0000940942-12-000003.txt : 20120127 0000940942-12-000003.hdr.sgml : 20120127 20120127133723 ACCESSION NUMBER: 0000940942-12-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20111231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120127 DATE AS OF CHANGE: 20120127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUB GROUP INC CENTRAL INDEX KEY: 0000940942 STANDARD INDUSTRIAL CLASSIFICATION: ARRANGEMENT OF TRANSPORTATION OF FREIGHT & CARGO [4731] IRS NUMBER: 364007085 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27754 FILM NUMBER: 12550964 BUSINESS ADDRESS: STREET 1: 377 E BUTTERFIELD RD STREET 2: STE 700 CITY: LOMBARD STATE: IL ZIP: 60148 BUSINESS PHONE: 7089645800 MAIL ADDRESS: STREET 1: 377 EAST BUTTERFIELD RD STREET 2: SUITE 700 CITY: LOMBARD STATE: IL ZIP: 60148 8-K 1 hg8k2011q4.htm HUB GROUP 4TH QTR 8K 2011 hg8k2011q4.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES AND EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported) January 26, 2012
 

HUB GROUP, INC.
(Exact name of registrant as specified in its charter)
 
DELAWARE
(State or Other Jurisdiction of Incorporation)
 
0-27754
36-4007085
(Commission File Number)   (I.R.S. Employer Identification No.)
 
 
3050 Highland Parkway, Suite 100
Downers Grove, Illinois 60515
(Address, including zip code, of principal executive offices)

(630) 271-3600
(Registrant’s telephone number, including area code)

NOT APPLICABLE
(Former Name or Former Address, If Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant any of the following provisions:
 
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

 
 
 
 


ITEM 2.02       RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On January 26, 2012, Hub Group, Inc. issued a press release announcing its fourth quarter and full year 2011 operating results. The press release is furnished as Exhibit 99.1 to this Form 8-K.





 
 
 
 
Item 9.01        FINANCIAL STATEMENTS AND EXHIBITS
   
 
(a)  Not Applicable.
 
 
(b)  Not Applicable.
 
 
(c)  Not Applicable.
 
 
(d)  A list of exhibits filed herewith is contained on the Exhibit
 
       Index which immediately precedes such exhibits and is
 
 
       incorporated herein by reference.
 
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 

 

 
  HUB GROUP, INC.
   
DATE: January 27, 2012 /s/ Terri A. Pizzuto
  By: Terri A. Pizzuto
  Title: Executive Vice President, Chief Financial Officer
            and Treasurer
 
                                                                                                           
 



 
 
 
 

 
EXHIBIT INDEX
 
 
 
Exhibit No.
 
 
99.1    Press release, issued on January 26, 2012, announcing fourth quarter and full year 2011 operating results for Hub Group, Inc.

EX-99.1 2 hg2011q4pressrelease.htm HUB GROUP 4THQTR 2011 EARNINGS RELEASE hg2011q4pressrelease.htm

                                                                                       EX EX. 99.1
Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.48 Excluding One-Time Costs

 
DOWNERS GROVE, IL, January 26, 2012, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2011.
 
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.
 
 
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, 2010 and the reports on Form 10-Q for the periods ended March 31, 2011, June 30, 2011 and September 30, 2011.  Hub Group assumes no liability to update any such forward-looking statements.
 
 
SOURCE: Hub Group, Inc.
 
 
CONTACT: Amy Lisek of Hub Group, Inc., +1-630-795-2214
 
 
 

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       118       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, INC.
 
UNAUDITED NON-GAAP TO GAAP RECONCILIATION
 
(earnings per share)
 
             
   
Three Months
   
Twelve Months
 
   
Ended, Dec. 31, 2011
   
Ended, Dec. 31, 2011
 
               
Change
   
Change
               
Change
   
Change
 
   
2011
   
2010
     $             2011       2010      $        
Diluted GAAP EPS
  $ 0.46     $ 0.34     $ 0.12       35.3 %   $ 1.57     $ 1.16     $ 0.41       35.3 %
                                                                 
Integration expenses and
                                                               
restructuring costs
  $ 0.02     $ -     $ 0.02             $ 0.08     $ -     $ 0.08          
                                                                 
Diluted NON-GAAP EPS (adjusted)
  $ 0.48     $ 0.34     $ 0.14       41.2 %   $ 1.65     $ 1.16     $ 0.49       42.2 %
                                                                 
Diluted Shares
    37,104       37,027                       37,063       37,385                  
                                                                 
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 FINANCIAL INFORMATION BY SEGMENT  
(in thousands)  
   
   
Three Months
 
   
Ended December 31, 2011
 
               
Inter-
   
Hub
 
               
Segment
   
Group
 
   
Hub
   
Mode
   
Elims
   
Consolidated
 
Revenue
  $ 577,306     $ 195,242     $ (9,773 )   $ 762,775  
Transportation costs
    516,157       172,580       (9,773 )     678,964  
Gross margin
    61,149       22,662       -       83,811  
                                 
Costs and expenses:
                               
Salaries and benefits
    25,582       3,940       -       29,522  
Agent fees and commissions
    722       12,369       -       13,091  
General and administrative
    10,055       2,370       -       12,425  
Depreciation and amortization
    1,085       550       -       1,635  
Total costs and expenses
    37,444       19,229       -       56,673  
                                 
Operating income
  $ 23,705     $ 3,433     $ -     $ 27,138  
                                 




HUB GROUP, INC.  
UNAUDITED FINANCIAL INFORMATION BY SEGMENT  
(in thousands)  
   
   
Twelve Months
 
   
Ended December 31, 2011
 
               
Inter-
   
Hub
 
               
Segment
   
Group
 
   
Hub
   
Mode
   
Elims
   
Consolidated
 
Revenue
  $ 2,183,914     $ 586,251     $ (18,631 )   $ 2,751,534  
Transportation costs
    1,939,263       518,354       (18,631 )     2,438,986  
Gross margin
    244,651       67,897       -       312,548  
                                 
Costs and expenses:
                               
Salaries and benefits
    107,378       13,666       -       121,044  
Agent fees and commissions
    2,771       38,720       -       41,491  
General and administrative
    42,523       7,428       -       49,951  
Depreciation and amortization
    3,975       1,628       -       5,603  
Total costs and expenses
    156,647       61,442       -       218,089  
                                 
Operating income
  $ 88,004     $ 6,455     $ -     $ 94,459  
                                 
                                 

 


 
 
 

HUB GROUP, INC.
 
UNAUDITED CONSOLIDATED BALANCE SHEETS
 
(in thousands, except share amounts)
 
   
December 31,
 
   
2011
   
2010
 
ASSETS
           
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 49,091     $ 115,144  
Accounts receivable trade, net
    326,537       185,879  
Accounts receivable other
    23,878       17,958  
Prepaid taxes
    2,392       296  
Deferred taxes
    4,838       3,314  
Prepaid expenses and other current assets
    9,056       6,569  
TOTAL CURRENT ASSETS
    415,792       329,160  
                 
Restricted investments
    14,323       11,421  
Property and equipment, net
    124,587       47,806  
Other intangibles, net
    21,667       5,856  
Goodwill, net
    263,470       233,029  
Other assets
    2,845       2,135  
TOTAL ASSETS
  $ 842,684     $ 629,407  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
CURRENT LIABILITIES:
               
Accounts payable trade
  $ 204,693     $ 121,078  
Accounts payable other
    17,289       10,064  
Accrued payroll
    16,721       14,378  
Accrued other
    29,962       21,898  
Current portion of capital lease
    2,237       -  
TOTAL CURRENT LIABILITIES
    270,902       167,418  
                 
Non-current liabilities
    17,717       13,950  
    Deferred taxes
    91,764       71,739  
Non-current portion of capital lease
    23,436       -  
                 
STOCKHOLDERS' EQUITY:
               
Preferred stock, $.01 par value;  2,000,000 shares authorized;  no shares issued or outstanding in 2011 and 2010
    -       -  
Common stock
               
Class A:  $.01 par value;  97,337,700 shares authorized and 41,224,792 shares issued in 2011 and 2010; 36,860,260 shares outstanding in 2011 and 36,638,359 shares outstanding in 2010
    412       412  
Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2011 and 2010
    7       7  
Additional paid-in capital
    168,800       169,722  
Purchase price in excess of predecessor basis, net of tax benefit of $10,306
    (15,458 )     (15,458 )
Retained earnings
    401,188       343,010  
Other comprehensive income
    4       6  
Treasury stock; at cost, 4,364,532 shares in 2011 and 4,586,433 shares in 2010
    (116,088 )     (121,399 )
TOTAL STOCKHOLDERS' EQUITY
    438,865       376,300  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  $ 842,684     $ 629,407  



 
 
 
 

HUB GROUP, INC.
 
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(in thousands)
 
    Twelve Months Ended  
     December 31,  
   
2011
   
2010
 
Cash flows from operating activities:
           
    Net income
  $ 58,178     $ 43,458  
    Adjustments to reconcile net income to net cash provided by operating activities:
               
       Depreciation and amortization
    16,340       8,572  
       Deferred taxes
    18,821       9,545  
       Compensation expense related to share-based compensation plans
    4,788       3,576  
       (Gain) loss on sale of assets
    (17 )     85  
       Changes in operating assets and liabilities, net of effects of acquisition:
               
          Restricted investments
    (724 )     (1,838 )
          Accounts receivable, net
    (45,047 )     (46,582 )
          Prepaid taxes
    (2,097 )     298  
          Prepaid expenses and other current assets
    (1,728 )     233  
          Other assets
    (33 )     298  
          Accounts payable
    23,095       12,822  
          Accrued expenses
    2,989       5,277  
          Non-current liabilities
    301       1,910  
            Net cash provided by operating activities
    74,866       37,654  
                 
Cash flows from investing activities:
               
   Proceeds from sale of equipment
    410       988  
   Purchases of property and equipment
    (55,010 )     (25,616 )
   Cash used in acquisitions, net of cash acquired
    (85,182 )     (170 )
            Net cash used in investing activities
    (139,782 )     (24,798 )
                 
Cash flows from financing activities:
               
   Proceeds from stock options exercised
    86       46  
   Purchase of treasury stock
    (1,523 )     (25,070 )
   Capital lease payments
    (729 )     -  
   Excess tax benefits from share-based compensation
    1,034       434  
            Net cash used in financing activities
    (1,132 )     (24,590 )
                 
                 
   Effect of exchange rate changes on cash and cash equivalents
    (5 )     15  
                 
Net decrease in cash and cash equivalents
    (66,053 )     (11,719 )
Cash and cash equivalents beginning of period
    115,144       126,863  
Cash and cash equivalents end of period
  $ 49,091     $ 115,144  
                 


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