Hub Group Inc. (HUBG, Financial) filed Quarterly Report for the period ended 2010-06-30.
Hub Group Inc. has a market cap of $1.19 billion; its shares were traded at around $31.77 with a P/E ratio of 31.4 and P/S ratio of 0.8. Hub Group Inc. had an annual average earning growth of 11.2% over the past 10 years.HUBG is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Gross margin increased 10.5% to $50.6 million in 2010 from $45.8 million in 2009. This $4.8 million margin increase came from our intermodal and logistics businesses, offset by a $1.7 million decline in truck brokerage margins. As a percentage of revenue, gross margin decreased to 11.0% in 2010 from 12.6% in 2009. The decrease in gross margin as a percentage of revenue was driven primarily by an increase in truck brokerage costs resulting from tighter capacity and a dercrease in intermodal pricing and mix.
As a percentage of revenue, salaries and benefits decreased to 5.2% in 2010 from 6.1% in 2009 due to increased revenue and improved employee efficiencies. Salaries and benefits increased to $23.9 million in 2010 from $22.1 million in 2009 due primarily to an increase in bonus expense, salary expense and commission expense. Bonuses were $1.2 million higher than last year due primarily to the EPS portion of the bonus being accrued in 2010 while no EPS bonus was accrued in 2009. Headcount as of June 30, 2010 and 2009 was 1,080 and 1,016, respectively, which excludes drivers as driver costs are included in transportation costs.
Depreciation and amortization decreased to $0.9 million in 2010 from $1.1 million in 2009. This expense as a percentage of revenue decreased to 0.2% in 2010 from 0.3% in 2009. The decrease in depreciation and amortization was due primarily to a change in the salvage value of certain assets in 2009.
Revenue increased 22.6% to $875.4 million in 2010 from $714.3 million in 2009. Intermodal revenue increased 21.5% to $607.1 million due to a 21% increase in volume and a 7% increase for fuel offset by a 2% price decrease and a 4% decrease for mix. Truck brokerage revenue increased 21.9% to $169.9 million due to a 20% increase in volume and a 6% increase for fuel offset by a 4% decrease for price and mix. Our average length of haul for truck brokerage was down 4% or 26 miles. Logistics revenue increased 30.8% to $98.4 million related to new customers added in 2009 and an increase in business with existing accounts.
Gross margin increased 9.3% to $99.4 million in 2010 from $90.9 million in 2009. This $8.5 million margin increase came primarily from intermodal and logistics. As a percentage of revenue, gross margin decreased to 11.4% in 2010 from 12.7% in 2009. The decrease in gross margin as a percentage of revenue was driven primarily by an increase in truck brokerage costs resulting from tighter capacity and a decrease in intermodal pricing and mix.
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Hub Group Inc. has a market cap of $1.19 billion; its shares were traded at around $31.77 with a P/E ratio of 31.4 and P/S ratio of 0.8. Hub Group Inc. had an annual average earning growth of 11.2% over the past 10 years.HUBG is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenue increased 26.3% to $458.1 million in 2010 from $362.6 million in 2009. Intermodal revenue increased 26.1% to $320.3 million due to a 25% increase in volume and an 8% increase for fuel offset by a 2% price decrease and a 5% decrease for mix. Truck brokerage revenue increased 20.9% to $86.4 million due to a 17% increase in volume and a 7% increase for fuel offset by a 3% decrease for price and mix. Our average length of haul for truck brokerage was down 5% or 37 miles. Logistics revenue increased 38.4% to $51.4 million related primarily to new customers added in 2009 and an increase in business with existing accounts.Gross margin increased 10.5% to $50.6 million in 2010 from $45.8 million in 2009. This $4.8 million margin increase came from our intermodal and logistics businesses, offset by a $1.7 million decline in truck brokerage margins. As a percentage of revenue, gross margin decreased to 11.0% in 2010 from 12.6% in 2009. The decrease in gross margin as a percentage of revenue was driven primarily by an increase in truck brokerage costs resulting from tighter capacity and a dercrease in intermodal pricing and mix.
As a percentage of revenue, salaries and benefits decreased to 5.2% in 2010 from 6.1% in 2009 due to increased revenue and improved employee efficiencies. Salaries and benefits increased to $23.9 million in 2010 from $22.1 million in 2009 due primarily to an increase in bonus expense, salary expense and commission expense. Bonuses were $1.2 million higher than last year due primarily to the EPS portion of the bonus being accrued in 2010 while no EPS bonus was accrued in 2009. Headcount as of June 30, 2010 and 2009 was 1,080 and 1,016, respectively, which excludes drivers as driver costs are included in transportation costs.
Depreciation and amortization decreased to $0.9 million in 2010 from $1.1 million in 2009. This expense as a percentage of revenue decreased to 0.2% in 2010 from 0.3% in 2009. The decrease in depreciation and amortization was due primarily to a change in the salvage value of certain assets in 2009.
Revenue increased 22.6% to $875.4 million in 2010 from $714.3 million in 2009. Intermodal revenue increased 21.5% to $607.1 million due to a 21% increase in volume and a 7% increase for fuel offset by a 2% price decrease and a 4% decrease for mix. Truck brokerage revenue increased 21.9% to $169.9 million due to a 20% increase in volume and a 6% increase for fuel offset by a 4% decrease for price and mix. Our average length of haul for truck brokerage was down 4% or 26 miles. Logistics revenue increased 30.8% to $98.4 million related to new customers added in 2009 and an increase in business with existing accounts.
Gross margin increased 9.3% to $99.4 million in 2010 from $90.9 million in 2009. This $8.5 million margin increase came primarily from intermodal and logistics. As a percentage of revenue, gross margin decreased to 11.4% in 2010 from 12.7% in 2009. The decrease in gross margin as a percentage of revenue was driven primarily by an increase in truck brokerage costs resulting from tighter capacity and a decrease in intermodal pricing and mix.
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