Hub (US:HUBG)2025-05-09 18:41Revenue Performance - Total consolidated operating revenue decreased by 8% to $915 million in Q1 2025 from $999 million in Q1 2024[65] - Intermodal and Transportation Solutions (ITS) revenue decreased by 4% to $530 million, while ITS operating income increased to $14 million, representing 2.7% of revenue[66] - Logistics revenue decreased by 14% to $411 million, with operating income decreasing to $23 million, or 5.7% of revenue[67] Cost Management - Purchased transportation and warehousing costs decreased by 11% to $658 million, representing 71.9% of revenue in 2025, down from 74.1% in 2024[69] - Salaries and benefits increased to $149 million in 2025 from $144 million in 2024, representing 16.3% of revenue[71] Workforce Changes - Headcount increased to 6,386 as of March 31, 2025, from 5,897 as of March 31, 2024, primarily due to additional warehouse and driver team members[72] Profitability - Net income for Q1 2025 was $27.2 million, compared to $27.1 million in Q1 2024, with a net income margin of 3.0%[68] - The provision for income taxes increased to $8 million in 2025 from $7 million in 2024, with an effective tax rate of 23.7%[78] Customer Concentration - Hub's top 50 customers represented approximately 66% of revenue for the three months ended March 31, 2025[61] - One customer accounted for more than 10% of quarterly revenue in both segments for Q1 2025 and Q1 2024[62] Cash and Liquidity - As of March 31, 2025, the company had $113 million in cash, $18 million in restricted investments, and $28 million in restricted cash[79] - Cash provided by operating activities for the three months ended March 31, 2025 was $70 million, down from $81 million in 2024, representing an $11 million decrease[81] Investment and Financing Activities - Net cash used in investing activities for the three months ended March 31, 2025 was $16 million, primarily due to capital expenditures of $19 million[82] - Capital expenditures in 2025 are estimated to range from $40 million to $50 million, focusing on replacing tractors and technology investments[84] - Net cash used in financing activities for the three months ended March 31, 2025 was $40 million, including $26 million in long-term debt repayments and $14 million in treasury stock purchases[85] - The decrease in cash used in financing activities for 2025 versus 2024 was $18 million, mainly due to a $12 million reduction in treasury stock purchases[86] Debt and Borrowing - The company had no borrowings under credit agreements as of March 31, 2025, with unused and available borrowings of $349 million[89] Risk Management - The company is monitoring working capital daily and is in frequent communication with customers regarding their liquidity and ability to pay[90] - There were no material changes to critical accounting policies and estimates as of March 31, 2025[91] - There have been no material changes in market risk as of March 31, 2025, compared to the previous year[92]