Business
Hub Group Reports Second Quarter 2024 Results
Highlights: Diluted earnings per share (EPS) of $0.47 for the quarterSecond quarter revenue of $1.0 billionQuarterly operating income of $40 million or 4.0%
About this update from Hub Group, Inc.
[{"type":"text","content":"Highlights: Diluted earnings per share (EPS) of $0.47 for the quarterSecond quarter revenue of $1.0 billionQuarterly operating income of $40 million or 4.0% of revenueExecuting on Capital Allocation Plan by returning $48 million to shareholders year-to-date through dividend payments of $15 million and stock repurchases of $33 millionStrong balance sheet with cash and cash equivalents of $220 million and net debt/EBITDA of 0.3x (non-GAAP) as of June 30, 2024Awarded Domestic Partner of the Year by Target® OAK BROOK, Ill., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) announced second quarter 2024 net income of $29 million and diluted earnings per share of $0.47. Net income for second quarter 2023 was $47 million or $0.72 per diluted share. “I am pleased with the team’s performance in the second quarter with Intermodal volume growth of 8% and the strong contribution from Final Mile, resulting in $1.0 billion of revenue. Although market conditions remain challenging, Hub Group benefitted from our disciplined market approach, recent diversification efforts, and strong balance sheet. We continue to enhance earnings stability and growth over the long term by focusing on yield management, our capital structure, and providing excellent service to our customers,” said Phil Yeager, Hub Group’s President, Chief Executive Officer and Vice Chairman. Second Quarter 2024 Results Consolidated revenue for the second quarter of 2024 was $986 million, down 5.2% from the $1,040 million reported in second quarter of 2023. Revenue was impacted by the freight market, lower revenue per load including fuel and accessorial revenue in Intermodal and Brokerage, partially offset by higher volumes in Intermodal and contributions from the Final Mile acquisition. Purchased transportation and warehousing costs of $727 million were $36 million lower than prior year. Salaries and benefits of $142 million were comparable to prior year as we continue to manage headcount. Total legacy headcount, which excludes acquisition employees, drivers and warehouse employees, declined by 7%. Depreciation and amortization increased $2.4 million, or 40 basis points, due to the Final Mile acquisition. Insurance and claims increased by 20 basis points due to higher claim costs. General and administrative expenses increased 20 basis points as compared to prior yea...