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) February 12, 2007
HUB
GROUP, INC.
(Exact
name of registrant as specified in its charter)
DELAWARE
(State
or
Other Jurisdiction of Incorporation)
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0-27754
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36-4007085
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(Commission
File Number)
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(I.R.S.
Employer Identification No.)
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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:
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|
o
Written communications pursuant to Rule 425 under the Securities
Act (17
CFR 230.425)
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o
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR
240.14a-12)
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o
Pre-commencement communications pursuant to Rule 14d-2(b) under
the
Exchange Act (17 CFR 240.14d-2(b))
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o
Pre-commencement communications pursuant to Rule 13e-4(c) under
the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM
2.02 RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
On
February 12, 2007, Hub Group, Inc. issued a press release announcing its
fourth
quarter and full year 2006 operating results. The press release is furnished
as
Exhibit 99.1 to this Form 8-K.
ITEM
9.01 FINANCIAL
STATEMENTS AND EXHIBITS
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(a) Not
Applicable.
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(b) Not
Applicable.
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(c) Not
Applicable.
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|||||
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(d) A
list of exhibits filed herewith is contained on the
Exhibit
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||||||
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Index which immediately precedes such exhibits and is |
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incorporated herein by reference. |
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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.
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DATE:
February 13, 2007
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/s/
David P. Yeager
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By: David
P. Yeager
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Title: Vice
Chairman and
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Chief
Executive Officer
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EXHIBIT
INDEX
Exhibit
No.
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99.1
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Press
release, issued on February 12, 2007, announcing operating results
for Hub Group, Inc. for the fourth quarter and full year
2006.
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EXHIBIT
99.1
Hub
Group, Inc. Reports Record Revenue and Earnings for the Fourth Quarter and
Full
Year 2006 and Provides 2007 Guidance
DOWNERS
GROVE, IL, February 12, 2007, -- Hub Group, Inc. (NASDAQ: HUBG) today reported
record income from continuing operations for the quarter ended December 31,
2006
of $13.5 million, a 54% increase versus income from continuing operations
for
the fourth quarter of 2005. Hub Group’s diluted earnings per share from
continuing operations was $0.34 for the fourth quarter 2006. This represents
an
increase of 55% compared to last year's fourth quarter diluted earnings per
share from continuing operations of $0.22. Hub Group’s operating margin
increased to 5.2% in 2006 from 3.5% in 2005 due to yield enhancement efforts,
improved operational efficiencies and growth in drayage and truck
brokerage.
Hub
Group’s revenue grew by 5.5% to $425.5 million compared to $403.2 million in the
fourth quarter of 2005. Fourth quarter intermodal revenue increased 1.6%
to
$307.1 million, which includes the addition of Comtrak for the entire quarter.
Truck brokerage revenue increased 14.5% to $81.5 million this quarter. Fourth
quarter logistics revenue increased 24.2% to $36.9 million. Gross margin
from
continuing operations grew 27.8% to $58.2 million compared to the fourth
quarter
of 2005.
FULL
YEAR
2006
Revenue
from continuing operations for the year was $1,609.5 million compared to
$1,481.9 million in 2005, or an increase of 8.6%. Gross margin from continuing
operations grew 25% to $218.4 million compared to 2005.
Costs
and
expenses from continuing operations increased 11.3% in 2006 to $141.2 million
compared to $126.8 million in 2005 due primarily to the Comtrak acquisition.
Other
income from continuing operations was $2.3 million in 2006 compared to $1.0
million in 2005.
Income
from continuing operations increased 63.5% to $47.7 million for 2006 compared
to
last year’s income from continuing operations of $29.2 million. Hub
Group's diluted earnings per share from continuing operations for the year
ended
December 31, 2006 was $1.17. This represents an increase of 65% compared
to
diluted earnings per share from continuing operations for the year ended
December 31, 2005 of $0.71.
As
of
December 31, 2006, the Company had $43.5 million of cash compared to $36.1
million at December 31, 2005.
FULL
YEAR
2007
Given
the
current operating environment, we are comfortable that the earnings for 2007
will be within the current analysts’ range of $1.25 to $1.40 per diluted share.
CONFERENCE
CALL
Hub
will
hold a conference call at 5:00 p.m. Eastern Time (4:00 p.m. Central Time)
on
Monday, February 12, 2007 to discuss its fourth quarter and full year results.
Hosting
the conference call will be David P. Yeager, Vice-Chairman and CEO and Thomas
M.
White, Senior Vice-President, Chief Financial Officer and
Treasurer.
This
call
is being webcast by Thomson/CCBN and can be accessed through the Investors
link
at Hub Group's Web site at http://www.hubgroup.com or individual investors
can
access the audio webcast at http://www.earnings.com and institutional investors
can access the webcast at http://www.streetevents.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 (800) 510-0219. The conference call participant code is 35092717.
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
http://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, truckload brokerage
and
logistics services. The Company operates through a network of over 30 offices
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, 2005 and Form
10-Q
for the periods ended March 31, 2006, June 30, 2006 and September 30, 2006.
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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in
thousands, except per share amounts)
|
Three
Months
Ended
December 31,
|
Twelve Months
Ended December
31,
|
||||||||||||
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2006
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2005
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2006
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2005
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||||
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Revenue
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$
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425,460
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$
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403,217
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$
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1,609,529
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$
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1,481,878
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|||||
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Transportation
costs
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367,242
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357,663
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1,391,111
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1,307,136
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|||||||||
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Gross margin
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58,218
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45,554
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218,418
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174,742
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|||||||||
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Costs
and expenses:
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|||||||||||||
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Salaries
and benefits
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23,881
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21,267
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95,152
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83,392
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|||||||||
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General
and administrative
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11,344
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7,952
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39,929
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34,541
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|||||||||
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Depreciation
and amortization
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1,072
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2,169
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6,101
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8,905
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|||||||||
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Total
costs and expenses
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36,297
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31,388
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141,182
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126,838
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|||||||||
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Operating income
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21,921
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14,166
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77,236
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47,904
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|||||||||
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Other
income (expense):
|
|||||||||||||
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Interest
expense
|
(50
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)
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(15
|
)
|
(115
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)
|
(124
|
)
|
|||||
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Interest
income
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643
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369
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2,311
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971
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|||||||||
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Other,
net
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13
|
30
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76
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120
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|||||||||
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Total other income
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606
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384
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2,272
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967
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|||||||||
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Income
from continuing operations before provision for income
taxes
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22,527
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14,550
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79,508
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48,871
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|||||||||
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Provision
for income taxes
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9,008
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5,743
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31,803
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19,695
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|||||||||
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Income
from continuing operations
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13,519
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8,807
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47,705
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29,176
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|||||||||
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Discontinued
operations:
|
|||||||||||||
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Income
from discontinued operations of HGDS (including loss on disposal
of $70 in
2006)
|
-
|
2,088
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1,634
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6,315
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|||||||||
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Provision
for income taxes
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-
|
832 |
653
|
2,545
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|||||||||
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Income
from discontinued operations
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-
|
1,256
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981
|
3,770
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|||||||||
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Net
income
|
$
|
13,519
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$
|
10,063
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$
|
48,686
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$
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32,946
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|||||
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Basic
earnings per common share
|
|||||||||||||
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Income
from continuing operations
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$
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0.35
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$
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0.22
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$
|
1.19
|
$
|
0.73
|
|||||
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Income
from discontinued operations
|
$
|
-
|
$
|
0.03
|
0.03
|
$
|
0.10
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||||||
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Net
income
|
$
|
0.35
|
$
|
0.25
|
$
|
1.22
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$
|
0.83
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|||||
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Diluted
earnings per common share
|
|||||||||||||
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Income
from continuing operations
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$
|
0.34
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$
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0.22
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$
|
1.17
|
$
|
0.71
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|||||
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Income
from discontinued operations
|
$
|
-
|
$
|
0.03
|
0.02
|
$
|
0.09
|
||||||
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Net
income
|
$
|
0.34
|
$
|
0.25
|
$
|
1.19
|
$
|
0.80
|
|||||
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Basic
weighted average number of shares outstanding
|
39,095
|
39,640
|
39,958
|
39,860
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|||||||||
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Diluted
weighted average number of shares outstanding
|
39,810
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40,850
|
40,823
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41,392
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|||||||||
HUB
GROUP, INC.
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in
thousands, except share amounts)
|
December
31,
|
December
31,
|
||||||
|
2006
|
2005
|
||||||
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ASSETS
|
|||||||
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CURRENT
ASSETS:
|
|||||||
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Cash
and cash equivalents
|
$
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43,491
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$
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36,133
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|||
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Accounts
receivable
|
|||||||
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Trade,
net
|
158,284
|
147,004
|
|||||
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Other
|
8,369
|
10,603
|
|||||
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Prepaid
taxes
|
3,202
|
6,040
|
|||||
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Deferred
taxes
|
3,433
|
-
|
|||||
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Prepaid
expenses and other current assets
|
4,450
|
3,860
|
|||||
|
Assets
of discontinued operations
|
-
|
17,855
|
|||||
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TOTAL
CURRENT ASSETS
|
221,229
|
221,495
|
|||||
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Restricted
investments
|
3,017 |
1,387
|
|||||
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Property
and equipment, net
|
26,974
|
12,767
|
|||||
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Other
intangibles, net
|
7,502
|
-
|
|||||
|
Goodwill,
net
|
225,448
|
208,150
|
|||||
|
Other
assets
|
378
|
619
|
|||||
|
TOTAL
ASSETS
|
$
|
484,548
|
$
|
444,418
|
|||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
|
CURRENT
LIABILITIES:
|
|||||||
|
Accounts
payable
|
|||||||
|
Trade
|
$
|
117,676
|
$
|
114,094
|
|||
|
Other
|
6,839
|
3,668
|
|||||
|
Accrued
expenses
|
|||||||
|
Payroll
|
15,901
|
14,826
|
|||||
|
Other
|
29,010
|
18,917
|
|||||
| Related party payable |
5,000
|
||||||
|
Deferred
taxes
|
-
|
960
|
|||||
|
Liabilities
of discontinued operations
|
-
|
5,341
|
|||||
|
TOTAL
CURRENT LIABILITIES
|
174,426
|
157,806
|
|||||
| Deferred compensation |
7,691
|
6,083 | |||||
|
Deferred
taxes
|
43,587
|
38,454
|
|||||
|
STOCKHOLDERS'
EQUITY:
|
|||||||
|
Preferred
stock, $.01 par value; 2,000,000 shares authorized; no shares issued
or
outstanding in 2006 and 2005
|
-
|
-
|
|||||
|
Common
stock
|
|||||||
|
Class
A: $.01 par value; 47,337,700 shares authorized; 41,224,792 shares
issued
and 38,943,122 outstanding in 2006; 41,224,792 shares issued and
39,962,484 outstanding in 2005
|
412
|
412
|
|||||
|
Class
B: $.01 par value; 662,300 shares authorized; 662,296 shares issued
and
outstanding in 2006 and 2005
|
7
|
7
|
|||||
|
Additional
paid-in capital
|
179,203
|
183,524
|
|||||
|
Purchase
price in excess of predecessor basis, net of tax benefit of
$10,306
|
(15,458
|
)
|
(15,458
|
)
|
|||
|
Retained
earnings
|
146,243
|
97,557
|
|||||
|
Unearned
compensation
|
-
|
(6,259
|
)
|
||||
|
Treasury
stock; at cost, 2,281,670 shares in 2006 and 1,262,308 shares in
2005
|
(51,563
|
)
|
(17,708
|
)
|
|||
|
TOTAL STOCKHOLDERS' EQUITY
|
258,844
|
242,075
|
|||||
|
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
|
$
|
484,548
|
$
|
444,418
|
|||
HUB
GROUP, INC.
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
|
Twelve
Months Ended
|
|||||||
|
December
31,
|
|||||||
|
2006
|
2005
|
||||||
|
Cash
flows from operating activities:
|
|||||||
|
Income
from continuing operations
|
$
|
47,705
|
$
|
29,176
|
|||
|
Adjustments
to reconcile income from continuing operations to net cash provided
by
operating activities:
|
|||||||
|
Depreciation
and amortization
|
8,170
|
9,319
|
|||||
|
Deferred
taxes
|
690
|
18,382
|
|||||
|
Compensation
expense related to share-based compensation plans
|
3,405
|
2,148
|
|||||
|
Gain
on sale of assets
|
(131
|
)
|
(271
|
)
|
|||
|
Changes
in operating assets and liabilities excluding effects of purchase
transaction:
|
|||||||
|
Restricted
investments
|
(1,630
|
)
|
(1,387
|
)
|
|||
|
Accounts
receivable, net
|
393
|
|
(18,931
|
)
|
|||
|
Prepaid
taxes
|
2,234
|
(6,151
|
) | ||||
|
Prepaid
expenses and other current assets
|
(297
|
)
|
722
|
||||
| Other assets | 246 | 200 | |||||
|
Accounts
payable
|
4,754
|
3,039
|
|||||
|
Accrued
expenses
|
9,440
|
8,497
|
|
||||
| Deferred compensation | 1,608 | (1,534 | ) | ||||
|
Net
cash provided by operating activities
|
76,587
|
43,209
|
|||||
|
Cash
flows from investing activities:
|
|||||||
|
Proceeds
from sale of equipment
|
394
|
579
|
|||||
|
Purchases
of property and equipment
|
(8,372
|
)
|
(4,078
|
)
|
|||
|
Cash
used in acquisition of Comtrak, Inc.
|
(39,942
|
)
|
-
|
||||
|
Proceeds
from the disposal of discontinued operations
|
12,203
|
-
|
|||||
|
Net
cash used in investing activities
|
(35,717
|
)
|
(3,499
|
)
|
|||
|
Cash
flows from financing activities:
|
|||||||
|
Proceeds
from stock options exercised
|
1,963
|
4,738
|
|||||
|
Purchase
of treasury stock
|
(49,622
|
)
|
(33,245
|
)
|
|||
|
Excess
tax benefits from share-based compensation
|
12,337
|
- | |||||
|
Net
cash used in financing activities
|
(35,322
|
)
|
(28,507
|
)
|
|||
|
Cash
flows from operating activities of discontinued operations
|
1,848
|
8,416
|
|||||
|
Cash
flows used in investing activities of discontinued
operations
|
(38
|
)
|
(292
|
)
|
|||
|
Net
cash provided by discontinued operations
|
1,810
|
8,124
|
|||||
|
Net
increase in cash and cash equivalents
|
7,358
|
|
19,327
|
||||
|
Cash
and cash equivalents beginning of period
|
36,133
|
16,806
|
|||||
|
Cash
and cash equivalents end of period
|
$
|
43,491
|
$
|
36,133
|
|||
|
Supplemental
disclosures of cash paid for:
|
|||||||
|
Interest
|
$
|
114
|
$
|
124
|
|||
|
Income
taxes
|
$
|
16,801
|
$
|
6,811
|
|||