Hub (HUBG) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 net income was $24 million, with diluted earnings per share of$ 0.40; adjusted net income was $29 million, or$ 0.48 per diluted share [2][4]. - Full year 2024 revenue totaled $3.95 billion, a 6% decline from$ 4.20 billion in 2023; fourth quarter revenue was $974 million, down 1% from$ 985 million in Q4 2023 [4][7]. - Full year 2024 adjusted EBITDA was $349 million, with a net debt/adjusted EBITDA ratio of 0.5x, below the target range of 0.75 to 1.25x [6][7]. - Full year 2024 adjusted operating income was$ 157 million, or 4.0% of revenue, compared to 3.6% for GAAP operating income [6][7]. - Net income for 2024 was $104,043, down 37.9% from$ 167,528 in 2023 [28]. - Operating income for 2024 was $140,291, a decrease of 34.0% from$ 212,231 in 2023 [34]. - For the year ended December 31, 2024, GAAP earnings totaled $132.5 million, with a diluted earnings per share of$ 1.70, while Non-GAAP Adjusted Earnings reached $148.9 million, or$ 1.91 per share [36]. - The company reported a total EBITDA of $332.686 million for the year 2024, with an Adjusted EBITDA of$ 349.150 million [49]. Shareholder Returns - The company returned nearly $100 million to shareholders in 2024 through share repurchases and dividends [10][7]. - The company paid dividends of$ 30,246 in 2024, marking a new expense category for the year [29]. Cost Management - Fourth quarter purchased transportation and warehousing costs were $723 million, a decrease of$ 19 million compared to the prior year [5][4]. - The company incurred $4.8 million in Network Alignment expenses and$ 1.2 million in Transaction Related expenses for the three months ended December 31, 2024 [37][44]. - The total interest expense for 2024 was $7.578 million, contributing to the overall financial performance metrics [49]. Assets and Liabilities - Total current assets decreased to$ 768,329 in 2024 from $849,245 in 2023, a decline of 9.5% [25]. - Total liabilities decreased to$ 1,176,392 in 2024 from $1,301,892 in 2023, a reduction of 9.6% [26]. - Cash and cash equivalents at the end of the period were$ 126,948, down 32.1% from $187,270 at the beginning of the period [29]. - The company reported a total of 60,746,745 shares outstanding in 2024, down from 62,200,921 shares in 2023 [26]. - Total stockholders' equity increased to$ 1,691,951 in 2024 from $1,634,645 in 2023, an increase of 3.5% [26]. Future Outlook - For 2025, the company expects revenue between$ 4.0 billion and $4.3 billion, with diluted EPS projected to range from$ 1.90 to $2.40 [11][7]. - The company plans to improve operational efficiency through consolidation of existing warehouses, which is reflected in the Network Alignment expenses [44][52]. Strategic Developments - The joint venture with EASO was completed in October 2024, enhancing intermodal capabilities in Mexico [3][7]. - Intermodal volume growth was 14% in Q4 2024, contributing to an adjusted operating margin of 3.1%, a 50-basis point improvement over Q4 2023 [3][8]. - Logistics Segment revenue for Q4 2024 was$ 429 million, a 2% decline year-over-year, with adjusted operating income of $20 million, or 4.6% of revenue [9][8]. Depreciation and Amortization - Depreciation and amortization expenses for 2024 were$ 141,469, slightly down from $143,523 in 2023 [34].