10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024 or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 0-27754

HUB GROUP, INC.

(Exact name of registrant as specified in its charter)


Delaware		36-4007085
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2001 Hub Group Way

Oak Brook, Illinois 60523

(Address, including zip code, of principal executive offices)

(630) 271-3600

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	HUBG	NASDAQ

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

Indicate by check mark if Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

On April 26, 2024, the registrant had 61,741,180 outstanding shares of Class A common stock, par value $.01 per share, and 574,903 outstanding shares of Class B common stock, par value $.01 per share.

HUB GROUP, INC.

TABLE OF CONTENTS


	Page
PART I. Financial Information: Item1. Financial Statements
Condensed Consolidated Balance Sheets – March 31, 2024 (unaudited) and December 31, 2023	3
Unaudited Condensed Consolidated Statements of Income and Comprehensive Income – Three Months Ended March 31, 2024 and 2023	4
Unaudited Condensed Consolidated Statements of Stockholders’ Equity – Three Months Ended March 31, 2024 and 2023	5
Unaudited Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2024 and 2023	6
Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3. Quantitative and Qualitative Disclosures about Market Risk	17
Item 4. Controls and Procedures	17
PART II. Other Information	17
Item 1. Legal Proceedings	17
Item 1A. Risk Factors	17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 3. Defaults Upon Senior Securities	18
Item 4. Mine Safety Disclosures	18
Item 5. Other Information	18
Item 6. Exhibits	18

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HUB GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)


	March 31,			December 31,
	2024			2023
ASSETS	(unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	195,362		$	187,270
Accounts receivable trade, net		588,957			600,197
Accounts receivable other		4,940			3,358
Prepaid taxes		10,078			17,331
Prepaid expenses and other current assets		28,621			41,089
TOTAL CURRENT ASSETS		827,958			849,245

Restricted investments		20,393			20,763
Property and equipment, net		777,209			791,692
Right-of-use assets - operating leases		209,171			210,742
Right-of-use assets - financing leases		2,152			2,522
Other intangibles, net		295,943			304,607
Goodwill		735,460			733,695
Other non-current assets		22,984			22,781
TOTAL ASSETS	$	2,891,270		$	2,936,047

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade	$	320,919		$	349,378
Accounts payable other		18,179			14,471
Accrued payroll		31,964			21,731
Accrued other		126,475			121,253
Lease liability - operating leases		45,775			44,690
Lease liability - financing leases		1,253			1,579
Current portion of long-term debt		104,035			105,108
TOTAL CURRENT LIABILITIES		648,600			658,210

Long-term debt		230,775			245,574
Other non-current liabilities		52,932			55,287
Lease liability - operating leases		175,481			177,699
Lease liability - financing leases		823			865
Deferred taxes		160,443			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; 61,847,444 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 2024 and 2023.		6			6
Additional paid-in capital		208,964			209,830
Retained earnings		1,968,361			1,949,110
Accumulated other comprehensive loss		(137	)		(129	)
Treasury stock; at cost, 10,455,784 shares in 2024 and 13,323,268 shares in 2023.		(555,701	)		(524,927	)
TOTAL STOCKHOLDERS' EQUITY		1,622,216			1,634,645
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,891,270		$	2,936,047

See notes to unaudited condensed consolidated financial statements.

HUB GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF INCOME AND COMPREHENSIVE INCOME

(in thousands, except per share amounts)


	Three Months Ended
	March 31,
	2024			2023

Operating revenue	$	999,493		$	1,152,265

Operating expenses:
Purchased transportation and warehousing		740,172			866,931
Salaries and benefits		144,497			137,431
Depreciation and amortization		38,331			35,449
Insurance and claims		12,618			12,683
General and administrative		27,234			25,541
Gain on sale of assets, net		(498	)		(3,975	)
Total operating expenses		962,354			1,074,060

Operating income		37,139			78,205

Other income (expense):
Interest expense		(3,899	)		(2,970	)
Interest income		1,393			1,377
Other, net		(170	)		38
Total other expense, net		(2,676	)		(1,555	)

Income before provision for income taxes		34,463			76,650

Provision for income taxes		7,410			14,870

Net income		27,053			61,780

Other comprehensive income:
Foreign currency translation adjustments		(8	)		34

Total comprehensive income	$	27,045		$	61,814

Basic earnings per common share	$	0.44		$	0.95

Diluted earnings per common share	$	0.44		$	0.94

Basic weighted average number of shares outstanding		61,325			65,098
Diluted weighted average number of shares outstanding		61,666			65,676

See notes to unaudited condensed consolidated financial statements.

HUB GROUP, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands, except share amounts)



	Class A & B											Accumulated
	Common Stock						Additional					Other			Treasury
	Shares						Paid-in			Retained		Comprehensive			Stock
	Issued			Amount			Capital			Earnings		Income			Shares			Amount			Total
Balance December 31, 2022		76,099,092		$	761		$	192,365		$	1,781,582	$	(214	)		(9,656,044	)	$	(374,892	)	$	1,599,602
Stock tendered for payments of withholding taxes related to awards vested		-			-			-			-		-			(191,028	)		(7,606	)		(7,606	)
Issuance of restricted stock awards, net of forfeitures		-			-			(7,292	)		-		-			419,056			7,292			-
Share-based compensation expense		-			-			5,238			-		-			-			-			5,238
Net income		-			-			-			61,780		-			-			-			61,780
Foreign currency translation adjustment		-			-			-			-		34			-			-			34
Balance March 31, 2023		76,099,092		$	761		$	190,311		$	1,843,362	$	(180	)		(9,428,016	)	$	(375,206	)	$	1,659,048


Balance December 31, 2023		76,099,092		$	761		$	209,830		$	1,949,110	$	(129	)		(13,323,268	)	$	(524,927	)	$	1,634,645
Adjustment related to stock split		(3,220,961	)		(32	)		32			-		-			3,220,961			-			-
Stock tendered for payments of withholding taxes related to awards vested		-			-			-			-		-			(186,067	)		(8,486	)		(8,486	)
Purchase of treasury stock		-			-			-			-		-			(587,928	)		(25,756	)		(25,756	)

SEC Form 10-Q filed by Hub Group Inc.