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| 8-K - HUB GROUP 4TH QTR 8K 2011 - Hub Group, Inc. | hg8k2011q4.htm |
EX EX. 99.1
Hub Group, Inc. Reports Fourth Quarter Earnings per Share of $0.48 Excluding One-Time Costs
DOWNERS GROVE, IL, January 26, 2012, -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter and year ended December 31, 2011.
Hub Group reported income of $17.0 million for the fourth quarter ended December 31, 2011, an increase of 36% compared to the fourth quarter of 2010. Hub Group’s diluted earnings per share was $0.46 for the fourth quarter of 2011, which represents an increase of 35% when compared with the prior year period. Hub Group’s pre-tax income includes integration and restructuring costs of $1.0 million. Excluding the effects of these items, non-GAAP earnings per share was $0.48 for the quarter (see table below). Non-GAAP earnings per share increased 41% when compared with the prior year period. Hub Group’s revenue increased 59% to $763 million.
The Hub segment’s revenue increased 20% to $577 million. Fourth quarter intermodal revenue increased 23% to $419 million. The increase was attributable to a 16% volume increase and a 7% increase for fuel, price and mix. Truck brokerage revenue increased 3% to $82 million this quarter. Fourth quarter Unyson Logistics revenue increased 27% to $76 million. Hub’s operating income increased $4.5 million to $23.7 million, which represents an increase of 23% when compared with the prior year period. The Hub results include approximately $500,000 of restructuring costs.
The Mode segment’s revenue was $195 million for the fourth quarter. Operating income was $3.4 million. The Mode results include approximately $500,000 of costs related to integration.
FULL YEAR 2011
Income for the year ended December 31, 2011 was $58 million. Hub Group's diluted earnings per share for 2011 was $1.57. Full year 2011 pre-tax income includes integration and restructuring costs of $4.6 million. Excluding the effects of these items, non-GAAP earnings per share was $1.65 for the year (see table below). Full year non-GAAP earnings per share increased 42% when compared with the prior year. Hub Group’s revenue increased 50% to $2.8 billion.
Hub Group ended the year with $49 million in cash.
“Despite the uncertain economic environment, Hub Group closed out 2011 with another quarter of strong operating results," said David P. Yeager, Chairman and Chief Executive Officer of Hub Group.
CONFERENCE CALL
Hub will hold a conference call at 5:00 p.m. Eastern Time on Thursday, January 26, 2011 to discuss its fourth quarter and full year results and provide 2012 guidance.
Hosting the conference call will be David P. Yeager, Chairman and Chief Executive Officer, and Terri A. Pizzuto, 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 . 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) 679-8018. The conference call participant code is 44109733. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PX3PNJTNA. Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference, bypassing the operator. 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, Inc. is a leading asset-light freight transportation management company providing comprehensive intermodal, truck brokerage and logistics services. The Company operates through a network of offices and independent agents 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, 2010 and the reports on Form 10-Q for the periods ended March 31, 2011, June 30, 2011 and September 30, 2011. 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 CONSOLIDATED STATEMENTS OF INCOME
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(in thousands, except per share amounts)
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Three Months
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Twelve Months
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Ended December 31,
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Ended December 31,
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2011
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2010
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2011
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2010
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Revenue
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$ | 762,775 | $ | 479,913 | $ | 2,751,534 | $ | 1,833,737 | ||||||||
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Transportation costs
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678,964 | 423,271 | 2,438,986 | 1,620,304 | ||||||||||||
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Gross margin
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83,811 | 56,642 | 312,548 | 213,433 | ||||||||||||
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Costs and expenses:
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Salaries and benefits
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29,522 | 26,270 | 121,044 | 99,138 | ||||||||||||
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Agent fees and commissions
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13,091 | 635 | 41,491 | 2,410 | ||||||||||||
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General and administrative
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12,425 | 9,572 | 49,951 | 38,211 | ||||||||||||
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Depreciation and amortization
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1,635 | 947 | 5,603 | 3,792 | ||||||||||||
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Total costs and expenses
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56,673 | 37,424 | 218,089 | 143,551 | ||||||||||||
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Operating income
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27,138 | 19,218 | 94,459 | 69,882 | ||||||||||||
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Other income (expense):
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Interest expense
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(319 | ) | (16 | ) | (638 | ) | (54 | ) | ||||||||
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Interest and dividend income
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30 | 36 | 118 | 119 | ||||||||||||
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Other, net
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42 | 62 | 328 | 146 | ||||||||||||
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Total other (expense) income
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(247 | ) | 82 | (162 | ) | 211 | ||||||||||
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Income before provision for income taxes
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26,891 | 19,300 | 94,297 | 70,093 | ||||||||||||
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Provision for income taxes
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9,877 | 6,791 | 36,119 | 26,635 | ||||||||||||
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Net income
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$ | 17,014 | $ | 12,509 | $ | 58,178 | $ | 43,458 | ||||||||
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Basic earnings per common share
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$ | 0.46 | $ | 0.34 | $ | 1.58 | $ | 1.17 | ||||||||
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Diluted earnings per common share
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$ | 0.46 | $ | 0.34 | $ | 1.57 | $ | 1.16 | ||||||||
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Basic weighted average number of shares outstanding
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36,943 | 36,817 | 36,913 | 37,223 | ||||||||||||
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Diluted weighted average number of shares outstanding
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37,104 | 37,027 | 37,063 | 37,385 | ||||||||||||
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HUB GROUP, INC.
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UNAUDITED NON-GAAP TO GAAP RECONCILIATION
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(earnings per share)
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Three Months
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Twelve Months
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Ended, Dec. 31, 2011
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Ended, Dec. 31, 2011
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Change
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Change
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Change
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Change
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2011
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2010
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$ | % | 2011 | 2010 | $ | % | |||||||||||||||||||||||||
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Diluted GAAP EPS
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$ | 0.46 | $ | 0.34 | $ | 0.12 | 35.3 | % | $ | 1.57 | $ | 1.16 | $ | 0.41 | 35.3 | % | ||||||||||||||||
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Integration expenses and
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restructuring costs
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$ | 0.02 | $ | - | $ | 0.02 | $ | 0.08 | $ | - | $ | 0.08 | ||||||||||||||||||||
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Diluted NON-GAAP EPS (adjusted)
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$ | 0.48 | $ | 0.34 | $ | 0.14 | 41.2 | % | $ | 1.65 | $ | 1.16 | $ | 0.49 | 42.2 | % | ||||||||||||||||
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Diluted Shares
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37,104 | 37,027 | 37,063 | 37,385 | ||||||||||||||||||||||||||||
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In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance. This table and Hub’s internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.
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| HUB GROUP, INC. | ||||||||||||||||
| UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||
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Three Months
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Ended December 31, 2011
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Inter-
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Hub
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Segment
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Group
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Hub
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Mode
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Elims
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Consolidated
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Revenue
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$ | 577,306 | $ | 195,242 | $ | (9,773 | ) | $ | 762,775 | |||||||
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Transportation costs
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516,157 | 172,580 | (9,773 | ) | 678,964 | |||||||||||
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Gross margin
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61,149 | 22,662 | - | 83,811 | ||||||||||||
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Costs and expenses:
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Salaries and benefits
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25,582 | 3,940 | - | 29,522 | ||||||||||||
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Agent fees and commissions
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722 | 12,369 | - | 13,091 | ||||||||||||
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General and administrative
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10,055 | 2,370 | - | 12,425 | ||||||||||||
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Depreciation and amortization
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1,085 | 550 | - | 1,635 | ||||||||||||
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Total costs and expenses
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37,444 | 19,229 | - | 56,673 | ||||||||||||
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Operating income
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$ | 23,705 | $ | 3,433 | $ | - | $ | 27,138 | ||||||||
| HUB GROUP, INC. | ||||||||||||||||
| UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||
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Twelve Months
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Ended December 31, 2011
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Inter-
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Hub
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Segment
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Group
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Hub
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Mode
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Elims
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Consolidated
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Revenue
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$ | 2,183,914 | $ | 586,251 | $ | (18,631 | ) | $ | 2,751,534 | |||||||
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Transportation costs
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1,939,263 | 518,354 | (18,631 | ) | 2,438,986 | |||||||||||
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Gross margin
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244,651 | 67,897 | - | 312,548 | ||||||||||||
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Costs and expenses:
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Salaries and benefits
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107,378 | 13,666 | - | 121,044 | ||||||||||||
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Agent fees and commissions
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2,771 | 38,720 | - | 41,491 | ||||||||||||
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General and administrative
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42,523 | 7,428 | - | 49,951 | ||||||||||||
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Depreciation and amortization
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3,975 | 1,628 | - | 5,603 | ||||||||||||
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Total costs and expenses
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156,647 | 61,442 | - | 218,089 | ||||||||||||
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Operating income
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$ | 88,004 | $ | 6,455 | $ | - | $ | 94,459 | ||||||||
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HUB GROUP, INC.
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UNAUDITED CONSOLIDATED BALANCE SHEETS
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(in thousands, except share amounts)
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December 31,
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2011
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2010
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 49,091 | $ | 115,144 | ||||
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Accounts receivable trade, net
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326,537 | 185,879 | ||||||
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Accounts receivable other
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23,878 | 17,958 | ||||||
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Prepaid taxes
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2,392 | 296 | ||||||
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Deferred taxes
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4,838 | 3,314 | ||||||
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Prepaid expenses and other current assets
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9,056 | 6,569 | ||||||
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TOTAL CURRENT ASSETS
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415,792 | 329,160 | ||||||
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Restricted investments
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14,323 | 11,421 | ||||||
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Property and equipment, net
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124,587 | 47,806 | ||||||
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Other intangibles, net
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21,667 | 5,856 | ||||||
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Goodwill, net
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263,470 | 233,029 | ||||||
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Other assets
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2,845 | 2,135 | ||||||
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TOTAL ASSETS
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$ | 842,684 | $ | 629,407 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Accounts payable trade
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$ | 204,693 | $ | 121,078 | ||||
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Accounts payable other
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17,289 | 10,064 | ||||||
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Accrued payroll
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16,721 | 14,378 | ||||||
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Accrued other
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29,962 | 21,898 | ||||||
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Current portion of capital lease
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2,237 | - | ||||||
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TOTAL CURRENT LIABILITIES
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270,902 | 167,418 | ||||||
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Non-current liabilities
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17,717 | 13,950 | ||||||
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Deferred taxes
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91,764 | 71,739 | ||||||
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Non-current portion of capital lease
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23,436 | - | ||||||
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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 2011 and 2010
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- | - | ||||||
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Common stock
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Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2011 and 2010; 36,860,260 shares outstanding in 2011 and 36,638,359 shares outstanding in 2010
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412 | 412 | ||||||
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Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2011 and 2010
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7 | 7 | ||||||
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Additional paid-in capital
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168,800 | 169,722 | ||||||
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Purchase price in excess of predecessor basis, net of tax benefit of $10,306
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(15,458 | ) | (15,458 | ) | ||||
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Retained earnings
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401,188 | 343,010 | ||||||
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Other comprehensive income
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4 | 6 | ||||||
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Treasury stock; at cost, 4,364,532 shares in 2011 and 4,586,433 shares in 2010
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(116,088 | ) | (121,399 | ) | ||||
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TOTAL STOCKHOLDERS' EQUITY
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438,865 | 376,300 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 842,684 | $ | 629,407 | ||||
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HUB GROUP, INC.
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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
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(in thousands)
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| Twelve Months Ended | ||||||||
| December 31, | ||||||||
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2011
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2010
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Cash flows from operating activities:
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Net income
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$ | 58,178 | $ | 43,458 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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16,340 | 8,572 | ||||||
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Deferred taxes
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18,821 | 9,545 | ||||||
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Compensation expense related to share-based compensation plans
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4,788 | 3,576 | ||||||
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(Gain) loss on sale of assets
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(17 | ) | 85 | |||||
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Changes in operating assets and liabilities, net of effects of acquisition:
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Restricted investments
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(724 | ) | (1,838 | ) | ||||
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Accounts receivable, net
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(45,047 | ) | (46,582 | ) | ||||
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Prepaid taxes
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(2,097 | ) | 298 | |||||
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Prepaid expenses and other current assets
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(1,728 | ) | 233 | |||||
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Other assets
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(33 | ) | 298 | |||||
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Accounts payable
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23,095 | 12,822 | ||||||
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Accrued expenses
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2,989 | 5,277 | ||||||
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Non-current liabilities
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301 | 1,910 | ||||||
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Net cash provided by operating activities
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74,866 | 37,654 | ||||||
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Cash flows from investing activities:
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Proceeds from sale of equipment
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410 | 988 | ||||||
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Purchases of property and equipment
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(55,010 | ) | (25,616 | ) | ||||
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Cash used in acquisitions, net of cash acquired
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(85,182 | ) | (170 | ) | ||||
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Net cash used in investing activities
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(139,782 | ) | (24,798 | ) | ||||
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Cash flows from financing activities:
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Proceeds from stock options exercised
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86 | 46 | ||||||
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Purchase of treasury stock
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(1,523 | ) | (25,070 | ) | ||||
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Capital lease payments
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(729 | ) | - | |||||
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Excess tax benefits from share-based compensation
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1,034 | 434 | ||||||
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Net cash used in financing activities
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(1,132 | ) | (24,590 | ) | ||||
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Effect of exchange rate changes on cash and cash equivalents
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(5 | ) | 15 | |||||
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Net decrease in cash and cash equivalents
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(66,053 | ) | (11,719 | ) | ||||
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Cash and cash equivalents beginning of period
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115,144 | 126,863 | ||||||
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Cash and cash equivalents end of period
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$ | 49,091 | $ | 115,144 | ||||