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
Alison Gallant
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, 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 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.
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.