0-27754 |
36-4007085
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(Commission File Number) | (I.R.S. Employer Identification No.) |
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(a) Not Applicable.
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(b) Not Applicable.
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(c) Not Applicable.
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(d) A list of exhibits filed herewith is contained on the Exhibit
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Index which immediately precedes such exhibits and is |
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incorporated herein by reference. |
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HUB GROUP, INC. | |
DATE: July 18, 2014 | /s/ Terri A. Pizzuto |
By: Terri A. Pizzuto | |
Title: Executive Vice President, Chief Financial Officer | |
and Treasurer |
HUB GROUP, INC.
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||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||||||
Three Months
|
Six Months
|
|||||||||||||||||||
Ended June 30,
|
Ended June 30,
|
|||||||||||||||||||
2014
|
2013
|
2014 | 2013 | |||||||||||||||||
Revenue
|
$ | 893,930 | $ | 836,685 | $ | 1,742,379 | $ | 1,605,665 | ||||||||||||
Transportation costs
|
795,345 | 741,212 | 1,555,050 | 1,422,854 | ||||||||||||||||
Gross margin
|
98,585 | 95,473 | 187,329 | 182,811 | ||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||
Salaries and benefits
|
35,556 | 35,002 | 72,648 | 69,585 | ||||||||||||||||
Agent fees and commissions
|
15,544 | 13,686 | 29,210 | 26,960 | ||||||||||||||||
General and administrative
|
14,681 | 14,728 | 30,113 | 27,919 | ||||||||||||||||
Depreciation and amortization
|
1,877 | 1,593 | 3,935 | 3,146 | ||||||||||||||||
Total costs and expenses
|
67,658 | 65,009 | 135,906 | 127,610 | ||||||||||||||||
Operating income
|
30,927 | 30,464 | 51,423 | 55,201 | ||||||||||||||||
Other income (expense):
|
||||||||||||||||||||
Interest expense
|
(398 | ) | (305 | ) | (805 | ) | (595 | ) | ||||||||||||
Interest and dividend income
|
11 | 15 | 25 | 44 | ||||||||||||||||
Other, net
|
(25 | ) | 23 | (230 | ) | 12 | ||||||||||||||
Total other (expense) income
|
(412 | ) | (267 | ) | (1,010 | ) | (539 | ) | ||||||||||||
Income before provision for income taxes
|
30,515 | 30,197 | 50,413 | 54,662 | ||||||||||||||||
Provision for income taxes
|
11,839 | 11,587 | 19,702 | 20,688 | ||||||||||||||||
Net income
|
$ | 18,676 | $ | 18,610 | $ | 30,711 | $ | 33,974 | ||||||||||||
Basic earnings per common share
|
$ | 0.51 | $ | 0.50 | $ | 0.84 | $ | 0.92 | ||||||||||||
Diluted earnings per common share
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$ | 0.51 | $ | 0.50 | $ | 0.84 | $ | 0.92 | ||||||||||||
Basic weighted average number of shares outstanding
|
36,674 | 36,870 | 36,667 | 36,863 | ||||||||||||||||
Diluted weighted average number of shares outstanding
|
36,814 | 36,989 | 36,769 | 36,969 |
HUB GROUP, INC. | ||||||||||||||||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Three Months
|
Three Months
|
|||||||||||||||||||||||||||||||
Ended June 30, 2014
|
Ended June 30, 2013
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|||||||||||||||||||||||||||||||
Inter-
|
Hub
|
Inter-
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Hub
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|||||||||||||||||||||||||||||
Segment
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Group
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Segment
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Group
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|||||||||||||||||||||||||||||
Hub
|
Mode
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Elims
|
Total
|
Hub
|
Mode
|
Elims
|
Total
|
|||||||||||||||||||||||||
Revenue
|
$ | 682,049 | $ | 231,538 | $ | (19,657 | ) | $ | 893,930 | $ | 644,924 | $ | 203,918 | $ | (12,157 | ) | $ | 836,685 | ||||||||||||||
Transportation costs
|
611,351 | 203,651 | (19,657 | ) | 795,345 | 573,498 | 179,871 | (12,157 | ) | 741,212 | ||||||||||||||||||||||
Gross margin
|
70,698 | 27,887 | - | 98,585 | 71,426 | 24,047 | - | 95,473 | ||||||||||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||||||
Salaries and benefits
|
32,047 | 3,509 | - | 35,556 | 31,208 | 3,794 | - | 35,002 | ||||||||||||||||||||||||
Agent fees and commissions
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5 | 15,539 | - | 15,544 | 350 | 13,336 | - | 13,686 | ||||||||||||||||||||||||
General and administrative
|
12,817 | 1,864 | - | 14,681 | 13,338 | 1,390 | - | 14,728 | ||||||||||||||||||||||||
Depreciation and amortization
|
1,538 | 339 | - | 1,877 | 1,061 | 532 | - | 1,593 | ||||||||||||||||||||||||
Total costs and expenses
|
46,407 | 21,251 | - | 67,658 | 45,957 | 19,052 | - | 65,009 | ||||||||||||||||||||||||
Operating income
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$ | 24,291 | $ | 6,636 | $ | - | $ | 30,927 | $ | 25,469 | $ | 4,995 | $ | - | $ | 30,464 | ||||||||||||||||
HUB GROUP, INC. | ||||||||||||||||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Six Months
|
Six Months
|
|||||||||||||||||||||||||||||||
Ended June 30, 2014
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Ended June 30, 2013
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|||||||||||||||||||||||||||||||
Inter-
|
Hub
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Inter-
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Hub
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|||||||||||||||||||||||||||||
Segment
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Group
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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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Total
|
Hub
|
Mode
|
Elims
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Total
|
|||||||||||||||||||||||||
Revenue
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$ | 1,335,458 | $ | 440,444 | $ | (33,523 | ) | $ | 1,742,379 | $ | 1,237,575 | $ | 391,378 | $ | (23,288 | ) | $ | 1,605,665 | ||||||||||||||
Transportation costs
|
1,200,262 | 388,311 | (33,523 | ) | 1,555,050 | 1,100,969 | 345,173 | (23,288 | ) | 1,422,854 | ||||||||||||||||||||||
Gross margin
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135,196 | 52,133 | - | 187,329 | 136,606 | 46,205 | - | 182,811 | ||||||||||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||||||
Salaries and benefits
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65,384 | 7,264 | - | 72,648 | 61,985 | 7,600 | - | 69,585 | ||||||||||||||||||||||||
Agent fees and commissions
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16 | 29,194 | - | 29,210 | 799 | 26,161 | - | 26,960 | ||||||||||||||||||||||||
General and administrative
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26,557 | 3,556 | - | 30,113 | 25,036 | 2,883 | - | 27,919 | ||||||||||||||||||||||||
Depreciation and amortization
|
3,055 | 880 | - | 3,935 | 2,081 | 1,065 | - | 3,146 | ||||||||||||||||||||||||
Total costs and expenses
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95,012 | 40,894 | - | 135,906 | 89,901 | 37,709 | - | 127,610 | ||||||||||||||||||||||||
Operating income
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$ | 40,184 | $ | 11,239 | $ | - | $ | 51,423 | $ | 46,705 | $ | 8,496 | $ | - | $ | 55,201 | ||||||||||||||||
HUB GROUP, INC.
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UNAUDITED CONSOLIDATED BALANCE SHEETS
|
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(in thousands, except share amounts)
|
||||||||
June 30,
2014
|
December 31,
2013
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
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Cash and cash equivalents
|
$ | 73,164 | $ | 68,964 | ||||
Accounts receivable trade, net
|
417,880 | 371,528 | ||||||
Accounts receivable other
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20,871 | 26,569 | ||||||
Prepaid taxes
|
574 | 409 | ||||||
Deferred taxes
|
7,432 | 5,826 | ||||||
Prepaid expenses and other current assets
|
14,801 | 12,738 | ||||||
TOTAL CURRENT ASSETS
|
534,722 | 486,034 | ||||||
Restricted investments
|
21,960 | 20,754 | ||||||
Property and equipment, net
|
286,133 | 260,400 | ||||||
Other intangibles, net
|
15,081 | 15,729 | ||||||
Goodwill, net
|
262,923 | 263,032 | ||||||
Other assets
|
2,595 | 1,994 | ||||||
TOTAL ASSETS
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$ | 1,123,414 | $ | 1,047,943 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable trade
|
$ | 255,782 | $ | 232,350 | ||||
Accounts payable other
|
23,279 | 24,957 | ||||||
Accrued payroll
|
15,816 | 17,000 | ||||||
Accrued other
|
37,739 | 42,834 | ||||||
Current portion of capital lease
|
2,456 | 2,413 | ||||||
Current portion long-term debt
|
6,712 | 1,771 | ||||||
TOTAL CURRENT LIABILITIES
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341,784 | 321,325 | ||||||
Long term debt
|
24,360 | 6,475 | ||||||
Non-current liabilities
|
21,629 | 22,304 | ||||||
Non-current portion of capital lease
|
17,215 | 18,477 | ||||||
Deferred taxes
|
124,887 | 117,835 | ||||||
STOCKHOLDERS' EQUITY:
|
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Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2014 and 2013
|
- | - | ||||||
Common stock
|
||||||||
Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2014 and 2013; 36,764,442 shares outstanding in 2014 and 36,626,384 shares outstanding in 2013
|
412 | 412 | ||||||
Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2014 and 2013
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7 | 7 | ||||||
Additional paid-in capital
|
166,113 | 167,357 | ||||||
Purchase price in excess of predecessor basis, net of tax benefit of $10,306
|
(15,458 | ) | (15,458 | ) | ||||
Retained earnings
|
568,962 | 538,251 | ||||||
Accumulated other comprehensive loss
|
(52 | ) | (85 | ) | ||||
Treasury stock; at cost, 4,460,350 shares in 2014 and 4,598,408 shares in 2013
|
(126,445 | ) | (128,957 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY
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593,539 | 561,527 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 1,123,414 | $ | 1,047,943 | ||||
HUB GROUP, INC.
|
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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(in thousands)
|
||||||||
Six Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 30,711 | $ | 33,974 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
13,780 | 9,954 | ||||||
Deferred taxes
|
5,557 | 6,548 | ||||||
Compensation expense related to share-based compensation plans
|
4,191 | 3,757 | ||||||
Gain on sale of assets
|
(10 | ) | (287 | ) | ||||
Excess tax benefits from share-based compensation
|
- | (8 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Restricted investments
|
(1,206 | ) | (541 | ) | ||||
Accounts receivable, net
|
(40,654 | ) | (45,558 | ) | ||||
Prepaid taxes
|
(165 | ) | (48 | ) | ||||
Prepaid expenses and other current assets
|
(2,063 | ) | (417 | ) | ||||
Other assets
|
(601 | ) | (120 | ) | ||||
Accounts payable
|
21,756 | 30,685 | ||||||
Accrued expenses
|
882 | (3,680 | ) | |||||
Non-current liabilities
|
(537 | ) | 118 | |||||
Net cash provided by operating activities
|
31,641 | 34,377 | ||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sale of equipment
|
319 | 1,358 | ||||||
Purchases of property and equipment
|
(46,443 | ) | (39,202 | ) | ||||
Net cash used in investing activities
|
(46,124 | ) | (37,844 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of debt
|
25,361 | 9,120 | ||||||
Repayments of long-term debt
|
(2,535 | ) | - | |||||
Proceeds from stock options exercised
|
- | 41 | ||||||
Stock tendered for payments of withholding taxes
|
(3,151 | ) | (2,585 | ) | ||||
Purchase of treasury stock
|
- | (903 | ) | |||||
Capital lease payments
|
(1,219 | ) | (1,143 | ) | ||||
Excess tax benefits from share-based compensation
|
228 | 177 | ||||||
Net cash provided by financing activities
|
18,684 | 4,707 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
(1 | ) | - | |||||
Net increase in cash and cash equivalents
|
4,200 | 1,240 | ||||||
Cash and cash equivalents beginning of period
|
68,964 | 70,760 | ||||||
Cash and cash equivalents end of period
|
$ | 73,164 | $ | 72,000 | ||||