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Hub Group, Inc. Reports First Quarter 2024 Results


  • Diluted earnings per share (EPS) of $0.44 for the quarter
  • First quarter revenue of $1.0 billion
  • GAAP Quarterly operating income of $37 million (3.7% of revenue)
  • Executing on Capital Allocation Plan including completing our stock split, purchasing $26 million of shares during the quarter and paying the company’s first quarterly cash dividend of $0.125 per common share
  • Ended the quarter with cash and cash equivalents of $195 million
  • Integration of Final Mile acquisition is ahead of our expectations and contributed $64 million to revenue in the first quarter
  • Recognized by The Home Depot® as the 2023 Intermodal Carrier of the Year, Online Big & Bulky Carrier of the Year, and the Dedicated Van Carrier of the Year. Named Outstanding Partnership of the Year by Target®.

OAK BROOK, Ill., April 25, 2024 (GLOBE NEWSWIRE) --  Hub Group, Inc. (NASDAQ: HUBG) announced first quarter 2024 net income of $27 million and diluted earnings per share of $0.44. Net income for first quarter 2023 was $62 million, or $0.94 per diluted share.

“I am pleased with the team’s performance in the first quarter, resulting in $1.0 billion of revenue, in-line with fourth quarter performance despite normal seasonal declines and challenging market conditions. Our yield management, cost containment and operating efficiency initiatives resulted in operating income margin of 3.7% of revenue, an improvement over the fourth quarter. The team continues to execute on our key strategic priorities including diversification of our business and a focus on cost management that will lead to enhanced earnings stability and growth over the long term,” said Phil Yeager, Hub Group’s Vice Chairman of the Board of Directors, President and Chief Executive Officer.

First Quarter 2024 Results

Consolidated revenue for the first quarter of 2024 was $1.0 billion as compared to $1.2 billion in first quarter 2023. The revenue decline was driven by the impact of the January winter storm, lower volumes in ITS and brokerage, and lower fuel revenue, partially offset by contributions from the Final Mile acquisition. Purchased transportation and warehousing costs as a percent of revenue decreased 1.1% to prior year due to the impact of the Final Mile acquisition and Hub’s cost management efforts as drayage, equipment, rail and repositioning costs decreased in the quarter. As anticipated, salaries and benefits increased from the prior year due to merit and incentive compensation increases as well as headcount associated with the acquisition, excluding the acquisition, legacy headcount declined by 9%. Insurance and claims costs were in-line with prior year as we continue to make safety a top priority. Depreciation and amortization expense increased as compared to prior year driven by the Final Mile acquisition. General and administrative expenses increased $1.7 million as compared to prior year driven by costs associated with the integration of the Final Mile acquisition of $2.7 million, partially offset by cost management efforts. Gain on sale was minimal, whereas the prior year benefitted from strong used truck pricing resulting in a headwind of $3.5 million. Operating income for the first quarter was $37 million (3.7% of revenue) as compared to $78 million (6.8% of revenue) in the prior year. EBITDA (non-GAAP) for the quarter was $87 million.

First quarter Intermodal and Transportation Solutions (“ITS”) Segment revenue was $552 million, as compared to $709 million in the prior year due to soft market conditions, lower accessorial revenue, lower fuel revenue of $32 million, and lower volumes of 10%. ITS operating income decreased to $13 million (2.4% of revenue) due to January storms, as well as start-up costs and a larger than expected auto claim settlement in our Dedicated line of business.

First quarter Logistics Segment revenue was $480 million, an increase of 2.4% compared to $469 million in the prior year, as Final Mile revenue more than offset lower revenue per load in our brokerage business. First quarter operating income was $24 million, or 5.0% of revenue a decline of 1.1% from prior year as positive contribution from the acquisition only partially offset lower brokerage margin.

Capital expenditures for the first quarter of 2024 totaled $18 million as we continued to invest in our tractor fleet, technology, and expansion of our multipurpose warehouse footprint. As of March 31, 2024, we had cash and cash equivalents of $195 million following the acquisition of Final Mile for $261 million in the fourth quarter. In the first quarter, we completed our 2-for-1 stock split, purchased $26 million of HUBG shares and paid the company’s first quarterly cash dividend of $0.125 per common share.

2024 Outlook

We expect our 2024 diluted earnings per share will range from $1.80 to $2.25. We estimate revenue of approximately $4.3 to $4.7 billion for the full year and we continue to project an effective tax rate of approximately 24%. We expect capital expenditures for the full year in the range of $45 million to $65 million.

Non-GAAP Financial Measure

In this press release, we present a certain non-GAAP financial measure. As required by the rules of the Securities and Exchange Commission (“SEC”), we have provided herein a reconciliation of this non-GAAP financial measure to the most directly comparable measures under GAAP, along with an explanation why management believes this non-GAAP financial measure provide relevant and useful information. This non-GAAP financial measure should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.


Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on April 25, 2024 to discuss our first quarter 2024 results.

Hosting the conference call will be Phil Yeager, Vice Chairman of the Board of Directors, President and CEO. Also participating on the call will be Brian Alexander, Executive Vice President, Chief Operating Officer, and Kevin Beth, 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 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 pre-register at to receive the dial-in number and unique PIN. On the day of the call, dial in approximately ten minutes prior to the scheduled call time and enter the unique participant 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 This replay will be available for 30 days.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of Hub Group to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. Further information on the risks that may affect Hub Group’s business is included in filings it makes with the SEC from time to time, including those discussed under the “Risk Factors” section in Hub Group’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Hub Group assumes no obligation to update any such forward-looking statements.

SOURCE: Hub Group, Inc.

CONTACT- Lorna Williams, Investor Relations, +1-630-481-3632,

(in thousands, except per share amounts) 
       Three Months Ended March 31, 
        2024   2023  
        % of  % of 
       AmountRevenue AmountRevenue 
Operating revenue   $999,493 100.0% $1,152,265 100.0% 
Operating expenses:         
 Purchased transportation and warehousing   740,172 74.1%  866,931 75.2% 
 Salaries and benefits    144,497 14.4%  137,431 11.9% 
 Depreciation and amortization   38,331 3.8%  35,449 3.1% 
 Insurance and claims    12,618 1.3%  12,683 1.1% 
 General and administrative    27,234 2.7%  25,541 2.2% 
 Gain on sale of assets, net    (498)-0.0%  (3,975)-0.3% 
Total operating expenses    962,354 96.3%  1,074,060 93.2% 
Operating income    37,139 3.7%  78,205 6.8% 
Other income (expense):         
 Interest expense, net    (2,506)-0.3%  (1,593)-0.1% 
 Other, net    (170)-0.0%  38 0.0% 
Total other expense, net    (2,676)-0.3%  (1,555)-0.1% 
Income before provision for income taxes   34,463 3.4%  76,650 6.7% 
Provision for income taxes    7,410 0.7%  14,870 1.3% 
Net income   $27,053   $61,780   
Earnings per share         
 Basic   $0.44   $0.95   
 Diluted   $0.44   $0.94   
Basic weighted average number of shares outstanding   61,325    65,098   
Diluted weighted average number of shares outstanding   61,666    65,676   

(in thousands, except share data) 
        March 31, December 31, 
         2024   2023  
  Cash and cash equivalents $195,362  $187,270  
  Accounts receivable trade, net  588,957   600,197  
  Accounts receivable other  4,940   3,358  
  Prepaid taxes   10,078   17,331  
  Prepaid expenses and other current assets 28,621   41,089  
    TOTAL CURRENT ASSETS  827,958   849,245  
 Restricted investments   20,393   20,763  
 Property and equipment, net  777,209   791,692  
 Right-of-use assets - operating leases  209,171   210,742  
 Right-of-use assets - financing leases  2,152   2,522  
 Other intangibles, net   295,943   304,607  
 Goodwill    735,460   733,695  
 Other non-current assets   22,984   22,781  
    TOTAL ASSETS $2,891,270  $2,936,047  
  Accounts payable trade $320,919  $349,378  
  Accounts payable other  18,179   14,471  
  Accrued payroll   31,964   21,731  
  Accrued other   126,475   121,253  
  Lease liability - operating leases  45,775   44,690  
  Lease liability - financing leases  1,253   1,579  
  Current portion of long term debt  104,035   105,108  
    TOTAL CURRENT LIABILITIES 648,600   658,210  
 Long term debt   230,775   245,574  
 Other non-current liabilities  52,932   55,287  
 Lease liability - operating leases  175,481   177,699  
 Lease liability - financing leases  823   865  
 Deferred taxes   160,443   163,767  
  Preferred stock, $.01 par value; 2,000,000 shares authorized;    
   no shares issued or outstanding in 2024 and 2023. -   -  
  Common stock      
   Class A: $.01 par value; 97,337,700 shares authorized; 72,303,228    
    shares issued in 2024 and 75,524,189 shares issued in 2023;    
    61,847,444 shares outstanding in 2024 and 62,200,921 shares outstanding in 2023. 755   755  
   Class B: $.01 par value; 662,300 shares authorized;    
    574,903 shares issued and outstanding in both 2024 and 2023. 6   6  
  Additional paid-in capital  208,932   209,830  
  Retained earnings   1,968,361   1,949,110  
  Accumulated other comprehensive loss (137)  (129) 
  Treasury stock; at cost, 10,455,784 shares in 2024    
   and 13,323,268 shares in 2023  (555,701)  (524,927) 
   TOTAL STOCKHOLDERS' EQUITY 1,622,216   1,634,645  

(in thousands)
        Three Months Ended March 31,
         2024   2023 
Cash flows from operating activities:    
 Net income  $27,053  $61,780 
 Adjustments to reconcile net income    
  to net cash provided by operating activities:   
   Depreciation and amortization of intangibles and right-of-use assets 49,605   45,810 
   Deferred taxes   (3,025)  4,901 
   Non-cash share-based compensation expense 4,040   5,238 
   Gain on sale of assets, net  (498)  (3,975)
 Changes in operating assets and liabilities, net of acquisitions:   
   Restricted investments  370   (1,122)
   Accounts receivable, net  9,652   18,951 
   Prepaid taxes   7,253   7,605 
   Prepaid expenses and other current assets 12,468   13,617 
   Other non-current assets  (880)  (653)
   Accounts payable   (24,755)  (17,705)
   Accrued expenses   11,462   (40,065)
   Non-current liabilities  (12,229)  (5,007)
    Net cash provided by operating activities 80,516   89,375 
Cash flows from investing activities:    
 Proceeds from sale of equipment  3,442   10,172 
 Purchases of property and equipment  (17,524)  (26,845)
 Acquisitions, net of cash acquired  -   108 
    Net cash used in investing activities (14,082)  (16,565)
Cash flows from financing activities:    
 Repayments of long term debt  (27,422)  (29,237)
 Purchase of treasury stock  (25,756)  - 
 Stock withheld for payments of withholding taxes (8,486)  (7,606)
 Dividends paid   (7,626)  - 
 Finance lease payments   (606)  (888)
 Proceeds from issuance of debt  11,550   20,831 
    Net cash used in financing activities (58,346)  (16,900)
 Effect of exchange rate changes on cash and cash equivalents 4   18 
Net increase in cash and cash equivalents 8,092   55,928 
Cash and cash equivalents beginning of period 187,270   286,642 
Cash and cash equivalents end of period $195,362  $342,570 

(in thousands)
 Three Months
 Ended March 31,
Operating Revenue 2024   2023 
Intermodal and Transportation Services$552,033  $709,249 
Logistics 480,224   469,141 
Inter-segment eliminations (32,764)  (26,125)
Total operating revenue$999,493  $1,152,265 
 Three Months
 Ended March 31,
Operating Income 2024   2023 
Intermodal and Transportation Services$13,031  $49,379 
Logistics 24,108   28,826 
Total operating income$37,139  $78,205 
 Three Months
 Ended March 31,
Depreciation and Amortization 2024   2023 
Intermodal and Transportation Services$27,049  $27,142 
Logistics 11,282   8,307 
Total depreciation and amortization$38,331  $35,449 

(in thousands)
 Three Months
 Ended March 31,
  2024  2023 
Net Income$27,053 $61,780 
Interest Expense, net 2,506  1,593 
Depreciation and Amortization (2) 49,605  45,810 
Provision for Income Taxes 7,410  14,870 
EBITDA$86,574 $124,053 

(1)   By providing this non-GAAP measure of EBITDA, management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented.

(2)   Includes depreciation of property and equipment, amortization of intangible assets and amortization of right-of-use assets.