Delaware
|
36-4007085
|
(State
or other jurisdiction of incorporation
or organization)
|
(I.R.S.
Employer Identification
No.)
|
Page | |
PART I. Financial Information: | |
Hub Group, Inc. - Registrant | |
Condensed
Consolidated Balance Sheets – June 30, 2009 (unaudited) and
December 31,
2008
|
3 |
Unaudited
Condensed Consolidated Statements of Income - Three Months and Six
Months
Ended
June 30, 2009 and 2008
|
4 |
Unaudited
Condensed Consolidated Statement of Stockholders’ Equity -
Six
Months Ended June 30,
2009
|
5 |
Unaudited
Condensed Consolidated Statements of Cash Flows - Six
Months Ended June 30, 2009 and
2008
|
6 |
Notes to Unaudited Condensed Consolidated Financial Statements | 7 |
Management’s
Discussion and Analysis of Financial Condition and
Results of
Operations
|
10 |
Quantitative and Qualitative Disclosures about Market Risk | 16 |
Controls and Procedures | 16 |
PART II. Other Information | 16 |
HUB
GROUP, INC.
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(in
thousands, except share amounts)
|
||||||||
June
30,
2009
|
December
31,
2008
|
|||||||
ASSETS
|
(unaudited)
|
|||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 113,091 | $ | 85,799 | ||||
Accounts
receivable
|
||||||||
Trade,
net
|
143,368 | 145,362 | ||||||
Other
|
10,603 | 10,318 | ||||||
Prepaid
taxes
|
123 | 123 | ||||||
Deferred
taxes
|
5,683 | 5,430 | ||||||
Prepaid
expenses and other current assets
|
6,606 | 4,346 | ||||||
TOTAL
CURRENT ASSETS
|
279,474 | 251,378 | ||||||
Restricted
investments
|
7,688 | 6,118 | ||||||
Property
and equipment, net
|
29,968 | 32,713 | ||||||
Other
intangibles, net
|
6,387 | 6,610 | ||||||
Goodwill,
net
|
233,001 | 233,110 | ||||||
Other
assets
|
1,684 | 1,747 | ||||||
TOTAL
ASSETS
|
$ | 558,202 | $ | 531,676 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable
|
||||||||
Trade
|
$ | 114,093 | $ | 105,064 | ||||
Other
|
8,125 | 6,107 | ||||||
Accrued
expenses
|
||||||||
Payroll
|
6,890 | 9,988 | ||||||
Other
|
25,562 | 26,388 | ||||||
TOTAL
CURRENT LIABILITIES
|
154,670 | 147,547 | ||||||
Non-current
liabilities
|
9,760 | 9,535 | ||||||
Deferred
taxes
|
62,844 | 59,410 | ||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Preferred
stock, $.01 par value; 2,000,000 shares
authorized; no shares issued or outstanding in 2009 and
2008
|
- | - | ||||||
Common
stock
|
||||||||
Class
A: $.01 par value; 97,337,700 shares authorized and
41,224,792 shares issued in 2009 and 2008; 37,162,919 shares outstanding
in 2009 and 36,970,347 shares outstanding in 2008
|
412 | 412 | ||||||
Class
B: $.01 par value; 662,300 shares authorized; 662,296 shares
issued and outstanding in 2009 and 2008
|
7 | 7 | ||||||
Additional
paid-in capital
|
170,654 | 174,355 | ||||||
Purchase
price in excess of predecessor basis, net of tax benefit of
$10,306
|
(15,458 | ) | (15,458 | ) | ||||
Retained
earnings
|
279,770 | 265,287 | ||||||
Treasury
stock; at cost, 4,061,873 shares in 2009 and 4,254,445 shares in
2008
|
(104,457 | ) | (109,419 | ) | ||||
TOTAL
STOCKHOLDERS' EQUITY
|
330,928 | 315,184 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 558,202 | $ | 531,676 | ||||
See
notes to unaudited condensed consolidated financial
statements.
|
HUB
GROUP, INC.
|
||||||||||||||||
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(in
thousands, except per share amounts)
|
||||||||||||||||
Three
Months
|
Six
Months
|
|||||||||||||||
Ended
June 30,
|
Ended
June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Revenue
|
$ | 362,613 | $ | 490,929 | $ | 714,308 | $ | 915,924 | ||||||||
Transportation
costs
|
316,850 | 431,090 | 623,376 | 798,583 | ||||||||||||
Gross
margin
|
45,763 | 59,839 | 90,932 | 117,341 | ||||||||||||
Costs
and expenses:
|
||||||||||||||||
Salaries
and benefits
|
22,063 | 24,301 | 45,277 | 49,664 | ||||||||||||
General
and administrative
|
9,130 | 10,477 | 19,253 | 20,627 | ||||||||||||
Depreciation
and amortization
|
1,124 | 991 | 2,280 | 1,992 | ||||||||||||
Total
costs and expenses
|
32,317 | 35,769 | 66,810 | 72,283 | ||||||||||||
Operating
income
|
13,446 | 24,070 | 24,122 | 45,058 | ||||||||||||
Other
income (expense):
|
||||||||||||||||
Interest
expense
|
(25 | ) | (26 | ) | (50 | ) | (52 | ) | ||||||||
Interest
and dividend income
|
36 | 340 | 91 | 678 | ||||||||||||
Other,
net
|
62 | (9 | ) | 72 | 86 | |||||||||||
Total
other income
|
73 | 305 | 113 | 712 | ||||||||||||
Income
before provision for income taxes
|
13,519 | 24,375 | 24,235 | 45,770 | ||||||||||||
Provision
for income taxes
|
5,214 | 9,405 | 9,752 | 17,665 | ||||||||||||
Net
income
|
$ | 8,305 | $ | 14,970 | $ | 14,483 | $ | 28,105 | ||||||||
Basic
earnings per common share
|
$ | 0.22 | $ | 0.40 | $ | 0.39 | $ | 0.76 | ||||||||
Diluted
earnings per common share
|
$ | 0.22 | $ | 0.40 | $ | 0.39 | $ | 0.75 | ||||||||
Basic
weighted average number of shares outstanding
|
37,344 | 37,191 | 37,333 | 37,146 | ||||||||||||
Diluted
weighted average number of shares outstanding
|
37,480 | 37,489 | 37,446 | 37,447 | ||||||||||||
See
notes to unaudited condensed consolidated financial
statements.
|
HUB
GROUP, INC
|
||||
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
|
||||
For
the six months ended June 30, 2009
|
||||
(in
thousands, except shares)
|
||||
June
30,
|
||||
2009
|
||||
Class
A & B Common Stock Shares Outstanding
|
||||
Beginning
of year
|
37,632,643 | |||
Purchase
of treasury shares
|
(42,528 | ) | ||
Treasury
shares issued for restricted stock and stock options
exercised
|
235,100 | |||
Ending
balance
|
37,825,215 | |||
Class
A & B Common Stock Amount
|
||||
Beginning
of year
|
$ | 419 | ||
Ending
balance
|
419 | |||
Additional
Paid-in Capital
|
||||
Beginning
of year
|
174,355 | |||
Exercise
of non-qualified stock options
|
(748 | ) | ||
Share-based
compensation expense
|
2,152 | |||
Tax
benefit of share-based compensation plans
|
147 | |||
Issuance
of restricted stock awards, net of forfeitures
|
(5,252 | ) | ||
Ending
balance
|
170,654 | |||
Purchase
Price in Excess of Predecessor Basis, Net of Tax
|
||||
Beginning
of year
|
(15,458 | ) | ||
Ending
balance
|
(15,458 | ) | ||
Retained
Earnings
|
||||
Beginning
of year
|
265,287 | |||
Net
income
|
14,483 | |||
Ending
balance
|
279,770 | |||
Treasury
Stock
|
||||
Beginning
of year
|
(109,419 | ) | ||
Purchase
of treasury shares
|
(1,082 | ) | ||
Issuance
of restricted stock and exercise of stock options
|
6,044 | |||
Ending
balance
|
(104,457 | ) | ||
Total
stockholders’ equity
|
$ | 330,928 | ||
See
notes to unaudited condensed consolidated financial
statements.
|
HUB
GROUP, INC.
|
||||||||
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(in
thousands)
|
||||||||
Six
Months Ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 14,483 | $ | 28,105 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
and amortization
|
4,320 | 3,395 | ||||||
Deferred
taxes
|
3,227 | 5,149 | ||||||
Compensation
expense related to share-based compensation plans
|
2,152 | 2,257 | ||||||
Gain
on sale of assets
|
(16 | ) | (197 | ) | ||||
Changes
in operating assets and liabilities:
|
||||||||
Restricted
investments
|
(1,570 | ) | (2,540 | ) | ||||
Accounts
receivable, net
|
1,709 | (31,826 | ) | |||||
Prepaid
expenses and other current assets
|
(2,260 | ) | (1,607 | ) | ||||
Other
assets
|
63 | 122 | ||||||
Accounts
payable
|
11,047 | 26,608 | ||||||
Accrued
expenses
|
(3,362 | ) | (8,938 | ) | ||||
Non-current
liabilities
|
288 | 45 | ||||||
Net
cash provided by operating activities
|
30,081 | 20,573 | ||||||
Cash
flows from investing activities:
|
||||||||
Proceeds
from sale of equipment
|
53 | 364 | ||||||
Purchases
of property and equipment
|
(1,951 | ) | (1,858 | ) | ||||
Cash
used in acquisition of Comtrak, Inc.
|
- | (5,000 | ) | |||||
Net
cash used in investing activities
|
(1,898 | ) | (6,494 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from stock options exercised
|
44 | 355 | ||||||
Purchase
of treasury stock
|
(1,082 | ) | (796 | ) | ||||
Excess
tax benefits from share-based compensation
|
147 | 2,398 | ||||||
Net
cash (used in) provided by financing activities
|
(891 | ) | 1,957 | |||||
Net
increase in cash and cash equivalents
|
27,292 | 16,036 | ||||||
Cash
and cash equivalents beginning of period
|
85,799 | 38,002 | ||||||
Cash
and cash equivalents end of period
|
$ | 113,091 | $ | 54,038 | ||||
Supplemental
disclosures of cash paid for:
|
||||||||
Interest
|
$ | 50 | $ | 52 | ||||
Income
taxes
|
$ | 4,413 | $ | 11,165 | ||||
See
notes to unaudited condensed consolidated financial
statements.
|
Three
Months Ended
|
Three
Months Ended
|
|||||||||||||||||||||||
June
30, 2009
|
June
30, 2008
|
|||||||||||||||||||||||
Income
|
Shares
|
Per
Share Amount
|
Income
|
Shares
|
Per
Share Amount
|
|||||||||||||||||||
Basic
EPS
|
||||||||||||||||||||||||
Net
income
|
$ | 8,305 | 37,344 | $ | 0.22 | $ | 14,970 | 37,191 | $ | 0.40 | ||||||||||||||
Effect
of Dilutive Securities
|
||||||||||||||||||||||||
Stock
options & restricted stock
|
136 | 298 | ||||||||||||||||||||||
Diluted
EPS
|
$ | 8,305 | 37,480 | $ | 0.22 | $ | 14,970 | 37,489 | $ | 0.40 |
Six
Months Ended
|
Six
Months Ended
|
|||||||||||||||||||||||
June
30, 2009
|
June
30, 2008
|
|||||||||||||||||||||||
Income
|
Shares
|
Per
Share Amount
|
Income
|
Shares
|
Per
Share Amount
|
|||||||||||||||||||
Basic
EPS
|
||||||||||||||||||||||||
Net
income
|
$ | 14,483 | 37,333 | $ | 0.39 | $ | 28,105 | 37,146 | $ | 0.76 | ||||||||||||||
Effect
of Dilutive Securities
|
||||||||||||||||||||||||
Stock
options & restricted stock
|
113 | 301 | ||||||||||||||||||||||
Diluted
EPS
|
$ | 14,483 | 37,446 | $ | 0.39 | $ | 28,105 | 37,447 | $ | 0.75 |
Balance
at December 31, 2008
|
$ | - | ||
Restructuring
expenses-severance
|
872 | |||
Cash
payments made
|
(403 | ) | ||
Balance
at March 31, 2009
|
$ | 469 | ||
Restructuring
expenses-severance
|
36 | |||
Cash
payments made
|
(291 | ) | ||
Change
in estimate
|
(68 | ) | ||
Balance
at June 30, 2009
|
$ | 146 | ||
·
|
the
degree and rate of market growth in the domestic intermodal, truck
brokerage and logistics markets served by
us;
|
·
|
deterioration
in our relationships with existing railroads or adverse changes to the
railroads’ operating rules;
|
·
|
changes
in rail service conditions or adverse weather
conditions;
|
·
|
further
consolidation of railroads;
|
·
|
the
impact of competitive pressures in the marketplace, including entry of new
competitors, direct marketing efforts by the railroads or marketing
efforts of asset-based carriers;
|
·
|
changes
in rail, drayage and trucking company
capacity;
|
·
|
railroads
moving away from ownership of intermodal
assets;
|
·
|
equipment
shortages or equipment surplus;
|
·
|
changes
in the cost of services from rail, drayage, truck or other
vendors;
|
·
|
increases
in costs for independent contractors due to regulatory, judicial and legal
changes;
|
·
|
labor
unrest in the rail, drayage or trucking company
communities;
|
·
|
general
economic and business conditions;
|
·
|
significant
deterioration in our customers’ financial condition, particularly in the
retail and durable goods sector;
|
·
|
fuel
shortages or fluctuations in fuel
prices;
|
·
|
increases
in interest rates;
|
·
|
changes
in homeland security or terrorist
activity;
|
·
|
difficulties
in maintaining or enhancing our information technology
systems;
|
·
|
changes
to or new governmental regulation;
|
·
|
loss
of several of our largest
customers;
|
·
|
inability
to recruit and retain key
personnel;
|
·
|
inability
to recruit and retain drivers and owner
operators;
|
·
|
changes
in insurance costs and claims
expense;
|
·
|
changes
to current laws which will aid union organizing efforts;
and
|
·
|
inability
to close and successfully integrate any future business
combinations.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||||||||||
%
|
%
|
|||||||||||||||||||||||
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Intermodal
|
$ | 254,072 | $ | 351,640 | (27.7 | ) % | $ | 499,641 | $ | 654,411 | (23.7 | ) % | ||||||||||||
Truck
brokerage
|
71,399 | 98,667 | (27.6 | ) | 139,439 | 188,575 | (26.1 | ) | ||||||||||||||||
Logistics
|
37,142 | 40,622 | (8.6 | ) | 75,228 | 72,938 | 3.1 | |||||||||||||||||
Total
revenue
|
$ | 362,613 | $ | 490,929 | (26.1 | ) % | $ | 714,308 | $ | 915,924 | (22.0 | ) % |
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Revenue
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Transportation
costs
|
87.4 | 87.8 | 87.3 | 87.2 | ||||||||||||
Gross
margin
|
12.6 | 12.2 | 12.7 | 12.8 | ||||||||||||
Costs
and expenses:
|
||||||||||||||||
Salaries
and benefits
|
6.1 | 5.0 | 6.3 | 5.4 | ||||||||||||
General
and administrative
|
2.5 | 2.1 | 2.7 | 2.3 | ||||||||||||
Depreciation
and amortization
|
0.3 | 0.2 | 0.3 | 0.2 | ||||||||||||
Total
costs and expenses
|
8.9 | 7.3 | 9.3 | 7.9 | ||||||||||||
Operating
income
|
3.7 | 4.9 | 3.4 | 4.9 | ||||||||||||
Other
income:
|
||||||||||||||||
Interest
and dividend income
|
0.0 | 0.1 | 0.0 | 0.1 | ||||||||||||
Total
other income
|
0.0 | 0.1 | 0.0 | 0.1 | ||||||||||||
Income
before provision for income taxes
|
3.7 | 5.0 | 3.4 | 5.0 | ||||||||||||
Provision
for income taxes
|
1.4 | 2.0 | 1.4 | 1.9 | ||||||||||||
Net
income
|
2.3 | % | 3.0 | % | 2.0 | % | 3.1 | % |
2009
|
$ | 10,729 | ||
2010
|
19,213 | |||
2011
|
17,406 | |||
2012
|
14,410 | |||
2013
|
5,336 | |||
2014
and thereafter
|
1,892 | |||
$ | 68,986 |
2010
|
$ | 1,688 | ||
2011
|
567 | |||
2012
|
675 | |||
2013
|
598 | |||
2014
and thereafter
|
6,314 | |||
$ | 9,842 |
Total
Number of Shares Purchased
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Plan
|
Maximum
Value of Shares that May Yet Be Purchased Under the Plan(in
000’s)
|
|||||||||||||
April
|
-- | $ | -- | -- | $ | 73,598 | ||||||||||
May
|
-- | $ | -- | -- | $ | 73,598 | ||||||||||
June
|
-- | $ | -- | -- | $ | - | ||||||||||
Total
|
- | $ | - | - | $ | - |
HUB GROUP, INC. | |||
Date:
July 24, 2009
|
By:
|
/s/ Terri
A. Pizzuto
|
|
Name: Terri A. Pizzuto | |||
Title: Executive Vice President, Chief Financial Officer and | |||
Treasurer | |||
(Principal Financial Officer) |
31.1
|
Certification
of David P. Yeager, Chairman and Chief Executive Officer, Pursuant to Rule
13a-14(a) under the Securities Exchange Act of
1934.
|
31.2
|
Certification
of Terri A. Pizzuto, Executive Vice President, Chief Financial Officer and
Treasurer, Pursuant to Rule 13a-14(a) under the Securities Exchange Act of
1934.
|
32.1
|
Certification
of David P. Yeager and Terri A. Pizzuto, Chief Executive Officer and Chief
Financial Officer, respectively, Pursuant to 18 U.S.C. Section
1350.
|