EXHIBIT 99.1
HUB GROUP, INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2003
Downers Grove, IL, May 1, 2003 - Hub Group, Inc. (NASDAQ: HUBG) reported results
of operations for the quarter ended March 31, 2003.
Revenue for the quarter increased 7.9% to $329.3 million in 2003 from $305.3
million in 2002. Intermodal revenue increased 8.5% from $214.9 million in 2002
to $233.2 million in 2003. Due primarily to a strategic decision to support
logistics customer growth with traditional brokerage resources, truckload
brokerage revenue decreased 8.9% from $53.5 million in 2002 to $48.7 million in
2003. Supply chain solutions logistics revenue increased 80.5% from $17.6
million in 2002 to $31.8 million in 2003. Revenue at Hub Group Distribution
Services decreased 19.8% to $15.5 million in 2003 from $19.3 million in 2002 due
to the previously disclosed loss of a large logistics customer in 2002 partially
offset by an increase in installation business.
On a per share basis, the Company had earnings of $0.18 per share in 2003
compared to $0.12 per share in the first quarter of 2002. Gross margin as a
percentage of revenue decreased to 12.8% from 13.4%. Salaries and benefits as a
percentage of revenue decreased to 7.1% from 7.7% in 2002 attributed primarily
to an increase in revenue and a decrease in headcount. Selling, general and
administrative expenses as a percentage of revenue decreased to 3.6% in 2003
from 3.8 % in 2002.
Hub's chairman, Phillip C. Yeager, stated: "In spite of a mixed economic
climate, we experienced our strongest first quarter revenue growth rate in the
last three years. We are especially pleased with the significant growth of our
supply chain solutions service offering, which is supported by our established
network of logistics operating centers and salespeople strategically located
throughout the country. Hub handled $24 million of additional business in 2003
while holding operating costs constant thanks to our productivity improvements
and systems enhancements. As our momentum builds we remain focused on
controlling costs and enhancing margins. This quarter's bottom line results
represent another positive step in restoring our historical levels of
profitability."
Statements in this press release that are not historical, including statements
regarding 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 no limited to, the annual report on Form 10-K for the
year ended December 31, 2002. Hub Group assumes no liability to update any such
forward-looking statements.
Hub Group Inc. is a leading non-asset based freight transportation management
company providing comprehensive intermodal, highway transportation, logistics,
distribution services, railcar and airfreight services. The Company operates
through a network of over 30 offices throughout the United States, Canada and
Mexico.
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months
Ended March 31,
--------------------------------
2003 2002
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Revenue $ 329,284 $ 305,299
Transportation costs 287,234 264,290
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Gross margin 42,050 41,009
Costs and expenses:
Salaries and benefits 23,328 23,597
Selling, general and administrative 11,788 11,513
Depreciation and amortization of property and equipment 2,561 2,672
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Total costs and expenses 37,677 37,782
Operating income 4,373 3,227
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Other income (expense):
Interest expense (2,084) (2,286)
Interest income 50 67
Other, net (36) 62
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Total other expense (2,070) (2,157)
Income before minority interest and provision for income taxes 2,303 1,070
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Minority interest - (524)
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Income before provision for income taxes 2,303 1,594
Provision for income taxes 944 654
---------------- ---------------
Net income $ 1,359 $ 940
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Basic earnings per common share $ 0.18 $ 0.12
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Diluted earnings per common share $ 0.18 $ 0.12
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Basic weighted average number of shares outstanding 7,709 7,709
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Diluted weighted average number of shares outstanding 7,722 7,714
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