Hub Group, Inc. Reports Record Fourth Quarter and Full Year 2012 Earnings

  Hub Group, Inc. Reports Record Fourth Quarter and Full Year 2012 Earnings

PR Newswire

DOWNERS GROVE, Ill., Jan. 29, 2013

DOWNERS GROVE, Ill., Jan. 29, 2013 /PRNewswire/ --Hub Group, Inc. (NASDAQ:
HUBG) today announced financial results for the quarter and year ended
December 31, 2012.

Hub Group reported record net income of $18.8 million for the fourth quarter
ended December 31, 2012, an increase of 11% compared to the fourth quarter of
2011. Diluted earnings per share for the fourth quarter of 2012 was $0.51
compared to diluted earnings per share of $0.46 in the fourth quarter of
2011. Earnings per share increased 6% when compared with the non-GAAP
earnings per share of $0.48 in the prior year period, which excludes $1
million of pre-tax expense related to integration and restructuring (see table
below). 

The Hub segment's revenue increased 6% to $614 million. Fourth quarter
intermodal revenue increased 8% to $451 million. The increase was primarily
attributable to 7% volume growth. Truck brokerage revenue increased 7% to $87
million this quarter. Fourth quarter Unyson Logistics revenue decreased 1% to
$76 million. The Hub segment's operating income was $27.5 million.

The Mode segment's revenue increased 2% to $199 million for the fourth
quarter. Operating income was $4.1 million.

FULL YEAR 2012

Net income for the year ended December 31, 2012 was $68 million. Hub Group's
diluted earnings per share for 2012 was $1.83 compared to $1.57 for 2011.
Earnings per share increased 11% when compared with the non-GAAP earnings per
share of $1.65 in the prior year period, which excludes $4.6 million of
pre-tax expense related to integration and restructuring (see table below).
Hub Group's revenue increased 14% to $3.1 billion.

Hub Group ended the year with $71 million in cash.

"Despite the challenging business environment, 2012 was a record year for Hub
Group. For the first time in our history, we surpassed $3 billion in annual
revenue. We also achieved record earnings with growth coming from all of our
business units. We are proud of our results this year and expect to deliver
another year of solid operating performance in 2013," 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
29, 2013 to discuss its fourth quarter and full year results and provide 2013
guidance.

Hosting the conference call will be David P. Yeager, Chairman and Chief
Executive Officer, Mark A. Yeager, Vice-Chairman, President and Chief
Operating 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) 679-8035. The conference call participant code is
70579010. Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PA674RJ6Y  .
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, 2011 and the reports on Form 10-Q for the periods
ended March 31, 2012, June 30, 2012 and September 30, 2012. 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,
                             2012        2011       2012          2011
Revenue                      $ 801,023   $ 762,775  $ 3,124,108   $ 2,751,534
Transportation costs         707,644     678,964    2,768,042     2,438,986
    Gross margin             93,379      83,811     356,066       312,548
Costs and expenses:
    Salaries and benefits    33,023      29,522     129,143       121,044
    Agent fees and           14,006      13,091     55,112        41,491
    commissions
    General and              13,091      12,425     52,832        49,951
    administrative
    Depreciation and         1,611       1,635      6,619         5,603
    amortization
        Total costs and      61,731      56,673     243,706       218,089
        expenses
Operating income             31,648      27,138     112,360       94,459
Other income (expense):
    Interest expense         (299)       (319)      (1,207)       (638)
    Interest and dividend    30          30         134           148
    income
    Other, net              28          42         (30)          328
        Total other          (241)       (247)      (1,103)       (162)
        (expense) income
Income before provision for  31,407      26,891     111,257       94,297
income taxes
Provision for income taxes   12,563      9,877      43,304        36,119
Net income                   $  18,844  $         $   67,953  $   58,178
                                         17,014
Basic earnings per common    $         $        $         $    
share                        0.51       0.46      1.83          1.58
Diluted earnings per common  $         $        $         $    
share                        0.51       0.46      1.83          1.57
Basic weighted average
number of shares             37,021      36,943     37,053        36,913
outstanding
Diluted weighted average
number of shares             37,199      37,104     37,185        37,063
outstanding





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  $          $   801,023
                                                 (11,380)
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           374        13,632     -              14,006
  commissions
  General and              11,407     1,684      -              13,091
  administrative
  Depreciation and         1,110      501        -              1,611
  amortization
    Total costs and        42,223     19,508     -              61,731
    expenses
Operating income           27,532     4,116      -              31,648







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  $          $  3,124,108
                                                  (48,109)
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          1,900        53,212     -              55,112
  commissions
  General and             45,411       7,421      -              52,832
  administrative
  Depreciation and        4,448        2,171      -              6,619
  amortization
    Total costs and       165,614      78,092     -              243,706
    expenses
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
                2012    2011    $       %       2012    2011    $       %
Diluted GAAP    $ 0.51 $ 0.46 $ 0.05 10.9%   $ 1.83 $ 1.57 $ 0.26 16.6%
EPS
Integration
expenses and    $   - $ 0.02 $               $   - $ 0.08 $
restructuring                   (0.02)                          (0.08)
costs
Diluted
NON-GAAP EPS    $ 0.51 $ 0.48 $ 0.03 6.2%    $ 1.83 $ 1.65 $ 0.18 10.9%
(adjusted)
Diluted Shares  37,199  37,104                  37,185  37,063

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,
                                                    2012          2011
ASSETS
 CURRENT ASSETS:
  Cash and cash equivalents                         $         $    
                                                    70,760        49,091
  Accounts receivable trade, net                    346,917       326,537
  Accounts receivable other                         25,945        23,878
  Prepaid taxes                                     139           2,392
  Deferred taxes                                    4,965         4,838
  Prepaid expenses and other current assets         10,619        9,056
          TOTAL CURRENT ASSETS                      459,345       415,792
  Restricted investments                            17,218        14,323
  Property and equipment, net                       157,584       124,587
  Other intangibles, net                            20,068        21,667
  Goodwill, net                                     263,251       263,470
  Other assets                                      2,387         2,845
                         TOTAL ASSETS               $          $   
                                                    919,853       842,684
LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES:
  Accounts payable trade                            $          $   
                                                    206,497       204,693
  Accounts payable other                            22,925        17,289
  Accrued payroll                                   17,210        16,721
  Accrued other                                     28,633        29,962
  Current portion of capital lease                  2,120         2,237
          TOTAL CURRENT LIABILITIES                 277,385       270,902
 Non-current liabilities                            20,041        17,717
 Non-current portion of capital lease               21,099        23,436
 Deferred taxes                                     100,431       91,764
 STOCKHOLDERS' EQUITY:
  Preferred stock, $.01 par value; 2,000,000 shares
  authorized; no shares issued or outstanding in    -             -
  2012 and 2011
  Common stock
   Class A: $.01 par value; 97,337,700 shares
   authorized and 41,224,792 shares issued in 2012  412           412
   and 2011; 36,767,485 shares outstanding in 2012
   and 36,860,260 shares outstanding in 2011
   Class B: $.01 par value; 662,300 shares
   authorized; 662,296 shares issued and            7             7
   outstanding in 2012 and 2011
  Additional paid-in capital                        167,765       168,800
  Purchase price in excess of predecessor basis,    (15,458)      (15,458)
  net of taxbenefit of $10,306
  Retained earnings                                 469,141       401,188
  Other comprehensive income                        1             4
  Treasury stock; at cost, 4,457,307 shares in 2012 (120,971)     (116,088)
  and 4,364,532 shares in 2011
   TOTAL STOCKHOLDERS' EQUITY                       500,897       438,865
           TOTAL LIABILITIES AND STOCKHOLDERS'  $          $   
          EQUITY                                    919,853       842,684







HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                          Twelve Months Ended
                                                          December 31,
                                                          2012      2011
Cash flows from operating activities:
 Net income                                               $ 67,953  $  58,178
 Adjustments to reconcile net income to net cash provided
 by operating activities:
         Depreciation and amortization                   21,575    16,340
         Deferred taxes                                   8,786     18,821
         Compensation expense related to share-based      6,539     4,788
         compensation plans
         Loss (gain) on sale of assets                    108       (17)
         Excess tax benefits from share based             (29)      -
         compensation
 Changes in operating assets and liabilities, net of
 effects of acquisition:
         Restricted investments                           (2,895)   (724)
         Accounts receivable, net                         (22,429)  (45,047)
         Prepaid taxes                                    2,253     (2,097)
         Prepaid expenses and other current assets        (1,562)   (1,728)
         Other assets                                     459       (33)
         Accounts payable                                 7,438     23,095
         Accrued expenses                                 2,779     2,989
         Non-current liabilities                          1,942     301
                            Net cash provided by          92,917    74,866
                            operating activities
Cash flows from investing activities:
 Proceeds from sale of equipment                          1,071     410
 Purchases of property and equipment                      (56,882)  (55,010)
 Cash used in acquisitions, net of cash acquired          (550)     (85,182)
                  Net cash used in investing activities   (56,361)  (139,782)
Cash flows from financing activities:
 Proceeds from stock options exercised                    69        86
 Purchase of treasury stock                               (13,020)  (1,523)
 Capital lease payments                                   (2,454)   (729)
 Excess tax benefits from share-based compensation        523       1,034
                  Net cash used in financing activities   (14,882)  (1,132)
 Effect of exchange rate changes on cash and cash         (5)       (5)
 equivalents
Net increase (decrease) in cash and cash equivalents      21,669    (66,053)
Cash and cash equivalents beginning of the year           49,091    115,144
Cash and cash equivalents end of the year                 $ 70,760  $  49,091

SOURCE Hub Group, Inc.

Website: http://www.hubgroup.com
Contact: Amy Lisek of Hub Group, Inc., +1-630-795-2214