HUB GROUP, INC. 
By 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
commissions 14,006 13,091 55,112 41,491
General and
administrative 13,091 12,425 52,832 49,951
Depreciation
and
amortization 1,611 1,635 6,619 5,603
Total costs and expenses 61,731 56,673 243,706 218,089
Operating income 31,648 27,138 112,360 94,459
Other income (expense):
Interest
expense (299) (319) (1,207) (638)
Interest and
dividend
income 30 30 134 148
Other, net 28 42 (30) 328
Total other (expense)
income (241) (247) (1,103) (162)
Income before provision for income taxes 31,407 26,891 111,257 94,297
Provision for income taxes 12,563 9,877 43,304 36,119
------ ----- ------ ------
Net income $18,844 $17,014 $67,953 $58,178
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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
outstanding 37,021 36,943 37,053 36,913
====== ====== ====== ======
Diluted weighted average number of shares
outstanding 37,199 37,104 37,185 37,063
====== ====== ====== ======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Three Months
Ended December 31, 2012
-----------------------
Hub Mode Inter-Segment Elims Hub Group Consolidated
--- ---- ------------------- ----------------------
Revenue $613,853 $198,550 $(11,380) $801,023
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
commissions 374 13,632 - 14,006
General and
administrative 11,407 1,684 - 13,091
Depreciation
and
amortization 1,110 501 - 1,611
Total costs and expenses 42,223 19,508 - 61,731
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 Elims Hub Group Consolidated
--- ---- ------------------- ----------------------
Revenue $2,392,289 $779,928 $(48,109) $3,124,108
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
commissions 1,900 53,212 - 55,112
General and
administrative 45,411 7,421 - 52,832
Depreciation
and
amortization 4,448 2,171 - 6,619
Total costs and expenses 165,614 78,092 - 243,706
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 EPS $0.51 $0.46 $0.05 10.9% $1.83 $1.57 $0.26 16.6%
Integration
expenses and
restructuring
costs
$ - $0.02 $(0.02) $ - $0.08 $(0.08)
Diluted NON-GAAP
EPS (adjusted) $0.51 $0.48 $0.03 6.2% $1.83 $1.65 $0.18 10.9%
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 and 2011;
36,767,485 shares
outstanding in 2012
and 36,860,260
shares outstanding
in 2011
412 412
Class B: $.01 par
value; 662,300
shares authorized;
662,296 shares
issued and
outstanding in 2012
and 2011
7 7
Additional paid-in
capital 167,765 168,800
Purchase price in
excess of predecessor
basis, net of tax
benefit of $10,306
(15,458) (15,458)
Retained earnings 469,141 401,188
Other comprehensive
income 1 4
Treasury stock; at
cost, 4,457,307 shares
in 2012 and 4,364,532
shares in 2011
(120,971) (116,088)
-------- --------
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
compensation
plans 6,539 4,788
Loss (gain) on
sale of assets 108 (17)
Excess tax
benefits from
share based
compensation (29) -
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
operating activities 92,917 74,866
------ ------
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 equivalents (5) (5)
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
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SOURCE Hub Group, Inc.
