Hub (US:HUBG)2025-05-08 20:06Financial Performance - Hub Group reported first quarter 2025 net income of $27 million, with diluted earnings per share of $0.44, consistent with the same quarter in 2024[3]. - Consolidated revenue for Q1 2025 was $915 million, an 8% decline from $999 million in Q1 2024, driven by strong intermodal volume growth offset by lower revenue per unit[5]. - Operating income for the first quarter was $37 million, representing 4.1% of revenue, a 40-basis point improvement compared to the prior year[7]. - The Logistics segment revenue decreased to $411 million from $480 million in the previous year, attributed to lower volume and revenue per load in brokerage[9]. - The Intermodal and Transportation Solutions segment revenue was $530 million, down from $552 million in the prior year, with operating income increasing to $14 million[8]. - Net income for Q1 2025 was $27,194, compared to $27,053 in Q1 2024, reflecting a slight increase of 0.5%[26]. - Total operating revenue decreased to $915,216 in Q1 2025 from $999,493 in Q1 2024, representing a decline of approximately 8.4%[29]. - Operating income remained relatively stable at $37,338 in Q1 2025, slightly up from $37,139 in Q1 2024[29]. Cash Flow and Expenditures - Capital expenditures for Q1 2025 totaled $19 million, with cash at the end of the quarter amounting to $141 million[11]. - Net cash provided by operating activities was $70,035 in Q1 2025, down from $80,516 in Q1 2024, a decrease of about 12.1%[26]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $141,110 from $126,948 at the beginning of the period, marking a net increase of $14,162[27]. - Total depreciation and amortization decreased to $32,578 in Q1 2025 from $38,331 in Q1 2024, a reduction of approximately 15.0%[29]. Debt and Leverage - Net debt/EBITDA ratio improved to 0.4x, below the leverage target range of 0.75 to 1.25x[7]. - Net debt as of Q1 2025 was reported at $140,223, with a net debt to EBITDA ratio of 0.4[31]. - The company repaid $26,379 in long-term debt during Q1 2025, compared to $27,422 in Q1 2024[26]. Shareholder Returns - Hub Group returned $21 million to shareholders in Q1 2025 through share repurchases and dividends[10]. Future Outlook - The company expects diluted earnings per share for 2025 to range from $1.75 to $2.25, with estimated revenue between $3.6 billion and $4.0 billion for the full year[12]. - The company plans to continue focusing on operational efficiency and market expansion strategies in the upcoming quarters[34]. Employee Costs - Salaries and benefits increased by 3% year-over-year to $149 million, driven by additional warehouse and driver team members[6]. Adjusted EBITDA - Adjusted EBITDA for Q1 2025 was $84,679, consistent with the previous quarter's adjusted EBITDA of $84,780[31].