• Hub Group Reports Second Quarter 2024 Results

    ソース: Nasdaq GlobeNewswire / 01 8 2024 16:03:32   America/New_York

    Highlights:

    • Diluted earnings per share (EPS) of $0.47 for the quarter
    • Second quarter revenue of $1.0 billion
    • Quarterly operating income of $40 million or 4.0% of revenue
    • Executing on Capital Allocation Plan by returning $48 million to shareholders year-to-date through dividend payments of $15 million and stock repurchases of $33 million
    • Strong balance sheet with cash and cash equivalents of $220 million and net debt/EBITDA of 0.3x (non-GAAP) as of June 30, 2024
    • Awarded Domestic Partner of the Year by Target®

    OAK BROOK, Ill., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) announced second quarter 2024 net income of $29 million and diluted earnings per share of $0.47. Net income for second quarter 2023 was $47 million or $0.72 per diluted share.

    “I am pleased with the team’s performance in the second quarter with Intermodal volume growth of 8% and the strong contribution from Final Mile, resulting in $1.0 billion of revenue. Although market conditions remain challenging, Hub Group benefitted from our disciplined market approach, recent diversification efforts, and strong balance sheet. We continue to enhance earnings stability and growth over the long term by focusing on yield management, our capital structure, and providing excellent service to our customers,” said Phil Yeager, Hub Group’s President, Chief Executive Officer and Vice Chairman.

    Second Quarter 2024 Results

    Consolidated revenue for the second quarter of 2024 was $986 million, down 5.2% from the $1,040 million reported in second quarter of 2023. Revenue was impacted by the freight market, lower revenue per load including fuel and accessorial revenue in Intermodal and Brokerage, partially offset by higher volumes in Intermodal and contributions from the Final Mile acquisition.

    Purchased transportation and warehousing costs of $727 million were $36 million lower than prior year. Salaries and benefits of $142 million were comparable to prior year as we continue to manage headcount. Total legacy headcount, which excludes acquisition employees, drivers and warehouse employees, declined by 7%. Depreciation and amortization increased $2.4 million, or 40 basis points, due to the Final Mile acquisition. Insurance and claims increased by 20 basis points due to higher claim costs. General and administrative expenses increased 20 basis points as compared to prior year driven by costs associated with the Final Mile acquisition, partially offset by cost management efforts. Gain on sale was $0.4 million in the quarter.

    Operating income for the second quarter was $40 million, or 4.0% of revenue, as compared to $62 million or 6.0% of revenue in the prior year. EBITDA (non-GAAP) was $89 million and net debt/EBITDA (non-GAAP) was 0.3x for the quarter.

    Intermodal and Transportation Solutions (“ITS”) Segment revenue was $561 million in the second quarter, down from $615 million in the prior year. Higher Intermodal volume and Dedicated revenue partially offset lower revenue per load, accessorial revenue and fuel revenue. ITS operating income was $14 million, or 2.4% of revenue, down from $32 million in the prior year.

    Second quarter Logistics Segment revenue of $459 million increased $6 million from prior year, as higher Final Mile revenue more than offset lower revenue in our Brokerage business. Second quarter operating income was $26 million, or 5.6% of revenue, a decline of $4 million from prior year as positive contribution from the acquisition only partially offset lower Brokerage margin.

    Capital expenditures for the second quarter of 2024 totaled $14 million as we continued to invest in our tractor fleet, technology, and expansion of our multipurpose warehouse footprint. As of June 30, 2024, we had cash and cash equivalents of $220 million. Year-to-date the company returned $48 million to shareholders through dividend payments of $15 million and stock repurchases of $33 million.

    2024 Outlook

    We expect our 2024 diluted earnings per share will range from $1.75 to $2.05. We estimate revenue of approximately $4.0 to $4.3 billion for the full year. We continue to project an effective tax rate of approximately 24% and capital expenditures in the range of $45 million to $65 million for the full year.

    Non-GAAP Financial Measure

    In this press release, we present certain non-GAAP financial measures. As required by the rules of the Securities and Exchange Commission (“SEC”), we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP, along with an explanation why management believes these non-GAAP financial measures provide relevant and useful information. This non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies.

    Certain Forward-Looking Statements:

    Statements in this press release that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward- looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of Hub Group to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. Further information on the risks that may affect Hub Group’s business is included in filings it makes with the SEC from time to time, including those discussed under the “Risk Factors” section in Hub Group’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Hub Group assumes no obligation to update any such forward-looking statements.

    Conference Call

    Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on August 1, 2024, to discuss our second quarter 2024 results. Hosting the conference call will be Phil Yeager, President, CEO and Vice Chairman. Also participating on the call will be Brian Alexander, Executive Vice President, Chief Operating Officer, and Kevin Beth, Executive Vice President, Chief Financial Officer and Treasurer.

    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 pre-register at https://register.vevent.com/register/BI21706b737b064d989a92b2348172f8d3 to receive the dial-in number and unique PIN. On the day of the call, dial in approximately ten minutes prior to the scheduled call time and enter the unique participant 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.

    About Hub Group

    Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers’ needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers’ supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (Nasdaq: HUBG) with over $4 billion in revenue, our nearly 6,000 employees and drivers across the globe are always in pursuit of “The Way Ahead” – a commitment to service, integrity and innovation. For more information, visit hubgroup.com.

    SOURCE: Hub Group, Inc.
    CONTACT: Lorna Williams, Investor Relations, lornawilliams@hubgroup.com

    HUB GROUP, INC.
    CONSOLIDATED STATEMENTS OF EARNINGS
    (in thousands, except per share amounts)
    (unaudited)
     
        Three Months Ended June 30,        
        2024      2023  
      Amount % of
    Revenue
     
      Amount  % of
    Revenue
     
    Operating revenue$        986,495 100.0% $   1,040,462 100.0%
    Operating expenses:         
    Purchased transportation and warehousing 727,236 73.7%  763,609 73.4%
    Salaries and benefits 141,856 14.4%  141,823 13.6%
    Depreciation and amortization 37,772 3.8%  35,386 3.4%
    Insurance and claims 12,639 1.3%  11,676 1.1%
    General and administrative 27,877 2.8%  26,757 2.6%
    Gain on sale of assets, net (413)0.0%  (859)-0.1%
    Total operating expenses 946,967 96.0%  978,392 94.0%
    Operating income 39,528 4.0%  62,070 6.0%
    Other income (expense):         
    Interest expense, net (1,881)-0.2%  (1,029)-0.1%
    Other, net (66)0.0%  69 0.0%
    Total other expense, net
     (1,947)-0.2%  (960)-0.1%
    Income before provision for income taxes 37,581 3.8%  61,110 5.9%
    Provision for income taxes 8,566 0.9%  14,605 1.4%
    Net income$29,015   $46,505  
    Earnings per share          
    Basic$0.48   $0.73  
    Diluted$        0.47   $        0.72  
    Basic weighted average number of shares outstanding 60,710    64,074  
    Diluted weighted average number of shares outstanding 61,108    64,586  


    HUB GROUP, INC.
    CONSOLIDATED STATEMENTS OF EARNINGS
    (in thousands, except per share amounts)
    (unaudited)
     
     Six Months Ended June 30,
      2024     2023   
      Amount  % of
    Revenue 
      Amount  % of
    Revenue
    Operating revenue$        1,985,988 100.0% $   2,192,727 100.0%

    Operating expenses:
             
    Purchased transportation and warehousing 1,467,408 73.9%  1,630,540 74.4%
    Salaries and benefits 286,352 14.4%  279,254 12.7%
    Depreciation and amortization 76,103 3.8%  70,835 3.2%
    Insurance and claims 25,257 1.3%  24,359 1.1%
    General and administrative 55,111 2.8%  52,298 2.4%
    Gain on sale of assets, net (910)-0.1%  (4,834)-0.2%
    Total operating expenses 1,909,321 96.1%  2,052,452 93.6%

    Operating income
     
    76,667
     
    3.9%
      
    140,275
     
    6.4%
    Other income (expense):          
    Interest expense, net (4,387)-0.2%  (2,623)-0.1%
    Other, net (236)0.0%  108 0.0%
    Total other expense, net (4,623)-0.2%  (2,515)-0.1%

    Income before provision for income taxes
     
    72,044
     
    3.7%
      
    137,760
     
    6.3%

    Provision for income taxes
     
    15,976
     
    0.8%
      
    29,475
     
    1.3%

    Net income

    $

    56,068
       
    $

    108,285
      

    Earnings per share
             
    Basic$0.92   $1.68  
    Diluted$        0.91   $        1.66  
    Basic weighted average number of shares outstanding 61,018    64,586  
    Diluted weighted average number of shares outstanding 61,387    65,132  

     

    HUB GROUP, INC.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except share data)
     
      June 30,   December 31, 
      2024   2023 
      (unaudited)     
    ASSETS       
    CURRENT ASSETS:

           
    Cash and cash equivalents$220,247  $187,270 
    Accounts receivable trade, net 583,759   600,197 
    Accounts receivable other 3,771   3,358 
    Prepaid taxes 12,791   17,331 
    Prepaid expenses and other current assets 16,139   41,089 
    TOTAL CURRENT ASSETS 836,707   849,245 

    Restricted investments
     
    21,044
       
    20,763
    Property and equipment, net 759,779   791,692
    Right-of-use assets - operating leases 196,465   210,742
    Right-of-use assets - financing leases 1,538   2,522
    Other intangibles, net 248,391   304,607
    Goodwill 771,894   733,695
    Other non-current assets 22,885   22,781
    TOTAL ASSETS$        2,858,703  $        2,936,047


    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES: 
    Accounts payable trade$325,569  $349,378 
    Accounts payable other 24,143   14,471 
    Accrued payroll 29,429   21,731 
    Accrued other 111,874   121,253 
    Lease liability - operating leases 40,142   44,690 
    Lease liability - financing leases 805   1,579 
    Current portion of long-term debt 103,192   105,108 
    TOTAL CURRENT LIABILITIES

     635,154   658,210 
    Long-term debt 209,875   245,574 
    Other non-current liabilities 53,213   55,287 
    Lease liability - operating leases 163,669   177,699 
    Lease liability - financing leases 664   865 
    Deferred taxes 154,998   163,767 

    STOCKHOLDERS' EQUITY:
         
    Preferred stock, $.01 par value; 2,000,000 shares authorized;  
    no shares issued or outstanding in 2024 and 2023. - - 
    Common stock  
    Class A: $.01 par value; 97,337,700 shares authorized; 72,303,228  
    shares issued in 2024 and 75,524,189 shares issued in 2023;  
    61,653,003 shares outstanding in 2024 and 62,200,921 shares outstanding in 2023. 723 755 
    Class B: $.01 par value; 662,300 shares authorized;  
    574,903 shares issued and outstanding in both 2024 and 2023. 6   6 
    Additional paid-in capital 211,346   209,830 
    Retained earnings 1,989,600   1,949,110 
    Accumulated other comprehensive loss (200)  (129)
    Treasury stock; at cost, 10,650,225 shares in 2024   
    and 13,323,268 shares in 2023 (560,345)  (524,927)
    TOTAL STOCKHOLDERS' EQUITY 1,641,130   1,634,645 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$        2,858,703  $        2,936,047 


    HUB GROUP, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (unaudited)
     
      Six Months Ended June 30,
      2024   2023 
    Cash flows from operating activities:       
    Net income$56,068  $108,285 
    Adjustments to reconcile net income       
    to net cash provided by operating activities:       
    Depreciation and amortization of intangibles and right-of-use assets 99,100   91,474 
    Impairment of right-of-use asset -   2,012 
    Deferred taxes (9,249)  10,837 
    Non-cash share-based compensation expense 9,433   10,615 
    Gain on sale of assets, net (910)  (4,834)
    Changes in operating assets and liabilities, net of acquisitions:       
    Restricted investments (281)  (2,197)
    Accounts receivable, net 15,784   103,270 
    Prepaid taxes 4,537   1,729 
    Prepaid expenses and other current assets 19,697   17,469 
    Other non-current assets (1,503)  (1,899)
    Accounts payable (14,270)  (55,085)
    Accrued expenses (6,542)  (47,700)
    Non-current liabilities (21,399)  (12,595)
    Net cash provided by operating activities 150,465   221,381 

    Cash flows from investing activities: Proceeds from sale of equipment
     
    5,750
       
    15,135
     
    Purchases of property and equipment (31,255)  (65,635)
    Acquisitions, net of cash acquired 3,701   108 
    Net cash used in investing activities (21,804)  (50,392)

    Cash flows from financing activities: Repayments of long term debt
     
    (53,233

    )
      
    (56,191

    )
    Purchase of treasury stock (32,938)  (100,026)
    Dividends paid (15,230)  - 
    Stock withheld for payments of withholding taxes (8,664)  (7,818)
    Finance lease payments (1,217)  (1,501)
    Proceeds from issuance of debt 15,618   50,289 
    Net cash used in financing activities (95,664)  (115,247)

    Effect of exchange rate changes on cash and cash equivalents
     
    (20

    )
      
    45
     


    Net increase in cash and cash equivalents
     

    32,977
       

    55,787
     
    Cash and cash equivalents beginning of period 187,270   286,642 
    Cash and cash equivalents end of period$220,247  $342,429 


    HUB GROUP, INC.
    FINANCIAL INFORMATION BY SEGMENT
    (in thousands)
    (unaudited)
     
     Three Months
    Ended June 30,
    Operating Revenue 2024   2023 
    Intermodal and Transportation Services$        561,033  $        614,632 
    Logistics 459,088   453,549 
    Inter-segment eliminations (33,626)  (27,719)
    Total operating revenue$        986,495  $   1,040,462 


     Three Months
    Ended June 30,
    Operating Income 2024   2023 
    Intermodal and Transportation Services$13,639  $31,777 
    Logistics 25,889   30,293 
    Totaloperatingincome$39,528  $62,070 


     Three Months
    Ended June 30,
    Depreciation and Amortization 2024   2023 
    Intermodal and Transportation Services$27,270  $27,117 
    Logistics 10,502   8,269 
    Total depreciation and amortization$37,772  $35,386 


    HUB GROUP, INC.
    FINANCIAL INFORMATION BY SEGMENT
    (in thousands)
    (unaudited)
     
     Six Months
    Ended June 30,
    Operating Revenue2024 2023
    Intermodal and Transportation Services$1,113,066  $1,323,881 
    Logistics 939,312   922,690 
    Inter-segment eliminations (66,390)  (53,844)
    Total operating revenue$1,985,988  $2,192,727 


     Six Months
    Ended June 30,
    Operating Income 2024   2023 
    Intermodal and Transportation Services$26,670  $80,981 
    Logistics 49,997   59,294 
    Total operating income$76,667  $140,275 


     Six Months
    Ended June 30,
    Depreciation and Amortization 2024   2023 
    Intermodal and Transportation Services$        54,319  $        54,003 
    Logistics 21,784   16,832 
    Total depreciation and amortization$        76,103  $        70,835 


    RECONCILIATION OF NET INCOME TO EBITDA (1) AND NET DEBT / EBITDA LEVERAGE
    (in thousands)
    (unaudited)
                  
     2024 2024   2023  2023 2023 2023
     Q1 Q2   Q1 Q2 Q3 Q4
                  
    Net Income$27,053 $29,015   $61,780 $46,505 $30,459 $28,785
    Interest Expense, net 2,506  1,881    1,594  1,029  699  103
    Depreciation and Amortization (2) 49,605  49,495    45,810  45,664  45,301  47,674
    Provision for Income Taxes 7,410  8,566    14,870  14,605  11,209  992
    EBITDA$86,574 $88,957   $124,054 $107,803 $87,668 $77,554
                  
    EBITDA LTM (3)$359,599 $340,753          
    Net Debt (4)$141,524 $94,289          
    Net Debt / EBITDA LTM 0.4  0.3          


    (1) By providing this non-GAAP measure of EBITDA and Net Debt / EBITDA Leverage, management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented.
    (2) Includes depreciation of property and equipment, amortization of intangible assets and amortization of right-of-use assets.
    (3) Last twelve months
    (4) Total debt (including finance leases) less cash and cash equivalents

    Primary Logo

シェアする