317 | 896 | 956 |
Total costs and expenses | 24,631 | 24,876 | 71,416 | 72,111 |
Operating income | 5,838 | 8,033 | 17,593 | 21,446 |
Capital Expenditures | 173 | 255 | 204 | 527 |
Intersegment Elims [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (25,138) | (35,496) | (74,442) | (78,586) |
Transportation costs | $ (25,138) | $ (35,496) | $ (74,442) | $ (78,586) |
Summary of Revenue by Segment a
Summary of Revenue by Segment and Business Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,054,360 | $ 932,814 | $ 2,872,321 | $ 2,594,230 |
Intermodal [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 583,527 | 570,478 | 1,665,935 | 1,611,628 |
Truck brokerage [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 199,787 | 176,359 | 571,804 | 489,130 |
Logistics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 213,145 | 185,977 | 576,681 | 493,472 |
Dedicated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 57,901 | 57,901 | ||
Operating Segments [Member] | Hub [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 820,802 | 716,699 | 2,203,142 | 1,980,450 |
Operating Segments [Member] | Mode LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 258,696 | 251,611 | 743,621 | 692,366 |
Operating Segments [Member] | Intermodal [Member] | Hub [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 473,998 | 466,283 | 1,350,187 | 1,318,223 |
Operating Segments [Member] | Intermodal [Member] | Mode LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 123,194 | 126,052 | 357,516 | 355,379 |
Operating Segments [Member] | Truck brokerage [Member] | Hub [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 113,179 | 96,906 | 324,823 | 261,456 |
Operating Segments [Member] | Truck brokerage [Member] | Mode LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 87,242 | 79,627 | 248,311 | 228,350 |
Operating Segments [Member] | Logistics [Member] | Hub [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 175,679 | 153,510 | 470,186 | 400,771 |
Operating Segments [Member] | Logistics [Member] | Mode LLC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 48,260 | 45,932 | 137,794 | 108,637 |
Operating Segments [Member] | Dedicated [Member] | Hub [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 57,946 | 57,946 | ||
Intersegment Elims [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (25,138) | (35,496) | (74,442) | (78,586) |
Intersegment Elims [Member] | Intermodal [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (13,665) | (21,857) | (41,768) | (61,974) |
Intersegment Elims [Member] | Truck brokerage [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (634) | (174) | (1,330) | (676) |
Intersegment Elims [Member] | Logistics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (10,794) | $ (13,465) | (31,299) | $ (15,936) |
Intersegment Elims [Member] | Dedicated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ (45) | $ (45) |
Schedule of Assets (Detail)
Schedule of Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,599,863 | $ 1,360,259 |
Goodwill | 348,506 | 262,376 |
Operating Segments [Member] | Hub [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,421,628 | 1,178,110 |
Goodwill | 319,117 | 232,987 |
Operating Segments [Member] | Mode LLC [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 184,996 | 191,374 |
Goodwill | 29,389 | 29,389 |
Intersegment Elims [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ (6,761) | $ (9,225) |
Reconciliation of Earnings Per
Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income for basic and diluted earnings per share | $ 15,334 | $ 17,924 | $ 35,210 | $ 56,561 |
Weighted average shares outstanding - basic | 33,227 | 33,212 | 33,217 | 34,098 |
Dilutive effect of stock options and restricted stock | 108 | 154 | 106 | 74 |
Weighted average shares outstanding - diluted | 33,335 | 33,366 | 33,323 | 34,172 |
Earnings per share - basic | $ 0.46 | $ 0.54 | $ 1.06 | $ 1.66 |
Earnings per share - diluted | $ 0.46 | $ 0.54 | $ 1.06 | $ 1.66 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Restricted investments | $ 24.1 | $ 20.9 |
Long-Term Debt and Financing 33
Long-Term Debt and Financing Arrangements - Additional Information (Detail) - USD ($) | Jul. 01, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Amount of credit agreement | $ 350,000,000 | |||
Unused and available borrowings under credit agreement | $ 286,500,000 | $ 286,500,000 | ||
Credit agreement interest rate description | (i) LIBOR plus a specified margin based upon the Borrowers' total net leverage ratio (as defined in the Credit Agreement) (the "Total Net Leverage Ratio"), or (ii) the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin based upon the Total Net Leverage Ratio. | |||
Commitment fee on unused commitments | 0.25% | |||
Credit Agreement covenant terms | The Credit Agreement contains various restrictions and covenants, including negative covenants that limit or restrict dividends, indebtedness of subsidiaries, mergers and fundamental changes, asset sales, acquisitions, liens and encumbrances, transactions with affiliates, changes in fiscal year and other matters customarily restricted in such agreements. The Company must maintain a Total Net Leverage Ratio of (a) total funded debt as of such date, minus up to $50,000,000 in unrestricted cash and cash equivalents (each as defined in the Credit Agreement) to (b) consolidated EBITDA (as defined in the credit agreement) of not more than 3.00 to 1.00; provided that as of the close of each of the four fiscal quarters occurring after the consummation of a permitted acquisition (as defined in the Credit Agreement) with an aggregate consideration of $150,000,000 or more, such ratio shall not be more than 3.25 to 1.00. The Company must maintain an interest coverage ratio of consolidated EBITDA to consolidated cash interest expense of not less than 3.00 to 1.00. We incurred $1.4 million of financing costs related to the Credit Agreement during the third quarter of 2017, which we capitalized and will amortize to interest expense over the term of the agreement. The unamortized balance of $1.3 million is included in Other assets in the Unaudited Consolidated Balance Sheet as of September 30, 2017. | |||
Debt covenant permitted aggregate consideration | $ 150,000,000 | |||
Financing costs related to the credit agreement | 1,400,000 | |||
Credit Agreement [Member] | Other Assets [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Unamortized balance | 1,300,000 | $ 1,300,000 | ||
Credit Agreement [Member] | Maximum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Restricted cash and cash equivalents | $ 50,000,000 | |||
Total leverage ratio | 3.00% | |||
Total leverage ratio for following four each fiscal quarters | 3.25% | |||
Credit Agreement [Member] | Minimum [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Interest coverage ratio | 3.00% | |||
Credit Agreement [Member] | Federal Funds Rate [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate under the credit agreement | 0.50% | |||
Credit Agreement [Member] | LIBOR rate [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate under the credit agreement | 1.00% | |||
Description of variable rate basis | one-month LIBOR | |||
Credit Agreement [Member] | Eurodollar | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate under the credit agreement | 2.00% | |||
Credit Agreement [Member] | Base Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Interest rate under the credit agreement | 1.00% | |||
2013 Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Unused and available borrowings under credit agreement | $ 38,200,000 | |||
Letter of Credit | ||||
Line Of Credit Facility [Line Items] | ||||
Commitment fee on unused commitments | 2.00% | |||
Standby Letters of Credit [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Letters of credit expiration year | 2,017 | |||
Outstanding letters of credit | $ 13,500,000 | $ 13,500,000 |
Schedule of Outstanding Debt (D
Schedule of Outstanding Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Revolving line of credit & Secured long-term debt | $ 287,084 | $ 160,692 |
Less current portion | (73,052) | (45,163) |
Total long-term debt | 214,032 | 115,529 |
Revolving Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Revolving line of credit | 50,000 | |
Secured Equipment Notes due in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 12,388 | |
Secured Equipment Notes due in 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 11,554 | |
Secured Equipment Notes due in 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 32,517 | |
Secured Equipment Notes due in 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 81,176 | 59,836 |
Secured Equipment Notes due in 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 57,305 | 48,633 |
Secured Equipment Notes due in 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 40,803 | 49,464 |
Secured Equipment Notes due in June 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 1,280 | $ 2,759 |
Secured Equipment Notes due in 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 61 |
Schedule of Outstanding Debt (P
Schedule of Outstanding Debt (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,024 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2024 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,023 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,016 |
Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,022 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2022 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
Secured Equipment Notes due in 2022 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,015 |
Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,021 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,017 |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2014 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,014 |
Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,020 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2020 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,016 |
Secured Equipment Notes due in 2020 [Member] | Commencing on 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,013 |
Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,019 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2019 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,015 |
Secured Equipment Notes due in 2019 [Member] | Commencing on 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,013 |
Secured Equipment Notes due in June 2018 [Member] | |
Debt Instrument [Line Items] | |
Payment Frequency | quarterly |
Equipment notes due | Jun. 30, 2018 |
Secured Equipment Notes due in June 2018 [Member] | Commencing on 2012 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,012 |
Secured Equipment Notes due in June 2018 [Member] | Commencing on 2014 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,014 |
Secured Equipment Notes due in 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2,017 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2017 [Member] | Commencing on 2012 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,012 |
Secured Equipment Notes due in 2017 [Member] | Commencing on 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2,013 |
Minimum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 403 |
Interest rate secured debt | 2.85% |
Minimum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 669 |
Interest rate secured debt | 2.23% |
Minimum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 3,030 |
Interest rate secured debt | 2.16% |
Minimum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 1,940 |
Interest rate secured debt | 2.04% |
Minimum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 6,175 |
Interest rate secured debt | 1.72% |
Minimum [Member] | Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 1,594 |
Interest rate secured debt | 1.87% |
Minimum [Member] | Secured Equipment Notes due in June 2018 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 542 |
Interest rate secured debt | 1.89% |
Minimum [Member] | Secured Equipment Notes due in 2017 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 12,964 |
Interest rate secured debt | 2.06% |
Maximum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 83,000 |
Interest rate secured debt | 3.28% |
Maximum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 41,238 |
Interest rate secured debt | 3.12% |
Maximum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 254,190 |
Interest rate secured debt | 2.87% |
Maximum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 326,333 |
Interest rate secured debt | 2.96% |
Maximum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 398,496 |
Interest rate secured debt | 2.78% |
Maximum [Member] | Secured Equipment Notes due in 2019 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 444,000 |
Interest rate secured debt | 2.62% |
Maximum [Member] | Secured Equipment Notes due in June 2018 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 480,000 |
Interest rate secured debt | 4.45% |
Maximum [Member] | Secured Equipment Notes due in 2017 [Member] | |
Debt Instrument [Line Items] | |
Monthly payments | $ 19,792 |
Interest rate secured debt | 2.11% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2017Tractor | Nov. 30, 2016USD ($)Container | Sep. 30, 2017USD ($)TractorContainer | Oct. 21, 2017Container | |
Loss Contingencies [Line Items] | ||||
Purchase contract units, containers | 4,000 | |||
Cost of purchasing containers | $ | $ 40 | |||
Number of containers expected to be receive in remainder of fiscal year | 394 | |||
Number of containers expected to be receive in year two | 1,450 | |||
Purchase contract units tractors | Tractor | 154 | |||
Cost of purchasing tractors | $ | $ 18 | |||
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of containers received | 2,156 | |||
Purchase contract units tractors | Tractor | 38 |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) - Robles Lawsuits [Member] | Aug. 05, 2015PlaintiffEmployee | May 31, 2015Plaintiff | Sep. 30, 2017 |
Loss Contingencies [Line Items] | |||
Percentage of California drivers who accepted settlement offers | 93.00% | ||
Number of plaintiffs | 2 | ||
Number of plaintiffs against Hub Group Trucking | 63 | ||
Number of employees filed lawsuit | Employee | 5 | ||
Number of claims accepted settlement offers | 58 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22.50% | 38.40% | 32.20% | 38.40% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | 1 Months Ended | 9 Months Ended |
Oct. 31, 2017USD ($)TractorTrailer | Sep. 30, 2017Tractor | |
Subsequent Event [Line Items] | ||
Purchase contract units tractors | 154 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Purchase contract units tractors | 38 | |
Purchase contract units trailers | Trailer | 45 | |
Cost of purchasing equipment | $ | $ 6 |