Hub Group posts lower 4Q income, revenue

user-gravatar

Hub Group reported income for the quarter ended Dec. 31 of $14.2 million and diluted earnings per share of $0.38, down 20 percent from $18 million and diluted earnings per share of $0.47 in the fourth quarter of 2007. Fourth-quarter 2007 diluted earnings per share included a $0.04 tax benefit related to the resolution of a dispute with the Internal Revenue Service; excluding this benefit, earnings per share decreased 12 percent this quarter.

Hub Group’s revenue decreased 3 percent to $430.5 million compared to $445.5 million. Intermodal revenue decreased 3 percent to $305.3 million, attributable to a 2 percent volume decrease and a 1 percent decrease in price. Truck brokerage revenue was down 13 percent to $82.6 million, while logistics revenue increased 19 percent to $42.6 million.

“Even in this difficult economic environment, during the fourth quarter we generated solid earnings,” said David P. Yeager, chairman and chief executive officer of Downers Grove, Ill.-based Hub Group. “Our variable-cost asset-light model allowed us to reduce costs in the quarter to help compensate for the weaker economy. We will continue to work to improve efficiencies and maintain tight control over our costs and expenses in this challenging environment.”

For the year, income decreased 1 percent to $59.2 million compared to 2007 income of $59.8 million; diluted earnings per share was $1.58. Diluted earnings per share for 2007 included $0.07 in tax benefits related to a change in the Illinois tax law and resolution of a dispute with the IRS; excluding these benefits, earnings per share increased 8 percent in 2008. Revenue increased 12 percent to $1,860.6 million. Gross margin grew 1 percent to $234.3 million, while costs and expenses decreased 2 percent to $138.8 million compared to $141.6 million in 2007. As of Dec. 31, the company had $85.8 million of cash and no debt.