Highlights:
- Completed 2:1 stock split; Q4 Diluted earnings per share (EPS) presented post-split of $0.46 and $2.62 for the full year
- Adjusting for acquisition related expenses of $5.1 million, Q4 adjusted EPS (non-GAAP) of $0.54 and $2.68 for full year
- Full year revenue of $4.2 billion; Fourth quarter revenue of $1.0 billion
- GAAP Quarterly operating income of $29 million (3.0% of revenue)
- Significantly increased our Final Mile business heading into 2024 through the acquisition of Forward Air Final Mile (“FAFM”)
- Executing on Capital Allocation Plan including $26 million of shares purchased during the quarter
- Introduced 2024 outlook with expected revenue of $4.6 billion to $5.0 billion and diluted EPS of $2.00 to $2.50
OAK BROOK, Ill., Feb. 01, 2024 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ:HUBG) announced fourth quarter 2023 net income of $29 million, and diluted earnings per share of $0.46. Net income for fourth quarter 2022 was $79 million, or $1.21 per diluted share. Fourth quarter results were impacted by acquisition related expenses of $5.1 million (pre-tax) ($0.08 per share tax effected) related to the purchase of FAFM in December. Full year 2023 net income was $168 million, or $2.62 per diluted share.
“I am very proud of the way the organization supported our customers while delivering our second-best financial performance in the company’s history during a very challenging year. We continue to implement key strategic priorities that position us to grow for the long term, while keeping a significant focus on managing our cost structure. At the end of 2023, we continued to execute on our growth focused capital allocation plan acquiring Forward Air Final Mile, which adds new capabilities in appliance delivery and installation, while continuing to drive diversification into non-asset based logistics services, while also purchasing $26 million of our stock. We are excited to continue the momentum and deliver for our customers and shareholders in 2024,” said Phil Yeager, Hub Group’s President and Chief Executive Officer.
Fourth Quarter and Full Year 2023 Results
Consolidated revenue for the fourth quarter of 2023 was $1.0 billion as compared to $1.3 billion in fourth quarter 2022. Full year 2023 revenue was $4.2 billion, down 21% compared to 2022 revenue of $5.3 billion. The decline in quarterly revenue was driven by changes in customer rates and volumes in our ITS and Logistics Segments. Purchased transportation and warehousing costs declined as compared to prior year due to lower volumes, reductions in third-party carrier costs and a higher percentage of insourced drayage. Salaries and benefits costs decreased relative to the prior year due to a $16 million reduction in office employee compensation due to lower headcount and lower incentive compensation expense, partially offset by $3 million of incremental expense for our drivers as increased productivity led to more insourced drayage. General and administrative expenses increased $2 million as compared to the prior year, driven by the acquisition related expenses of $5 million to purchase FAFM, partially offset by lower legal claim reserves and improved cost management. Depreciation and amortization expense increased as compared to prior year due to investments in our container and tractor fleets as well as acquisitions. Operating income for the quarter was $29 million (3% of revenue) as compared to $104 million (8% of revenue) in the prior year. EBITDA (non-GAAP) for the quarter was $78 million.
Fourth quarter Intermodal and Transportation Solutions (“ITS”) Segment revenue was $576 million, while full year revenue was $2.5 billion. Intermodal volume for the quarter decreased 11.6% as compared to prior year due to continued low transportation demand and an oversupply of truckload carrier capacity. Intermodal revenue declined due to lower volume, lower customer rates and lower accessorial revenue, but was offset by the resilience of our dedicated service line. ITS operating income decreased to $12 million (2.1% of revenue) due to lower customer rates, volume and accessorials. These headwinds were partially offset by lower drayage costs, rail expenses and equipment costs. In fourth quarter 2023 we increased the portion of drayage handled on our own fleet to 80% as compared to 65% in the prior year.
Fourth quarter Logistics Segment revenue was $438 million, as compared to $507 million in the prior year. Full year revenue for the Logistics Segment was $1.8 billion. The decline in quarterly revenue compared to prior year was due to lower revenue in all service lines driven by 3.8% lower volumes and rates in our more transactional brokerage services as well as higher inventories and lower demand in our contractual service lines. Fourth quarter operating income was 3.9% of revenue as compared to 5.7% last year. Operating income was $17 million as compared to $29 million last year, as lower revenue was partially offset by lower purchased transportation costs and our yield management initiatives.
Capital expenditures for the fourth quarter of 2023 totaled $34 million as we continued to invest in our tractor and trailer fleet as well as expanding our multipurpose warehouse footprint. As of December 31, 2023, we had cash and cash equivalents of $187 million following the $261 million spend for the FAFM acquisition completed in December.
2024 Outlook
We expect our 2024 diluted earnings per share will range from $2.00 to $2.50. We estimate revenue will be approximately $4.6 to $5.0 billion. We project our effective tax rate for the year will be approximately 24%. We expect capital expenditures for containers, tractors, warehousing equipment and technology will range from $55 million to $75 million.
Non-GAAP Financial Measures
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. These 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.
CONFERENCE CALL
Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on February 1, 2024 to discuss our fourth quarter 2023 results.
Hosting the conference call will be Phil Yeager, President and CEO. Also participating on the call will be Brian Alexander, 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/BIeeaae6d02102421ea6f53479bff39a89 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.
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.
SOURCE: Hub Group, Inc.
CONTACT: Laura Simek of Hub Group, Inc., +1-630-271-3833
| HUB GROUP, INC. |
|
| CONSOLIDATED STATEMENTS OF EARNINGS |
|
| (in thousands, except per share amounts) |
|
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
% of |
|
|
% of |
|
|
|
|
|
|
|
|
Amount |
Revenue |
|
Amount |
Revenue |
|
| Operating revenue |
|
|
|
$ |
985,023 |
|
100.0% |
|
|
$ |
1,285,503 |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased transportation and warehousing |
|
|
|
742,405 |
|
75.4% |
|
|
|
955,204 |
|
74.3% |
|
|
|
Salaries and benefits |
|
|
|
|
135,569 |
|
13.7% |
|
|
|
147,106 |
|
11.4% |
|
|
|
Depreciation and amortization |
|
|
|
36,624 |
|
3.7% |
|
|
|
34,714 |
|
2.7% |
|
|
|
Insurance and claims |
|
|
|
|
12,999 |
|
1.3% |
|
|
|
20,511 |
|
1.6% |
|
|
|
General and administrative |
|
|
|
|
29,260 |
|
3.0% |
|
|
|
26,760 |
|
2.1% |
|
|
|
Gain on sale of assets, net |
|
|
|
|
(1,236 |
) |
-0.1% |
|
|
|
(3,079 |
) |
-0.2% |
|
|
| Total operating expenses |
|
|
|
|
955,621 |
|
97.0% |
|
|
|
1,181,216 |
|
91.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
|
|
29,402 |
|
3.0% |
|
|
|
104,287 |
|
8.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
(3,812 |
) |
-0.4% |
|
|
|
(2,206 |
) |
-0.2% |
|
|
|
Interest income |
|
|
|
|
3,709 |
|
0.4% |
|
|
|
825 |
|
0.1% |
|
|
|
Other, net |
|
|
|
|
478 |
|
0.0% |
|
|
|
315 |
|
0.0% |
|
|
| Total other income (expense), net |
|
|
|
375 |
|
0.0% |
|
|
|
(1,066 |
) |
-0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before provision for income taxes |
|
|
|
29,777 |
|
3.0% |
|
|
|
103,221 |
|
8.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for income taxes |
|
|
|
|
992 |
|
0.1% |
|
|
|
23,947 |
|
1.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
$ |
28,785 |
|
|
|
$ |
79,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
0.47 |
|
|
|
$ |
1.22 |
|
|
|
|
Diluted |
|
|
|
$ |
0.46 |
|
|
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic weighted average number of shares outstanding |
|
|
|
61,850 |
|
|
|
|
64,794 |
|
|
|
| Diluted weighted average number of shares outstanding |
|
|
|
62,562 |
|
|
|
|
65,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HUB GROUP, INC. |
|
| CONSOLIDATED STATEMENTS OF EARNINGS |
|
| (in thousands, except per share amounts) |
|
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
% of |
|
|
% of |
|
|
|
|
|
|
|
|
Amount |
Revenue |
|
Amount |
Revenue |
|
| Operating revenue |
|
|
|
$ |
4,202,585 |
|
100.0% |
|
|
$ |
5,340,490 |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Purchased transportation and warehousing |
|
|
|
3,145,595 |
|
74.8% |
|
|
|
4,036,503 |
|
75.6% |
|
|
|
Salaries and benefits |
|
|
|
|
553,326 |
|
13.2% |
|
|
|
543,010 |
|
10.2% |
|
|
|
Depreciation and amortization |
|
|
|
143,523 |
|
3.4% |
|
|
|
131,789 |
|
2.5% |
|
|
|
Insurance and claims |
|
|
|
|
49,040 |
|
1.2% |
|
|
|
58,064 |
|
1.1% |
|
|
|
General and administrative |
|
|
|
|
105,705 |
|
2.5% |
|
|
|
120,579 |
|
2.2% |
|
|
|
Gain on sale of assets, net |
|
|
|
|
(6,835 |
) |
-0.2% |
|
|
|
(24,176 |
) |
-0.5% |
|
|
| Total operating expenses |
|
|
|
|
3,990,354 |
|
94.9% |
|
|
|
4,865,769 |
|
91.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
|
|
212,231 |
|
5.1% |
|
|
|
474,721 |
|
8.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
|
(13,435 |
) |
-0.3% |
|
|
|
(7,506 |
) |
-0.1% |
|
|
|
Interest income |
|
|
|
|
10,011 |
|
0.2% |
|
|
|
874 |
|
0.0% |
|
|
|
Other, net |
|
|
|
|
397 |
|
0.0% |
|
|
|
(131 |
) |
-0.0% |
|
|
| Total other expense, net |
|
|
|
|
(3,027 |
) |
-0.1% |
|
|
|
(6,763 |
) |
-0.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before provision for income taxes |
|
|
|
209,204 |
|
5.0% |
|
|
|
467,958 |
|
8.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for income taxes |
|
|
|
|
41,676 |
|
1.0% |
|
|
|
111,010 |
|
2.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
|
$ |
167,528 |
|
|
|
$ |
356,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
$ |
2.65 |
|
|
|
$ |
5.37 |
|
|
|
|
Diluted |
|
|
|
$ |
2.62 |
|
|
|
$ |
5.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic weighted average number of shares outstanding |
|
|
|
63,324 |
|
|
|
|
66,418 |
|
|
|
| Diluted weighted average number of shares outstanding |
|
|
|
63,954 |
|
|
|
|
67,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HUB GROUP, INC. |
|
| CONSOLIDATED BALANCE SHEETS |
|
| (in thousands, except share data) |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
187,270 |
|
|
$ |
286,642 |
|
|
|
|
Accounts receivable trade, net |
|
|
600,197 |
|
|
|
716,190 |
|
|
|
|
Accounts receivable other |
|
|
3,358 |
|
|
|
3,967 |
|
|
|
|
Prepaid taxes |
|
|
|
17,331 |
|
|
|
16,987 |
|
|
|
|
Prepaid expenses and other current assets |
|
41,089 |
|
|
|
32,914 |
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
849,245 |
|
|
|
1,056,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted investments |
|
|
|
20,763 |
|
|
|
18,065 |
|
|
|
Property and equipment, net |
|
|
791,692 |
|
|
|
783,683 |
|
|
|
Right-of-use assets - operating leases |
|
|
210,742 |
|
|
|
102,114 |
|
|
|
Right-of-use assets - financing leases |
|
|
2,522 |
|
|
|
1,194 |
|
|
|
Other intangibles, net |
|
|
|
304,607 |
|
|
|
197,386 |
|
|
|
Goodwill |
|
|
|
|
733,695 |
|
|
|
629,402 |
|
|
|
Other assets |
|
|
|
22,781 |
|
|
|
21,537 |
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
2,936,047 |
|
|
$ |
2,810,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
Accounts payable trade |
|
$ |
349,378 |
|
|
$ |
344,751 |
|
|
|
|
Accounts payable other |
|
|
14,471 |
|
|
|
15,563 |
|
|
|
|
Accrued payroll |
|
|
|
21,731 |
|
|
|
66,669 |
|
|
|
|
Accrued other |
|
|
|
121,253 |
|
|
|
132,324 |
|
|
|
|
Lease liability - operating leases |
|
|
44,690 |
|
|
|
29,547 |
|
|
|
|
Lease liability - financing leases |
|
|
1,579 |
|
|
|
1,175 |
|
|
|
|
Current portion of long term debt |
|
|
105,108 |
|
|
|
101,741 |
|
|
|
|
|
|
TOTAL CURRENT LIABILITIES |
|
658,210 |
|
|
|
691,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term debt |
|
|
|
245,574 |
|
|
|
240,724 |
|
|
|
Non-current liabilities |
|
|
|
55,287 |
|
|
|
43,505 |
|
|
|
Lease liability - operating leases |
|
|
177,699 |
|
|
|
78,557 |
|
|
|
Lease liability - financing leases |
|
|
865 |
|
|
|
- |
|
|
|
Deferred taxes |
|
|
|
163,767 |
|
|
|
155,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
|
Preferred stock, $.01 par value; 2,000,000 shares authorized; |
|
|
|
|
|
|
|
no shares issued or outstanding in 2023 and 2022. |
|
- |
|
|
|
- |
|
|
|
|
Common stock |
|
|
|
|
|
|
|
|
|
Class A: $.01 par value; 97,337,700 shares authorized; 75,524,189 |
|
|
|
|
|
|
|
|
shares issued in both 2023 and 2022; 62,200,921 |
|
|
|
|
|
|
|
|
shares outstanding in 2023 and 65,868,145 shares outstanding in 2022. |
|
755
|
|
|
|
755 |
|
|
|
|
|
Class B: $.01 par value; 662,300 shares authorized; |
|
|
|
|
|
|
|
|
574,903 shares issued and outstanding in both 2023 and 2022. |
|
6 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
225,288 |
|
|
|
207,823 |
|
|
|
|
Purchase price in excess of predecessor basis, net of tax |
|
|
|
|
|
|
benefit of $10,306 |
|
|
|
(15,458 |
) |
|
|
(15,458 |
) |
|
|
|
Retained earnings |
|
|
|
1,949,110 |
|
|
|
1,781,582 |
|
|
|
|
Accumulated other comprehensive loss |
|
(129 |
) |
|
|
(214 |
) |
|
|
|
Treasury stock; at cost, 13,323,268 shares in 2023 |
|
|
|
|
|
|
|
and 9,656,044 shares in 2022 |
|
|
(524,927 |
) |
|
|
(374,892 |
) |
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY |
|
1,634,645 |
|
|
|
1,599,602 |
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
2,936,047 |
|
|
$ |
2,810,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| HUB GROUP, INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (in thousands) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating activities: |
|
|
|
|
|
Net income |
|
|
$ |
167,528 |
|
|
$ |
356,948 |
|
|
Adjustments to reconcile net income |
|
|
|
|
|
|
to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
184,449 |
|
|
|
153,726 |
|
|
|
|
Impairment of right-of-use asset |
|
|
2,012 |
|
|
|
5,874 |
|
|
|
|
Deferred taxes |
|
|
|
9,587 |
|
|
|
4,448 |
|
|
|
|
Compensation expense related to share-based compensation plans |
|
21,348 |
|
|
|
20,426 |
|
|
|
|
Gain on sale of assets, net |
|
|
(6,835 |
) |
|
|
(24,176 |
) |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
Restricted investments |
|
|
(2,698 |
) |
|
|
6,191 |
|
|
|
|
Accounts receivable, net |
|
|
145,088 |
|
|
|
8,298 |
|
|
|
|
Prepaid taxes |
|
|
|
(344 |
) |
|
|
(14,796 |
) |
|
|
|
Prepaid expenses and other current assets |
|
(5,974 |
) |
|
|
(3,111 |
) |
|
|
|
Other assets |
|
|
|
(3,732 |
) |
|
|
(4,231 |
) |
|
|
|
Accounts payable |
|
|
|
1,215 |
|
|
|
(89,103 |
) |
|
|
|
Accrued expenses |
|
|
|
(63,626 |
) |
|
|
57,613 |
|
|
|
|
Non-current liabilities |
|
|
(25,860 |
) |
|
|
(19,944 |
) |
|
|
|
Net cash provided by operating activities |
|
422,158 |
|
|
|
458,163 |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
Proceeds from sale of equipment |
|
|
27,717 |
|
|
|
42,929 |
|
|
Purchases of property and equipment |
|
|
(140,068 |
) |
|
|
(219,140 |
) |
|
Acquisitions, net of cash acquired |
|
|
(260,810 |
) |
|
|
(102,661 |
) |
|
|
|
Net cash used in investing activities |
|
(373,161 |
) |
|
|
(278,872 |
) |
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
Purchase of treasury stock |
|
|
(143,770 |
) |
|
|
(75,000 |
) |
|
Repayments of long term debt |
|
|
(105,771 |
) |
|
|
(111,482 |
) |
|
Stock withheld for payments of withholding taxes |
|
(10,148 |
) |
|
|
(8,312 |
) |
|
Finance lease payments |
|
|
|
(2,708 |
) |
|
|
(2,093 |
) |
|
Purchase of treasury stock from related party |
|
- |
|
|
|
(34,767 |
) |
|
Proceeds from issuance of debt |
|
|
113,988 |
|
|
|
179,195 |
|
|
|
|
Net cash used in financing activities |
|
(148,409 |
) |
|
|
(52,459 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
40 |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase in cash and cash equivalents |
|
(99,372 |
) |
|
|
126,858 |
|
| Cash and cash equivalents beginning of period |
|
286,642 |
|
|
|
159,784 |
|
| Cash and cash equivalents end of period |
|
$ |
187,270 |
|
|
$ |
286,642 |
|
|
|
|
|
|
|
|
|
|
|
|
| HUB GROUP, INC. |
| FINANCIAL INFORMATION BY SEGMENT |
| (in thousands) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
Three Months |
|
Years |
|
Ended December 31, |
|
Ended December 31, |
| Operating Revenue |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Intermodal and Transportation Solutions |
$ |
576,474 |
|
|
$ |
804,709 |
|
|
$ |
2,495,663 |
|
|
$ |
3,312,431 |
|
| Logistics |
|
437,857 |
|
|
|
507,043 |
|
|
|
1,820,856 |
|
|
|
2,121,818 |
|
| Inter-segment eliminations |
|
(29,308 |
) |
|
|
(26,249 |
) |
|
|
(113,934 |
) |
|
|
(93,759 |
) |
| Total operating revenue |
$ |
985,023 |
|
|
$ |
1,285,503 |
|
|
$ |
4,202,585 |
|
|
$ |
5,340,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Years |
|
Ended December 31, |
|
Ended December 31, |
| Operating Income |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Intermodal and Transportation Solutions |
$ |
12,141 |
|
|
$ |
75,468 |
|
|
$ |
106,780 |
|
|
$ |
348,537 |
|
| Logistics |
|
17,261 |
|
|
|
28,819 |
|
|
|
105,451 |
|
|
|
126,184 |
|
| Total operating income |
$ |
29,402 |
|
|
$ |
104,287 |
|
|
$ |
212,231 |
|
|
$ |
474,721 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Years |
|
Ended December 31, |
|
Ended December 31, |
| Depreciation and Amortization |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Intermodal and Transportation Solutions |
$ |
27,483 |
|
|
$ |
26,501 |
|
|
$ |
109,234 |
|
|
$ |
102,279 |
|
| Logistics |
|
9,141 |
|
|
|
8,213 |
|
|
|
34,289 |
|
|
|
29,510 |
|
| Total depreciation and amortization |
$ |
36,624 |
|
|
$ |
34,714 |
|
|
$ |
143,523 |
|
|
$ |
131,789 |
|
|
|
|
|
|
|
|
|
| RECONCILIATION OF NET INCOME TO EBITDA |
| (in thousands) |
| (unaudited) |
|
|
|
|
|
|
|
|
|
Three Months |
|
Years |
|
Ended December 31, |
|
Ended December 31, |
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
| Net Income |
$ |
28,785 |
|
$ |
79,274 |
|
$ |
167,528 |
|
$ |
356,948 |
|
|
|
|
|
|
|
|
| Interest Expense, net |
|
103 |
|
|
1,381 |
|
|
3,424 |
|
|
6,632 |
|
|
|
|
|
|
|
|
| Depreciation and Amortization |
|
47,674 |
|
|
43,313 |
|
|
184,449 |
|
|
153,726 |
|
|
|
|
|
|
|
|
| Provision for Income Taxes |
|
992 |
|
|
23,947 |
|
|
41,676 |
|
|
111,010 |
|
|
|
|
|
|
|
|
| EBITDA |
$ |
77,554 |
|
$ |
147,915 |
|
$ |
397,077 |
|
$ |
628,316 |
|
|
|
|
|
|
|
|
By providing this non-GAAP measure of EBITDA, management intends to provide investors with a meaningful, consistent comparison of the Company’s profitability for the periods presented.
|
HUB GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
(unaudited) |
|
| The following is a reconciliation of GAAP earnings to Non-GAAP earnings, excluding certain items for earnings before tax (pre-tax), net income (after-tax) and diluted earnings per share (per share): |
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
|
December 31, 2023 |
|
December 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax |
|
After-Tax |
|
Per Share |
|
Pre-Tax |
|
After-Tax |
|
Per Share |
| GAAP Earnings |
|
$ |
29.8 |
|
$ |
28.8 |
|
$ |
0.46 |
|
$ |
209.2 |
|
$ |
167.5 |
|
$ |
2.62 |
| Acquisition related expenses |
|
|
5.1 |
|
|
4.9 |
|
$ |
0.08 |
|
|
5.1 |
|
|
4.1 |
|
$ |
0.06 |
| Adjusted Earnings |
|
$ |
34.9 |
|
$ |
33.7 |
|
$ |
0.54 |
|
$ |
214.3 |
|
$ |
171.6 |
|
$ |
2.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
|
December 31, 2022 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax |
|
After-Tax |
|
Per Share |
|
Pre-Tax |
|
After-Tax |
|
Per Share |
| GAAP Earnings |
|
$ |
103.2 |
|
$ |
79.3 |
|
$ |
1.21 |
|
$ |
468.0 |
|
$ |
356.9 |
|
$ |
5.32 |
| Acquisition related expenses |
|
|
- |
|
|
- |
|
$ |
- |
|
|
3.1 |
|
|
2.4 |
|
$ |
0.04 |
| Adjusted Earnings |
|
$ |
103.2 |
|
$ |
79.3 |
|
$ |
1.21 |
|
$ |
471.1 |
|
$ |
359.3 |
|
$ |
5.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By providing this non-GAAP measure of Adjusted Earnings, management intends to provide investors with a useful measure of Hub Group’s performance that excludes certain acquisition-related items and allowing better evaluation of underlying business performance and period-to-period comparability.
Acquisition-related expenses are comprised of banker fees, legal fees, insurance fees and other professional service fees incurred as part of the process of closing the acquisitions of Forward Air Final Mile in 2023 and TAGG Logistics in 2022.
