Hub Group have announced its financial results for the 2016 calendar year and fourth quarter. Revenue for the year was up slightly to $3,573m, an increase of 1.3%. When compared with the same period in 2015, Q4 revenues were up by 9.9% to $979m.
EBITDA increased 6.2% for the year to $133m. For Q4, it was down 11.2% to $33m.
Hub Group segments its operations into ‘Hub’ and ‘Mode’. In its Mode sector, which was purchased in 2011 and previously called Exel Transportation Services, revenue increased 2.2% to $949m for 2016. Hub, which contains the majority of its business operations, saw revenue increase 2.1% to $2,735m.
Dave Yeager, Hub Group Chairman and CEO, said he was pleased with the performance for 2016. With regards to the decrease in EBITDA for Q4, Yeager said, “Operating income decline was driven by our strategic investments in our people and technology. We believe these investments provide a solid foundation for the future.”
On its outlook for 2017, Yeager added: “We are optimistic about growing all our service lines as we focus on targeted growth initiatives. To support this growth, we will be increasing our fleet 10% and investing in technology to help us exceed customer expectations and improve operating efficiencies.”
Source: Hub Group
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