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) February 18, 2004
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.)
3050 HIGHLAND PARKWAY, SUITE 100
DOWNERS GROVE, ILLINOIS 60515
(Address Of Principal Executive Offices, including Zip Code)
(630) 271-3600
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, If Changed Since Last Report)
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Not applicable.
(b) Not applicable.
(c) A list of exhibits filed herewith is contained on the Exhibit
Index which immediately precedes such exhibits and is
incorporated herein by reference.
ITEM 9. INFORMATION PROVIDED UNDER ITEM 12 (RESULTS OF OPERATIONS AND
FINANCIAL CONDITION)
The following information is furnished pursuant to Item 12 "Results of
Operations and Financial Condition."
On February 18, 2004, Hub Group, Inc. issued a press release announcing its
fourth quarter and year end 2003 operating results. The press release is
furnished as Exhibit 99.1 to this Form 8-K.
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.
Dated: February 20, 2004 /S/ THOMAS M. WHITE
-----------------------------------------
By: Thomas M. White
Its: Senior Vice President-
Chief Financial Officer and Treasurer
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Press release issued on February 18, 2004 announcing operating
results for Hub Group, Inc. for the fourth quarter and year
end 2003.
HUB GROUP, INC. REPORTS FOURTH QUARTER, FULL YEAR 2003 RESULTS
Downers Grove, IL, February 18, 2004 - Hub Group, Inc. (NASDAQ: HUBG) today
reported an 87.6% increase in fourth quarter net income versus the prior year.
Hub Group earned net income of $2.6 million for the quarter ended December 31,
2003 or 33 cents diluted earnings per share compared to last year's net income
of $1.4 million or 18 cents diluted earnings per share.
Revenue in the fourth quarter was $359.2 million, an increase of 3.8% compared
with the $346.1 million reported for the fourth quarter of 2002. Intermodal
revenue for the fourth quarter was $259.5 million up 3% from the prior year.
Supply Chain Solutions logistics revenue was $37.2 million, which represents a
79.6% increase from the prior year. Truckload brokerage revenue of $48.1 million
and Hub Group Distribution Services revenue of $14.4 million were down 6.6% and
34.3%, respectively. Gross margin was down from 12.4% to 11.6% solely due to Hub
Group Distribution Services. Costs and expenses decreased 9.6% in the fourth
quarter of 2003 to $34.9 million compared to $38.6 million in 2002, reflecting
the benefits from the Company's cost reduction efforts. Other expense, which
primarily includes interest expense, decreased to $1.6 million in the fourth
quarter of 2003 compared to $2.3 million in the same period of 2002, due to
lower debt levels in 2003.
FULL YEAR 2003
Revenue for the year was $1,359.6 million compared to $1,335.7 million in 2002,
or an increase of 1.8%. Gross margin increased to 12.6% of revenue compared to
12.2% in 2002 and costs and expenses decreased to 10.8% of revenue versus 11.4%
in 2002.
Net income was $8.4 million for 2003 or $1.07 diluted earnings per share
compared to last year's net income of $1.5 million or 19 cents diluted earnings
per share.
Commenting on the results, David P. Yeager, Vice-Chairman and Chief Executive
Officer of Hub Group stated, "Our results demonstrate further evidence of our
ongoing turnaround. With our field realignment in place, we are now positioned
more than ever to improve our business for our stakeholders."
FULL YEAR 2004
Hub expects its 2004 diluted earnings per share to be in the range of $1.25 to
$1.40.
ABOUT HUB GROUP: Hub Group, Inc. is a leading non-asset based freight
transportation management company providing comprehensive intermodal, truckload,
LTL, railcar, airfreight and related logistics and distribution services. The
Company operates through a network of over 30 offices throughout the United
States, Canada and Mexico.
Certain prior year amounts have been reclassified to conform to the current year
presentation.
CERTAIN FORWARD LOOKING STATEMENTS: Statements in this press release that are
not historical, including statements regarding Hub Group's or management's
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, 2002, and the quarterly reports on
Form 10-Q for the quarters ended March 31, 2003, June 30, 2003 and September 30,
2003. Hub Group assumes no liability to update any such forward-looking
statements.
# # #
HUB GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
UNAUDITED
THREE MONTHS
ENDED DECEMBER 31, YEARS ENDED DECEMBER 31,
--------------------------- --------------------------
2003 2002 2003 2002
------------ -------------- ------------ -------------
Revenue $ 359,196 $ 346,100 $ 1,359,614 $1,335,660
Transportation costs 317,485 303,174 1,188,932 1,172,848
------------ ------------- ------------ -------------
Gross margin 41,711 42,926 170,682 162,812
Costs and expenses:
Salaries and benefits 21,291 23,237 89,980 93,476
Selling, general and administrative 10,718 11,879 45,650 46,824
Depreciation and amortization of property and equipment 2,892 3,512 10,757 11,371
------------ ------------- ------------ -------------
Total costs and expenses 34,901 38,628 146,387 151,671
------------ ------------- ------------ -------------
Operating income 6,810 4,298 24,295 11,141
Other income (expense):
Interest expense (1,711) (2,146) (7,691) (9,453)
Interest income 43 64 160 230
Other, net 72 (178) 131 97
------------ ------------- ------------ -------------
Total other expense (1,596) (2,260) (7,400) (9,126)
Income before minority interest and provision for income taxes 5,214 2,038 16,895 2,015
Minority interest - - - (524)
------------ ------------- ------------ -------------
Income before provision for income taxes 5,214 2,038 16,895 2,539
Provision for income taxes 2,576 632 8,465 1,041
------------ ------------- ------------ -------------
Net income $ 2,638 $ 1,406 $ 8,430 $ 1,498
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Diluted EPS $ 0.33 $ 0.18 $ 1.07 $ 0.19
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