HUB GROUP, INC. OAK BROOK, Ill., July 26, 2016 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended June 30, 2016.
Hub Group reported net income of $20.7 million for the second quarter ended June 30, 2016 compared to $18.5 million in the second quarter of 2015. Hub Group's diluted earnings per share was $0.61 for the quarter. Earnings per share increased 20% when compared with the prior year period. Hub Group's revenue decreased 5% to $856 million due primarily to lower fuel revenue.
The Hub segment's revenue decreased 6% to $649 million due primarily to a decrease in fuel revenue. Second quarter intermodal revenue decreased 6% to $438 million. Intermodal volume decreased 2%. Truck brokerage revenue decreased 11% to $83 million this quarter. Second quarter Unyson Logistics revenue decreased 1% to $127 million. The Hub segment's operating income was $27.2 million, an increase of 24% compared to the prior year period.
The Mode segment's revenue decreased 1% to $232 million. Operating income was $7.1 million compared to $7.5 million in the prior year period.
Hub Group ended the quarter with $164 million in cash.
CONFERENCE CALL
Hub Group will hold a conference call at 5:00 p.m. Eastern Time on Tuesday, July 26, 2016 to discuss its second quarter results.
Hosting the conference call will be Dave Yeager, Chairman and Chief Executive Officer. Also participating on the call will be Don Maltby, President and Chief Operating Officer, and Terri Pizzuto, Executive Vice-President and 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. The webcast is listen-only. 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 register at http://www.yourconferencecenter.com/r.aspx?p=1&a=UVdYOgtaldUyqs. Registrants will be issued a passcode and PIN to use when dialing into the live call which will provide quickest access to the conference. You may register at any time, including up to and after the call start time. On the day of the call, dial (888) 771-4384 approximately ten minutes prior to the scheduled call time; enter the participant passcode and PIN received during registration. 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 transportation management company that provides multi-modal solutions throughout North America, including intermodal, truck brokerage and logistics services. As a publicly traded company with over $3.5 billion in revenue, Hub Group's organization of over 2,500 employees delivers innovative, customer-focused solutions and industry leading service to help customers better control supply chains and their costs. For more information, visit www.hubgroup.com.
CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about Hub Group's or management's 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, our annual report on Form 10-K for the year ended December 31, 2015 and our report on Form 10-Q for the period ended March 31, 2016. 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 Six Months
Ended June 30, Ended June 30,
-------------- --------------
2016 2015 2016 2015
---- ---- ---- ----
Revenue $855,557 $899,513 $1,661,416 $1,735,454
Transportation costs 741,067 797,784 1,438,539 1,544,597
------- ------- --------- ---------
Gross margin 114,490 101,729 222,877 190,857
Costs and expenses:
Salaries and
benefits 43,602 38,837 87,465 78,313
Agent fees and
commissions 18,360 16,686 35,262 31,512
General and
administrative 16,083 14,763 32,727 28,834
Depreciation and
amortization 2,148 1,967 4,283 3,927
Total costs
and expenses 80,193 72,253 159,737 142,586
Operating income 34,297 29,476 63,140 48,271
Other income (expense):
Interest
expense (857) (720) (1,767) (1,461)
Interest and
dividend income 120 19 181 25
Other, net 216 261 1,152 (1,143)
Total
other
expense (521) (440) (434) (2,579)
Income before provision for income taxes 33,776 29,036 62,706 45,692
Provision for income taxes 13,105 10,569 24,069 16,949
------ ------ ------ ------
Net income $20,671 $18,467 $38,637 $28,743
======= ======= ======= =======
Basic earnings per common share $0.61 $0.51 $1.12 $0.80
===== ===== ===== =====
Diluted earnings per common share $0.61 $0.51 $1.12 $0.80
===== ===== ===== =====
Basic weighted average number of shares outstanding 33,944 35,986 34,541 36,071
====== ====== ====== ======
Diluted weighted average number of shares
outstanding 34,027 36,075 34,575 36,122
====== ====== ====== ======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Three Months
Ended June 30, 2016
-------------------
Hub Mode Inter-Segment Elims Hub Group Total
--- ---- ------------------- ---------------
Revenue $648,523 $231,924 $(24,890) $855,557
Transportation costs 565,448 200,509 (24,890) 741,067
------- ------- ------- -------
Gross
margin 83,075 31,415 - 114,490
Costs and expenses:
Salaries
and
benefits 39,787 3,815 - 43,602
Agent fees and
commissions 13 18,347 - 18,360
General and
administrative 14,226 1,857 - 16,083
Depreciation
and
amortization 1,830 318 - 2,148
Total
costs and
expenses 55,856 24,337 - 80,193
Operating income $27,219 $7,078 $ - $34,297
======= ====== ========================== =======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Three Months
Ended June 30, 2015
-------------------
Hub Mode Inter-Segment Elims Hub Group Total
--- ---- ------------------- ---------------
Revenue $686,451 $233,847 $(20,785) $899,513
Transportation costs 614,289 204,280 (20,785) 797,784
------- ------- ------- -------
Gross
margin 72,162 29,567 - 101,729
Costs and expenses:
Salaries
and
benefits 35,288 3,549 - 38,837
Agent fees and
commissions 14 16,672 - 16,686
General and
administrative 13,194 1,569 - 14,763
Depreciation
and
amortization 1,647 320 - 1,967
Total
costs and
expenses 50,143 22,110 - 72,253
Operating income $22,019 $7,457 $ - $29,476
======= ====== ========================== =======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Six Months
Ended June 30, 2016
-------------------
Hub Mode Inter-Segment Elims Hub Group Total
--- ---- ------------------- ---------------
Revenue $1,263,751 $440,755 $(43,090) $1,661,416
Transportation costs 1,101,522 380,107 (43,090) 1,438,539
--------- ------- ------- ---------
Gross
margin 162,229 60,648 - 222,877
Costs and expenses:
Salaries
and
benefits 79,883 7,582 - 87,465
Agent fees and
commissions 27 35,235 - 35,262
General and
administrative 28,948 3,779 - 32,727
Depreciation
and
amortization 3,644 639 - 4,283
Total
costs and
expenses 112,502 47,235 - 159,737
Operating income $49,727 $13,413 $ - $63,140
======= ======= =================== =======
HUB GROUP, INC.
UNAUDITED FINANCIAL INFORMATION BY SEGMENT
(in thousands)
Six Months
Ended June 30, 2015
-------------------
Hub Mode Inter-Segment Elims Hub Group Total
--- ---- ------------------- ---------------
Revenue $1,329,894 $447,369 $(41,809) $1,735,454
Transportation costs 1,194,547 391,859 (41,809) 1,544,597
--------- ------- ------- ---------
Gross
margin 135,347 55,510 - 190,857
Costs and expenses:
Salaries
and
benefits 70,948 7,365 - 78,313
Agent fees and
commissions 29 31,483 - 31,512
General and
administrative 25,392 3,442 - 28,834
Depreciation
and
amortization 3,265 662 - 3,927
Total
costs and
expenses 99,634 42,952 - 142,586
Operating income $35,713 $12,558 $ - $48,271
======= ======= =================== =======
HUB GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
June 30, December 31,
2016 2015
---- ----
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $164,150 $207,749
Accounts receivable trade,
net 399,207 379,987
Accounts receivable other 3,917 10,344
Prepaid taxes 3,339 362
Deferred taxes - 8,412
Prepaid expenses and other
current assets 15,071 17,756
------ ------
TOTAL CURRENT ASSETS 585,684 624,610
Restricted investments 19,991 21,108
Property and equipment, net 381,532 374,847
Other intangibles, net 12,491 13,139
Goodwill, net 262,485 262,594
Other assets 4,287 4,848
TOTAL ASSETS $1,266,470 $1,301,146
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade $251,815 $230,432
Accounts payable other 24,841 21,495
Accrued payroll 22,883 33,020
Accrued other 38,005 38,733
Current portion of capital
lease 2,648 2,608
Current portion of long
term debt 35,430 32,409
------ ------
TOTAL CURRENT
LIABILITIES 375,622 358,697
Long term debt 94,968 100,895
Non-current liabilities 21,536 20,233
Long term portion of capital
lease 11,962 13,299
Deferred taxes 159,319 160,182
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par
value; 2,000,000 shares
authorized; no shares
issued or outstanding in
2016 and 2015
- -
Common stock
Class A: $.01 par value;
97,337,700 shares
authorized and
41,224,792 shares
issued in 2016 and
2015; 33,567,862 shares
outstanding in 2016 and
35,633,961 shares
outstanding in 2015
412 412
Class B: $.01 par
value; 662,300 shares
authorized; 662,296
shares issued and
outstanding in 2016 and
2015
7 7
Additional paid-in
capital 169,229 174,285
Purchase price in excess of
predecessor basis, net of
tax benefit of $10,306
(15,458) (15,458)
Retained earnings 699,395 660,758
Accumulated other
comprehensive loss (231) (178)
Treasury stock; at cost,
7,656,930 shares in 2016
and 5,590,831 shares in
2015
(250,291) (171,986)
-------- --------
TOTAL STOCKHOLDERS'
EQUITY 603,063 647,840
------- -------
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY $1,266,470 $1,301,146
========== ==========
HUB GROUP, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
--------
2016 2015
---- ----
Cash flows from operating activities:
Net income $38,637 $28,743
Adjustments to reconcile net
income
to net cash provided by
operating activities:
Depreciation and
amortization 21,426 17,526
Deferred taxes 7,777 2,489
Compensation expense
related to share-based
compensation plans 4,245 4,110
Gain on sale of
assets (255) (60)
Excess tax benefits
from share-based
compensation 132 (33)
Changes in operating assets
and liabilities:
Restricted
investments 1,117 (295)
Accounts receivable,
net (12,826) (11,407)
Prepaid taxes (2,977) 13,284
Prepaid expenses and
other current assets 2,685 3,030
Other assets 561 216
Accounts payable 24,740 15,132
Accrued expenses (14,031) 8,943
Non-current
liabilities 1,211 (1,226)
Net cash provided by
operating activities 72,442 80,452
------ ------
Cash flows from investing activities:
Proceeds from sale of
equipment 1,148 136
Purchases of property and
equipment (25,217) (23,716)
Net cash used in
investing
activities (24,069) (23,580)
------- -------
Cash flows from financing activities:
Proceeds from issuance of
debt 13,274 18,548
Repayments of long term debt (16,180) (10,938)
Stock tendered for payments
of withholding taxes (2,379) (2,877)
Purchase of treasury stock (85,000) (13,419)
Capital lease payments (1,297) (1,243)
Excess tax benefits from
share-based compensation (359) 89
Net cash used in
financing
activities (91,941) (9,840)
------- ------
Effect of exchange rate
changes on cash and cash
equivalents (31) (21)
Net (decrease) increase in cash and cash equivalents (43,599) 47,011
Cash and cash equivalents beginning of period 207,749 109,769
Cash and cash equivalents end of period $164,150 $156,780
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SOURCE Hub Group, Inc.
