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 6, 2008
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.)
|
Downers
Grove, Illinois
60515
(Address
and zip code of principal executive offices)
(630)
271-3600
(Registrant’s
telephone number, including area code)
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:
[
] 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))
ITEM
2.02 RESULTS OF OPERATIONS
AND FINANCIAL
CONDITION
On
February 6, 2008, Hub Group, Inc. issued a press release announcing
its fourth quarter and full year 2007 operating results. The press release
is furnished as Exhibit 99.1 to this Form 8-K.
ITEM
9.01. Financial
Statements and Exhibits
The
following documents are filed as part of the report:
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(a)
|
Not
Applicable.
|
|
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(b)
|
Not
Applicable.
|
|
|
(c)
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Not
Applicable.
|
|
|
(d)
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A
list of exhibits filed herewith is contained on the
Exhibit
|
|
|
Index
which immediately precedes such exhibits and is
|
||
|
incorporated
herein by reference.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
HUB
GROUP, INC.
|
|
|
DATE:
February 7, 2008
|
By
/s/ Terri
A.
Pizzuto
|
|
Terri
A. Pizzuto
|
|
|
Executive
Vice President, Chief
|
|
| Financial Officer and Treasurer | |
|
|
EXHIBIT
INDEX
Exhibit
No.
|
99.1
|
Press
release, issued on February 6, 2008, announcing operating results
for Hub
Group, Inc. for the fourth quarter and full year
2007.
|
Hub
Group, Inc. Reports Record Earnings
for the Fourth Quarter and Full Year 2007 and Provides 2008
Guidance
DOWNERS
GROVE, IL, February 6, 2008, -- Hub Group, Inc. (NASDAQ: HUBG) today reported
record income for the quarter ended December 31, 2007 of $18.0 million, a 33%
increase versus income for the fourth quarter of 2006. Hub Group’s diluted
earnings per share was $0.47 for the fourth quarter of 2007. This
represents an increase of 38% compared to last year's fourth quarter diluted
earnings per share of $0.34. Fourth quarter 2007 diluted earnings per
share included a $0.04 tax benefit related to the resolution of a dispute with
the IRS. Hub Group’s operating margin increased to 5.7% in the fourth
quarter 2007 from 5.2% in 2006 due to growth, improved operational efficiencies
and cost controls.
Hub
Group’s revenue increased 4.7% to $445.5 million compared to $425.5 million in
the fourth quarter of 2006. Fourth quarter intermodal revenue
increased 2.4% to $314.4 million. The increase was attributable to a
3% volume increase partially offset by a 1% decrease related to
mix. Truck brokerage revenue was up 15.2% to $93.9 million this
quarter. Fourth quarter logistics revenue increased 0.9% to $37.2
million. Gross margin increased 3.7% to $60.4 million compared to the
fourth quarter of 2006.
Commenting
on the results, David P. Yeager, Vice-Chairman and Chief Executive Officer
of
Hub Group stated, “Given the
current
economic environment
we are pleased with our operating
results. We grew in all of our service lines and achieved
operating margin of 5.7% compared to 5.2% last year.”
FULL
YEAR
2007
Income
from continuing
operations increased 25.4% to $59.8 million for 2007 compared to last year’s
income from continuing operations of $47.7 million. Hub
Group's diluted earnings per share from continuing operations for the year
ended
December 31, 2007 was $1.53. This represents an increase of 31% compared to
diluted earnings per share from continuing operations for the year ended
December 31, 2006 of $1.17.
Revenue
from continuing operations increased 3% for the year to $1,658.2
million. Gross margin from continuing operations grew 6% to $232.3
million.
Costs
and
expenses from continuing operations increased 0.3% in 2007 to $141.6 million
compared to $141.2 million in 2006.
As
of December 31, 2007,
the Company had $38.0million
of cash.
FULL
YEAR
2008
Given
the
current operating environment, we are comfortable that the earnings for 2008
will be within the current analysts’ range of $1.50 to $1.62 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
Wednesday, February 6, 2008 to discuss its fourth quarter and full year
results.
Hosting
the conference call will be David P. Yeager, Vice-Chairman and Chief Executive
Officer and Terri A. Pizzuto, Executive 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) 706-7745. The conference call participant code is 22579500. 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, truck 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, 2006 and the report
on Form 10-Q for the periods ended March 31, 2007, June 30, 2007 and September
30, 2007. 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,
|
||||||||||||
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
||||
|
Revenue
|
$
|
445,464
|
$
|
425,460
|
$
|
1,658,168
|
$
|
1,609,529
|
|||||
|
Transportation
costs
|
385,074
|
367,242
|
1,425,844
|
1,391,111
|
|||||||||
|
Gross margin
|
60,390
|
58,218
|
232,324
|
218,418
|
|||||||||
|
Costs
and expenses:
|
|||||||||||||
|
Salaries
and benefits
|
23,791
|
23,881
|
95,678
|
95,152
|
|||||||||
|
General
and administrative
|
10,001
|
10,949
|
41,416
|
39,929
|
|||||||||
|
Depreciation
and amortization
|
1,035
|
1,467
|
4,490
|
6,101
|
|||||||||
|
Total
costs and expenses
|
34,827
|
36,297
|
141,584
|
141,182
|
|||||||||
|
Operating income
|
25,563
|
21,921
|
90,740
|
77,236
|
|||||||||
|
Other
income (expense):
|
|||||||||||||
|
Interest
expense
|
(30
|
)
|
(50
|
)
|
(108
|
)
|
(115
|
)
|
|||||
|
Interest
income
|
513
|
643
|
2,480
|
2,311
|
|||||||||
|
Other,
net
|
34
|
13
|
116
|
76
|
|||||||||
|
Total other income
|
517
|
606
|
2,488
|
2,272
|
|||||||||
|
Income
from continuing operations before provision for income
taxes
|
26,080
|
22,527
|
93,228
|
79,508
|
|||||||||
|
Provision
for income taxes
|
8,083
|
9,008
|
33,429
|
31,803
|
|||||||||
|
Income
from continuing operations
|
17,997
|
13,519
|
59,799
|
47,705
|
|||||||||
|
Discontinued
operations:
|
|||||||||||||
|
Income
from discontinued operations of HGDS
|
-
|
-
|
-
|
1,634
|
|||||||||
|
Provision
for income taxes
|
-
|
- |
-
|
653
|
|||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
981
|
|||||||||
|
Net
income
|
$
|
17,997
|
$
|
13,519
|
$
|
59,799
|
$
|
48,686
|
|||||
|
Basic
earnings per common share
|
|||||||||||||
|
Income
from continuing operations
|
$
|
0.48
|
$
|
0.35
|
$
|
1.55
|
$
|
1.19
|
|||||
|
Income
from discontinued operations
|
$
|
-
|
$
|
-
|
-
|
$
|
0.03
|
||||||
|
Net
income
|
$
|
0.48
|
$
|
0.35
|
$
|
1.55
|
$
|
1.22
|
|||||
|
Diluted
earnings per common share
|
|||||||||||||
|
Income
from continuing operations
|
$
|
0.47
|
$
|
0.34
|
$
|
1.53
|
$
|
1.17
|
|||||
|
Income
from discontinued operations
|
$
|
-
|
$
|
-
|
-
|
$
|
0.02
|
||||||
|
Net
income
|
$
|
0.47
|
$
|
0.34
|
$
|
1.53
|
$
|
1.19
|
|||||
|
Basic
weighted average number of shares outstanding
|
37,562
|
39,095
|
38,660
|
39,958
|
|||||||||
|
Diluted
weighted average number of shares outstanding
|
37,978
|
39,810
|
39,128
|
40,823
|
|||||||||
|
HUB
GROUP, INC.
|
||||||||
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
|
(in
thousands, except share amounts)
|
||||||||
|
December
31,
|
December
31,
|
|||||||
|
2007
|
2006
|
|||||||
|
ASSETS
|
(Unaudited)
|
|||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$ | 38,002 | $ | 43,491 | ||||
|
Accounts
receivable
|
||||||||
|
Trade,
net
|
160,944 | 158,284 | ||||||
|
Other
|
9,828 | 8,369 | ||||||
|
Prepaid
taxes
|
86 | 2,119 | ||||||
|
Deferred
taxes
|
5,044 | 3,433 | ||||||
|
Prepaid
expenses and other current assets
|
4,318 | 4,450 | ||||||
|
TOTAL
CURRENT ASSETS
|
218,222 | 220,146 | ||||||
|
Restricted
investments
|
5,206 | 3,017 | ||||||
|
Property
and equipment, net
|
29,662 | 26,974 | ||||||
|
Other
intangibles, net
|
7,056 | 7,502 | ||||||
|
Goodwill,
net
|
230,448 | 225,448 | ||||||
|
Other
assets
|
1,373 | 1,461 | ||||||
|
TOTAL
ASSETS
|
$ | 491,967 | $ | 484,548 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Accounts
payable
|
||||||||
|
Trade
|
$ | 123,020 | $ | 117,676 | ||||
|
Other
|
6,683 | 7,783 | ||||||
|
Accrued
expenses
|
||||||||
|
Payroll
|
16,446 | 18,294 | ||||||
|
Other
|
33,063 | 25,673 | ||||||
|
Related
party payable
|
5,000 | 5,000 | ||||||
|
TOTAL
CURRENT LIABILITIES
|
184,212 | 174,426 | ||||||
|
Non-current
liabilities
|
9,708 | 7,691 | ||||||
|
Deferred
taxes
|
47,148 | 43,587 | ||||||
|
STOCKHOLDERS'
EQUITY:
|
||||||||
|
Preferred
stock, $.01 par value; 2,000,000 shares
authorized; no shares issued or outstanding in 2007 and
2006
|
- | - | ||||||
|
Common
stock
|
||||||||
|
Class
A: $.01 par value; 97,337,700 shares authorized in
2007; 41,224,792 shares issued and 36,666,731 outstanding in 2007;
47,337,700 shared authorized in 2006; 41,224,792 shares issued
and
38,943,122 outstanding in 2006
|
412 | 412 | ||||||
|
Class
B: $.01 par value; 662,300 shares authorized; 662,296 shares
issued and outstanding in 2007 and 2006
|
7 | 7 | ||||||
|
Additional
paid-in capital
|
176,657 | 179,203 | ||||||
|
Purchase
price in excess of predecessor basis, net of tax benefit of
$10,306
|
(15,458 | ) | (15,458 | ) | ||||
|
Retained
earnings
|
206,042 | 146,243 | ||||||
|
Treasury
stock; at cost, 4,558,061 shares in 2007 and 2,281,670 shares in
2006
|
(116,761 | ) | (51,563 | ) | ||||
|
TOTAL
STOCKHOLDERS' EQUITY
|
250,899 | 258,844 | ||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 491,967 | $ | 484,548 | ||||
HUB
GROUP, INC.
UNAUDITED
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in
thousands)
|
Twelve
Months
Ended
|
|||||||
|
December
31,
|
|||||||
|
2007
|
2006
|
||||||
|
Cash
flows from operating activities:
|
|||||||
|
Income
from continuing operations
|
$
|
59,799
|
$
|
47,705
|
|||
|
Adjustments
to reconcile income from continuing operations to net cash provided
by
operating activities:
|
|||||||
|
Depreciation
and amortization
|
7,195
|
8,170
|
|||||
|
Deferred
taxes
|
3,523
|
690
|
|||||
|
Compensation
expense related to share-based compensation plans
|
3,853
|
3,405
|
|||||
|
Gain
on sale of assets
|
(160
|
)
|
(131
|
)
|
|||
|
Changes
in operating assets and liabilities excluding effects of purchase
transaction:
|
|||||||
|
Restricted
investments
|
(2,189
|
)
|
(1,630
|
)
|
|||
|
Accounts
receivable, net
|
(4,119
|
)
|
393
|
|
|||
|
Prepaid
taxes
|
2,033
|
3,317
|
|||||
|
Prepaid
expenses and other current assets
|
132
|
|
(297
|
) | |||
| Other assets | 88 | (837 | ) | ||||
|
Accounts
payable
|
4,223
|
5,698
|
|||||
|
Accrued
expenses
|
4,441
|
8,496
|
|
||||
| Deferred compensation | 1,761 | 1,608 | |||||
|
Net
cash provided by operating activities
|
80,580
|
76,587
|
|||||
|
Cash
flows from investing activities:
|
|||||||
|
Proceeds
from sale of equipment
|
725
|
394
|
|||||
|
Purchases
of property and equipment
|
(10,197
|
)
|
(8,372
|
)
|
|||
|
Cash
used in acquisition of Comtrak, Inc.
|
(5,000
|
)
|
(39,942
|
) | |||
|
Proceeds
from the disposal of discontinued operations
|
-
|
12,203
|
|||||
|
Net
cash used in investing activities
|
(14,472
|
)
|
(35,717
|
)
|
|||
|
Cash
flows from financing activities:
|
|||||||
|
Proceeds
from stock options exercised
|
760
|
1,963
|
|||||
|
Purchase
of treasury stock
|
(76,309
|
)
|
(49,622
|
)
|
|||
|
Excess
tax benefits from share-based compensation
|
3,952
|
12,337
|
|||||
|
Net
cash used in financing activities
|
(71,597
|
)
|
(35,322
|
)
|
|||
|
Cash
flows from operating activities of discontinued operations
|
-
|
1,848
|
|||||
|
Cash
flows used in investing activities of discontinued
operations
|
-
|
|
(38
|
)
|
|||
|
Net
cash provided by discontinued operations
|
-
|
1,810
|
|||||
|
Net
(decrease) increase in cash and cash equivalents
|
(5,489
|
)
|
7,358
|
||||
|
Cash
and cash equivalents beginning of year
|
43,491
|
36,133
|
|||||
|
Cash
and cash equivalents end of year
|
$
|
38,002
|
$
|
43,491
|
|||