Hub Group Inc. (HUBG, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $906.5 million; its shares were traded at around $26.62 with a P/E ratio of 20 and P/S ratio of 0.5. Hub Group Inc. had an annual average earning growth of 20% over the past 5 years.
Gross margin decreased 23.7% to $48.2 million in 2009 from $63.2 million in 2008. This decline is primarily due to decreases in intermodal gross margin, related to lower price, mix and volume. These decreases were partially offset by cost reductions from better management of our drayage operations and other margin initiatives. As a percent of revenue, gross margin increased to 12.4% in 2009 from 12.3% 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.
General and administrative expenses decreased to $9.1 million in 2009 from $10.8 million in 2008. As a percentage of revenue, these expenses increased to 2.4% in 2009 from 2.1% in 2008. Total expenses decreased due to reductions in outside services of $0.4 million, travel and entertainment expenses of $0.4 million and bad debt expense of $0.2 million. In addition, we had a loss on the sale of assets of $0.3 million in 2008 that did not recur in 2009. The reduction in travel and entertainment expenses resulted primarily from an increased focus on controlling costs.
Revenue decreased 22.9% to $1.1 billion in 2009 from $1.4 billion in 2008. Intermodal revenue decreased 24.8% to $769.7 million due to an 8% decrease in volume, a 12% decline for fuel and a 5% decrease related to price and mix. Truck Brokerage revenue decreased 26.2% to $213.6 million due to a 6% decrease in volume, a 12% decline for fuel and an 8% decrease due to pricing and mix. Logistics revenue increased 2.8% to $119.7 million due to new customers landed in 2008 and 2009.
General and administrative expenses decreased to $28.4 million for 2009 from $31.4 million in 2008. Total expenses decreased due to reductions in outside services of $1.4 million, travel and entertainment expenses of $0.9 million office expenses of $0.5 million and outside sales commissions of $0.4 million. The reduction in travel and entertainment expenses resulted primarily from an increased focus on controlling costs. These decreases were partially offset by a $0.5 million increase in bad debt expense. As a percentage of revenue, these expenses increased to 2.6% in 2009 from 2.2% in 2008.
Depreciation and amortization increased to $3.2 million in 2009 from $3.0 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 $906.5 million; its shares were traded at around $26.62 with a P/E ratio of 20 and P/S ratio of 0.5. Hub Group Inc. had an annual average earning growth of 20% over the past 5 years.
Highlight of Business Operations:
Revenue decreased 24.4% to $388.8 million in 2009 from $514.2 million in 2008. Intermodal revenue decreased 26.9% to $270.1 million due to a 12% decline for fuel, a 9% decrease in volume, a 4% price decrease and 2% decrease for mix. Truck brokerage revenue decreased 26.6% to $74.2 million due to a 4% decrease in volume, a 15% decline for fuel and an 8% decline due to pricing and unfavorable mix. Our length of haul for truck brokerage was down 4% or 31 miles. Logistics revenue increased 2.3% to $44.5 million due to new customers.Gross margin decreased 23.7% to $48.2 million in 2009 from $63.2 million in 2008. This decline is primarily due to decreases in intermodal gross margin, related to lower price, mix and volume. These decreases were partially offset by cost reductions from better management of our drayage operations and other margin initiatives. As a percent of revenue, gross margin increased to 12.4% in 2009 from 12.3% 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.
General and administrative expenses decreased to $9.1 million in 2009 from $10.8 million in 2008. As a percentage of revenue, these expenses increased to 2.4% in 2009 from 2.1% in 2008. Total expenses decreased due to reductions in outside services of $0.4 million, travel and entertainment expenses of $0.4 million and bad debt expense of $0.2 million. In addition, we had a loss on the sale of assets of $0.3 million in 2008 that did not recur in 2009. The reduction in travel and entertainment expenses resulted primarily from an increased focus on controlling costs.
Revenue decreased 22.9% to $1.1 billion in 2009 from $1.4 billion in 2008. Intermodal revenue decreased 24.8% to $769.7 million due to an 8% decrease in volume, a 12% decline for fuel and a 5% decrease related to price and mix. Truck Brokerage revenue decreased 26.2% to $213.6 million due to a 6% decrease in volume, a 12% decline for fuel and an 8% decrease due to pricing and mix. Logistics revenue increased 2.8% to $119.7 million due to new customers landed in 2008 and 2009.
General and administrative expenses decreased to $28.4 million for 2009 from $31.4 million in 2008. Total expenses decreased due to reductions in outside services of $1.4 million, travel and entertainment expenses of $0.9 million office expenses of $0.5 million and outside sales commissions of $0.4 million. The reduction in travel and entertainment expenses resulted primarily from an increased focus on controlling costs. These decreases were partially offset by a $0.5 million increase in bad debt expense. As a percentage of revenue, these expenses increased to 2.6% in 2009 from 2.2% in 2008.
Depreciation and amortization increased to $3.2 million in 2009 from $3.0 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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