Hub Group posts net income of US$17M, up 36% year-over-year on earnings of US$762.8M, up nearly 60%; results included about US$500,000 of restructuring costs

DOWNERS GROVE, Illinois , January 27, 2012 (press release) – Hub Group, Inc. (NASDAQ: HUBG - News) 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.

   

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

 
                     
   
                         

 
   

 

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