Highlights:
- Fourth quarter revenue of $1 billion; Full year revenue of $4 billion
- Fourth quarter and full year GAAP EPS of $0.40 and $1.70. Fourth quarter and full year GAAP operating income margin percentage of 3.2% and 3.6% of revenue
- Fourth quarter and full year adjusted EPS of $0.48 and $1.91. Fourth quarter and full year adjusted operating income percentage of 3.9% and 4.0% of revenue
- Returned nearly $100 million to shareholders in 2024 through share repurchases and dividends
- Strong balance sheet with cash of $127 million and net debt/adjusted EBITDA of 0.5x as of December 31, 2024
- Completed joint venture with EASO in October, expanding Hub Group's North American intermodal presence
- Introduced 2025 outlook with expected revenue of $4.0 billion to $4.3 billion and EPS of $1.90 to $2.40
OAK BROOK, Ill., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) announced fourth quarter 2024 net income of $24 million and diluted earnings per share of $0.40. Adjusting for network alignment and transaction related expenses of $6 million (pre-tax), fourth quarter 2024 adjusted net income was $29 million and adjusted EPS was $0.48 per diluted share. Full year 2024 net income was $104 million, or $1.70 per diluted share. Adjusted full year net income was $117 million, or $1.91 per diluted share.
"I am proud of the team's performance in 2024 as our disciplined market approach resulted in Intermodal volume growth of 14% and ITS adjusted operating margin of 3.1% in the quarter, a 50-basis point improvement over Q4 2023. We closed on the joint venture with EASO to enhance solutions for our customers and add significant scale to our Intermodal capabilities in Mexico. We continue to implement our key strategic priorities that position us for growth in the long term. We are excited to continue the momentum and deliver for our customers and shareholders in 2025," said Phil Yeager, Hub Group's President, Chief Executive Officer and Vice Chairman.
Fourth Quarter and Full Year 2024 Results
Consolidated revenue for the fourth quarter of 2024 of $974 million, a 1% decline from $985 million reported in the fourth quarter of 2023. Strong Intermodal volume growth, surcharge revenue, and Final Mile growth was offset by lower fuel, Brokerage, Consolidation and Fulfillment, and Managed Transportation revenue. Full year 2024 revenue of $3.95 billion was down 6% compared to 2023 revenue of $4.20 billion.
Fourth quarter purchased transportation and warehousing costs of $723 million decreased $19 million compared to prior year due to lower rail and third-party warehouse costs. Salaries and benefits of $148 million were $13 million higher than prior year due to the Final Mile acquisition, EASO transaction, and more normalized bonus expense. Total legacy headcount, which excludes acquisition employees, drivers and warehouse employees, declined by 3%. Depreciation and amortization expenses was $33 million, a decrease of $4 million. Insurance and claims totaled $9 million, a $4 million decrease due to lower claim costs in the quarter. General and administrative expenses of $29 million were comparable to prior year and included transaction expenses related to the joint venture and operating costs associated with the Final Mile acquisition which were offset by cost management efforts.
GAAP operating income for the fourth quarter was $32 million or 3.2% of revenue, a 7% or 20-basis point improvement over last year. Adjusted operating income for the fourth quarter was $38 million or 3.9% of revenue, a 9% or 40-basis point improvement over the adjusted fourth quarter of last year. Adjusted EBITDA for the fourth quarter was $85 million. Full year GAAP operating income was $140 million or 3.6% and adjusted operating income was $157 million or 4.0% of revenue. Full year adjusted EBITDA was $349 million. Net debt/adjusted EBITDA was 0.5x, below the leverage target range of 0.75 to 1.25x.
Fourth Quarter and Full Year 2024 Segment Results
Fourth quarter Intermodal and Transportation Solutions ("ITS") Segment revenue of $570 million was a 1% decline over prior year but quarterly GAAP ITS operating income was $17 million or 2.9% of revenue, an increase of $5 million over the prior year. Quarterly revenue was driven by 14% Intermodal volume growth and surcharge revenue partially offsetting lower revenue per load and fuel revenue. Full year revenue was $2.24 billion. Adjusted ITS operating income was $18 million or 3.1% of revenue, a 17% or 50-basis point improvement over last year's adjusted numbers. Adjusted ITS operating margin excludes expenses of $1 million related to the EASO transaction and other adjustments in the quarter. Full year adjusted ITS operating income was $59 million or 2.6% of revenue.
Fourth quarter Logistics Segment revenue of $429 million was a 2% decline over prior year as growth in Final Mile partially offset lower Brokerage, Consolidation and Fulfillment, and Managed Transportation revenue. Full year revenue for the Logistics Segment was $1.83 billion. Quarterly GAAP Logistics operating income was $15 million or 3.4% of revenue, down from $17 million in the prior year due to expenses related to the network alignment project. Quarterly adjusted Logistics operating income was $20 million, or 4.6% of revenue, a 3% or 20-basis point improvement over last year's results. Adjusted operating income excludes network alignment expenses and other adjustments of $5 million. Full year adjusted Logistics Segment operating income was $97 million or 5.3% of revenue.
Capital expenditures for the full year of 2024 totaled $51 million as we continued to manage our spend. As of December 31, 2024, we had cash of $127 million. For the full year 2024 the company returned nearly $100 million to shareholders through stock repurchases and dividend payments.
2025 Outlook
We expect 2025 diluted earnings per share will range from $1.90 to $2.40. We estimate revenue of approximately $4.0 to $4.3 billion for the full year. We project an effective tax rate of approximately 25% and capital expenditures in the range of $50 million to $70 million for the full year.
Non-GAAP Financial Measures
In this press release, we present certain non-GAAP financial measures, including adjusted EPS, adjusted operating income, adjusted EBITDA, and net debt/adjusted EBITDA. 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.
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.
Conference Call
Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on February 6, 2025, to discuss our fourth quarter 2024 results. Hosting the conference call will be Phil Yeager, President, CEO and Vice Chairman 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/BI9c827a9578db45de9cefd5da256614fd 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.
About Hub Group
Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers' needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers' supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (Nasdaq: HUBG) with approximately $4 billion in revenue, our nearly 6,000 employees and drivers across the globe are always in pursuit of "The Way Ahead" - a commitment to service, integrity and innovation. For more information, visit hubgroup.com.
SOURCE: Hub Group, Inc.
CONTACT: Lorna Williams, Investor Relations, lornawilliams@hubgroup.com
| HUB GROUP, INC. | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| % of | % of | ||||||||||||||||
| Amount | Revenue | Amount | Revenue | ||||||||||||||
| Operating revenue | $ | 973,510 | 100.0 | % | $ | 985,023 | 100.0 | % | |||||||||
| Operating expenses: | |||||||||||||||||
| Purchased transportation and warehousing | 723,159 | 74.3 | % | 742,405 | 75.4 | % | |||||||||||
| Salaries and benefits | 148,164 | 15.2 | % | 135,569 | 13.7 | % | |||||||||||
| Depreciation and amortization | 32,980 | 3.4 | % | 36,624 | 3.7 | % | |||||||||||
| Insurance and claims | 8,707 | 0.9 | % | 12,999 | 1.3 | % | |||||||||||
| General and administrative | 28,912 | 3.0 | % | 29,260 | 3.0 | % | |||||||||||
| Loss (gain) on sale of assets, net | 63 | 0.0 | % | (1,236 | ) | -0.1 | % | ||||||||||
| Total operating expenses | 941,985 | 96.8 | % | 955,621 | 97.0 | % | |||||||||||
| Operating income | 31,525 | 3.2 | % | 29,402 | 3.0 | % | |||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense, net | (1,858 | ) | -0.2 | % | (103 | ) | -0.0 | % | |||||||||
| Other, net | 92 | 0.0 | % | 478 | 0.0 | % | |||||||||||
| Total other (expense) income, net | (1,766 | ) | -0.2 | % | 375 | 0.0 | % | ||||||||||
| Income before provision for income taxes | 29,759 | 3.0 | % | 29,777 | 3.0 | % | |||||||||||
| Provision for income taxes | 5,387 | 0.6 | % | 992 | 0.1 | % | |||||||||||
| Net income | 24,372 | 28,785 | |||||||||||||||
| Less: Net income attributable to non-controlling interests | 50 | - | |||||||||||||||
| Net income attributable to Hub Group, Inc. | $ | 24,322 | $ | 28,785 | |||||||||||||
| Earnings per share | |||||||||||||||||
| Basic | $ | 0.40 | $ | 0.47 | |||||||||||||
| Diluted | $ | 0.40 | $ | 0.46 | |||||||||||||
| Basic weighted average number of shares outstanding | 60,081 | 61,850 | |||||||||||||||
| Diluted weighted average number of shares outstanding | 60,694 | 62,562 | |||||||||||||||
| HUB GROUP, INC. | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Years Ended December 31, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| % of | % of | ||||||||||||||||
| Amount | Revenue | Amount | Revenue | ||||||||||||||
| Operating revenue | $ | 3,946,390 | 100.0 | % | $ | 4,202,585 | 100.0 | % | |||||||||
| Operating expenses: | |||||||||||||||||
| Purchased transportation and warehousing | 2,930,562 | 74.2 | % | 3,145,595 | 74.8 | % | |||||||||||
| Salaries and benefits | 577,464 | 14.6 | % | 553,326 | 13.2 | % | |||||||||||
| Depreciation and amortization | 141,469 | 3.6 | % | 143,523 | 3.4 | % | |||||||||||
| Insurance and claims | 44,180 | 1.1 | % | 49,040 | 1.2 | % | |||||||||||
| General and administrative | 113,698 | 2.9 | % | 105,705 | 2.5 | % | |||||||||||
| Gain on sale of assets, net | (1,274 | ) | -0.0 | % | (6,835 | ) | -0.2 | % | |||||||||
| Total operating expenses | 3,806,099 | 96.4 | % | 3,990,354 | 94.9 | % | |||||||||||
| Operating income | 140,291 | 3.6 | % | 212,231 | 5.1 | % | |||||||||||
| Other income (expense): | |||||||||||||||||
| Interest expense, net | (7,578 | ) | -0.2 | % | (3,424 | ) | -0.1 | % | |||||||||
| Other, net | (167 | ) | -0.0 | % | 397 | 0.0 | % | ||||||||||
| Total other expense, net | (7,745 | ) | -0.2 | % | (3,027 | ) | -0.1 | % | |||||||||
| Income before provision for income taxes | 132,546 | 3.4 | % | 209,204 | 5.0 | % | |||||||||||
| Provision for income taxes | 28,503 | 0.7 | % | 41,676 | 1.0 | % | |||||||||||
| Net income | 104,043 | 167,528 | |||||||||||||||
| Less: Net income attributable to non-controlling interests | 50 | - | |||||||||||||||
| Net income attributable to Hub Group, Inc. | $ | 103,993 | $ | 167,528 | |||||||||||||
| Earnings per share | |||||||||||||||||
| Basic | $ | 1.72 | $ | 2.65 | |||||||||||||
| Diluted | $ | 1.70 | $ | 2.62 | |||||||||||||
| Basic weighted average number of shares outstanding | 60,623 | 63,324 | |||||||||||||||
| Diluted weighted average number of shares outstanding | 61,104 | 63,954 | |||||||||||||||
| HUB GROUP, INC. | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (in thousands, except share data) | ||||||||||||||
| December 31, | December 31, | |||||||||||||
| 2024 | 2023 | |||||||||||||
| (unaudited) | ||||||||||||||
| ASSETS | ||||||||||||||
| CURRENT ASSETS: | ||||||||||||||
| Cash and cash equivalents | $ | 98,248 | $ | 187,270 | ||||||||||
| Restricted cash | 28,700 | - | ||||||||||||
| Accounts receivable trade, net | 581,516 | 600,197 | ||||||||||||
| Accounts receivable other | 10,880 | 3,358 | ||||||||||||
| Prepaid taxes | 15,115 | 17,331 | ||||||||||||
| Prepaid expenses and other current assets | 33,870 | 41,089 | ||||||||||||
| TOTAL CURRENT ASSETS | 768,329 | 849,245 | ||||||||||||
| Restricted investments | 21,642 | 20,763 | ||||||||||||
| Property and equipment, net | 739,896 | 791,692 | ||||||||||||
| Right-of-use assets - operating leases | 233,651 | 210,742 | ||||||||||||
| Right-of-use assets - financing leases | 1,062 | 2,522 | ||||||||||||
| Other intangibles, net | 267,357 | 304,607 | ||||||||||||
| Goodwill | 814,309 | 733,695 | ||||||||||||
| Other non-current assets | 22,097 | 22,781 | ||||||||||||
| TOTAL ASSETS | $ | 2,868,343 | $ | 2,936,047 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||
| Accounts payable trade | $ | 279,982 | $ | 349,378 | ||||||||||
| Accounts payable other | 29,069 | 14,471 | ||||||||||||
| Accrued payroll | 32,833 | 21,731 | ||||||||||||
| Accrued other | 91,441 | 121,253 | ||||||||||||
| Lease liability - operating leases | 45,492 | 44,690 | ||||||||||||
| Lease liability - financing leases | 663 | 1,579 | ||||||||||||
| Current portion of long-term debt | 100,001 | 105,108 | ||||||||||||
| TOTAL CURRENT LIABILITIES | 579,481 | 658,210 | ||||||||||||
| Deferred consideration | 30,639 | - | ||||||||||||
| Long-term debt | 164,361 | 245,574 | ||||||||||||
| Other non-current liabilities | 51,004 | 55,287 | ||||||||||||
| Lease liability - operating leases | 197,664 | 177,699 | ||||||||||||
| Lease liability - financing leases | 330 | 865 | ||||||||||||
| Deferred taxes | 152,913 | 163,767 | ||||||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||||||
| Preferred stock, $.01 par value; 2,000,000 shares authorized; | ||||||||||||||
| no shares issued or outstanding in 2024 and 2023. | - | - | ||||||||||||
| Common stock | ||||||||||||||
| Class A: $.01 par value; 97,337,700 shares authorized; 72,303,228 | ||||||||||||||
| shares issued in 2024 and 75,524,189 shares issued in 2023; | ||||||||||||||
| 60,746,745 shares outstanding in 2024 and 62,200,921 shares outstanding in 2023. | 723 | 755 | ||||||||||||
| Class B: $.01 par value; 662,300 shares authorized; | ||||||||||||||
| 574,903 shares issued and outstanding in both 2024 and 2023. | 6 | 6 | ||||||||||||
| Additional paid-in capital | 222,039 | 209,830 | ||||||||||||
| Retained earnings | 2,022,265 | 1,949,110 | ||||||||||||
| Accumulated other comprehensive loss | (1,453 | ) | (129 | ) | ||||||||||
| Treasury stock; at cost, 11,556,483 shares in 2024 and 13,323,268 shares in 2023 | (598,583 | ) | (524,927 | ) | ||||||||||
| Total Hub Group, Inc. equity | 1,644,997 | 1,634,645 | ||||||||||||
| Non-controlling interests | 46,954 | - | ||||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 1,691,951 | 1,634,645 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,868,343 | $ | 2,936,047 | ||||||||||
| HUB GROUP, INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| (in thousands) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Years Ended December 31, | ||||||||||||||
| 2024 | 2023 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 104,043 | $ | 167,528 | ||||||||||
| Adjustments to reconcile net income | ||||||||||||||
| to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization of intangibles and right-of-use assets | 192,562 | 184,449 | ||||||||||||
| Impairment of right-of-use asset | - | 2,012 | ||||||||||||
| Deferred taxes | (13,814 | ) | 9,587 | |||||||||||
| Non-cash share-based compensation expense | 19,157 | 21,348 | ||||||||||||
| Gain on sale of assets, net | (1,273 | ) | (6,835 | ) | ||||||||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||||||||
| Restricted investments | (879 | ) | (2,698 | ) | ||||||||||
| Accounts receivable, net | 33,648 | 145,088 | ||||||||||||
| Prepaid taxes | 3,367 | (344 | ) | |||||||||||
| Prepaid expenses and other current assets | 5,305 | (5,974 | ) | |||||||||||
| Other non-current assets | (2,299 | ) | (3,732 | ) | ||||||||||
| Accounts payable | (73,897 | ) | 1,215 | |||||||||||
| Accrued expenses | (26,644 | ) | (63,626 | ) | ||||||||||
| Non-current liabilities | (44,857 | ) | (25,860 | ) | ||||||||||
| Net cash provided by operating activities | 194,419 | 422,158 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Proceeds from sale of equipment | 12,158 | 27,717 | ||||||||||||
| Purchases of property and equipment | (50,847 | ) | (140,068 | ) | ||||||||||
| Acquisitions, net of cash acquired | (14,637 | ) | (260,810 | ) | ||||||||||
| Net cash used in investing activities | (53,326 | ) | (373,161 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Repayments of long term debt | (107,007 | ) | (105,771 | ) | ||||||||||
| Purchase of treasury stock | (68,273 | ) | (143,770 | ) | ||||||||||
| Dividends paid | (30,246 | ) | - | |||||||||||
| Stock withheld for payments of withholding taxes | (10,782 | ) | (10,148 | ) | ||||||||||
| Finance lease payments | (1,693 | ) | (2,708 | ) | ||||||||||
| Distribution to non-controlling interest holders | (1,089 | ) | - | |||||||||||
| Proceeds from issuance of debt | 17,764 | 113,988 | ||||||||||||
| Net cash used in financing activities | (201,326 | ) | (148,409 | ) | ||||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (89 | ) | 40 | |||||||||||
| Net decrease in cash, cash equivalents and restricted cash | (60,322 | ) | (99,372 | ) | ||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 187,270 | 286,642 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 126,948 | $ | 187,270 | ||||||||||
| HUB GROUP, INC. | ||||||||||||||||
| FINANCIAL INFORMATION BY SEGMENT (NON-GAAP) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||
| Operating Revenue | 2024 | 2023 | ||||||||||||||
| Intermodal and Transportation Services | $ | 570,406 | - | - | $ | 576,474 | - | - | ||||||||
| Logistics | 429,291 | - | - | 437,857 | - | - | ||||||||||
| Inter-segment eliminations | (26,187 | ) | - | - | (29,308 | ) | - | - | ||||||||
| Total operating revenue | $ | 973,510 | - | - | $ | 985,023 | - | - | ||||||||
| Three Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||
| NON-GAAP | NON-GAAP | NON-GAAP | NON-GAAP | |||||||||||||
| Adjustments (1) | Adjusted | Adjustments (1) | Adjusted | |||||||||||||
| Operating Income | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
| Intermodal and Transportation Services | $ | 16,766 | $ | 907 | $ | 17,673 | $ | 12,141 | $ | 2,989 | $ | 15,130 | ||||
| Logistics | 14,759 | 5,168 | 19,927 | 17,261 | 2,103 | 19,364 | ||||||||||
| Total operating income | $ | 31,525 | $ | 6,075 | $ | 37,600 | $ | 29,402 | $ | 5,092 | $ | 34,494 | ||||
| Three Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||
| Depreciation and Amortization | 2024 | 2023 | ||||||||||||||
| Intermodal and Transportation Services | $ | 21,884 | - | - | $ | 27,483 | - | - | ||||||||
| Logistics | 11,096 | - | - | 9,141 | - | - | ||||||||||
| Total depreciation and amortization | $ | 32,980 | - | - | $ | 36,624 | - | - | ||||||||
| (1) See Reconciliation of GAAP to Non-GAAP Financial Measures for further discussion. | ||||||||||||||||
| HUB GROUP, INC. | ||||||||||||||||
| FINANCIAL INFORMATION BY SEGMENT (NON-GAAP) | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Years Ended December 31, | Years Ended December 31, | |||||||||||||||
| Operating Revenue | 2024 | 2023 | ||||||||||||||
| Intermodal and Transportation Services | $ | 2,243,440 | - | - | $ | 2,495,663 | - | - | ||||||||
| Logistics | 1,829,450 | - | - | 1,820,856 | - | - | ||||||||||
| Inter-segment eliminations | (126,500 | ) | - | - | (113,934 | ) | - | - | ||||||||
| Total operating revenue | $ | 3,946,390 | - | - | $ | 4,202,585 | - | - | ||||||||
| Years Ended December 31, | Years Ended December 31, | |||||||||||||||
| Non-GAAP | Non-GAAP | Non-GAAP | Non-GAAP | |||||||||||||
| Adjustments (1) | Adjusted | Adjustments (1) | Adjusted | |||||||||||||
| Operating Income | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
| Intermodal and Transportation Services | $ | 56,952 | $ | 2,347 | $ | 59,299 | $ | 106,780 | $ | 2,989 | $ | 109,769 | ||||
| Logistics | 83,339 | 14,117 | 97,456 | 105,451 | 2,103 | 107,554 | ||||||||||
| Total operating income | $ | 140,291 | $ | 16,464 | $ | 156,755 | $ | 212,231 | $ | 5,092 | $ | 217,323 | ||||
| Years Ended December 31, | Years Ended December 31, | |||||||||||||||
| Depreciation and Amortization | 2024 | 2023 | ||||||||||||||
| Intermodal and Transportation Services | $ | 97,452 | - | - | $ | 109,234 | - | - | ||||||||
| Logistics | 44,017 | - | - | 34,289 | - | - | ||||||||||
| Total depreciation and amortization | $ | 141,469 | - | - | $ | 143,523 | - | - | ||||||||
| (1) See Reconciliation of GAAP to Non-GAAP Financial Measures for further discussion. | ||||||||||||||||
| 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 Adjusted Earnings, excluding certain items, for income before provision for income taxes (Pre-Tax), net income (After-Tax) and diluted earnings per share (Per Share): | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, 2024 | December 31, 2024 | ||||||||||||||||||||||
| Pre-Tax | After-Tax | Per Share | Pre-Tax | After-Tax | Per Share | ||||||||||||||||||
| GAAP Earnings | $ | 29.8 | $ | 24.4 | $ | 0.40 | $ | 132.5 | $ | 104.0 | $ | 1.70 | |||||||||||
| Network Alignment (i) | 4.8 | 3.8 | 0.06 | 13.2 | 10.4 | 0.17 | |||||||||||||||||
| Transaction Related (ii) | 1.2 | 0.9 | 0.02 | 2.1 | 1.7 | 0.03 | |||||||||||||||||
| Other (iii) | 0.1 | 0.1 | - | 1.1 | 0.9 | 0.01 | |||||||||||||||||
| Non-GAAP Adjusted Earnings | $ | 35.9 | $ | 29.2 | $ | 0.48 | $ | 148.9 | $ | 117.0 | $ | 1.91 | |||||||||||
| By providing this measure of Non-GAAP Adjusted Earnings, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability. | |||||||||||||||||||||||
| (i) Network alignment consolidation expenses include transfer costs, legal fees and other expenses related to consolidating from existing warehouses to improve operational efficiency of our cross dock services, Final Mile and Consolidation and Fulfillment lines of business. | |||||||||||||||||||||||
| (ii) Transaction related expenses are comprised of due diligence costs, legal fees, insurance fees and other professional service fees incurred as part of the forming of a joint venture with EASO in 2024. | |||||||||||||||||||||||
| (iii) Other includes non-ordinary expenses related to employee matters. | |||||||||||||||||||||||
| 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 Adjusted Earnings, excluding certain items, for income before provision for income taxes (Pre-Tax), net income (After-Tax) and diluted earnings per share (Per Share): | |||||||||||||||||||||||
| Three Months Ended | Year 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 (i) | 5.1 | 4.9 | 0.08 | 5.1 | 4.1 | 0.06 | |||||||||||||||||
| Non-GAAP Adjusted Earnings | $ | 34.9 | $ | 33.7 | $ | 0.54 | $ | 214.3 | $ | 171.6 | $ | 2.68 | |||||||||||
| By providing this measure of Non-GAAP Adjusted Earnings, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability. | |||||||||||||||||||||||
| (i) 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 acquisition of Forward Air Final Mile in 2023. | |||||||||||||||||||||||
| 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 Operating Income to Non-GAAP Adjusted Operating Income, excluding certain items. | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, 2024 | December 31, 2024 | ||||||||||||||||||||||
| ITS | Logistics | Consolidated | ITS | Logistics | Consolidated | ||||||||||||||||||
| GAAP Operating Income | $ | 16.8 | $ | 14.7 | $ | 31.5 | $ | 57.0 | $ | 83.3 | $ | 140.3 | |||||||||||
| Network Alignment (i) | 0.2 | 4.6 | 4.8 | 0.5 | 12.7 | 13.2 | |||||||||||||||||
| Transaction Related (ii) | 0.7 | 0.5 | 1.2 | 1.2 | 0.9 | 2.1 | |||||||||||||||||
| Other (iii) | - | 0.1 | 0.1 | 0.6 | 0.5 | 1.1 | |||||||||||||||||
| Non-GAAP Adjusted Operating Income | $ | 17.7 | $ | 19.9 | $ | 37.6 | $ | 59.3 | $ | 97.4 | $ | 156.7 | |||||||||||
| By providing this measure of Non-GAAP Adjusted Operating Income, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability. | |||||||||||||||||||||||
| (i) Network alignment expenses include transfer costs, legal fees and other expenses related to consolidating from existing warehouses to improve operational efficiency of our cross dock services, Final Mile and Consolidation and Fulfillment lines of business. | |||||||||||||||||||||||
| (ii) Transaction related expenses are comprised of due diligence costs, legal fees, insurance fees and other professional service fees incurred as part of the forming of a joint venture with EASO in 2024. | |||||||||||||||||||||||
| (iii) Other includes non-ordinary expenses related to employee matters. | |||||||||||||||||||||||
| 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 Operating Income to Non-GAAP Adjusted Operating Income, excluding certain items. | |||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, 2023 | December 31, 2023 | ||||||||||||||||||||||
| ITS | Logistics | Consolidated | ITS | Logistics | Consolidated | ||||||||||||||||||
| GAAP Operating Income | $ | 12.1 | $ | 17.3 | $ | 29.4 | $ | 106.8 | $ | 105.4 | $ | 212.2 | |||||||||||
| Acquisition Related (i) | 3.0 | 2.1 | 5.1 | 3.0 | 2.1 | 5.1 | |||||||||||||||||
| Non-GAAP Adjusted Operating Income | $ | 15.1 | $ | 19.4 | $ | 34.5 | $ | 109.8 | $ | 107.5 | $ | 217.3 | |||||||||||
| By providing this measure of Non-GAAP Adjusted Operating Income, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability. | |||||||||||||||||||||||
| (i) 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 acquisition of Forward Air Final Mile in 2023. | |||||||||||||||||||||||
| RECONCILIATION OF NET INCOME TO EBITDA (1) AND NET DEBT / EBITDA LEVERAGE | |||||||||||||||
| (in thousands) | |||||||||||||||
| (unaudited) | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | ||||||||||||
| Q1 | Q2 | Q3 | Q4 | 2024 | |||||||||||
| Net Income | $ | 27,053 | $ | 29,015 | $ | 23,603 | $ | 24,372 | $ | 104,043 | |||||
| Interest Expense, net | 2,506 | 1,881 | 1,333 | 1,858 | 7,578 | ||||||||||
| Depreciation and Amortization (2) | 49,605 | 49,495 | 46,374 | 47,088 | 192,562 | ||||||||||
| Provision for Income Taxes | 7,410 | 8,566 | 7,140 | 5,387 | 28,503 | ||||||||||
| EBITDA | $ | 86,574 | $ | 88,957 | $ | 78,450 | $ | 78,705 | $ | 332,686 | |||||
| Network Alignment (i) | $ | - | $ | - | $ | 8,381 | $ | 4,814 | $ | 13,195 | |||||
| Transaction Related (ii) | - | - | 947 | 1,194 | 2,141 | ||||||||||
| Other (iii) | - | - | 1,061 | 67 | 1,128 | ||||||||||
| Adjusted EBITDA | $ | 86,574 | $ | 88,957 | $ | 88,839 | $ | 84,780 | $ | 349,150 | |||||
| EBITDA | $ | 332,686 | |||||||||||||
| Net Debt (3) | $ | 167,106 | |||||||||||||
| Net Debt / EBITDA | 0.5 | ||||||||||||||
| Adjusted EBITDA | $ | 349,150 | |||||||||||||
| Net Debt / Adjusted EBITDA | 0.5 | ||||||||||||||
| (1) By providing this Non-GAAP measure of EBITDA and Net Debt / EBITDA Leverage, management intends to provide investors with a meaningful, consistent comparison of the Company's profitability and leverage for the periods presented. | |||||||||||||||
| (2) Includes depreciation of property and equipment, amortization of intangible assets and amortization of right-of-use assets. | |||||||||||||||
| (3) Total debt (including finance leases) less cash and cash equivalents. | |||||||||||||||
| (i) Network alignment expenses include transfer costs, legal fees and other expenses related to consolidating from existing warehouses to improve operational efficiency of our cross dock services, Final Mile and Consolidation and Fulfillment lines of business. | |||||||||||||||
| (ii) Transaction related expenses are comprised of due diligence costs, legal fees, insurance fees and other professional service fees incurred as part of the forming of a joint venture with EASO in 2024. | |||||||||||||||
| (iii) Other includes non-ordinary expenses related to employee matters. | |||||||||||||||
