Hub Group, Inc. Reports Record First Quarter 2013 Earnings

          Hub Group, Inc. Reports Record First Quarter 2013 Earnings

PR Newswire

DOWNERS GROVE, Ill., April 18, 2013

DOWNERS GROVE, Ill., April 18, 2013 /PRNewswire/ -- Hub Group, Inc. (NASDAQ:
HUBG) today announced financial results for the quarter ended March 31, 2013.

Hub Group reported record income of $15.4 million for the first quarter ended
March 31, 2013, an increase of 12% compared to the first quarter of 2012. Hub
Group's diluted earnings per share was $0.42 for the first quarter of 2013,
which represents an increase of 14% when compared with the prior year period.
Hub Group's revenue increased 4% to $769 million.

The Hub segment's revenue increased 5% to $593 million. First quarter
intermodal revenue increased 6% to $427 million. The increase was
attributable to a 2% volume increase and a 4% increase for price, fuel and
mix. Truck brokerage revenue increased 4% to $84 million this quarter. First
quarter Unyson Logistics revenue increased 3% to $82 million. The Hub
segment's operating income was $21.2 million.

The Mode segment's revenue was $187 million for the first quarter. Operating
income was $3.5 million, an increase of 37% compared to the prior year period.

Hub Group ended the quarter with $86 million in cash.

"We are pleased with our results, delivering a 14% increase in earnings per
share and improving margins. We remain focused on managing our business units
to deliver a profitable return for our shareholders," said David P. Yeager,
Chairman and Chief Executive Officer of Hub Group.

CONFERENCE CALL

Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Thursday,
April 18, 2013 to discuss its first quarter results.

Hosting the conference call will be David Yeager, Chief Executive Officer,
Mark Yeager, Chief Operating Officer, and Terri Pizzuto, Chief Financial
Officer.

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) 680-0878. The conference call participant code is
85050060. Participants may pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=PC7GMHH38.
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, 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
                                                 Ended March 31,
                                                 2013         2012
Revenue                                          $ 768,980    $ 739,885
Transportation costs                             681,642      656,143
     Gross margin                                87,338       83,742
Costs and expenses:
     Salaries and benefits                       34,583       33,299
     Agent fees and commissions                  13,274       13,695
     General and administrative                  13,191       12,577
     Depreciation and amortization               1,553        1,660
               Total costs and expenses          62,601       61,231
Operating income                                 24,737       22,511
Other income (expense):
     Interest expense                            (290)        (307)
     Interest and dividend income                29           34
     Other, net                                 (11)         (23)
               Total other (expense) income     (272)        (296)
Income before provision for income taxes         24,465       22,215
Provision for income taxes                       9,101        8,553
Net income                                       $ 15,364    $ 13,662
Basic earnings per common share                  $   0.42  $   0.37
Diluted earnings per common share                $   0.42  $   0.37
Basic weighted average number of shares          36,855       37,043
outstanding
Diluted weighted average number of shares        36,949       37,143
outstanding





HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
                      Three Months
                      Ended March 31, 2013
                      Hub      Mode     Inter-Segment Elims  Hub Group
                                                             Consolidated
Revenue               $        $        $             $  
                      592,651  187,460  (11,131)            768,980
Transportation costs  527,471  165,302  (11,131)             681,642
   Gross margin       65,180   22,158   -                    87,338
Costs and expenses:
   Salaries and       30,777   3,806    -                    34,583
   benefits
   Agent fees and     449      12,825   -                    13,274
   commissions
   General and        11,698   1,493    -                    13,191
   administrative
   Depreciation and   1,020    533      -                    1,553
   amortization
     Total costs and  43,944   18,657   -                    62,601
     expenses
Operating income      21,236   3,501    -                    24,737





HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
                      Three Months
                      Ended March 31, 2012
                      Hub      Mode     Inter-Segment Elims  Hub Group
                                                             Consolidated
Revenue               $        $        $             $  
                      563,212  187,183  (10,510)            739,885
Transportation costs  501,694  164,959  (10,510)             656,143
   Gross margin       61,518   22,224   -                    83,742
Costs and expenses:
   Salaries and       29,080   4,219    -                    33,299
   benefits
   Agent fees and     634      13,061   -                    13,695
   commissions
   General and        10,732   1,845    -                    12,577
   administrative
   Depreciation and   1,121    539      -                    1,660
   amortization
     Total costs and  41,567   19,664   -                    61,231
     expenses
Operating income      19,951   2,560    -                    22,511





HUB GROUP, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
                                                   March 31,      December 31,
                                                   2013           2012
                                                   (Unaudited)
ASSETS
 CURRENT ASSETS:
  Cash and cash equivalents                        $   86,251  $    
                                                                  70,760
  Accounts receivable trade, net                   366,296        346,917
  Accounts receivable other                        18,503         25,945
  Prepaid taxes                                    175            139
  Deferred taxes                                   4,401          4,965
  Prepaid expenses and other current assets        8,395          10,619
   TOTAL CURRENT ASSETS                            484,021        459,345
 Restricted investments                            17,399         17,218
 Property and equipment, net                       161,867        157,584
 Other intangibles, net                            19,691         20,068
 Goodwill, net                                     263,196        263,251
 Other assets                                      2,533          2,387
   TOTAL ASSETS                                    $  948,707   $   
                                                                  919,853
LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES:
  Accounts payable trade                           $  221,072   $   
                                                                  206,497
  Accounts payable other                           24,585         22,925
  Accrued payroll                                  11,751         17,210
  Accrued other                                    31,333         28,633
  Current portion of capital leases                2,345          2,120
   TOTAL CURRENT LIABILITIES                       291,086        277,385
 Non-current liabilities                           19,714         20,041
 Non-current portion of capital leases             20,314         21,099
 Deferred taxes                                    102,659        100,431
 STOCKHOLDERS' EQUITY:
  Preferred stock, $.01 par value; 2,000,000
  shares authorized;

  no shares issued or outstanding in 2013 and      -              -
  2012
  Common stock
   Class A: $.01 par value; 97,337,700 shares
   authorized and 41,224,792 shares issued in
   2013 and 2012; 36,986,810 shares outstanding
   in 2013 and 36,767,485 shares outstanding in    412            412
   2012
   Class B: $.01 par value; 662,300 shares
   authorized;

   662,296 shares issued and outstanding in 2013   7              7
   and 2012
  Additional paid-in capital                       161,161        167,765
  Purchase price in excess of predecessor basis,
  net of taxbenefit of $10,306                    (15,458)       (15,458)
  Retained earnings                                484,505        469,141
  Other comprehensive income                       27             1
  Treasury stock; at cost, 4,237,982 shares in
  2013 and 4,457,307 shares in 2012                (115,720)      (120,971)
   TOTAL STOCKHOLDERS' EQUITY                   514,934        500,897
   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $  948,707   $   
                                                                  919,853





HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                            Three Months Ended
                                                            March 31,
                                                            2013      2012
Cash flows from operating activities:
 Net income                                                 $ 15,364  $ 13,662
 Adjustments to reconcile net income to net cash provided
 by operating activities:
     Depreciation and amortization                          5,096     5,516
     Deferred taxes                                         2,669     3,352
     Compensation expense related to share-based            1,882     1,637
     compensation plans
     (Gain) loss on sale of assets                          (214)     1
     Excess tax benefits from share-based compensation      (3)       (83)
 Changes in operating assets and liabilities:
     Restricted investments                                 (181)     (1,509)
     Accounts receivable, net                               (11,893)  (14,043)
     Prepaid taxes                                          (30)      2,243
     Prepaid expenses and other current assets              2,227     2,205
     Other assets                                           (146)     445
     Accounts payable                                       16,230    8,377
     Accrued expenses                                       (2,801)   22
     Non-current liabilities                                (198)     1,010
         Net cash provided by operating activities          28,002    22,835
Cash flows from investing activities:
 Proceeds from sale of equipment                            734       52
 Purchases of property and equipment                        (9,456)   (17,013)
 Cash used in acquisitions                                  -         (150)
         Net cash used in investing activities              (8,722)   (17,111)
Cash flows from financing activities:
 Proceeds from stock options exercised                      42        16
 Stock tendered for payments of withholding taxes           (2,469)   (1,665)
 Purchase of treasury stock                                 (903)     -
 Capital lease payments                                     (560)     (546)
 Excess tax benefits from share-based compensation          98        74
         Net cash used in financing activities              (3,792)   (2,121)
 Effect of exchange rate changes on cash and cash           3         1
 equivalents
Net increase in cash and cash equivalents                   15,491    3,604
Cash and cash equivalents beginning of period               70,760    49,091
Cash and cash equivalents end of period                     $ 86,251  $ 52,695



SOURCE Hub Group, Inc.

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