Business
Hub Group, Inc. Reports Fourth Quarter and Full Year 2019 Results; Issues Guidance for 2020
Highlights: Profit improvement initiatives and the resiliency of our diversified model resulted in net income of $28.0 million or $0.84 in diluted earnings
About this update from Hub Group, Inc.
[{"type":"text","content":"Highlights: \n Profit improvement initiatives and the resiliency of our diversified model resulted in net income of $28.0 million or $0.84 in diluted earnings per share in the fourth quarter and are expected to provide for long term earnings growthManagement estimates 2020 diluted EPS will range from $3.39 to $3.60 as we anticipate we will continue to benefit from internal initiatives in a challenging freight environmentStrong cost controls resulted in a 4.3% operating margin and EBITDA of $69 million for the fourth quarterNet cash provided by operating activities for 2019 was $254.5 million Full year 2019 net income was $107 million. Full year 2019 EBITDA was $269 million, a 29% increase over last year and free cash flow (non-GAAP) for the year was $170 million compared to $22 million in 2018 OAK BROOK, Ill., Feb. 06, 2020 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ:HUBG) announced fourth quarter 2019 net income of $28.0 million, or diluted earnings per share of $0.84. Income from continuing operations for the fourth quarter 2018 was $33.7 million, or $1.01 per diluted share. Update on Profit Improvement Initiatives “We remain focused on executing our strategy, key tenets of which include delivering a superior experience for both our customers and employees, diversifying our service offerings and investing in technology while increasing profitability and our return on invested capital. Last quarter we announced profit improvement initiatives focused on operational enhancements, technology driven automation, revenue management, and procurement savings in transportation and general and administrative costs. We continue to execute on these important initiatives that position Hub for success despite the challenging freight environment,” said Dave Yeager, Hub’s Chairman and Chief Executive Officer. In our Q3 2019 earnings release, we announced that the profit improvement initiatives completed at that time were projected to provide over $60 million of annualized savings, with an additional $40 million of annualized savings based on initiatives we expected to implement in 2020. Our actions to date resulted in a 12% reduction in non-driver headcount during 2019, decreases in purchased transportation costs, investments in efficiency enhancing technologies and profitability improvements at Dedicated. We remain on track to realize the ben...