UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
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) April 19, 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
April
19, 2007, Hub Group, Inc. issued a press release announcing its first
quarter 2007 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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(d) A
list of exhibits filed herewith is contained on the
Exhibit
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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:
April 19, 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 April 19, 2007, announcing operating results for
Hub Group, Inc. for the first quarter
2007.
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EXHIBIT
99.1
Hub
Group, Inc. Reports Record First Quarter 2007 Revenue and
Earnings
DOWNERS
GROVE, IL, April 19, 2007, -- Hub Group, Inc. (NASDAQ: HUBG) today reported
record income from continuing operations for the quarter ended March 31,
2007 of
$11.4 million, a 35% increase versus income from continuing operations for
the
first quarter of 2006. Hub Group’s diluted earnings per share from continuing
operations was $0.29 for the first quarter of 2007. This represents an increase
of 38% compared to last year's first quarter diluted earnings per share from
continuing operations of $0.21. Hub Group’s operating margin increased to 4.6%
in 2007 from 3.8% in 2006 due to yield enhancement efforts, improved operational
efficiencies and growth in drayage and truck brokerage.
Hub
Group’s revenue increased 10.2% to $393.3 million compared to $356.8 million in
the first quarter of 2006. First quarter intermodal revenue increased 10.4%
to
$287.8 million, which includes two months of additional revenue for Comtrak.
Truck brokerage revenue increased 7.3% to $74.6 million this quarter. First
quarter logistics revenue increased 16.4% to $30.9 million. Gross margin
from
continuing operations increased 19.6% to $56.7 million compared to the first
quarter of 2006.
FULL
YEAR
2007
Given
the
current operating environment, we are comfortable that the earnings for 2007
will be within the current analysts’ range of $1.31 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
Thursday, April 19, 2007 to discuss its first quarter 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 (888) 396-2386. The conference call participant code is 75476610.
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, 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
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HUB
GROUP, INC.
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UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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|||||||
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(in
thousands, except per share amounts)
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|||||||
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Three
Months
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|||||||
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Ended
March 31,
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2007
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2006
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Revenue
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$
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393,297
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$
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356,764
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Transportation
costs
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336,636
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309,391
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Gross margin
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56,661
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47,373
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Costs
and expenses:
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|||||||
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Salaries
and benefits
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25,610
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22,881
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General
and administrative
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11,601
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8,969
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Depreciation
and amortization
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1,172
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1,859
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Total costs and expenses
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38,383
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33,709
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Operating income
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18,278
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13,664
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Other
income (expense):
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|||||||
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Interest
expense
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(21
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)
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(18
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)
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Interest
income
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645
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446
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|||||
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Other,
net
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3
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30
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Total other income
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627
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458
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Income
from continuing operations before provision for income
taxes
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18,905
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14,122
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Provision
for income taxes
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7,486
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5,649
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Income
from continuing operations
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11,419
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8,473
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Discontinued
operations:
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Income
from discontinued operations of HGDS
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-
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1,094
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Provision
for income taxes
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-
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437
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Income
from discontinued operations
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-
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657
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Net
income
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$
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11,419
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$
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9,130
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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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0.29
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$
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0.21
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Income
from discontinued operations
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$
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-
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$
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0.02
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Net
income
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$
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0.29
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$
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0.23
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Diluted
earnings per common share
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Income
from continuing operations
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$
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0.29
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$
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0.21
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Income
from discontinued operations
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$
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-
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$
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0.01
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Net
income
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$
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0.29
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$
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0.22
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Basic
weighted average number of shares outstanding
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39,257
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40,196
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Diluted
weighted average number of shares outstanding
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39,766
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41,302
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HUB
GROUP, INC.
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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|||||||
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(in
thousands, except share amounts)
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|||||||
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March
31,
2007
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December
31,
2006
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ASSETS
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(Unaudited)
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CURRENT
ASSETS:
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Cash
and cash equivalents
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$
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34,730
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$
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43,491
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Accounts
receivable
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Trade,
net
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150,772
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158,284
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Other
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8,078
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8,369
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Prepaid
taxes
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1,098
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3,202
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Deferred
taxes
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3,424
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3,433
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Prepaid
expenses and other current assets
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6,794
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4,450
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TOTAL
CURRENT ASSETS
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204,896
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221,229
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Restricted
investments
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4,278
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3,017
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Property
and equipment, net
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27,342
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26,974
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Other
intangibles, net
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7,391
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7,502
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Goodwill,
net
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225,448
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225,448
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Other
assets
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419
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378
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|||||
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TOTAL
ASSETS
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$
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469,774
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$
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484,548
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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|||||||
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CURRENT
LIABILITIES:
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|||||||
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Accounts
payable
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|||||||
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Trade
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$
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110,441
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$
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117,676
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Other
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6,826
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6,839
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|||||
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Accrued
expenses
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|||||||
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Payroll
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8,545
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18,294
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Other
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31,567
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26,617
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Related party payable
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-
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5,000
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|||||
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TOTAL
CURRENT LIABILITIES
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157,379
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174,426
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|||||
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Non-current
liabilities
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10,989
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7,691
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Deferred
taxes
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41,295
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43,587
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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 2007 and 2006
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-
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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; 47,337,700 shares authorized; 41,224,792
shares
issued and 38,789,847 outstanding in 2007; 41,224,792 shares issued
and
38,943,122 outstanding in 2006
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412
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412
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|||||
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Class B: $.01 par value; 662,300 shares authorized; 662,296 shares
issued
and outstanding in 2007 and 2006
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7
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7
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|||||
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Additional
paid-in capital
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175,779
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179,203
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|||||
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Purchase
price in excess of predecessor basis, net of tax benefit of
$10,306
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(15,458
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)
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(15,458
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)
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Retained
earnings
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157,662
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146,243
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|||||
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Treasury
stock; at cost, 2,434,945 shares in 2007 and 2,281,670 shares in
2006
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(58,291
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)
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(51,563
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)
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TOTAL
STOCKHOLDERS' EQUITY
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260,111
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258,844
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|||||
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TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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469,774
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$
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484,548
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HUB
GROUP, INC.
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|||||||
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UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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|||||||
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(in
thousands)
|
|||||||
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Three
Months Ended March 31,
|
|||||||
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2007
|
2006
|
||||||
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Cash
flows from operating activities:
|
|||||||
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Income from continuing operations
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$
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11,419
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$
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8,473
|
|||
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Adjustments to reconcile income from continuing operations to net
cash
|
|||||||
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provided by operating activities:
|
|||||||
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Depreciation and amortization
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1,804
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2,176
|
|||||
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Deferred taxes
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1,652
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917
|
|||||
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Compensation expense related to share-based compensation
plans
|
960
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771
|
|||||
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Loss on sale of assets
|
2
|
26
|
|||||
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Changes in operating assets and liabilities excluding effects of
purchase
transaction:
|
|||||||
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Restricted investments
|
(1,261
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)
|
(586
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)
|
|||
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Accounts receivable, net
|
7,803
|
18,172
|
|||||
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Prepaid taxes
|
2,104
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(125
|
)
|
||||
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Prepaid expenses and other current assets
|
(2,344
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)
|
(1,628
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)
|
|||
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Other assets
|
(41
|
)
|
299
|
||||
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Accounts payable
|
(7,248
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)
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(5,090
|
)
|
|||
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Accrued expenses
|
(4,799
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)
|
(8,292
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)
|
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Non-current liabilities
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(637
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)
|
(80
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)
|
|||
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Net cash provided by operating activities
|
9,414
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15,033
|
|||||
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Cash
flows from investing activities:
|
|||||||
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Proceeds from sale of equipment
|
15
|
26
|
|||||
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Purchases of property and equipment
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(2,078
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)
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(1,047
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)
|
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Cash used in acquisition of Comtrak, Inc.
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(5,000
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)
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(40,491
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)
|
|||
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Net cash used in investing activities
|
(7,063
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)
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(41,512
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)
|
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Cash
flows from financing activities:
|
|||||||
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Proceeds from stock options exercised
|
248
|
1,141
|
|||||
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Purchase of treasury stock
|
(12,740
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)
|
(38
|
)
|
|||
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Excess tax benefits from share-based compensation
|
1,380
|
4,767
|
|||||
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Net cash (used in) provided by financing activities
|
(11,112
|
)
|
5,870
|
||||
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Cash
flows from operating activities of discontinued operations
|
-
|
1,822
|
|||||
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Cash
flows used in investing activities of discontinued
operations
|
-
|
(32
|
)
|
||||
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Net cash provided by discontinued operations
|
-
|
1,790
|
|||||
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Net
decrease in cash and cash equivalents
|
(8,761
|
)
|
(18,819
|
)
|
|||
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Cash
and cash equivalents beginning of period
|
43,491
|
36,133
|
|||||
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Cash
and cash equivalents end of period
|
$
|
34,730
|
$
|
17,314
|
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