Hub Group Q3 net income increased 29% year-over-year to US$16.3M as segment revenue rose 17% to US$561M; results helped by 19% increase in intermodal revenue to US$402M

DOWNERS GROVE, Illinois , October 24, 2011 (press release) – Hub Group, Inc. (NASDAQ:HUBG - News) today announced financial results for the quarter ended September 30, 2011.

Hub Group reported income of $16.3 million for the third quarter ended September 30, 2011, an increase of 29% compared to the third quarter of 2010. Hub Group's diluted earnings per share was $0.44 for the third quarter of 2011, which represents an increase of 29% when compared with the prior year period.

The Hub segment's revenue increased 17% to $561 million. Third quarter intermodal revenue increased 19% to $402 million. The increase was attributable to a 10% volume increase and a 9% increase for fuel, price and mix. Truck brokerage revenue decreased 3% to $83 million this quarter. Third quarter Unyson Logistics revenue increased 39% to $76 million. Hub's operating income increased $4.2 million, which represents an increase of 20% when compared with the prior year period. The Hub results include approximately $335,000 of restructuring costs related to truck brokerage operations.

The Mode segment's revenue was $206 million for the third quarter. Operating income was $1.7 million. The Mode results include approximately $800,000 of costs related to integration.

Hub Group ended the quarter with $43 million in cash.
 

HUB GROUP, INC.

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

(in thousands, except per share amounts)

 
                             
 

Three Months

 

Nine Months

 
 

Ended September 30,

 

Ended September 30,

 
             

2011

 

2010

 

2011

 

2010

 

Revenue

     

$ 760,379

 

$ 478,417

 

$ 2,005,467

 

$ 1,353,824

 
                             

Transportation costs

     

673,657

 

421,020

 

1,776,685

 

1,197,033

 
 

Gross margin

     

86,722

 

57,397

 

228,782

 

156,791

 
                             

Costs and expenses:

                     
 

Salaries and benefits

     

32,023

 

25,547

 

91,570

 

72,868

 
 

Agent fees and commissions

   

13,884

 

641

 

28,400

 

1,774

 
 

General and administrative

     

12,612

 

9,564

 

37,523

 

28,640

 
 

Depreciation and amortization

   

1,560

 

938

 

3,968

 

2,845

 
   

Total costs and expenses

   

60,079

 

36,690

 

161,461

 

106,127

 
                             

Operating income

     

26,643

 

20,707

 

67,321

 

50,664

 
                             

Other income (expense):

                     
 

Interest expense

     

(236)

 

(12)

 

(319)

 

(38)

 
 

Interest and dividend income

   

41

 

35

 

118

 

83

 
 

Other, net

     

17

 

(68)

 

286

 

84

 
   

Total other (expense) income

   

(178)

 

(45)

 

85

 

129

 
                             

Income before provision for income taxes

   

26,465

 

20,662

 

67,406

 

50,793

 
                             

Provision for income taxes

     

10,189

 

8,045

 

26,242

 

19,844

 
                             

Net income

     

$   16,276

 

$   12,617

 

$      41,164

 

$      30,949

 
                             

Basic earnings per common share

   

$       0.44

 

$       0.34

 

$          1.12

 

$          0.83

 
                             

Diluted earnings per common share

   

$       0.44

 

$       0.34

 

$          1.11

 

$          0.83

 
                             

Basic weighted average number of shares outstanding

   

36,923

 

37,118

 

36,903

 

37,358

 

Diluted weighted average number of shares outstanding

   

37,065

 

37,288

 

37,049

 

37,504

 
                           

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.

 

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