UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
Form 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): August 1, 2018
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.) |
2000 Clearwater Drive, Oak Brook, Illinois 60523 |
(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 under any of the following provisions: | ||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On August 1, 2018, Hub Group, Inc. issued a press release announcing its second quarter 2018 operating results. The press release is furnished as Exhibit 99.1 to this Form 8-K.
Item 7.01. Regulation FD Disclosure.
On August 1, 2018, Hub Group, Inc. will make available on its website an Investor Presentation, which includes business information and second quarter 2018 results. The presentation can be accessed by going to www.hubgroup.com, selecting the “Investors” tab, and then selecting the “Presentations” tab. The presentation will be available on the company’s website until the next regular update. In accordance with General Instruction B.2 of Form 8-K, the information under this heading shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing.
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.
SIGNATURE
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: August 1, 2018 | By: | /s/ Terri A. Pizzuto |
Terri Pizzuto | ||
Executive Vice President, Chief Financial Officer and Treasurer | ||
EXHIBIT INDEX
Exhibit No. | ||
99.1 | Press release, issued on August 1, 2018, announcing second quarter 2018 operating results for Hub Group, Inc. |
EXHIBIT 99.1
Hub Group, Inc. Reports Record Second Quarter 2018 Results
Highlights of the quarter
OAK BROOK, Ill., Aug. 01, 2018 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ:HUBG) announced second quarter 2018 net income of $22.1 million, or diluted earnings per share of $0.66 versus second quarter 2017 net income of $9.5 million, or $0.29 per diluted share.
Revenue for the current quarter was $1.2 billion compared with $923.6 million for the second quarter 2017. Hub segment revenue increased 26% and Mode segment revenue increased 29%. Operating income for the current quarter increased to $32.0 million versus $16.6 million for the second quarter 2017. Hub segment operating income increased 139% and Mode segment operating income increased 15%.
Segment Information:
Hub | ||
· Second quarter 2018 Segment Revenue: | $888.2 million, up 26% | |
· Second quarter 2018 Segment Operating Income: | $24.8 million, up 139% |
Hub’s revenue increased 26% to $888.2 million compared to the second quarter of 2017 as a result of our success in providing multi-modal solutions to our customers. This increase includes Hub Group Dedicated revenue totaling $73.9 million in the second quarter of 2018.
Second quarter intermodal revenue increased 17% to $526.0 million reflecting a 4% increase in loads, price increases and higher fuel revenue. Intermodal gross margin increased compared to the second quarter of 2017 primarily due to improved pricing and increased volume. These gains were partially offset by higher rail and higher drayage costs.
Truck brokerage revenue increased 10% to $114.9 million in the second quarter compared to the same quarter of last year. Truck brokerage handled 5% fewer loads while fuel, price and mix combined were up 15%. Truck brokerage gross margin increased primarily because of growth with strategic customers and increased spot activity.
Second quarter Unyson Logistics revenue increased 17% to $173.4 million due primarily to growth from new customers on-boarded in 2017 and growth with existing customers.
Hub Group Dedicated revenue of $73.9 million in the second quarter of 2018 is up 22% sequentially from the first quarter of 2018 revenue of $60.4 million.
Costs and expenses increased $13.2 million to $75.3 million in the second quarter of 2018 compared to $62.1 million in the second quarter of 2017 due primarily to the addition of $12.2 million of costs and expenses for Hub Group Dedicated.
Operating income was $24.8 million compared to $10.4 million in the second quarter 2017.
Mode | |
· Second quarter 2018 Segment Revenue: | $314.1 million, up 29% |
· Second quarter 2018 Segment Operating Income: | $7.1 million, up 15% |
Mode’s revenue increased 29% to $314.1 million compared to the second quarter 2017. Revenue consisted of $141.2 million in intermodal which was up 26%, $103.2 million in truck brokerage which was up 24% and $69.7 million in logistics which was up 45%.
Gross margin increased $7.3 million compared to the second quarter of 2017 due to growth in all three lines of business.
Operating income was $7.1 million compared to $6.2 million in the second quarter 2017.
Hub is exploring strategic alternatives for Mode, with the intention of using the proceeds for investments in our existing business, including technology initiatives, and for acquisitions of businesses in both new and existing service lines.
Cash Flow and Capitalization:
Our capital expenditures for the second quarter totaled $47.1 million, primarily for tractors, trailers, and technology investments. At June 30, 2018, we had cash and cash equivalents of $26.8 million.
At June 30, 2018, we had total debt outstanding of $275.2 million on various debt instruments compared to $302.5 million at December 31, 2017.
2018 Outlook
We expect that our 2018 diluted earnings per share will range from $2.73 to $2.83. We estimate that our 2018 capital expenditures will range from $200 million to $220 million. We project our effective tax rate will range from 24.5% to 25.5%.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, August 1st 2018 to discuss its second quarter 2018 results and corporate strategy.
Hosting the conference call will be Dave Yeager, Chief Executive Officer. Also participating on the call will be Don Maltby, Chief Operating Officer, and Terri Pizzuto, 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=UWXldILszGSOoR. 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) 206-4064 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.
On August 1st 2018, the company will make available on its website an Investor Presentation, which includes updated business information and second quarter 2018 results, among other things. The presentation can be accessed by going to www.hubgroup.com, selecting the “Investors” tab, and then selecting the “Presentations” tab. The presentation will be available on the company’s website until the next regular update.
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, and should be viewed with caution. Forward-looking statements may contain words such as “expects”, “expected”, “believe”, “projected”, “estimate”, or similar words, and are based on management's experience and perception of historical trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. 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 intermodal costs and prices, the integration of any acquisitions and expenses relating thereto, the future performance of Hub’s Intermodal, Truck Brokerage, Dedicated and Unyson Logistics business lines, the future performance of Mode, the amount and timing of strategic investments or divestitures by Hub, the failure to integrate critical information technology systems, retail customers encountering adverse economic conditions and 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, 2017. Hub Group assumes no liability to update any such forward-looking statements.
CONTACT: Maralee Volchko of Hub Group, Inc., +1-630-271-3745
HUB GROUP, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
| % of | % of | ||||||||||||||
Amount | Revenue | Amount | Revenue | |||||||||||||
Revenue | $ | 1,179,093 | 100.0 | % | $ | 923,596 | 100.0 | % | ||||||||
Transportation costs | 1,042,903 | 88.4 | % | 822,279 | 89.0 | % | ||||||||||
Gross margin | 136,190 | 11.6 | % | 101,317 | 11.0 | % | ||||||||||
Costs and expenses: | ||||||||||||||||
Salaries and benefits | 58,092 | 5.0 | % | 45,038 | 4.9 | % | ||||||||||
Agent fees and commissions | 21,969 | 1.9 | % | 17,038 | 1.8 | % | ||||||||||
General and administrative | 20,216 | 1.7 | % | 20,114 | 2.2 | % | ||||||||||
Depreciation and amortization | 3,960 | 0.3 | % | 2,549 | 0.3 | % | ||||||||||
Total costs and expenses | 104,237 | 8.9 | % | 84,739 | 9.2 | % | ||||||||||
Operating income | 31,953 | 2.7 | % | 16,578 | 1.8 | % | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (2,187) | -0.2 | % | (1,032) | -0.1 | % | ||||||||||
Interest and dividend income | 22 | 0.0 | % | 200 | 0.0 | % | ||||||||||
Other, net | (189) | 0.0 | % | - | 0.0 | % | ||||||||||
Total other expense | (2,354) | -0.2 | % | (832) | -0.1 | % | ||||||||||
Income before provision for income taxes | 29,599 | 2.5 | % | 15,746 | 1.7 | % | ||||||||||
Income tax expense | 7,548 | 0.6 | % | 6,204 | 0.7 | % | ||||||||||
Net income | $ | 22,051 | 1.9 | % | $ | 9,542 | 1.0 | % | ||||||||
Basic earnings per common share | $ | 0.66 | $ | 0.29 | ||||||||||||
Diluted earnings per common share | $ | 0.66 | $ | 0.29 | ||||||||||||
Basic weighted average number of shares outstanding | 33,389 | 33,220 | ||||||||||||||
Diluted weighted average number of shares outstanding | 33,562 | 33,262 | ||||||||||||||
HUB GROUP, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2018 | 2017 | |||||||||||||||
% of | % of | |||||||||||||||
Amount | Revenue | Amount | Revenue | |||||||||||||
Revenue | $ | 2,275,064 | 100.0 | % | $ | 1,816,352 | 100.0 | % | ||||||||
Transportation costs | 2,016,083 | 88.6 | % | 1,613,450 | 88.8 | % | ||||||||||
Gross margin | 258,981 | 11.4 | % | 202,902 | 11.2 | % | ||||||||||
Costs and expenses: | ||||||||||||||||
Salaries and benefits | 114,099 | 5.0 | % | 88,217 | 4.9 | % | ||||||||||
Agent fees and commissions | 41,111 | 1.8 | % | 35,031 | 1.9 | % | ||||||||||
General and administrative | 40,720 | 1.8 | % | 40,938 | 2.2 | % | ||||||||||
Depreciation and amortization | 7,965 | 0.4 | % | 4,961 | 0.3 | % | ||||||||||
Total costs and expenses | 203,895 | 9.0 | % | 169,147 | 9.3 | % | ||||||||||
Operating income | 55,086 | 2.4 | % | 33,755 | 1.9 | % | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (4,291) | -0.2 | % | (2,130) | -0.1 | % | ||||||||||
Interest and dividend income | 44 | 0.0 | % | 330 | 0.0 | % | ||||||||||
Other, net | (244) | 0.0 | % | 194 | 0.0 | % | ||||||||||
Total other expense | (4,491) | -0.2 | % | (1,606) | -0.1 | % | ||||||||||
Income before provision for income taxes | 50,595 | 2.2 | % | 32,149 | 1.8 | % | ||||||||||
Income tax expense | 12,377 | 0.5 | % | 12,273 | 0.7 | % | ||||||||||
Net income | $ | 38,218 | 1.7 | % | $ | 19,876 | 1.1 | % | ||||||||
Basic earnings per common share | $ | 1.14 | $ | 0.60 | ||||||||||||
Diluted earnings per common share | $ | 1.14 | $ | 0.60 | ||||||||||||
Basic weighted average number of shares outstanding | 33,382 | 33,213 | ||||||||||||||
Diluted weighted average number of shares outstanding | 33,520 | 33,318 | ||||||||||||||
HUB GROUP, INC. | |||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended June 30, 2018 | |||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||||
Revenue | $ | 888,238 | $ | 314,078 | $ | (23,223) | $ | 1,179,093 | |||||||||||
Transportation costs | 788,087 | 278,039 | (23,223) | 1,042,903 | |||||||||||||||
Gross margin | 100,151 | 36,039 | - | 136,190 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Salaries and benefits | 53,839 | 4,253 | - | 58,092 | |||||||||||||||
Agent fees and commissions | 11 | 21,958 | - | 21,969 | |||||||||||||||
General and administrative | 17,768 | 2,448 | - | 20,216 | |||||||||||||||
Depreciation and amortization | 3,719 | 241 | - | 3,960 | |||||||||||||||
Total costs and expenses | 75,337 | 28,900 | - | 104,237 | |||||||||||||||
Operating income | $ | 24,814 | $ | 7,139 | $ | - | $ | 31,953 | |||||||||||
HUB GROUP, INC. | |||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended June 30, 2017 | |||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||||
Revenue | $ | 704,344 | $ | 242,998 | $ | (23,746) | $ | 923,596 | |||||||||||
Transportation costs | 631,787 | 214,238 | (23,746) | 822,279 | |||||||||||||||
Gross margin | 72,557 | 28,760 | - | 101,317 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||
Salaries and benefits | 41,569 | 3,469 | - | 45,038 | |||||||||||||||
Agent fees and commissions | 14 | 17,024 | - | 17,038 | |||||||||||||||
General and administrative | 18,331 | 1,783 | - | 20,114 | |||||||||||||||
Depreciation and amortization | 2,249 | 300 | - | 2,549 | |||||||||||||||
Total costs and expenses | 62,163 | 22,576 | - | 84,739 | |||||||||||||||
Operating income | $ | 10,394 | $ | 6,184 | $ | - | $ | 16,578 | |||||||||||
HUB GROUP, INC. | ||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Six Months | ||||||||||||||||||
Ended June 30, 2018 | ||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | |||||||||||||||
Revenue | $ | 1,719,823 | $ | 601,977 | $ | (46,736) | $ | 2,275,064 | ||||||||||
Transportation costs | 1,529,297 | 533,522 | (46,736) | 2,016,083 | ||||||||||||||
Gross margin | 190,526 | 68,455 | - | 258,981 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||
Salaries and benefits | 105,909 | 8,190 | - | 114,099 | ||||||||||||||
Agent fees and commissions | 25 | 41,086 | - | 41,111 | ||||||||||||||
General and administrative | 36,170 | 4,550 | - | 40,720 | ||||||||||||||
Depreciation and amortization | 7,478 | 487 | - | 7,965 | ||||||||||||||
Total costs and expenses | 149,582 | 54,313 | - | 203,895 | ||||||||||||||
Operating income | $ | 40,944 | $ | 14,142 | $ | - | $ | 55,086 | ||||||||||
HUB GROUP, INC. | ||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||
(in thousands) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
Six Months | ||||||||||||||||||
Ended June 30, 2017 | ||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | |||||||||||||||
Revenue | $ | 1,380,824 | $ | 484,832 | $ | (49,304) | $ | 1,816,352 | ||||||||||
Transportation costs | 1,236,462 | 426,292 | (49,304) | 1,613,450 | ||||||||||||||
Gross margin | 144,362 | 58,540 | - | 202,902 | ||||||||||||||
Costs and expenses: | ||||||||||||||||||
Salaries and benefits | 81,164 | 7,053 | - | 88,217 | ||||||||||||||
Agent fees and commissions | 31 | 35,000 | - | 35,031 | ||||||||||||||
General and administrative | 36,810 | 4,128 | - | 40,938 | ||||||||||||||
Depreciation and amortization | 4,357 | 604 | - | 4,961 | ||||||||||||||
Total costs and expenses | 122,362 | 46,785 | - | 169,147 | ||||||||||||||
Operating income | $ | 22,000 | $ | 11,755 | $ | - | $ | 33,755 | ||||||||||
HUB GROUP, INC. | ||||||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT AND BUSINESS LINE | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Three Months | ||||||||||||||||||||||
Ended June 30, 2018 | ||||||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | |||||||||||||||||||
Intermodal | $ | 526,028 | $ | 141,221 | $ | (6,559) | $ | 660,690 | ||||||||||||||
Truck brokerage | 114,936 | 103,168 | (84) | 218,020 | ||||||||||||||||||
Logistics | 173,421 | 69,689 | (16,580) | 226,530 | ||||||||||||||||||
Dedicated | 73,853 | - | - | 73,853 | ||||||||||||||||||
Total Revenue | $ | 888,238 | $ | 314,078 | $ | (23,223) | $ | 1,179,093 | ||||||||||||||
HUB GROUP, INC. | ||||||||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT AND BUSINESS LINE | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Three Months | ||||||||||||||||||||||
Ended June 30, 2017 | ||||||||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | |||||||||||||||||||
Intermodal | $ | 451,420 | $ | 112,089 | $ | (12,866) | $ | 550,643 | ||||||||||||||
Truck brokerage | 104,289 | 82,869 | (310) | 186,848 | ||||||||||||||||||
Logistics | 148,635 | 48,040 | (10,570) | 186,105 | ||||||||||||||||||
Dedicated | - | - | - | - | ||||||||||||||||||
Total Revenue | $ | 704,344 | $ | 242,998 | $ | (23,746) | $ | 923,596 | ||||||||||||||
HUB GROUP, INC. | |||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT AND BUSINESS LINE | |||||||||||||||||
(in thousands) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Six Months | |||||||||||||||||
Ended June 30, 2018 | |||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||
Intermodal | $ | 1,008,522 | $ | 270,995 | $ | (17,829) | $ | 1,261,688 | |||||||||
Truck brokerage | 234,955 | 203,889 | (442) | 438,402 | |||||||||||||
Logistics | 342,098 | 127,093 | (28,450) | 440,741 | |||||||||||||
Dedicated | 134,248 | - | (15) | 134,233 | |||||||||||||
Total Revenue | $ | 1,719,823 | $ | 601,977 | $ | (46,736) | $ | 2,275,064 | |||||||||
HUB GROUP, INC. | |||||||||||||||||
FINANCIAL INFORMATION BY SEGMENT AND BUSINESS LINE | |||||||||||||||||
(in thousands) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Six Months | |||||||||||||||||
Ended June 30, 2017 | |||||||||||||||||
Hub | Mode | Inter-Segment Elims | Hub Group Total | ||||||||||||||
Intermodal | $ | 875,843 | $ | 234,269 | $ | (28,103) | $ | 1,082,009 | |||||||||
Truck brokerage | 210,473 | 161,031 | (695) | 370,809 | |||||||||||||
Logistics | 294,508 | 89,532 | (20,506) | 363,534 | |||||||||||||
Dedicated | - | - | - | - | |||||||||||||
Total Revenue | $ | 1,380,824 | $ | 484,832 | $ | (49,304) | $ | 1,816,352 | |||||||||
HUB GROUP, INC. | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(in thousands, except share data) | ||||||||||||
(unaudited) | ||||||||||||
June 30, | December 31, | |||||||||||
2018 | 2017 | |||||||||||
ASSETS | ||||||||||||
CURRENT ASSETS: | ||||||||||||
Cash and cash equivalents | $ | 26,753 | $ | 28,557 | ||||||||
Accounts receivable trade, net | 615,690 | 583,994 | ||||||||||
Accounts receivable other | 3,851 | 5,722 | ||||||||||
Prepaid taxes | 5,268 | 12,088 | ||||||||||
Prepaid expenses and other current assets | 15,763 | 25,697 | ||||||||||
TOTAL CURRENT ASSETS | 667,325 | 656,058 | ||||||||||
Restricted investments | 24,107 | 24,181 | ||||||||||
Property and equipment, net | 618,931 | 562,150 | ||||||||||
Other intangibles, net | 71,501 | 74,348 | ||||||||||
Goodwill, net | 348,106 | 348,661 | ||||||||||
Other assets | 3,534 | 5,543 | ||||||||||
TOTAL ASSETS | $ | 1,733,504 | $ | 1,670,941 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
CURRENT LIABILITIES: | ||||||||||||
Accounts payable trade | $ | 348,222 | $ | 338,933 | ||||||||
Accounts payable other | 12,418 | 12,268 | ||||||||||
Accrued payroll | 36,487 | 28,994 | ||||||||||
Accrued other | 78,598 | 59,305 | ||||||||||
Current portion of capital lease | 2,794 | 2,777 | ||||||||||
Current portion of long term debt | 86,740 | 77,266 | ||||||||||
TOTAL CURRENT LIABILITIES | 565,259 | 519,543 | ||||||||||
Long term debt | 179,444 | 214,808 | ||||||||||
Non-current liabilities | 39,083 | 37,927 | ||||||||||
Long term capital lease | 6,196 | 7,696 | ||||||||||
Deferred taxes | 132,463 | 121,095 | ||||||||||
STOCKHOLDERS' EQUITY: | ||||||||||||
Preferred stock, $.01 par value; 2,000,000 shares authorized; | ||||||||||||
no shares issued or outstanding in 2018 and 2017 | - | - | ||||||||||
Common stock | ||||||||||||
Class A: $.01 par value; 97,337,700 shares authorized and | ||||||||||||
41,224,792 shares issued in 2018 and 2017; 33,717,169 shares | ||||||||||||
outstanding in 2018 and 33,447,070 shares outstanding in 2017 | 412 | 412 | ||||||||||
Class B: $.01 par value; 662,300 shares authorized; | ||||||||||||
662,296 shares issued and outstanding in 2018 and 2017 | 7 | 7 | ||||||||||
Additional paid-in capital | 168,614 | 173,011 | ||||||||||
Purchase price in excess of predecessor basis, net of tax | ||||||||||||
benefit of $10,306 | (15,458) | (15,458) | ||||||||||
Retained earnings | 908,934 | 870,716 | ||||||||||
Accumulated other comprehensive loss | (190) | (194) | ||||||||||
Treasury stock; at cost, 7,507,623 shares in 2018 | ||||||||||||
and 7,777,722 shares in 2017 | (251,260) | (258,622) | ||||||||||
TOTAL STOCKHOLDERS' EQUITY | 811,059 | 769,872 | ||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,733,504 | $ | 1,670,941 | ||||||||
HUB GROUP, INC. | |||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Six Months Ended June 30, | |||||||||||||
2018 | 2017 | ||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 38,218 | $ | 19,876 | |||||||||
Adjustments to reconcile net income | |||||||||||||
to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 38,251 | 25,288 | |||||||||||
Deferred taxes | 11,767 | 7,713 | |||||||||||
Compensation expense related to share-based compensation plans | 6,982 | 4,972 | |||||||||||
Other | (3,571) | - | |||||||||||
(Gain) loss on sale of assets | (90) | 307 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||
Restricted investments | 74 | (2,408) | |||||||||||
Accounts receivable, net | (29,748) | 26,240 | |||||||||||
Prepaid taxes | 6,820 | (3,352) | |||||||||||
Prepaid expenses and other current assets | 9,935 | 4,493 | |||||||||||
Other assets | 1,869 | (2,653) | |||||||||||
Accounts payable | 9,878 | 307 | |||||||||||
Accrued expenses | 4,857 | (18,013) | |||||||||||
Non-current liabilities | 2,382 | 368 | |||||||||||
Net cash provided by operating activities | 97,624 | 63,138 | |||||||||||
Cash flows from investing activities: | |||||||||||||
Proceeds from sale of equipment | 1,234 | 2,356 | |||||||||||
Purchases of property and equipment | (69,261) | (29,593) | |||||||||||
Net cash used in investing activities | (68,027) | (27,237) | |||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from issuance of debt | 58,161 | 16,149 | |||||||||||
Repayments of long term debt | (84,051) | (23,118) | |||||||||||
Stock tendered for payments of withholding taxes | (4,017) | (3,293) | |||||||||||
Capital lease payments | (1,483) | (1,399) | |||||||||||
Net cash used in financing activities | (31,390) | (11,661) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (11) | 95 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (1,804) | 24,335 | |||||||||||
Cash and cash equivalents beginning of period | 28,557 | 127,404 | |||||||||||
Cash and cash equivalents end of period | $ | 26,753 | $ | 151,739 | |||||||||