Hub Group Inc. (Nasdaq: HUBG), Downers Grove, Ill., reported record net income for the quarter ended March 31, 2005 of $5.3 million. This represents a 97% increase in first quarter net income
versus the first quarter of 2004. Hub Group’s diluted earnings per share of $0.51 for the quarter ended March 31, 2005 represents an increase of 55% compared to last year's first quarter diluted earnings per share of $0.33 on 28% higher average diluted shares outstanding in the 2005 period. Costs and expenses decreased 3.9% in the first quarter of 2005 to $34.1 million compared to $35.5 million in the first quarter of 2004, reflecting the benefits from the company's improved operating efficiencies and cost reduction efforts. Interest expense decreased from $1.7 million in first quarter 2004 to $0.2 million in 2005 due to debt reduction in the third quarter of 2004.
Hub Group operates a small fleet of drayage vehicles to help minimize equipment shortages and delivery delays in several corridors, but uses approximately 3,000 commercial motor carriers throughout the U.S.
Hub’s revenue grew by 3.5% to $339.9 million as compared to $328.3 million in the first quarter of 2004. First quarter intermodal revenue decreased 1.1% to $233.7 million. Truckload brokerage revenue increased 18.0% to $60.1 million this quarter. First quarter logistics revenue increased 4.9% to $35.6 million. Hub Group Distribution Services revenue increased 47.1% to $10.5 million in the first quarter of 2005.