Attached files
| file | filename |
|---|---|
| 8-K - 8K 2014 Q4 - Hub Group, Inc. | hg8k2014q4.htm |
EX 99.1
Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.41 Excluding One-Time Benefit for Effective Tax Rate
OAK BROOK, IL, February 4, 2015, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2014.
Hub Group reported net income of $16.4 million for the fourth quarter ended December 31, 2014. Hub Group’s diluted earnings per share was $0.45 for the fourth quarter of 2014. Hub Group’s fourth quarter income included a one-time benefit of $1.5 million related to changes in state tax apportionment. Excluding the effect of this item, non-GAAP earnings per share was $0.41 for the quarter (see table below). Hub Group’s revenue increased 3% to $915 million.
The Hub segment’s revenue increased 2% to $696 million. Fourth quarter intermodal revenue decreased 1% to $464 million. Truck brokerage revenue decreased 2% to $84 million this quarter. Fourth quarter Unyson Logistics revenue increased 14% to $148 million. The Hub segment’s operating income was $19 million.
The Mode segment’s revenue increased 14% to $245 million for the fourth quarter. Operating income was $6 million, an increase of 22% compared to the prior year period.
FULL YEAR 2014
Income for the year ended December 31, 2014 was $52 million. Hub Group's diluted earnings per share for 2014 was $1.40. Full year 2014 pre-tax income included one-time costs of $10.3 million for driver settlements and related costs, a non-cash impairment charge of $11.9 million associated with the write off of software development costs and the one-time $1.5 million benefit related to changes in state tax apportionment. Excluding the effects of these items, non-GAAP earnings per share was $1.73 for the year (see table below). Hub Group’s revenue increased 6% to $3.6 billion.
Hub Group ended the year with $110 million in cash.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, February 4, 2015 to discuss its fourth quarter and full year results and provide 2015 guidance.
Hosting the conference call will be David Yeager, Chairman and Chief Executive Officer, Mark Yeager, Vice-Chairman, President and Chief Operating Officer, and Terri 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. 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 call ten minutes early by dialing (888) 206-4074. The conference call participant code is 38766345#. Participants may pre-register for the call at http://www.yourconferencecenter.com/r.aspx?p=1&a=UUEApQvuMvrAlX. Pre-registrants will be issued a passcode and 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 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, 2013 and our report on Form 10-Q for the period ended September 30, 2014. Hub Group assumes no liability to update any such forward-looking statements.
SOURCE: Hub Group, Inc.
CONTACT: Maralee Volchko of Hub Group, Inc., +1-630-271-3745
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HUB GROUP, INC.
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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
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(in thousands, except per share amounts)
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||||||||||||||||||||
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Three Months
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Twelve Months
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Ended December 31,
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Ended December 31,
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2014
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2013
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2014 | 2013 | |||||||||||||||||
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Revenue
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$ | 915,361 | $ | 885,252 | $ | 3,571,126 | $ | 3,373,898 | ||||||||||||
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Transportation costs
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825,451 | 790,164 | 3,200,691 | 3,002,875 | ||||||||||||||||
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Gross margin
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89,910 | 95,088 | 370,435 | 371,023 | ||||||||||||||||
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Costs and expenses:
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Salaries and benefits
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32,964 | 33,868 | 136,480 | 135,341 | ||||||||||||||||
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Agent fees and commissions
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16,239 | 14,272 | 62,041 | 55,789 | ||||||||||||||||
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General and administrative
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14,033 | 15,096 | 58,014 | 56,772 | ||||||||||||||||
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Depreciation and amortization
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1,897 | 1,697 | 7,799 | 6,470 | ||||||||||||||||
| Driver settlements and related costs | - | - | 10,343 | - | ||||||||||||||||
| Impairment of software | - | - | 11,881 | - | ||||||||||||||||
| Impairment of trade name | - | 2,904 | - | 2,904 | ||||||||||||||||
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Total costs and expenses
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65,133 | 67,837 | 286,558 | 257,276 | ||||||||||||||||
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Operating income
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24,777 | 27,251 | 83,877 | 113,747 | ||||||||||||||||
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Other income (expense):
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Interest expense
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(619 | ) | (328 | ) | (1,785 | ) | (1,246 | ) | ||||||||||||
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Interest and dividend income
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11 | 13 | 32 | 82 | ||||||||||||||||
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Other, net
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(66 | ) | (5 | ) | (257 | ) | (28 | ) | ||||||||||||
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Total other expense
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(674 | ) | (320 | ) | (2,010 | ) | (1,192 | ) | ||||||||||||
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Income before provision for income taxes
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24,103 | 26,931 | 81,867 | 112,555 | ||||||||||||||||
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Provision for income taxes
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7,747 | 10,395 | 30,309 | 43,445 | ||||||||||||||||
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Net income
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$ | 16,356 | $ | 16,536 | $ | 51,558 | $ | 69,110 | ||||||||||||
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Basic earnings per common share
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$ | 0.45 | $ | 0.45 | $ | 1.41 | $ | 1.88 | ||||||||||||
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Diluted earnings per common share
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$ | 0.45 | $ | 0.45 | $ | 1.40 | $ | 1.87 | ||||||||||||
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Basic weighted average number of shares outstanding
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36,350 | 36,719 | 36,590 | 36,829 | ||||||||||||||||
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Diluted weighted average number of shares outstanding
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36,533 | 36,942 | 36,732 | 36,982 | ||||||||||||||||
| HUB GROUP, INC | ||||||||||||||||||||||||||||||||
| UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||||||||||||||||
| (IN THOUSANDS) | ||||||||||||||||||||||||||||||||
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Three Months
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Three Months
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Ended December 31, 2014
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Ended December 31, 2013
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Inter-
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Hub
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Inter-
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Hub
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Segment
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Group
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Segment
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Group
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Hub
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Mode
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Elims
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Consolidated
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Hub
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Mode
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Elims
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Consolidated
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Revenue
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$ | 695,507 | $ | 245,266 | $ | (25,412 | ) | $ | 915,361 | $ | 683,614 | $ | 214,357 | $ | (12,719 | ) | $ | 885,252 | ||||||||||||||
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Transportation costs
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633,131 | 217,732 | (25,412 | ) | 825,451 | 613,198 | 189,685 | (12,719 | ) | 790,164 | ||||||||||||||||||||||
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Gross margin
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62,376 | 27,534 | - | 89,910 | 70,416 | 24,672 | - | 95,088 | ||||||||||||||||||||||||
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Costs and expenses:
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Salaries and benefits
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29,285 | 3,679 | - | 32,964 | 30,219 | 3,649 | - | 33,868 | ||||||||||||||||||||||||
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Agent fees and commissions
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14 | 16,225 | - | 16,239 | 148 | 14,124 | - | 14,272 | ||||||||||||||||||||||||
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General and administrative
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12,408 | 1,625 | - | 14,033 | 13,383 | 1,713 | - | 15,096 | ||||||||||||||||||||||||
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Depreciation and amortization
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1,556 | 341 | - | 1,897 | 1,157 | 540 | - | 1,697 | ||||||||||||||||||||||||
| Impairment of trade name | - | - | - | - | 2,904 | - | - | 2,904 | ||||||||||||||||||||||||
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Total costs and expenses
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43,263 | 21,870 | - | 65,133 | 47,811 | 20,026 | - | 67,837 | ||||||||||||||||||||||||
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Operating income
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$ | 19,113 | $ | 5,664 | $ | - | $ | 24,777 | $ | 22,605 | $ | 4,646 | $ | - | $ | 27,251 | ||||||||||||||||
| HUB GROUP, INC. | ||||||||||||||||||||||||||||||||
| UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
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Twelve Months
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Twelve Months
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Ended December 31, 2014
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Ended December 31, 2013
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Inter-
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Hub
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Inter-
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Hub
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Segment
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Group
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Segment
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Group
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Hub
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Mode
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Elims
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Consolidated
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Hub
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Mode
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Elims
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Consolidated
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Revenue
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$ | 2,722,799 | $ | 931,131 | $ | (82,804 | ) | $ | 3,571,126 | $ | 2,599,763 | $ | 823,159 | $ | (49,024 | ) | $ | 3,373,898 | ||||||||||||||
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Transportation costs
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2,461,144 | 822,351 | (82,804 | ) | 3,200,691 | 2,325,512 | 726,387 | (49,024 | ) | 3,002,875 | ||||||||||||||||||||||
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Gross margin
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261,655 | 108,780 | - | 370,435 | 274,251 | 96,772 | - | 371,023 | ||||||||||||||||||||||||
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Costs and expenses:
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Salaries and benefits
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122,097 | 14,383 | - | 136,480 | 120,478 | 14,863 | - | 135,341 | ||||||||||||||||||||||||
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Agent fees and commissions
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45 | 61,996 | - | 62,041 | 1,372 | 54,417 | - | 55,789 | ||||||||||||||||||||||||
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General and administrative
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51,108 | 6,906 | - | 58,014 | 50,484 | 6,288 | - | 56,772 | ||||||||||||||||||||||||
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Depreciation and amortization
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6,238 | 1,561 | - | 7,799 | 4,326 | 2,144 | - | 6,470 | ||||||||||||||||||||||||
| Driver settlements and related costs | 10,343 | - | - | 10,343 | - | - | - | - | ||||||||||||||||||||||||
| Impairment of software | 11,881 | - | - | 11,881 | - | - | - | - | ||||||||||||||||||||||||
| Impairment of trade name | - | - | - | - | 2,904 | - | - | 2,904 | ||||||||||||||||||||||||
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Total costs and expenses
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201,712 | 84,846 | - | 286,558 | 179,564 | 77,712 | - | 257,276 | ||||||||||||||||||||||||
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Operating income
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$ | 59,943 | $ | 23,934 | $ | - | $ | 83,877 | $ | 94,687 | $ | 19,060 | $ | - | $ | 113,747 | ||||||||||||||||
| HUB GROUP, INC. | ||||||||||||||||||||||||||||||||
| UNAUDITED NON-GAAP TO GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||
| (earnings per share) | ||||||||||||||||||||||||||||||||
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Three Months
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Twelve Months
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Ended, December 31,
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Ended, December 31,
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2014
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2013
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Change $ | Change % | 2014 | 2013 | Change $ | Change % | |||||||||||||||||||||||||
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Diluted GAAP EPS
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$ | 0.45 | $ | 0.45 | $ | - | 0.0 | % | $ | 1.40 | $ | 1.87 | $ | (0.47 | ) | -25.1 | % | |||||||||||||||
| Impairment of trade name, net of tax | - | 0.05 | (0.05 | ) | - | 0.05 | (0.05 | ) | ||||||||||||||||||||||||
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Driver settlements and related costs, net of tax
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- | - | - | 0.17 | - | 0.17 | ||||||||||||||||||||||||||
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Impairment of Software, net of tax
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- | - | - | 0.20 | - | 0.20 | ||||||||||||||||||||||||||
| Benefit related to changes in state tax apportionment | (0.04 | ) | - | (0.04 | ) | (0.04 | ) | - | (0.04 | ) | ||||||||||||||||||||||
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Diluted NON-GAAP EPS (adjusted)
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$ | 0.41 | $ | 0.50 | $ | (0.09 | ) | -18.0 | % | $ | 1.73 | $ | 1.92 | $ | (0.19 | ) | -9.9 | % | ||||||||||||||
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Diluted Shares
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36,533 | 36,942 | 36,732 | 36,982 | ||||||||||||||||||||||||||||
In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact, using our effective tax rate of 39%, 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.
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HUB GROUP, INC.
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UNAUDITED CONSOLIDATED BALANCE SHEETS
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(in thousands, except share amounts)
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| December 31, |
December 31,
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2014
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2013
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ 109,769 |
$ 68,964
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Accounts receivable trade, net
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401,803 |
371,528
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Accounts receivable other
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24,886 |
26,569
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Prepaid taxes
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14,937 |
409
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Deferred taxes
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4,816 |
5,826
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Prepaid expenses and other current assets
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14,355
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12,738
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TOTAL CURRENT ASSETS
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570,566 |
486,034
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Restricted investments
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21,944 |
20,754
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Property and equipment, net
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338,327 |
260,400
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Other intangibles, net
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14,434 |
15,729
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Goodwill, net
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262,813 |
263,032
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Other assets
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4,043
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1,994
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TOTAL ASSETS
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$ 1,212,127
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$ 1,047,943
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Accounts payable trade
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$ 256,345 |
$ 232,350
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Accounts payable other
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21,333 |
24,957
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Accrued payroll
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16,192 |
17,000
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Accrued other
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43,523 |
42,834
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Current portion of capital lease
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2,504 |
2,413
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Current portion of long term debt
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19,619
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1,771
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TOTAL CURRENT LIABILITIES
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359,516 |
321,325
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Long term debt
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72,460 |
6,475
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Non-current liabilities
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22,929 |
22,304
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Long term portion of capital lease
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15,937 |
18,477
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Deferred taxes
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140,501 |
117,835
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STOCKHOLDERS' EQUITY:
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Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2014 and 2013
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-
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-
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Common stock
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||
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Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2014 and 2013; 36,247,324 shares outstanding in 2014 and 36,626,384 shares outstanding in 2013
|
412
|
412
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Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2014 and 2013
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7
|
7
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Additional paid-in capital
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171,235 |
167,357
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Purchase price in excess of predecessor basis, net of tax benefit of $10,306
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(15,458)
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(15,458)
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Retained earnings
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589,809 |
538,251
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Accumulated other comprehensive income (loss)
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(77) |
(85)
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Treasury stock; at cost, 4,977,468shares in 2014 and 4,598,408 shares in 2013
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(145,144)
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(128,957)
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TOTAL STOCKHOLDERS' EQUITY
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600,784
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561,527
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ 1,212,127
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$ 1,047,943
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HUB GROUP, INC.
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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
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(in thousands)
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Twelve Months Ended December 31,
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2014
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2013
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Cash flows from operating activities:
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Net Income
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$ | 51,558 | $ | 69,110 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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29,380 | 21,302 | ||||||
| Impairment of software | 11,881 | - | ||||||
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Impairment of trade name
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- | 2,904 | ||||||
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Deferred taxes
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24,501 | 16,438 | ||||||
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Compensation expense related to share-based compensation plans
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8,258 | 7,667 | ||||||
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Gain on sale of assets
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(46 | ) | (167 | ) | ||||
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Excess tax benefits from share based compensation
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- | (13 | ) | |||||
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Changes in operating assets and liabilities:
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Restricted investments
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(1,190 | ) | (3,536 | ) | ||||
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Accounts receivable, net
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(28,621 | ) | (25,420 | ) | ||||
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Prepaid taxes
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(14,533 | ) | (308 | ) | ||||
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Prepaid expenses and other current assets
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(1,621 | ) | (2,137 | ) | ||||
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Other assets
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(2,047 | ) | (682 | ) | ||||
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Accounts payable
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20,370 | 27,635 | ||||||
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Accrued expenses
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367 | 1,736 | ||||||
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Non-current liabilities
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284 | 2,888 | ||||||
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Net cash provided by operating activities
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98,541 | 117,417 | ||||||
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Cash flows from investing activities:
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Proceeds from sale of equipment
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612 | 1,837 | ||||||
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Purchases of property and equipment
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(119,171 | ) | (110,917 | ) | ||||
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Net cash used in investing activities
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(118,559 | ) | (109,080 | ) | ||||
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Cash flows from financing activities:
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||||||||
| Proceeds from issuance of debt | 91,084 | 9,120 | ||||||
| Repayments of long term debt | (7,251 | ) | (874 | ) | ||||
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Proceeds from stock options exercised
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- | 41 | ||||||
| Stock tendered for payments of withholding taxes | (3,195 | ) | (2,634 | ) | ||||
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Purchase of treasury stock
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(18,024 | ) | (13,791 | ) | ||||
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Capital lease payments
|
(2,449 | ) | (2,329 | ) | ||||
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Excess tax benefits from share-based compensation
|
652 | 336 | ||||||
|
Net cash provided by (used in) financing activities
|
60,817 | (10,131 | ) | |||||
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Effect of exchange rate changes on cash and cash equivalents
|
6 | (2 | ) | |||||
|
Net increase (decrease) in cash and cash equivalents
|
40,805 | (1,796 | ) | |||||
|
Cash and cash equivalents beginning of the year
|
68,964 | 70,760 | ||||||
| Cash and cash equivalents end of the year | $ | 109,769 | $ | 68,964 | ||||