Hub Group Reports Third Quarter 2024 Results
Hub Group (NASDAQ: HUBG) reported Q3 2024 results with revenue of $987 million, down 3.7% year-over-year. The company posted GAAP diluted EPS of $0.39 and adjusted EPS of $0.52. Intermodal volume grew 12%, while operating income reached $32.1 million or 3.3% of revenue. The company maintained a strong balance sheet with $186 million in cash and returned $91 million to shareholders year-to-date through stock repurchases ($68 million) and dividends ($23 million). Hub Group formed a joint venture with Mexico-based EASO to expand its Mexico Intermodal and cross-border services. The company updated its 2024 outlook, expecting adjusted EPS between $1.85 and $1.95, with projected revenue of approximately $4.0 billion.
Hub Group (NASDAQ: HUBG) ha riportato i risultati del terzo trimestre 2024 con un fatturato di 987 milioni di dollari, in calo del 3,7% rispetto all'anno precedente. L'azienda ha registrato un utile per azione diluito GAAP di 0,39 dollari e un utile per azione rettificato di 0,52 dollari. Il volume intermodale è cresciuto del 12%, mentre il reddito operativo ha raggiunto i 32,1 milioni di dollari, pari al 3,3% del fatturato. L'azienda ha mantenuto un forte bilancio con 186 milioni di dollari in contante e ha restituito 91 milioni di dollari agli azionisti fino ad oggi tramite riacquisti di azioni (68 milioni di dollari) e dividendi (23 milioni di dollari). Hub Group ha formato una joint venture con EASO, con sede in Messico, per espandere i suoi servizi intermodali e transfrontalieri in Messico. L'azienda ha aggiornato le sue previsioni per il 2024, prevedendo un utile rettificato per azione tra 1,85 e 1,95 dollari, con un fatturato previsto di circa 4,0 miliardi di dollari.
Hub Group (NASDAQ: HUBG) reportó los resultados del tercer trimestre de 2024 con ingresos de 987 millones de dólares, una disminución del 3.7% en comparación con el año anterior. La compañía presentó una utilidad por acción diluida GAAP de 0.39 dólares y una utilidad por acción ajustada de 0.52 dólares. El volumen intermodal creció un 12%, mientras que el ingreso operativo alcanzó los 32.1 millones de dólares, o el 3.3% de los ingresos. La empresa mantuvo un sólido balance con 186 millones de dólares en efectivo y devolvió 91 millones de dólares a los accionistas hasta la fecha a través de recompra de acciones (68 millones de dólares) y dividendos (23 millones de dólares). Hub Group formó una joint venture con EASO, con sede en México, para expandir sus servicios intermodales y transfronterizos en México. La empresa actualizó sus perspectivas para 2024, esperando un EPS ajustado entre 1.85 y 1.95 dólares, con ingresos proyectados de aproximadamente 4.0 mil millones de dólares.
허브 그룹 (NASDAQ: HUBG)은 2024년 3분기 실적을 발표했으며, 매출은 9억 8천 7백만 달러로 전년 대비 3.7% 감소했습니다. 회사는 GAAP 희석 EPS 0.39 달러와 조정 EPS 0.52 달러를 기록했습니다. 인터모달 물동량은 12% 증가했으며, 운영 수익은 3천 2백 10만 달러로 매출의 3.3%에 해당합니다. 회사는 1억 8천 6백만 달러의 현금을 보유하고 있으며, 지금까지 주식 매입(6천 8백만 달러)과 배당금(2천 3백만 달러)을 통해 주주들에게 9천 1백만 달러를 반환하며 강력한 재무 상태를 유지하고 있습니다. 허브 그룹은 멕시코에 본사를 두고 있는 EASO와 합작 회사를 설립하여 멕시코의 인터모달 및 국경 간 서비스를 확장합니다. 이 회사는 2024년 전망을 업데이트했으며, 조정 EPS는 1.85 달러에서 1.95 달러 범위를 예상하고, 매출은 약 40억 달러에 이를 것으로 보입니다.
Hub Group (NASDAQ: HUBG) a rapporté des résultats pour le troisième trimestre 2024 avec un chiffre d'affaires de 987 millions de dollars, en baisse de 3,7 % par rapport à l'année précédente. La société a enregistré un BPA dilué GAAP de 0,39 dollar et un BPA ajusté de 0,52 dollar. Le volume intermodal a augmenté de 12 %, tandis que le revenu d'exploitation a atteint 32,1 millions de dollars, soit 3,3 % du chiffre d'affaires. L'entreprise a maintenu un bilan solide avec 186 millions de dollars en liquidités et a restitué 91 millions de dollars aux actionnaires depuis le début de l'année grâce à des rachats d'actions (68 millions de dollars) et des dividendes (23 millions de dollars). Hub Group a formé un partenariat avec EASO, basé au Mexique, pour étendre ses services intermodaux et transfrontaliers au Mexique. L'entreprise a mis à jour ses prévisions pour 2024, s'attendant à un BPA ajusté compris entre 1,85 et 1,95 dollar, avec un chiffre d'affaires projeté d'environ 4,0 milliards de dollars.
Hub Group (NASDAQ: HUBG) berichtete über die Ergebnisse des 3. Quartals 2024 mit einem Umsatz von 987 Millionen Dollar, was einem Rückgang von 3,7 % im Jahresvergleich entspricht. Das Unternehmen wies ein GAAP verwässertes EPS von 0,39 Dollar sowie ein angepasstes EPS von 0,52 Dollar aus. Das intermodale Volumen wuchs um 12 %, während das betriebliche Einkommen 32,1 Millionen Dollar erreichte, was 3,3 % des Umsatzes ausmacht. Das Unternehmen hielt eine starke Bilanz mit 186 Millionen Dollar in bar und gab seit Jahresbeginn 91 Millionen Dollar an die Aktionäre zurück, und zwar durch Aktienrückkäufe (68 Millionen Dollar) und Dividenden (23 Millionen Dollar). Hub Group hat ein Joint Venture mit dem in Mexiko ansässigen EASO gegründet, um seine intermodalen und grenzüberschreitenden Dienstleistungen in Mexiko auszubauen. Das Unternehmen aktualisierte seinen Ausblick für 2024 und erwartet ein angepasstes EPS zwischen 1,85 und 1,95 Dollar, mit einem prognostizierten Umsatz von etwa 4,0 Milliarden Dollar.
- 12% growth in Intermodal volume
- Strong balance sheet with $186M cash and low leverage ratio of 0.3x net debt/EBITDA
- $91M returned to shareholders YTD through buybacks and dividends
- 3.7% growth in adjusted net income to $31.6M
- Revenue declined 3.7% YoY to $987M
- GAAP operating income decreased to $32.1M from $42.6M YoY
- Logistics segment operating income declined to $18.6M from $29.1M YoY
- Lower revenue per load in Intermodal and Brokerage segments
Insights
Highlights:
- GAAP diluted earnings per share (EPS) of
$0.39 and revenue of$1.0 billion for the third quarter - Non-GAAP adjusted EPS of
$0.52 , which excludes adjustments for a network alignment initiative and transaction related expenses in the quarter - Quarterly operating income of
$32 million or 3.3% of revenue, adjusted operating income (non-GAAP) of$42 million or4.3% of revenue - Returned
$91 million to shareholders year-to-date through stock repurchases of$68 million , including$35 million in the third quarter, and dividend payments of$23 million - Strong balance sheet with cash and cash equivalents of
$186 million and net debt/EBITDA LTM (non-GAAP) of 0.3x as of September 30, 2024 - Expanded Mexico Intermodal and cross-border service offering by forming a joint venture with Mexico-based EASO
- Voted #3 on the Top Ten 3PL list by Inbound Logistics
OAK BROOK, Ill., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) announced third quarter 2024 net income of
“I am pleased with the team’s performance in the third quarter as our disciplined market approach resulted in Intermodal volume growth of
Third Quarter 2024 Results
Consolidated revenue for the third quarter of 2024 was
Purchased transportation and warehousing costs of
GAAP operating income for the third quarter was
Intermodal and Transportation Solutions (“ITS”) Segment revenue was
Third quarter Logistics Segment revenue was
Capital expenditures for the third quarter of 2024 totaled
2024 Outlook
We expect our 2024 adjusted diluted earnings per share will range from
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/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. We have provided our outlook regarding adjusted diluted earnings per share, which is a non-GAAP financial measure that excludes certain expenses. We have not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.
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 October 30, 2024, to discuss our third 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/BIcfa856aaac854dd78f769dbbf85a3b2e 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 over
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 September 30, | |||||||||||||
2024 | 2023 | ||||||||||||
% of | % of | ||||||||||||
Amount | Revenue | Amount | Revenue | ||||||||||
Operating revenue | $ | 986,892 | 100.0 | % | $ | 1,024,835 | 100.0 | % | |||||
Operating expenses: | |||||||||||||
Purchased transportation and warehousing | 739,995 | 75.0 | % | 772,650 | 75.4 | % | |||||||
Salaries and benefits | 142,948 | 14.5 | % | 138,503 | 13.5 | % | |||||||
Depreciation and amortization | 32,386 | 3.3 | % | 36,065 | 3.5 | % | |||||||
Insurance and claims | 10,217 | 1.0 | % | 11,681 | 1.1 | % | |||||||
General and administrative | 29,674 | 3.0 | % | 24,146 | 2.4 | % | |||||||
Gain on sale of assets, net | (427 | ) | -0.1 | % | (765 | ) | -0.1 | % | |||||
Total operating expenses | 954,793 | 96.7 | % | 982,280 | 95.8 | % | |||||||
Operating income | 32,099 | 3.3 | % | 42,555 | 4.2 | % | |||||||
Other income (expense): | |||||||||||||
Interest expense, net | (1,333 | ) | -0.1 | % | (699 | ) | -0.1 | % | |||||
Other, net | (23 | ) | -0.0 | % | (188 | ) | -0.0 | % | |||||
Total other expense, net | (1,356 | ) | -0.1 | % | (887 | ) | -0.1 | % | |||||
Income before provision for income taxes | 30,743 | 3.2 | % | 41,668 | 4.1 | % | |||||||
Provision for income taxes | 7,140 | 0.7 | % | 11,209 | 1.1 | % | |||||||
Net income | $ | 23,603 | $ | 30,459 | |||||||||
Earnings per share | |||||||||||||
Basic | $ | 0.39 | $ | 0.49 | |||||||||
Diluted | $ | 0.39 | $ | 0.48 | |||||||||
Basic weighted average number of shares outstanding | 60,374 | 62,278 | |||||||||||
Diluted weighted average number of shares outstanding | 60,949 | 62,986 | |||||||||||
HUB GROUP, INC. | |||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
(unaudited) | |||||||||||||
Nine Months Ended September 30, | |||||||||||||
2024 | 2023 | ||||||||||||
% of | % of | ||||||||||||
Amount | Revenue | Amount | Revenue | ||||||||||
Operating revenue | $ | 2,972,880 | 100.0 | % | $ | 3,217,562 | 100.0 | % | |||||
Operating expenses: | |||||||||||||
Purchased transportation and warehousing | 2,207,403 | 74.3 | % | 2,403,190 | 74.7 | % | |||||||
Salaries and benefits | 429,300 | 14.4 | % | 417,757 | 13.0 | % | |||||||
Depreciation and amortization | 108,489 | 3.6 | % | 106,899 | 3.3 | % | |||||||
Insurance and claims | 35,474 | 1.2 | % | 36,041 | 1.1 | % | |||||||
General and administrative | 84,785 | 2.9 | % | 76,445 | 2.4 | % | |||||||
Gain on sale of assets, net | (1,337 | ) | -0.1 | % | (5,599 | ) | -0.2 | % | |||||
Total operating expenses | 2,864,114 | 96.3 | % | 3,034,733 | 94.3 | % | |||||||
Operating income | 108,766 | 3.7 | % | 182,829 | 5.7 | % | |||||||
Other income (expense): | |||||||||||||
Interest expense, net | (5,720 | ) | -0.2 | % | (3,321 | ) | -0.1 | % | |||||
Other, net | (259 | ) | -0.0 | % | (81 | ) | -0.0 | % | |||||
Total other expense, net | (5,979 | ) | -0.2 | % | (3,402 | ) | -0.1 | % | |||||
Income before provision for income taxes | 102,787 | 3.5 | % | 179,427 | 5.6 | % | |||||||
Provision for income taxes | 23,116 | 0.8 | % | 40,684 | 1.3 | % | |||||||
Net income | $ | 79,671 | $ | 138,743 | |||||||||
Earnings per share | |||||||||||||
Basic | $ | 1.31 | $ | 2.17 | |||||||||
Diluted | $ | 1.30 | $ | 2.15 | |||||||||
Basic weighted average number of shares outstanding | 60,803 | 63,816 | |||||||||||
Diluted weighted average number of shares outstanding | 61,241 | 64,416 | |||||||||||
HUB GROUP, INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except share data) | |||||||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 186,139 | $ | 187,270 | |||
Accounts receivable trade, net | 576,352 | 600,197 | |||||
Accounts receivable other | 5,683 | 3,358 | |||||
Prepaid taxes | 11,026 | 17,331 | |||||
Prepaid expenses and other current assets | 26,196 | 41,089 | |||||
TOTAL CURRENT ASSETS | 805,396 | 849,245 | |||||
Restricted investments | 21,342 | 20,763 | |||||
Property and equipment, net | 741,753 | 791,692 | |||||
Right-of-use assets - operating leases | 228,137 | 210,742 | |||||
Right-of-use assets - financing leases | 1,226 | 2,522 | |||||
Other intangibles, net | 240,162 | 304,607 | |||||
Goodwill | 772,542 | 733,695 | |||||
Other non-current assets | 22,567 | 22,781 | |||||
TOTAL ASSETS | $ | 2,833,125 | $ | 2,936,047 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable trade | $ | 305,838 | $ | 349,378 | |||
Accounts payable other | 28,636 | 14,471 | |||||
Accrued payroll | 34,442 | 21,731 | |||||
Accrued other | 105,638 | 121,253 | |||||
Lease liability - operating leases | 42,853 | 44,690 | |||||
Lease liability - financing leases | 656 | 1,579 | |||||
Current portion of long-term debt | 99,850 | 105,108 | |||||
TOTAL CURRENT LIABILITIES | 617,913 | 658,210 | |||||
Long-term debt | 187,240 | 245,574 | |||||
Other non-current liabilities | 54,939 | 55,287 | |||||
Lease liability - operating leases | 193,851 | 177,699 | |||||
Lease liability - financing leases | 498 | 865 | |||||
Deferred taxes | 152,414 | 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; 60,818,637 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 | 216,585 | 209,830 | |||||
Retained earnings | 2,005,539 | 1,949,110 | |||||
Accumulated other comprehensive loss | (232 | ) | (129 | ) | |||
Treasury stock; at cost, 11,484,591 shares in 2024 and 13,323,268 shares in 2023 | (596,351 | ) | (524,927 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | 1,626,270 | 1,634,645 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,833,125 | $ | 2,936,047 | |||
HUB GROUP, INC. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 79,671 | $ | 138,743 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization of intangibles and right-of-use assets | 145,474 | 136,775 | |||||
Impairment of right-of-use asset | - | 2,012 | |||||
Deferred taxes | (11,652 | ) | 18,832 | ||||
Non-cash share-based compensation expense | 14,695 | 16,031 | |||||
Gain on sale of assets, net | (1,337 | ) | (5,599 | ) | |||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Restricted investments | (579 | ) | (1,744 | ) | |||
Accounts receivable, net | 22,967 | 83,664 | |||||
Prepaid taxes | 6,305 | (2,108 | ) | ||||
Prepaid expenses and other current assets | 11,210 | 6,161 | |||||
Other non-current assets | (2,083 | ) | (2,515 | ) | |||
Accounts payable | (29,520 | ) | 516 | ||||
Accrued expenses | (10,106 | ) | (46,243 | ) | |||
Non-current liabilities | (31,230 | ) | (21,848 | ) | |||
Net cash provided by operating activities | 193,815 | 322,677 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sale of equipment | 9,792 | 20,208 | |||||
Purchases of property and equipment | (43,220 | ) | (105,667 | ) | |||
Acquisitions, net of cash acquired | 3,701 | 108 | |||||
Net cash used in investing activities | (29,727 | ) | (85,351 | ) | |||
Cash flows from financing activities: | |||||||
Repayments of long term debt | (81,356 | ) | (80,965 | ) | |||
Purchase of treasury stock | (68,273 | ) | (117,352 | ) | |||
Dividends paid | (22,733 | ) | - | ||||
Stock withheld for payments of withholding taxes | (9,064 | ) | (8,003 | ) | |||
Finance lease payments | (1,532 | ) | (2,097 | ) | |||
Proceeds from issuance of debt | 17,764 | 85,107 | |||||
Net cash used in financing activities | (165,194 | ) | (123,310 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (25 | ) | 28 | ||||
Net (decrease) increase in cash and cash equivalents | (1,131 | ) | 114,044 | ||||
Cash and cash equivalents beginning of period | 187,270 | 286,642 | |||||
Cash and cash equivalents end of period | $ | 186,139 | $ | 400,686 | |||
HUB GROUP, INC. | |||||||||||||
FINANCIAL INFORMATION BY SEGMENT (NON-GAAP) | |||||||||||||
(in thousands) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended September 30, | |||||||||||||
NON-GAAP | |||||||||||||
NON-GAAP | Adjusted | ||||||||||||
Operating Revenue | 2024 | Adjustments (1) | 2024 | 2023 | |||||||||
Intermodal and Transportation Services | $ | 559,968 | $ | - | $ | 559,968 | $ | 595,308 | |||||
Logistics | 460,847 | - | 460,847 | 460,309 | |||||||||
Inter-segment eliminations | (33,923 | ) | - | (33,923 | ) | (30,782 | ) | ||||||
Total operating revenue | $ | 986,892 | $ | - | $ | 986,892 | $ | 1,024,835 | |||||
Three Months Ended September 30, | |||||||||||||
NON-GAAP | |||||||||||||
NON-GAAP | Adjusted | ||||||||||||
Operating Income | 2024 | Adjustments (1) | 2024 | 2023 | |||||||||
Intermodal and Transportation Services | $ | 13,516 | $ | 1,440 | $ | 14,956 | $ | 13,484 | |||||
Logistics | 18,583 | 8,949 | 27,532 | 29,071 | |||||||||
Total operating income | $ | 32,099 | $ | 10,389 | $ | 42,488 | $ | 42,555 | |||||
Three Months Ended September 30, | |||||||||||||
NON-GAAP | |||||||||||||
NON-GAAP | Adjusted | ||||||||||||
Depreciation and Amortization | 2024 | Adjustments (1) | 2024 | 2023 | |||||||||
Intermodal and Transportation Services | $ | 21,249 | $ | - | $ | 21,249 | $ | 27,493 | |||||
Logistics | 11,137 | - | 11,137 | 8,572 | |||||||||
Total depreciation and amortization | $ | 32,386 | $ | - | $ | 32,386 | $ | 36,065 |
(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) | |||||||||||||
Nine Months Ended September 30, | |||||||||||||
Operating Revenue | 2024 | Non-GAAP Adjustments (1) | Non-GAAP Adjusted 2024 | 2023 | |||||||||
Intermodal and Transportation Services | $ | 1,673,034 | - | - | $ | 1,919,189 | |||||||
Logistics | 1,400,159 | - | - | 1,382,999 | |||||||||
Inter-segment eliminations | (100,313 | ) | - | - | (84,626 | ) | |||||||
Total operating revenue | $ | 2,972,880 | - | - | $ | 3,217,562 | |||||||
Nine Months Ended September 30, | |||||||||||||
Non-GAAP | |||||||||||||
Non-GAAP | Adjusted | ||||||||||||
Operating Income | 2024 | Adjustments (1) | 2024 | 2023 | |||||||||
Intermodal and Transportation Services | $ | 40,186 | $ | 1,440 | $ | 41,626 | $ | 94,639 | |||||
Logistics | 68,580 | 8,949 | 77,529 | 88,190 | |||||||||
Total operating income | $ | 108,766 | $ | 10,389 | $ | 119,155 | $ | 182,829 | |||||
Nine Months Ended September 30, | |||||||||||||
Depreciation and Amortization | 2024 | Non-GAAP Adjustments (1) | Non-GAAP Adjusted 2024 | 2023 | |||||||||
Intermodal and Transportation Services | $ | 75,568 | - | - | $ | 81,751 | |||||||
Logistics | 32,921 | - | - | 25,148 | |||||||||
Total depreciation and amortization | $ | 108,489 | - | - | $ | 106,899 |
(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 | Nine Months Ended | ||||||||||||||||||||||
September 30, 2024 | September 30, 2024 | ||||||||||||||||||||||
Pre-Tax | After-Tax | Per Share | Pre-Tax | After-Tax | Per Share | ||||||||||||||||||
GAAP Earnings | $ | 30.7 | $ | 23.6 | $ | 0.39 | $ | 102.8 | $ | 79.7 | $ | 1.31 | |||||||||||
Network Alignment (i) | 8.4 | 6.4 | $ | 0.11 | 8.4 | 6.4 | $ | 0.11 | |||||||||||||||
Transaction Related (ii) | 0.9 | 0.7 | $ | 0.01 | 0.9 | 0.7 | $ | 0.01 | |||||||||||||||
Other (iii) | 1.1 | 0.8 | $ | 0.01 | 1.1 | 0.8 | $ | 0.01 | |||||||||||||||
Non-GAAP Adjusted Earnings | $ | 41.1 | $ | 31.6 | $ | 0.52 | $ | 113.2 | $ | 87.7 | $ | 1.44 | |||||||||||
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 Operating Income to Non-GAAP Adjusted Operating Income, excluding certain items.
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2024 | September 30, 2024 | ||||||||||||||||||||||
ITS | Logistics | Consolidated | ITS | Logistics | Consolidated | ||||||||||||||||||
GAAP Operating Income | $ | 13.5 | $ | 18.6 | $ | 32.1 | $ | 40.2 | $ | 68.6 | $ | 108.8 | |||||||||||
Network Alignment (i) | $ | 0.3 | $ | 8.1 | $ | 8.4 | $ | 0.3 | $ | 8.1 | $ | 8.4 | |||||||||||
Transaction Related (ii) | $ | 0.5 | $ | 0.4 | $ | 0.9 | $ | 0.5 | $ | 0.4 | $ | 0.9 | |||||||||||
Other (iii) | $ | 0.7 | $ | 0.4 | $ | 1.1 | $ | 0.7 | $ | 0.4 | $ | 1.1 | |||||||||||
Non-GAAP Adjusted Operating Income | $ | 15.0 | $ | 27.5 | $ | 42.5 | $ | 41.7 | $ | 77.5 | $ | 119.2 | |||||||||||
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.
RECONCILIATION OF NET INCOME TO EBITDA (1) AND NET DEBT / EBITDA LEVERAGE | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
2023 | 2024 | 2024 | 2024 | ||||||||||||||||
Q4 | Q1 | Q2 | Q3 | LTM (3) | |||||||||||||||
Net Income | $ | 28,785 | $ | 27,053 | $ | 29,015 | $ | 23,603 | $ | 108,456 | |||||||||
Interest Expense, net | 103 | 2,506 | 1,881 | 1,333 | 5,823 | ||||||||||||||
Depreciation and Amortization (2) | 47,674 | 49,605 | 49,495 | 46,374 | 193,148 | ||||||||||||||
Provision for Income Taxes | 992 | 7,410 | 8,566 | 7,140 | 24,108 | ||||||||||||||
EBITDA | $ | 77,554 | $ | 86,574 | $ | 88,957 | $ | 78,450 | $ | 331,535 | |||||||||
Network Alignment (i) | $ | - | $ | - | $ | - | $ | 8,381 | $ | 8,381 | |||||||||
Transaction Related (ii) | 5,092 | - | - | 947 | 6,039 | ||||||||||||||
Other (iii) | - | - | - | 1,061 | 1,061 | ||||||||||||||
Adjusted EBITDA | $ | 82,646 | $ | 86,574 | $ | 88,957 | $ | 88,839 | $ | 347,016 | |||||||||
EBITDA LTM (3) | $ | 397,079 | $ | 359,599 | $ | 340,753 | $ | 331,535 | |||||||||||
Net Debt (4) | $ | 165,856 | $ | 141,524 | $ | 94,289 | $ | 102,105 | |||||||||||
Net Debt / EBITDA LTM | 0.4 | 0.4 | 0.3 | 0.3 | |||||||||||||||
Adjusted EBITDA LTM (3) | $ | 402,171 | $ | 364,691 | $ | 345,845 | $ | 347,016 | |||||||||||
Net Debt / Adjusted EBITDA LTM | 0.4 | 0.4 | 0.3 | 0.3 |
(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) Last twelve months
(4) 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 and the acquisition of Forward Air Final Mile in 2023.
(iii) Other includes non-ordinary expenses related to employee matters.
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