HUB GROUP, INC. 
By DOWNERS GROVE, Ill., Jan. 26, 2012 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2011.
Hub Group reported income of $17.0 million for the fourth quarter ended December 31, 2011, an increase of 36% compared to the fourth quarter of 2010. Hub Group's diluted earnings per share was $0.46 for the fourth quarter of 2011, which represents an increase of 35% when compared with the prior year period. Hub Group's pre-tax income includes integration and restructuring costs of $1.0 million. Excluding the effects of these items, non-GAAP earnings per share was $0.48 for the quarter (see table below). Non-GAAP earnings per share increased 41% when compared with the prior year period. Hub Group's revenue increased 59% to $763 million.
The Hub segment's revenue increased 20% to $577 million. Fourth quarter intermodal revenue increased 23% to $419 million. The increase was attributable to a 16% volume increase and a 7% increase for fuel, price and mix. Truck brokerage revenue increased 3% to $82 million this quarter. Fourth quarter Unyson Logistics revenue increased 27% to $76 million. Hub's operating income increased $4.5 million to $23.7 million, which represents an increase of 23% when compared with the prior year period. The Hub results include approximately $500,000 of restructuring costs.
The Mode segment's revenue was $195 million for the fourth quarter. Operating income was $3.4 million. The Mode results include approximately $500,000 of costs related to integration.
FULL YEAR 2011
Income for the year ended December 31, 2011 was $58 million. Hub Group's diluted earnings per share for 2011 was $1.57. Full year 2011 pre-tax income includes integration and restructuring costs of $4.6 million. Excluding the effects of these items, non-GAAP earnings per share was $1.65 for the year (see table below). Full year non-GAAP earnings per share increased 42% when compared with the prior year. Hub Group's revenue increased 50% to $2.8 billion.
Hub Group ended the year with $49 million in cash.
"Despite the uncertain economic environment, Hub Group closed out 2011 with another quarter of strong operating results," 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 Thursday, January 26, 2011 to discuss its fourth quarter and full year results and provide 2012 guidance.
Hosting the conference call will be David P. Yeager, Chairman and Chief Executive Officer, and Terri A. 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) 679-8018. The conference call participant code is 44109733. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PX3PNJTNA . 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 leading 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.
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, 2010 and the reports on Form 10-Q for the periods ended March 31, 2011, June 30, 2011 and September 30, 2011. 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,
------------------ ------------------
2011 2010 2011 2010
---- ---- ---- ----
Revenue $762,775 $479,913 $2,751,534 $1,833,737
Transportation
costs 678,964 423,271 2,438,986 1,620,304
------- ------- --------- ---------
Gross
margin 83,811 56,642 312,548 213,433
Costs
and
expenses:
Salaries
and
benefits 29,522 26,270 121,044 99,138
Agent
fees
and
commissions 13,091 635 41,491 2,410
General
and
administrative 12,425 9,572 49,951 38,211
Depreciation
and
amortization 1,635 947 5,603 3,792
----- --- ----- -----
Total costs and expenses 56,673 37,424 218,089 143,551
Operating
income 27,138 19,218 94,459 69,882
Other
income
(expense):
Interest
expense (319) (16) (638) (54)
Interest
and
dividend
income 30 36 148 119
Other,
net 42 62 328 146
--- --- --- ---
Total other (expense)
income (247) 82 (162) 211
Income
before
provision
for
income
taxes 26,891 19,300 94,297 70,093
Provision
for
income
taxes 9,877 6,791 36,119 26,635
----- ----- ------ ------
Net
income $17,014 $12,509 $58,178 $43,458
======= ======= ======= =======
Basic
earnings
per
common
share $0.46 $0.34 $1.58 $1.17
===== ===== ===== =====
Diluted
earnings
per
common
share $0.46 $0.34 $1.57 $1.16
===== ===== ===== =====
Basic
weighted
average
number
of
shares
outstanding 36,943 36,817 36,913 37,223
====== ====== ====== ======
Diluted
weighted
average
number
of
shares
outstanding 37,104 37,027 37,063 37,385
====== ====== ====== ======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Three Months
Ended December 31, 2011
-----------------------
Inter-
Hub Mode Segment Hub Group
--- ---- ------ ---------
Elims Consolidated
----- ------------
Revenue $577,306 $195,242 $(9,773) $762,775
Transportation
costs 516,157 172,580 (9,773) 678,964
------- ------- ------ -------
Gross
margin 61,149 22,662 - 83,811
Costs and
expenses:
Salaries
and
benefits 25,582 3,940 - 29,522
Agent fees
and
commissions 722 12,369 - 13,091
General and
administrative 10,055 2,370 - 12,425
Depreciation
and
amortization 1,085 550 - 1,635
----- --- --- -----
37,444 19,229 - 56,673
Operating
income 23,705 3,433 - 27,138
====== ===== === ======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Twelve Months
Ended December 31, 2011
-----------------------
Inter-
Hub Mode Segment Hub Group
--- ---- ------ ---------
Elims Consolidated
----- ------------
Revenue $2,183,914 $586,251 $(18,631) $2,751,534
Transportation
costs 1,939,263 518,354 (18,631) 2,438,986
--------- ------- ------- ---------
Gross
margin 244,651 67,897 - 312,548
Costs
and
expenses:
Salaries
and
benefits 107,378 13,666 - 121,044
Agent
fees
and
commissions 2,771 38,720 - 41,491
General
and
administrative 42,523 7,428 - 49,951
Depreciation
and
amortization 3,975 1,628 - 5,603
----- ----- --- -----
Total
costs
and
expenses 156,647 61,442 - 218,089
Operating
income 88,004 6,455 - 94,459
====== ===== === ======
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
2011 2010 $ % 2011 2010 $ %
---- ---- --- --- ---- ---- --- ---
Diluted GAAP EPS $0.46 $0.34 $0.12 35.3% $1.57 $1.16 $0.41 35.3%
Integration expenses and
restructuring costs $0.02 $- $0.02 $0.08 $- $0.08
Diluted NON-GAAP EPS (adjusted) $0.48 $0.34 $0.14 41.2% $1.65 $1.16 $0.49 42.2%
Diluted Shares 37,104 37,027 37,063 37,385
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 December
31, 31,
2011 2010
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $49,091 $115,144
Accounts receivable trade,
net 326,537 185,879
Accounts receivable other 23,878 17,958
Prepaid taxes 2,392 296
Deferred taxes 4,838 3,314
Prepaid expenses and other
current assets 9,056 6,569
----- -----
TOTAL CURRENT ASSETS 415,792 329,160
Restricted investments 14,323 11,421
Property and equipment, net 124,587 47,806
Other intangibles, net 21,667 5,856
Goodwill, net 263,470 233,029
Other assets 2,845 2,135
----- -----
TOTAL ASSETS $842,684 $629,407
========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable trade $204,693 $121,078
Accounts payable other 17,289 10,064
Accrued payroll 16,721 14,378
Accrued other 29,962 21,898
Current portion of capital
lease 2,237 -
----- ---
TOTAL CURRENT LIABILITIES 270,902 167,418
Non-current liabilities 17,717 13,950
Deferred taxes 91,764 71,739
Non-current portion of
capital lease 23,436 -
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par
value; 2,000,000 shares
authorized;
no shares issued or
outstanding in 2011 and 2010 - -
Common stock
Class A: $.01 par value;
97,337,700 shares authorized
and
41,224,792 shares issued in
2011 and 2010; 36,860,260
shares
outstanding in 2011 and
36,638,359 shares
outstanding in 2010 412 412
Class B: $.01 par value;
662,300 shares authorized;
662,296 shares issued and
outstanding in 2011 and 2010 7 7
Additional paid-in capital 168,800 169,722
Purchase price in excess of
predecessor basis, net of
tax
benefit of $10,306 (15,458) (15,458)
Retained earnings 401,188 343,010
Other comprehensive income 4 6
Treasury stock; at cost,
4,364,532 shares in 2011
and 4,586,433 shares in 2010 (116,088) (121,399)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 438,865 376,300
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $842,684 $629,407
======== ========
HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 30,
------------
2011 2010
---- ----
Cash flows from operating activities:
Net income $58,178 $43,458
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 16,340 8,572
Deferred taxes 18,821 9,545
Compensation expense related to share-
based compensation plans 4,788 3,576
(Gain) loss on sale of assets (17) 85
Changes in operating assets and
liabilities, net of effects of
acquisition:
Restricted investments (724) (1,838)
Accounts receivable, net (45,047) (46,582)
Prepaid taxes (2,097) 298
Prepaid expenses and other current
assets (1,728) 233
Other assets (33) 298
Accounts payable 23,095 12,822
Accrued expenses 2,989 5,277
Non-current liabilities 301 1,910
--- -----
Net cash provided by operating activities 74,866 37,654
------
Cash flows from investing activities:
Proceeds from sale of equipment 410 988
Purchases of property and equipment (55,010) (25,616)
Cash used in acquisitions, net of cash
acquired (85,182) (170)
------- ----
Net cash used in investing activities (139,782) (24,798)
-------- -------
Cash flows from financing activities:
Proceeds from stock options exercised 86 46
Purchase of treasury stock (1,523) (25,070)
Capital lease payments (729) -
Excess tax benefits from share-based
compensation 1,034 434
----- ---
Net cash used in financing activities (1,132) (24,590)
------ -------
Effect of exchange rate changes on
cash and cash equivalents (5) 15
--- ---
Net decrease in cash and cash
equivalents (66,053) (11,719)
Cash and cash equivalents beginning of
period 115,144 126,863
Cash and cash equivalents end of
period $49,091 $115,144
======= ========
SOURCE Hub Group, Inc.
