Hub Group Inc. (HUBG, Financial) filed Quarterly Report for the period ended 2009-06-30.
Hub Group Inc. is a full service transportation provider offering intermodal truck brokerage and comprehensive logistics services. Hub Group Inc. has a market cap of $758.9 million; its shares were traded at around $20.42 with a P/E ratio of 14.6 and P/S ratio of 0.4. Hub Group Inc. had an annual average earning growth of 20% over the past 5 years.
Gross margin decreased 23.5% to $45.8 million in 2009 from $59.8 million in 2008. This margin decline is primarily due to intermodal. Intermodal margin decline is due to pricing being down 3% in the quarter, lower volume and lower margin from Comtrak, our drayage company. As a percent of revenue, gross margin has increased to 12.6% in 2009 from 12.2% in 2008. The increase in gross margin as a percent of revenue is primarily due to improvement in truck brokerage yields and lower fuel revenue.
Depreciation and amortization increased to $1.1 million in 2009 from $1.0 million in 2008. This expense as a percentage of revenue increased to 0.3% in 2009 from 0.2% in 2008. The increase in depreciation and amortization is due primarily to a decrease in the salvage value of certain assets.
Revenue decreased 22.0% to $714.3 million in 2009 from $915.9 million in 2008. Intermodal revenue decreased 23.7% to $499.7 million due to an 8% decrease in volume, a 13% decline for fuel and a 3% decrease related to price and unfavorable mix. Truck Brokerage revenue decreased 26.1% to $139.4 million due to an 8% decrease in volume, a 12% decline for fuel and an 6% decline due to pricing and unfavorable mix. Logistics revenue increased 3.1% to $75.2 million due to new customers landed in 2008 and 2009, partially offset by customer losses from 2008 and lower sales to existing customers.
Gross margin decreased 22.5% to $90.9 million in 2009 from $117.3 million in 2008. This margin decline is primarily due to intermodal. Intermodal margin decline was due to to pricing being down, lower volume and lower margin from Comtrak, our drayage company. As a percent of revenue, gross margin has decreased to 12.7% in 2009 from 12.8% in 2008. The decrease in gross margin as a percent of revenue was driven primarily by intermodal pricing pressure. This decrease was offset partially by increased gross margin as a percent of revenue in truck brokerage.
Depreciation and amortization increased to $2.3 million in 2009 from $2.0 million in 2008. This expense as a percentage of revenue increased to 0.3% in 2009 from 0.2% in 2008. The increase in depreciation and amortization is due primarily to a decrease in the salvage value of certain assets.
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Hub Group Inc. is a full service transportation provider offering intermodal truck brokerage and comprehensive logistics services. Hub Group Inc. has a market cap of $758.9 million; its shares were traded at around $20.42 with a P/E ratio of 14.6 and P/S ratio of 0.4. Hub Group Inc. had an annual average earning growth of 20% over the past 5 years.
Highlight of Business Operations:
Revenue decreased 26.1% to $362.6 million in 2009 from $490.9 million in 2008. Intermodal revenue decreased 27.7% to $254.1 million due to a 10% decrease in volume, a 14% decline for fuel, a 3% price decrease and 1% decrease due to unfavorable mix. Truck Brokerage revenue decreased 27.6% to $71.4 million due to a 7% decrease in volume, a 15% decline for fuel and a 6% decline due to pricing and unfavorable mix. Our length of haul for truck brokerage was down 7% or 55 miles. Logistics revenue decreased 8.6% to $37.1 million due to customer losses from 2008 and lower sales to existing customers partially offset by new customers landed in 2008 and 2009.Gross margin decreased 23.5% to $45.8 million in 2009 from $59.8 million in 2008. This margin decline is primarily due to intermodal. Intermodal margin decline is due to pricing being down 3% in the quarter, lower volume and lower margin from Comtrak, our drayage company. As a percent of revenue, gross margin has increased to 12.6% in 2009 from 12.2% in 2008. The increase in gross margin as a percent of revenue is primarily due to improvement in truck brokerage yields and lower fuel revenue.
Depreciation and amortization increased to $1.1 million in 2009 from $1.0 million in 2008. This expense as a percentage of revenue increased to 0.3% in 2009 from 0.2% in 2008. The increase in depreciation and amortization is due primarily to a decrease in the salvage value of certain assets.
Revenue decreased 22.0% to $714.3 million in 2009 from $915.9 million in 2008. Intermodal revenue decreased 23.7% to $499.7 million due to an 8% decrease in volume, a 13% decline for fuel and a 3% decrease related to price and unfavorable mix. Truck Brokerage revenue decreased 26.1% to $139.4 million due to an 8% decrease in volume, a 12% decline for fuel and an 6% decline due to pricing and unfavorable mix. Logistics revenue increased 3.1% to $75.2 million due to new customers landed in 2008 and 2009, partially offset by customer losses from 2008 and lower sales to existing customers.
Gross margin decreased 22.5% to $90.9 million in 2009 from $117.3 million in 2008. This margin decline is primarily due to intermodal. Intermodal margin decline was due to to pricing being down, lower volume and lower margin from Comtrak, our drayage company. As a percent of revenue, gross margin has decreased to 12.7% in 2009 from 12.8% in 2008. The decrease in gross margin as a percent of revenue was driven primarily by intermodal pricing pressure. This decrease was offset partially by increased gross margin as a percent of revenue in truck brokerage.
Depreciation and amortization increased to $2.3 million in 2009 from $2.0 million in 2008. This expense as a percentage of revenue increased to 0.3% in 2009 from 0.2% in 2008. The increase in depreciation and amortization is due primarily to a decrease in the salvage value of certain assets.
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