Hub Group, Inc. (HUBG) Misses Q1 EPS by 13c

Hub Group, Inc. (NASDAQ: HUBG) reported Q1 EPS of $0.47, $0.13 worse than the analyst estimate of $0.60. Revenue for the quarter came in at $837 million versus the consensus estimate of $873.88 million.

“As an essential business, Hub Group is working aggressively to manage through the impact of the COVID-19 pandemic. We have maintained our focus on providing a world-class customer experience, while ensuring the health and safety of our employees,” said Dave Yeager, Hub Group’s Chairman and Chief Executive Officer. “Logistics is a foundational part of the economy and our team is doing an amazing job during this challenging period, particularly in servicing our customers whose businesses have been impacted by the pandemic. Some of our top customers include retailers and consumer goods companies who have experienced strong demand for their essential products, while other customers have closed their businesses, which we hope will be temporary. We have been intensely focused on driving efficiency in our organization and improving our cost structure, including by decreasing our headcount by 4% since year-end 2019 and reducing discretionary operating expenses. In addition, we’ve taken several important steps to enhance liquidity, including borrowing $100 million on our revolving credit line in late March, suspending the completion of our headquarters campus expansion and more carefully managing our working capital. Hub is well-positioned to manage through the current economic environment, with $277 million of cash and cash equivalents, and $219 million of unused and available borrowings under our revolving line of credit as of March 31, 2020. Finally, we are proud to have been able to support COVID-19 emergency responders by donating approximately $5 million of equipment during March and April,” continued Mr. Yeager.

“Our operating model and focus on cost control resulted in net cash from operating activities of $41 million during the quarter, and EBITDA (non-GAAP)1 of $50 million for the quarter. We continue to execute on our profit improvement initiatives, and we remain on track to realize $40 million of annualized savings in 2020. A key area of focus for 2020 is improving the profitability and cost structure of our drayage and dedicated trucking operations, including enhanced asset utilization, improved network optimization, greater driver productivity, and efficiencies in maintenance and procurement,” said Mr. Yeager.

For earnings history and earnings-related data on Hub Group, Inc. (HUBG) click here.

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