Hub Group releases final set of quarterly results prior to Estenson acquisition

Hub Group

Hub Group has released its final set of quarterly financial results prior to the inclusion of Estenson Logistics within its reporting. Despite revenues growing 8.1% to $924.5m, operating income fell by more than half to $16.6m.

Employee costs were one cause of the 51.7% drop in operating income, with severance costs, employee raises and higher headcount being partially offset by a decrease in bonuses. More importantly however, general and administrative costs were up $4.1m due to an increase in IT costs, including its costs related to its transportation management system. There was also a $1.2m increase in professional fees for the Estenson purchase, which closed on Jul 1, 2017.

Within its Hub segment, the group saw revenues grow by around 9% to $705.2m. Intermodal revenues grew by 3% and truck brokerage revenues were up 26%. Its 3PL provider, Unyson, saw turnover grow 17% as a result of new business won in the previous year. Its Mode Segment saw revenues grow approximately 5% to $243m for Q2.

Source: Hub Group