HUB GROUP, INC. 
By OAK BROOK, Ill., Jan. 28, 2014 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2013.
Hub Group reported income of $16.5 million for the fourth quarter ended December 31, 2013. Hub Group's diluted earnings per share was $0.45 for the fourth quarter of 2013. Hub Group's pre-tax income included a non-cash impairment charge of $2.9 million related to changing the trade name of Comtrak Logistics to Hub Group Trucking. Excluding the effect of this item, non-GAAP earnings per share was $0.50 for the quarter (see table below). Non-GAAP earnings per share decreased 2% when compared with the prior year period. Hub Group's revenue increased 11% to $885 million.
The Hub segment's revenue increased 11% to $684 million. Fourth quarter intermodal revenue increased 3% to $466 million on a 4% increase in volume. Truck brokerage revenue increased 1% to $88 million this quarter. Fourth quarter Unyson Logistics revenue increased 72% to $130 million. The Hub segment's operating income was $22.6 million.
The Mode segment's revenue increased 8% to $214 million for the fourth quarter. Operating income was $4.6 million.
FULL YEAR 2013
Income for the year ended December 31, 2013 was $69.1 million. Hub Group's diluted earnings per share for 2013 was $1.87. Full year 2013 pre-tax income included the previously discussed non-cash impairment charge of $2.9 million. Excluding the effect of this item, non-GAAP earnings per share was $1.92 for the year (see table below). Full year non-GAAP earnings per share increased 5% when compared with the prior year. Hub Group's revenue increased 8% to $3.4 billion.
Hub Group ended the year with $69 million in cash.
"We had a solid year and are focused on our strategic initiatives to deliver strong results in 2014," said David P. Yeager, Chairman and Chief Executive Officer of Hub Group.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Tuesday, January 28, 2014 to discuss its fourth quarter and full year results and provide 2014 guidance.
Hosting the conference call will be David Yeager, Chairman and Chief Executive Officer, Mark Yeager, Vice-Chairman, President and Chief Operating Officer, and Terri Pizzuto, Executive Vice-President, Chief Financial Officer and Treasurer.
This call is being webcast and can be accessed through the Investors link on Hub Group's Web site at www.hubgroup.com . Those interested in participating in the question and answer session should follow the telephone dial-in instructions below.
To participate in the conference call by telephone, please call ten minutes early by dialing (888) 713-4199. The conference call participant code is 73244762. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PKKA9TATJ . Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference, bypassing the operator. The call will be limited to 60 minutes, including questions and answers.
An audio replay will be available through the Investors link on the Company's Web site at www.hubgroup.com. This replay will be available for 30 days.
ABOUT HUB GROUP: Hub Group, Inc. is a $3 billion asset light freight transportation management company providing comprehensive intermodal, truck brokerage and logistics services. The Company operates through a network of offices and independent agents throughout the United States, Canada and Mexico. For more information, visit www.hubgroup.com.
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about Hub Group's or management's earnings guidance, intentions, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and subject to risks. Such statements should be viewed with caution. Actual results or experience could differ materially from the forward-looking statements as a result of many factors. Factors that could cause actual results to differ materially include the factors listed from time to time in Hub Group's SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 2012 and the reports on Form 10-Q for the periods ended March 31, 2013, June 30, 2013 and September 30, 2013. Hub Group assumes no liability to update any such forward-looking statements.
HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Twelve Months
Ended December
31, Ended December 31,
--------------- ------------------
2013 2012 2013 2012
---- ---- ---- ----
Revenue $885,252 $801,023 $3,373,898 $3,124,108
Transportation costs 790,164 707,644 3,002,875 2,768,042
------- ------- --------- ---------
Gross
margin 95,088 93,379 371,023 356,066
Costs and expenses:
Salaries
and
benefits 33,868 33,023 135,341 129,143
Agent fees
and
commissions 14,272 14,006 55,789 55,112
General and
administrative 15,096 13,091 56,772 52,832
Depreciation
and
amortization 1,697 1,611 6,470 6,619
Impairment
of trade
name 2,904 - 2,904 -
----- --- ----- ---
Total costs and expenses 67,837 61,731 257,276 243,706
Operating income 27,251 31,648 113,747 112,360
Other income (expense):
Interest
expense (328) (299) (1,246) (1,207)
Interest
and
dividend
income 13 30 82 134
Other, net (5) 28 (28) (30)
--- --- --- ---
Total other expense (320) (241) (1,192) (1,103)
Income before provision for
income taxes 26,931 31,407 112,555 111,257
Provision for income taxes 10,395 12,563 43,445 43,304
------ ------ ------ ------
Net income $16,536 $18,844 $69,110 $67,953
======= ======= ======= =======
Basic earnings per common
share $0.45 $0.51 $1.88 $1.83
===== ===== ===== =====
Diluted earnings per common
share $0.45 $0.51 $1.87 $1.83
===== ===== ===== =====
Basic weighted average
number of shares
outstanding 36,719 37,021 36,829 37,053
====== ====== ====== ======
Diluted weighted average
number of shares
outstanding 36,942 37,199 36,982 37,185
====== ====== ====== ======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Three Months
Ended December 31, 2013
-----------------------
Hub Mode Inter-Segment Hub Group
Elims Consolidated
----- ------------
Revenue $683,614 $214,357 $(12,719) $885,252
Transportation costs 613,198 189,685 (12,719) 790,164
------- ------- ------- -------
Gross
margin 70,416 24,672 - 95,088
Costs and expenses:
Salaries
and
benefits 30,219 3,649 - 33,868
Agent fees
and
commissions 148 14,124 - 14,272
General and
administrative 13,383 1,713 - 15,096
Depreciation
and
amortization 1,157 540 - 1,697
Impairment
of trade
name 2,904 - - 2,904
----- --- --- -----
Total costs and expenses 47,811 20,026 - 67,837
Operating income 22,605 4,646 - 27,251
====== ===== === ======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Three Months
Ended December 31, 2012
-----------------------
Hub Mode Inter-Segment Hub Group
Elims Consolidated
----- ------------
Revenue $613,853 $198,550 $(11,380) $801,023
Transportation costs 544,098 174,926 (11,380) 707,644
------- ------- ------- -------
Gross
margin 69,755 23,624 - 93,379
Costs and expenses:
Salaries
and
benefits 29,332 3,691 - 33,023
Agent fees
and
commissions 374 13,632 - 14,006
General and
administrative 11,407 1,684 - 13,091
Depreciation
and
amortization 1,110 501 - 1,611
----- --- --- -----
Total costs and expenses 42,223 19,508 - 61,731
Operating income 27,532 4,116 - 31,648
====== ===== === ======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Twelve Months
Ended December 31, 2013
-----------------------
Hub Mode Inter-Segment Hub Group
Elims Consolidated
----- ------------
Revenue $2,599,763 $823,159 $(49,024) $3,373,898
Transportation costs 2,325,512 726,387 (49,024) 3,002,875
--------- ------- ------- ---------
Gross
margin 274,251 96,772 - 371,023
Costs and expenses:
Salaries
and
benefits 120,478 14,863 - 135,341
Agent fees
and
commissions 1,372 54,417 - 55,789
General and
administrative 50,484 6,288 - 56,772
Depreciation
and
amortization 4,326 2,144 - 6,470
Impairment
of trade
name 2,904 - - 2,904
----- --- --- -----
Total costs and expenses 179,564 77,712 - 257,276
Operating income 94,687 19,060 - 113,747
====== ====== === =======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Twelve Months
Ended December 31, 2012
-----------------------
Hub Mode Inter-Segment Hub Group
Elims Consolidated
----- ------------
Revenue $2,392,289 $779,928 $(48,109) $3,124,108
Transportation costs 2,128,942 687,209 (48,109) 2,768,042
--------- ------- ------- ---------
Gross
margin 263,347 92,719 - 356,066
Costs and expenses:
Salaries
and
benefits 113,855 15,288 - 129,143
Agent fees
and
commissions 1,900 53,212 - 55,112
General and
administrative 45,411 7,421 - 52,832
Depreciation
and
amortization 4,448 2,171 - 6,619
----- ----- --- -----
Total costs and expenses 165,614 78,092 - 243,706
Operating income 97,733 14,627 - 112,360
====== ====== === =======
HUB GROUP, INC.
UNAUDITED NON-GAAP TO GAAP RECONCILIATION
(earnings per share)
Three Months Twelve Months
Ended, Dec. 31, Ended, Dec. 31,
--------------- ---------------
Change Change Change Change
2013 2012 $ % 2013 2012 $ %
---- ---- --- --- ---- ---- --- ---
Diluted
GAAP
EPS $0.45 $0.51 $(0.06) -11.8% $1.87 $1.83 $0.04 2.2%
Impairment
of
trade
name,
net
of
tax $0.05 $ - $0.05 $0.05 $ - $0.05
Diluted
NON-
GAAP
EPS
(adjusted) $0.50 $0.51 $(0.01) -2.0% $1.92 $1.83 $0.09 4.9%
Diluted
Shares 36,942 37,199 36,982 37,185
In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance. This table and Hub's internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.
HUB GROUP, INC
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31, December 31,
------------
2013 2012
---- ----
ASSETS
CURRENT
ASSETS:
Cash and cash
equivalents $68,964 $70,760
Accounts
receivable
trade, net 371,528 346,917
Accounts
receivable
other 26,569 25,945
Prepaid taxes 409 139
Deferred taxes 5,826 4,965
Prepaid
expenses and
other current
assets 12,738 10,619
------ ------
486,034 459,345
TOTAL CURRENT
ASSETS
Restricted
investments 20,754 17,218
Property and
equipment,
net 260,400 157,584
Other
intangibles,
net 15,729 20,068
Goodwill, net 263,032 263,251
Other assets 1,994 2,387
----- -----
TOTAL ASSETS $1,047,943 $919,853
========== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT
LIABILITIES:
Accounts
payable trade $232,350 $206,497
Accounts
payable other 24,957 22,925
Accrued
payroll 17,000 17,210
Accrued other 42,834 28,633
Current
portion of
capital lease 2,413 2,120
Current
portion of
long term
debt 1,771 -
----- ---
321,325 277,385
TOTAL CURRENT
LIABILITIES
Non-current
liabilities 22,304 20,041
Non-current
portion of
capital lease 18,477 21,099
Long term debt 6,475 -
Deferred taxes 117,835 100,431
STOCKHOLDERS'
EQUITY:
Preferred
stock, $.01
par value;
2,000,000
shares
authorized;
no shares
issued or
outstanding
in 2013 and
2012 - -
Common stock
Class A: $.01
par value;
97,337,700
shares
authorized
and
41,224,792
shares issued in 2012
in 2013 and
2012;
36,626,384
shares
outstanding
in 2013 and
36,767,485
shares
outstanding
412 412
Class B: $.01
par value;
662,300
shares
authorized;
662,296 shares
issued and
outstanding
in 2013 and
2012
7 7
Additional
paid-in
capital 167,357 167,765
Purchase price
in excess of
predecessor
basis, net of
tax
benefit of
$10,306 (15,458) (15,458)
Retained
earnings 538,251 469,141
Accumulated
other
comprehensive
(loss) income (85) 1
Treasury
stock; at
cost,
4,598,408
shares in
2013
and 4,457,307
shares in
2012 (128,957) (120,971)
-------- --------
TOTAL
STOCKHOLDERS'
EQUITY 561,527 500,897
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $1,047,943 $919,853
========== ========
HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months
Ended
December 31,
------------
2013 2012
---- ----
Cash flows from operating
activities:
Net income $69,110 $67,953
Adjustments
to
reconcile
net
income
to net
cash
provided
by
operating
activities:
Depreciation
and
amortization 21,302 21,575
Impairment
of trade
name 2,904 -
Deferred
taxes 16,438 8,786
Compensation
expense
related
to share-
based
compensation
plans 7,667 6,539
(Gain)
loss on
sale of
assets (167) 108
Excess tax
benefits
from
share
based
compensation (13) (29)
Changes in
operating
assets
and
liabilities:
Restricted
investments (3,536) (2,895)
Accounts
receivable,
net (25,420) (22,429)
Prepaid
taxes (308) 2,253
Prepaid
expenses
and other
current
assets (2,137) (1,562)
Other
assets (682) 459
Accounts
payable 27,635 7,438
Accrued
expenses 1,736 2,779
Non-
current
liabilities 2,888 1,942
----- -----
Net cash provided by
operating activities 117,417 92,917
------- ------
Cash flows from investing
activities:
Proceeds
from sale
of
equipment 1,837 1,071
Purchases
of
property
and
equipment (110,917) (56,882)
Cash used
in
acquisitions - (550)
Net cash used in investing
activities (109,080) (56,361)
------- ------
Cash flows from financing
activities:
Proceeds
from
issuance
of debt 9,120 -
Repayments
of long
term debt (874) -
Proceeds
from
stock
options
exercised 41 69
Stock
tendered
for
payments
of
withholding
taxes (2,634) (1,812)
Purchase
of
treasury
stock (13,791) (11,208)
Capital
lease
payments (2,329) (2,454)
Excess tax
benefits
from
share-
based
compensation 336 523
Net cash used in financing
activities (10,131) (14,882)
------- ------
Effect of
exchange
rate
changes
on cash
and cash
equivalents (2) (5)
--- ---
Net (decrease) increase in
cash and cash equivalents (1,796) 21,669
Cash and cash equivalents
beginning of the year 70,760 49,091
Cash and cash equivalents
end of the year $68,964 $70,760
======= =======
SOURCE Hub Group, Inc.
