• Hub Group, Inc. Reports Second Quarter 2022 Results

    来源: Nasdaq GlobeNewswire / 03 8月 2022 16:05:34   America/New_York

    Highlights:

    • Strong freight demand conditions, combined with the attractive value proposition of our service offerings, led to record quarterly revenue of $1.4 billion, up 43% as compared to last year
    • Record quarterly gross margin of $247 million (17.6% of revenue) driven by favorable pricing and yield management, combined with our continued focus on operating efficiency, resulted in operating income margin of 9.8%
    • Record quarterly diluted earnings per share (EPS) of $3.03
    • Generated net income of $103 million and EBITDA (non-GAAP)(1) of $174 million, and ended the quarter with solid liquidity and a conservative capital structure
    • Named #2 3PL on Inbound Logistics’ Top 10 3PL list for the third straight year
    • Increased 2022 outlook, with expected revenue of $5.6-$5.7 billion and diluted EPS of $10.00 - $10.50

    OAK BROOK, Ill., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ:HUBG) announced second quarter 2022 net income of $103 million, and diluted earnings per share of $3.03. Net income for second quarter 2021 was $27 million, or $0.78 per diluted share.

    “Our team continues to perform at a high level in today’s environment, delivering record revenue and profit as we support our customers with high service levels and innovative supply chain solutions. Our focus on yield improvement and operating efficiency led to record quarterly diluted EPS of $3.03, which is nearly four times the prior year’s diluted EPS. We are honored to once again be named #2 on Inbound Logistics’ Top 10 3PL list for the third consecutive year. As indicated in our revised financial outlook we expect a strong finish to 2022 but acknowledge some level of uncertainty as we look forward to 2023. We continue to remain focused on a disciplined cost and capital structure, while supporting our customers with great service and investing for growth, enabling our success in a variety of market conditions,” said Dave Yeager, Hub Group’s Chairman and Chief Executive Officer.

    Second Quarter 2022 Results

    Revenue for the second quarter of 2022 increased by 43% to $1.4 billion compared with $1.0 billion in the second quarter of 2021. Gross margin for the quarter was 17.6% of revenue, as compared with 12.3% last year. Operating income was $138 million (9.8% of revenue) versus $37 million (3.8% of revenue) in 2021. EBITDA (non-GAAP)1 for the quarter was $174 million.

    Second quarter Intermodal and Transportation Solutions (“ITS”) revenue increased 41% to $873 million. Intermodal volume increased 1% and revenue per load increased 44%. ITS gross margin increased compared to the prior year as pricing and cost recovery more than offset increased purchased transportation costs.

    Truck Brokerage revenue grew 90% in the quarter to $266 million due to the acquisition of Choptank Transport (“Choptank”) as well as revenue growth from truckload and LTL. Gross margin increased relative to second quarter 2021 due to the acquisition and higher revenue per load.

    Second quarter Logistics revenue increased 18% to $263 million due to the growth of our managed transportation, final mile and consolidation services. Gross margin increased due to growth with existing customers, new business onboardings and yield management initiatives, partially offset by higher warehousing and transportation costs.

    Costs and expenses increased to $109 million in the second quarter of 2022 due to incremental operating costs from Choptank, higher legal and outside services spend, and higher compensation expense, partially offset by higher gains on the sale of equipment as compared to prior year.

    Capital expenditures for the second quarter of 2022 totaled $55 million. At June 30, 2022, we had cash and cash equivalents of $298 million.

    2022 Outlook

    We expect our 2022 diluted earnings per share will range from $10.00 to $10.50. We estimate revenue will be $5.6-$5.7 billion, and that gross margin as a percentage of revenue will range from 15.8% to 16.0%. We estimate our costs and expenses will range from $415 to $430 million for the year. We project our effective tax rate for the year will be 24-25%. We expect capital expenditures for 2022 to range from $240 to $250 million.

    Non-GAAP Financial Measure

    In this press release, we present EBITDA, a non-GAAP financial measure of profitability defined as earnings before interest, taxes, depreciation and amortization. As required by the rules of the Securities and Exchange Commission (“SEC”), we have provided herein a reconciliation of this non-GAAP financial measure to Net Income, the most directly comparable measure under GAAP. Management believes that EBITDA provides relevant and useful information, which is used by our management as well as by many analysts, investors and competitors in our industry. By providing this non-GAAP measure, management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented. EBITDA should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and is not necessarily comparable to non-GAAP measures that may be presented by other companies.

    CONFERENCE CALL

    Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on August 3, 2022, to discuss our second quarter 2022 results.

    Hosting the conference call will be Dave Yeager, Chairman and CEO. Also participating on the call will be Phil Yeager, President and Chief Operating Officer, and Geoff DeMartino, 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://registrations.events/direct/ID60118

    For those who do not prefer to preregister, on the day of the call, dial (888) 500-3691 approximately ten minutes prior to the scheduled call time; enter the conference ID 60118. 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.

    CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. Forward-looking statements are inherently uncertain and subject to risks, uncertainties and other factors that might cause the actual performance of Hub Group, Inc. to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. All forward-looking statements and information are provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. Forward-looking statements generally may be identified by the use of forward-looking terminology such as “trends”, “assumptions”, “target”, “guidance”, “outlook”, “opportunity”, “future”, “plans”, “goals”, “objectives”, “expects”, “anticipate”, “expected”, “may”, “will”, “would”, “could”, “intend”, “believe”, “potential”, “projected”, “estimate” (or the negative or derivative of each of these terms), or similar words, and include our statements regarding our outlook, profit improvement initiatives and capital expenditures. These forward-looking statements are based on management's experience and perception of trends, current conditions, and anticipated future developments, as well as other factors believed to be appropriate. We believe these statements and the assumptions and estimates contained in this release are reasonable based on information that is currently available to us. Factors that could cause actual results to differ materially include general or regional economic conditions and health concerns; the effect of the ongoing COVID-19 pandemic, including any spikes, outbreaks or variants of the virus, as well as any future government actions taken in response to the pandemic, including on our business operations, as well as its impact on general economic and financial market conditions and on our customers, counterparties, employees and third-party service providers; our ability to sustain or the effects of plans intended to improve operational execution and performance; changes in or implementation of governmental or regulatory rules and interpretations affecting tax, wage and hour matters, health and safety, labor and employment, insurance or other undeterminable areas; intermodal costs and prices, the integration of acquisitions and expenses relating thereto; the future performance of Hub’s Intermodal and Transportation Solutions, Truck Brokerage and Logistics business lines; driver shortages; the amount and timing of strategic investments or divestitures by Hub; the failure to implement and integrate critical information technology systems; cyber security incidents; retail and other customers encountering adverse economic conditions and other factors described from time to time in Hub Group’s SEC reports, press releases and other communications. Hub Group assumes no obligation to update any such forward-looking statements.

    SOURCE:   Hub Group, Inc.                CONTACT: Maralee Volchko of Hub Group, Inc., +1-630-271-3745


    HUB GROUP, INC. 
    CONSOLIDATED STATEMENTS OF EARNINGS 
    (in thousands, except per share amounts) 
    (unaudited) 
                 
           Three Months Ended June 30, 
            2022   2021  
            % of  % of 
           AmountRevenue AmountRevenue 
    Revenue   $1,401,457 100.0% $981,320 100.0% 
                 
    Transportation costs    1,154,619 82.4%  860,759 87.7% 
     Gross margin    246,838 17.6%  120,561 12.3% 
                 
    Costs and expenses:         
     Salaries and benefits    68,041 4.9%  54,375 5.5% 
     General and administrative    30,064 2.1%  20,370 2.1% 
     Depreciation and amortization   11,097 0.8%  8,868 0.9% 
     Total costs and expenses   109,202 7.8%  83,613 8.5% 
                 
    Operating income    137,636 9.8%  36,948 3.8% 
                 
    Other income (expense):         
     Interest expense    (1,402)-0.1%  (1,859)-0.2% 
     Other, net    (194)-0.0%  (192)-0.0% 
     Total other expense, net   (1,596)-0.1%  (2,051)-0.2% 
                 
    Income before provision for income taxes   136,040 9.7%  34,897 3.6% 
                 
    Provision for income taxes    33,194 2.4%  8,305 0.8% 
                 
    Net income   $102,846   $26,592   
                 
    Earnings per share         
     Basic   $3.06   $0.80   
     Diluted   $3.03   $0.78   
                 
    Basic weighted average number of shares outstanding   33,651    33,428   
    Diluted weighted average number of shares outstanding  33,935    33,879   
                 


    HUB GROUP, INC. 
    CONSOLIDATED STATEMENTS OF EARNINGS 
    (in thousands, except per share amounts) 
    (unaudited) 
                 
           Six Months Ended June 30, 
            2022   2021  
            % of  % of 
           AmountRevenue AmountRevenue 
    Revenue   $2,699,580 100.0% $1,900,873 100.0% 
                 
    Transportation costs    2,237,725 82.9%  1,671,565 87.9% 
     Gross margin    461,855 17.1%  229,308 12.1% 
                 
    Costs and expenses:         
     Salaries and benefits    136,967 5.1%  111,326 5.9% 
     General and administrative    50,140 1.9%  39,613 2.1% 
     Depreciation and amortization   22,052 0.8%  17,370 0.9% 
     Total costs and expenses   209,159 7.7%  168,309 8.9% 
                 
    Operating income    252,696 9.4%  60,999 3.2% 
                 
    Other income (expense):         
     Interest expense    (3,100)-0.1%  (3,764)-0.2% 
     Other, net    (63)-0.0%  (284)-0.0% 
     Total other expense, net   (3,163)-0.1%  (4,048)-0.2% 
                 
    Income before provision for income taxes   249,533 9.2%  56,951 3.0% 
                 
    Provision for income taxes    59,184 2.2%  13,129 0.7% 
                 
    Net income   $190,349   $43,822   
                 
    Earnings per share         
     Basic   $5.66   $1.31   
     Diluted   $5.61   $1.30   
                 
    Basic weighted average number of shares outstanding   33,647    33,423   
    Diluted weighted average number of shares outstanding  33,950    33,827   
                 


    HUB GROUP, INC. 
    CONSOLIDATED BALANCE SHEETS 
    (in thousands, except share data) 
                
            June 30, December 31, 
             2022   2021  
            (unaudited)   
    ASSETS       
     CURRENT ASSETS:      
      Cash and cash equivalents $298,476  $159,784  
      Accounts receivable trade, net  794,785   701,512  
      Accounts receivable other  2,933   3,022  
      Prepaid taxes   4,357   2,191  
      Prepaid expenses and other current assets 18,115   27,779  
        TOTAL CURRENT ASSETS  1,118,666   894,288  
                
     Restricted investments   19,056   24,256  
     Property and equipment, net  712,571   681,451  
     Right-of-use assets - operating leases 45,997   44,036  
     Right-of-use assets - financing leases 2,230   1,252  
     Other intangibles, net   183,883   196,672  
     Goodwill, net   577,340   576,913  
     Other assets   19,502   18,426  
        TOTAL ASSETS $2,679,245  $2,437,294  
                
                
    LIABILITIES AND STOCKHOLDERS' EQUITY    
     CURRENT LIABILITIES:     
      Accounts payable trade $423,608  $424,923  
      Accounts payable other  17,192   12,493  
      Accrued payroll   54,903   56,938  
      Accrued other   109,918   82,827  
      Lease liability - operating leases  12,214   11,364  
      Lease liability - financing leases  2,036   1,251  
      Current portion of long term debt  98,774   97,273  
        TOTAL CURRENT LIABILITIES 718,645   687,069  
                
     Long term debt   188,058   177,479  
     Non-current liabilities   43,077   41,572  
     Lease liability - operating leases  36,409   34,916  
     Lease liability - financing leases  173   -  
     Deferred taxes   157,694   155,944  
                
     STOCKHOLDERS' EQUITY:     
      Preferred stock, $.01 par value; 2,000,000 shares authorized;    
       no shares issued or outstanding in 2022 and 2021 -   -  
      Common stock      
       Class A: $.01 par value; 97,337,700 shares authorized and    
        41,224,792 shares issued in 2022 and 2021; 33,980,577 shares    
        outstanding in 2022 and 33,907,734 shares outstanding in 2021 412   412  
       Class B: $.01 par value; 662,300 shares authorized;    
        662,296 shares issued and outstanding in 2022 and 2021 7   7  
      Additional paid-in capital  195,603   189,256  
      Purchase price in excess of predecessor basis, net of tax    
      benefit of $10,306   (15,458)  (15,458) 
      Retained earnings   1,614,983   1,424,634  
      Accumulated other comprehensive loss (203)  (207) 
      Treasury stock; at cost, 7,244,215 shares in 2022   -  
       and 7,317,058 shares in 2021  (260,155)  (258,330) 
       TOTAL STOCKHOLDERS' EQUITY 1,535,189   1,340,314  
        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$2,679,245  $2,437,294  
                


    HUB GROUP, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (unaudited)
              
             Six Months Ended June 30,
              2022   2021 
                
                
    Cash flows from operating activities:     
     Net income   $190,349  $43,822 
     Adjustments to reconcile net income    
      to net cash provided by operating activities:    
       Depreciation and amortization  71,922   64,033 
       Deferred taxes    3,279   4,428 
       Compensation expense related to share-based compensation plans  10,237   9,289 
       Gain on sale of assets   (12,509)  (4,033)
     Changes in operating assets and liabilities:    
       Restricted investments   5,200   48 
       Accounts receivable, net   (93,767)  (20,088)
       Prepaid taxes    (2,166)  (395)
       Prepaid expenses and other current assets  9,664   12,231 
       Other assets    (2,517)  (316)
       Accounts payable   3,380   71,314 
       Accrued expenses   23,251   (1,652)
       Non-current liabilities   (5,588)  (4,762)
       Net cash provided by operating activities  200,735   173,919 
                
    Cash flows from investing activities:     
     Proceeds from sale of equipment   18,584   19,912 
     Purchases of property and equipment  (85,942)  (26,337)
     Cash used in acquisitions   -   (90)
       Net cash used in investing activities  (67,358)  (6,515)
                
    Cash flows from financing activities:     
     Proceeds from issuance of debt   66,194   17,464 
     Repayments of long term debt   (54,114)  (57,854)
     Stock withheld for payments of withholding taxes  (5,715)  (3,973)
     Finance lease payments   (1,059)  (1,524)
       Net cash provided by (used) in financing activities  5,306   (45,887)
                
                
     Effect of exchange rate changes on cash and cash equivalents  9   (2)
                
    Net increase in cash and cash equivalents  138,692   121,515 
    Cash and cash equivalents beginning of period  159,784   124,506 
    Cash and cash equivalents end of period $298,476  $246,021 
                


    HUB GROUP, INC.
    FINANCIAL INFORMATION BY BUSINESS LINE
    (in thousands)
    (unaudited)
             
     Three Months Six Months 
     Ended June 30, Ended June 30, 
             
      2022  2021  2022  2021 
             
    Intermodal and transportation solutions$872,501 $618,880 $1,646,076 $1,194,136 
             
    Truck brokerage 265,861  139,991  561,467  267,253 
             
    Logistics 263,095  222,449  492,037  439,484 
      -  -  -  - 
    Total revenue$1,401,457 $981,320 $2,699,580 $1,900,873 
             


    RECONCILIATION OF NET INCOME TO EBITDA (1)
    (in thousands)
    (unaudited)
             
     Three Months 
     Ended June 30, 
         Change Change 
      2022  2021 $  % 
             
    Net income$102,846 $26,592 $76,254  286.8% 
             
    Interest expense 1,402  1,859  (457) -24.6% 
             
    Depreciation and amortization 36,729  31,922  4,807  15.1% 
             
    Provision for income taxes 33,194  8,305  24,889  299.7% 
             
    EBITDA$174,171 $68,678 $105,493  153.6% 
             


    RECONCILIATION OF NET INCOME TO EBITDA (1)
    (in thousands)
    (unaudited)
             
     Six Months 
     Ended June 30, 
         Change Change 
      2022  2021 $  % 
             
    Net income$190,349 $43,822 $146,527  334.4% 
             
    Interest expense 3,100  3,764  (664) -17.6% 
             
    Depreciation and amortization 71,922  64,033  7,889  12.3% 
             
    Provision for income taxes 59,184  13,129  46,055  350.8% 
             
    EBITDA$324,555 $124,748 $199,807  160.2% 
             

    (1)   See the “Non-GAAP Financial Measure” section of this release for the definition of EBITDA and a discussion of this non-GAAP financial measure.


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