Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HUBG | |
Entity Registrant Name | HUB GROUP, INC. | |
Entity Central Index Key | 0000940942 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 0-27754 | |
Entity Tax Identification Number | 36-4007085 | |
Entity Address, Address Line One | 2000 Clearwater Drive | |
Entity Address, City or Town | Oak Brook | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60523 | |
City Area Code | 630 | |
Local Phone Number | 271-3600 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Class A Common Stock, par value $.01 per share | |
Security Exchange Name | NASDAQ | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 33,494,226 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 662,296 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 185,336 | $ 168,729 |
Accounts receivable trade | 559,312 | 450,451 |
Allowance for uncollectible trade accounts | (8,574) | (6,912) |
Other receivables | 1,937 | 3,237 |
Prepaid taxes | 1,780 | 630 |
Prepaid expenses and other current assets | 13,661 | 24,086 |
TOTAL CURRENT ASSETS | 753,452 | 640,221 |
Restricted investments | 21,516 | 22,601 |
Property and equipment, net | 638,940 | 663,165 |
Right-of-use assets - operating leases | 34,400 | 35,548 |
Right-of-use assets - financing leases | 4,145 | 5,865 |
Other intangibles, net | 110,890 | 120,967 |
Goodwill, net | 484,295 | 484,459 |
Other assets | 17,332 | 18,748 |
TOTAL ASSETS | 2,064,970 | 1,991,574 |
CURRENT LIABILITIES: | ||
Accounts payable trade | 307,361 | 257,247 |
Accounts payable other | 23,008 | 11,585 |
Accrued payroll | 25,533 | 45,540 |
Accrued other | 88,344 | 86,686 |
Lease liability - operating leases | 8,956 | 8,567 |
Lease liability - financing leases | 2,562 | 3,048 |
Current portion of long term debt | 86,964 | 94,691 |
TOTAL CURRENT LIABILITIES | 542,728 | 507,364 |
Long term debt | 149,004 | 186,934 |
Non-current liabilities | 49,242 | 36,355 |
Lease liability - operating leases | 27,191 | 28,518 |
Lease liability - financing leases | 12 | 1,820 |
Deferred taxes | 161,782 | 155,304 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2020 and 2019 | ||
Additional paid-in capital | 183,140 | 179,637 |
Purchase price in excess of predecessor basis, net of tax benefit of $10,306 | (15,458) | (15,458) |
Retained earnings | 1,230,772 | 1,179,601 |
Accumulated other comprehensive loss | (260) | (186) |
Treasury stock; at cost, 7,730,131 shares in 2020 and 7,870,888 shares in 2019 | (263,602) | (268,734) |
TOTAL STOCKHOLDERS' EQUITY | 1,135,011 | 1,075,279 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,064,970 | 1,991,574 |
Class A Common Stock [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Common stock | 412 | 412 |
Class B Common Stock [Member] | ||
STOCKHOLDERS' EQUITY: | ||
Common stock | $ 7 | $ 7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Purchase price in excess of predecessor basis, tax benefit | $ 10,306 | |
Treasury stock, shares | 7,730,131 | 7,870,888 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 97,337,700 | 97,337,700 |
Common stock, shares issued | 41,224,792 | 41,224,792 |
Common stock, shares outstanding | 33,494,661 | 33,353,904 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 662,300 | 662,300 |
Common stock, shares issued | 662,296 | 662,296 |
Common stock, shares outstanding | 662,296 | 662,296 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 924,812 | $ 913,275 | $ 2,542,914 | $ 2,767,436 |
Transportation costs | 816,777 | 778,057 | 2,223,036 | 2,372,226 |
Gross margin | 108,035 | 135,218 | 319,878 | 395,210 |
Costs and expenses: | ||||
Salaries and benefits | 45,576 | 59,765 | 146,128 | 182,652 |
General and administrative | 20,845 | 30,906 | 76,151 | 77,852 |
Depreciation and amortization | 7,697 | 7,301 | 22,945 | 21,150 |
Total costs and expenses | 74,118 | 97,972 | 245,224 | 281,654 |
Operating income | 33,917 | 37,246 | 74,654 | 113,556 |
Other income (expense): | ||||
Interest expense | (2,237) | (2,780) | (7,698) | (8,526) |
Other, net | (122) | 669 | 106 | 1,567 |
Total other expense | (2,359) | (2,111) | (7,592) | (6,959) |
Income before provision for income taxes | 31,558 | 35,135 | 67,062 | 106,597 |
Income tax expense | 6,777 | 9,030 | 15,891 | 27,381 |
Net income | 24,781 | 26,105 | 51,171 | 79,216 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 23 | (33) | (74) | (29) |
Total comprehensive income | $ 24,804 | $ 26,072 | $ 51,097 | $ 79,187 |
Basic earnings per common share | $ 0.75 | $ 0.79 | $ 1.54 | $ 2.37 |
Diluted earnings per common share | $ 0.74 | $ 0.78 | $ 1.53 | $ 2.36 |
Basic weighted average number of shares outstanding | 33,177 | 33,034 | 33,169 | 33,385 |
Diluted weighted average number of shares outstanding | 33,597 | 33,265 | 33,513 | 33,522 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect Period Of Adoption Adjustment [Member] | Class A and B Common Stock [Member] | Additional Paid-in Capital [Member] | Purchase Price Of Excess Of Predecessor Basis, Net Of Tax [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect Period Of Adoption Adjustment [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2018 | $ 980,834 | $ (26) | $ 419 | $ 172,220 | $ (15,458) | $ 1,072,456 | $ (26) | $ (182) | $ (248,621) |
Beginning Balance (in shares) at Dec. 31, 2018 | 41,887,088 | (7,431,083) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Purchase of treasury shares | (24,998) | $ (24,998) | |||||||
Purchase of treasury shares (in shares) | (626,320) | ||||||||
Stock withheld for payments of withholding taxes | (2,875) | $ (2,875) | |||||||
Stock withheld for payments of withholding taxes (in shares) | (75,881) | ||||||||
Issuance of restricted stock awards, net of forfeitures | (8,905) | $ 8,905 | |||||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 283,820 | ||||||||
Share-based compensation expense | 12,434 | 12,434 | |||||||
Net income | 79,216 | 79,216 | |||||||
Foreign currency translation adjustment | (29) | (29) | |||||||
Ending Balance at Sep. 30, 2019 | 1,044,556 | $ 419 | 175,749 | (15,458) | 1,151,646 | (211) | $ (267,589) | ||
Ending Balance (in shares) at Sep. 30, 2019 | 41,887,088 | (7,849,464) | |||||||
Beginning Balance at Jun. 30, 2019 | 1,032,582 | $ 419 | 170,619 | (15,458) | 1,125,541 | (178) | $ (248,361) | ||
Beginning Balance (in shares) at Jun. 30, 2019 | 41,887,088 | (7,369,052) | |||||||
Purchase of treasury shares | (17,716) | $ (17,716) | |||||||
Purchase of treasury shares (in shares) | (444,509) | ||||||||
Stock withheld for payments of withholding taxes | (129) | $ (129) | |||||||
Stock withheld for payments of withholding taxes (in shares) | (3,168) | ||||||||
Issuance of restricted stock awards, net of forfeitures | 1,383 | $ (1,383) | |||||||
Issuance of restricted stock awards, net of forfeitures (in shares) | (32,735) | ||||||||
Share-based compensation expense | 3,747 | 3,747 | |||||||
Net income | 26,105 | 26,105 | |||||||
Foreign currency translation adjustment | (33) | (33) | |||||||
Ending Balance at Sep. 30, 2019 | 1,044,556 | $ 419 | 175,749 | (15,458) | 1,151,646 | (211) | $ (267,589) | ||
Ending Balance (in shares) at Sep. 30, 2019 | 41,887,088 | (7,849,464) | |||||||
Beginning Balance at Dec. 31, 2019 | 1,075,279 | $ 419 | 179,637 | (15,458) | 1,179,601 | (186) | $ (268,734) | ||
Beginning Balance (in shares) at Dec. 31, 2019 | 41,887,088 | (7,870,888) | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Stock withheld for payments of withholding taxes | (4,041) | $ (4,041) | |||||||
Stock withheld for payments of withholding taxes (in shares) | (77,491) | ||||||||
Issuance of restricted stock awards, net of forfeitures | (9,173) | $ 9,173 | |||||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 218,248 | ||||||||
Share-based compensation expense | 12,676 | 12,676 | |||||||
Net income | 51,171 | 51,171 | |||||||
Foreign currency translation adjustment | (74) | (74) | |||||||
Ending Balance at Sep. 30, 2020 | 1,135,011 | $ 419 | 183,140 | (15,458) | 1,230,772 | (260) | $ (263,602) | ||
Ending Balance (in shares) at Sep. 30, 2020 | 41,887,088 | (7,730,131) | |||||||
Beginning Balance at Jun. 30, 2020 | 1,105,837 | $ 419 | 178,914 | (15,458) | 1,205,991 | (283) | $ (263,746) | ||
Beginning Balance (in shares) at Jun. 30, 2020 | 41,887,088 | (7,706,638) | |||||||
Stock withheld for payments of withholding taxes | (97) | $ (97) | |||||||
Stock withheld for payments of withholding taxes (in shares) | (1,896) | ||||||||
Issuance of restricted stock awards, net of forfeitures | (241) | $ 241 | |||||||
Issuance of restricted stock awards, net of forfeitures (in shares) | (21,597) | ||||||||
Share-based compensation expense | 4,467 | 4,467 | |||||||
Net income | 24,781 | 24,781 | |||||||
Foreign currency translation adjustment | 23 | 23 | |||||||
Ending Balance at Sep. 30, 2020 | $ 1,135,011 | $ 419 | $ 183,140 | $ (15,458) | $ 1,230,772 | $ (260) | $ (263,602) | ||
Ending Balance (in shares) at Sep. 30, 2020 | 41,887,088 | (7,730,131) |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 51,171 | $ 79,216 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 91,798 | 86,719 |
Deferred taxes | 7,436 | 7,145 |
Compensation expense related to share-based compensation plans | 12,676 | 12,434 |
Loss (gain) on sale of assets | 94 | (1,313) |
Donated equipment | 5,626 | |
Changes in operating assets and liabilities: | ||
Restricted investments | 1,085 | (2,192) |
Accounts receivable, net | (105,918) | 41,000 |
Prepaid taxes | (1,154) | (4,622) |
Prepaid expenses and other current assets | 10,379 | 1,299 |
Other assets | (429) | (3,365) |
Accounts payable | 61,549 | (89,800) |
Accrued expenses | (17,834) | 2,408 |
Non-current liabilities | 6,209 | (225) |
Net cash provided by operating activities | 122,688 | 128,704 |
Cash flows from investing activities: | ||
Proceeds from sale of equipment | 1,298 | 9,072 |
Purchases of property and equipment | (55,352) | (55,616) |
Acquisitions, net of cash acquired | (734) | |
Proceeds from the disposition of discontinued operations | 19,439 | |
Net cash used in investing activities | (54,054) | (27,839) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 128,762 | 36,557 |
Repayments of long term debt | (174,419) | (79,147) |
Stock withheld for payments of withholding taxes | (4,041) | (2,875) |
Finance lease payments | (2,278) | (2,206) |
Purchase of treasury stock | (24,998) | |
Net cash used in financing activities | (51,976) | (72,669) |
Effect of exchange rate changes on cash and cash equivalents | (51) | (3) |
Net increase in cash and cash equivalents | 16,607 | 28,193 |
Cash and cash equivalents beginning of the period | 168,729 | 61,435 |
Cash and cash equivalents end of the period | 185,336 | 89,628 |
Supplemental disclosures of cash paid for: | ||
Interest | 7,331 | 8,436 |
Income taxes | $ 12,406 | $ 32,917 |
Interim Financial Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Statements | NOTE 1. Interim Financial Statements The accompanying unaudited consolidated financial statements of Hub Group, Inc. (the “Company,” “Hub,” “we”, “us” or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to those rules and regulations. However, we believe that the disclosures contained herein are adequate to make the information presented not misleading. The financial statements reflect, in our opinion, all material adjustments (which include only normal recurring adjustments) necessary to fairly present our financial position as of September 30, 2020 and results of operations for the three and nine months ended September 30, 2020 and 2019. These unaudited consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Results of operations in interim periods are not necessarily indicative of results to be expected for a full year due partially to seasonality. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 2. Earnings Per Share The following is a reconciliation of our earnings per share (in thousands, except for per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income $ 24,781 $ 26,105 $ 51,171 $ 79,216 Weighted average shares outstanding - basic 33,177 33,034 33,169 33,385 Dilutive effect of stock options and restricted stock 420 231 344 137 Weighted average shares outstanding - diluted 33,597 33,265 33,513 33,522 Earnings per share - basic $ 0.75 $ 0.79 $ 1.54 $ 2.37 Earnings per share - diluted $ 0.74 $ 0.78 $ 1.53 $ 2.36 |
Revenue from Contract with Cust
Revenue from Contract with Customers | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | NOTE 3. Revenue from Contracts with Customers Hub offers comprehensive multimodal solutions including intermodal, truck brokerage, logistics and dedicated services. Hub has full time employees located throughout the United States, Canada and Mexico. Intermodal. As an intermodal provider, we arrange for the movement of our customers’ freight in containers, typically over long distances of 750 miles or more. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Local pickup and delivery services between origin or destination and rail terminals (referred to as “drayage”) are provided by our subsidiary Hub Group Trucking, Inc. (“HGT”) and third-party local trucking companies. Logistics . Hub’s logistics operation offers a wide range of transportation management services and technology solutions including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution and web-based shipment visibility. Our multi-modal transportation capabilities include small parcel, heavyweight, expedited, less-than-truckload, truckload, intermodal, railcar and international shipping. We leverage proprietary technology along with collaborative relationships with retailers and logistics providers to deliver cost savings and performance-enhancing supply chain services to consumer packaged goods clients. We contract with third-party warehouse providers in seven markets across North America to which our customers ship their goods to be stored and eventually consolidated, along with goods from other customers into full truckload shipments destined to major North American retailers. These services offer our customers shipment visibility, transportation cost savings, high service levels and compliance with retailers’ increasingly stringent supply chain requirements. Truck Brokerage. Our truck brokerage operation provides customers with an over the road service option for their transportation needs. Our brokerage service does not operate any trucks; instead we match customers’ needs with carriers’ capacity to provide the most effective service and price combination. We have contracts with a substantial base of carriers allowing us to meet the varied needs of our customers. As part of our truck brokerage services, we negotiate rates, track shipments in transit and handle claims for freight loss or damage on behalf of our customers. Dedicated. Our dedicated operation contracts with customers who seek to outsource a portion of their trucking transportation needs. We offer a dedicated fleet of equipment and drivers to each customer, as well as the management and infrastructure to operate according to the customer’s high service expectations. Contracts with customers generally include fixed and variable pricing arrangements and may include charges for early termination which serves to reduce the financial risk we bear with respect to the utilization of our equipment. The Company capitalizes commissions incurred in connection with obtaining a Dedicated contract. In 2020 and 2019, the amount of commissions that were capitalized and the amortization related to these commissions were both immaterial. Costs incurred to obtain an intermodal, truck brokerage or logistics contract are expensed as incurred according to the practical expedient that allows contract acquisition costs to be recognized immediately if the deferral period is one year or less. The following table summarizes our disaggregated revenue by business line (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Intermodal $ 559,759 $ 539,484 $ 1,515,759 $ 1,618,407 Logistics 175,892 189,470 522,890 586,196 Truck brokerage 119,994 109,543 304,686 334,211 Dedicated 69,167 74,778 199,579 228,622 Total revenue $ 924,812 $ 913,275 $ 2,542,914 $ 2,767,436 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 4. Fair Value Measurement The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximated fair value as of September 30, 2020 and December 31, 2019. As of September 30, 2020 and December 31, 2019, the fair value of the Company’s fixed-rate borrowings was $ 7.3 236.0 We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of September 30, 2020 and December 31, 2019, our cash is with high quality financial institutions in demand deposit accounts, savings accounts and an interest bearing checking account. Restricted investments included $21.5 million and $22.6 million Our assets and liabilities measured at fair value are based on valuation techniques that consider prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. These valuation methods are based on either quoted market prices (Level 1) or inputs, other than quoted prices in active markets, that are observable either directly or indirectly (Level 2), or unobservable inputs (Level 3). Cash and cash equivalents, mutual funds, accounts receivable and accounts payable are defined as “Level 1,” while long-term debt is defined as “Level 2” of the fair value hierarchy in the Fair Value Measurements and Disclosures Topic of the Codification. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | NOTE 5. Allowance for Credit Losses On January 1, 2020, we adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the Current Expected Credit Loss (“CECL”). The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including trade receivables. Results for reporting periods beginning January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles. The impact of adopting the standard was immaterial. In accordance with the standard, trade receivables are reported at amortized cost net of the allowance for credit losses. The allowance for credit losses is a valuation account that is deducted from the trade receivables’ amortized cost basis to present the net amount expected to be collected on the receivables. Trade receivables are charged off against the allowance when we believe the uncollectability of a receivable balance is confirmed, and the expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management continuously reviews and assesses the environment, especially with the rapidly-changing COVID-19 pandemic and its potential impact on the credit worthiness and collectability of our accounts receivable with customers most affected by the COVID-19 pandemic. Our allowance for credit losses is presented in the allowance for uncollectible trade accounts and is immaterial at September 30, 2020 and December 31, 2019. |
Long-Term Debt and Financing Ar
Long-Term Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Financing Arrangements | NOTE 6. Long-Term Debt and Financing Arrangements On July 1, 2017, we entered into a $350 million unsecured credit agreement (the “Credit Agreement”) that matures on July 1, 2022. In March 2020, we elected to borrow as a precautionary measure in order to increase our cash position and preserve financial flexibility in light of uncertainty in the global markets resulting from the COVID-19 pandemic. We repaid the $100 million in June 2020. At September 30, 2020, we had and 2021 $32.6 Our unused and available borrowings were $317.4 We have entered into various secured Equipment Notes (“Notes”) for the purchase of tractors, trailers containers and other equipment. The Notes are secured by the underlying equipment financed with the proceeds from the Notes. September 30, December 31, 2020 2019 (in thousands) Interim Funding for a deposit on equipment expected to be received in the fourth quarter of 2020; interest paid monthly at a variable rate $ 3,820 $ - Secured Equipment Notes due on various dates in 2025 commencing on various dates in 2020; interest is paid monthly at a fixed annual rate between 1.51% and 1.80% 22,036 - Secured Equipment Notes due on various dates in 2024 commencing on various dates in 2017 to 2020; interest is paid monthly at a fixed annual rate between 2.49% and 3.59% 53,497 62,690 Secured Equipment Notes due on various dates in 2023 commencing on various dates in 2016 to 2019; interest is paid monthly at a fixed annual rate between 2.23% and 4.16% 123,314 153,350 Secured Equipment Notes due on various dates in 2022 commencing on various dates in 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.85% 10,687 16,892 Secured Equipment Notes due on various dates in 2021 commencing on various dates from 2014 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 20,043 35,076 Secured Equipment Notes due on various dates in 2020 commencing on various dates from 2013 to 2016; interest is paid monthly at a fixed annual rate between 1.84% and 2.74% 2,571 13,617 235,968 281,625 Less current portion (86,964 ) (94,691 ) Total long-term debt $ 149,004 $ 186,934 |
Legal Matters
Legal Matters | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Matters | NOTE 7. Legal Matters Robles On January 25, 2013, a complaint was filed in the U.S. District Court for the Eastern District of California (Sacramento Division) by Salvador Robles against our subsidiary HGT. The action was brought on behalf of a class comprised of present and former California-based truck drivers for HGT who, from January 2009 to September 2014, were classified as independent contractors. It alleged that HGT misclassified these drivers as independent contractors and that such drivers were employees. It asserted various violations of the California Labor Code and claimed that HGT engaged in unfair competition practices. The complaint sought, among other things, declaratory and injunctive relief, monetary damages and attorney’s fees. In May 2013, the complaint was amended to add similar claims based on Mr. Robles’ status as an employed company driver. These additional claims were only on behalf of Mr. Robles and not a putative class. Although the Company believes that the California drivers were properly classified as independent contractors at all times, because litigation is expensive, time-consuming and could interrupt our business operations, HGT decided to make settlement offers to individual drivers with respect to the claims alleged in this lawsuit, without admitting liability. In late 2014, HGT converted its model from independent contractors to employee drivers in California. In early 2016, HGT closed its operations in Southern California. Adame On August 5, 2015, a suit was filed in state court in San Bernardino County, California on behalf of 63 named Plaintiffs against HGT and five Company employees. The lawsuit alleges claims similar to those being made in the Robles case and seeks monetary penalties under the Private Attorneys General Act. The plaintiffs’ counsel and Hub agreed in principle to settle all claims under both the Robles and Adame matters for $4.8 million, which was recorded in the third quarter of 2019 and is included in Accrued other on the accompanying Consolidated Balance Sheet. The settlements are subject to final court approval. We are involved in certain other claims and pending litigation arising from the normal conduct of business, including putative class-action lawsuits in which the plaintiffs are current and former California-based drivers who allege claims for unpaid wages, failure to provide meal and rest periods, failure to reimburse incurred business expenses and other items. Based on management's present knowledge, management does not believe that loss contingencies arising from these pending matters are likely to have a material adverse effect on the Company's overall financial position, operating results, or cash flows after taking into account any existing accruals. However, actual outcomes could be material to the Company's financial position, operating results, or cash flows for any particular period. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | NOTE 8. New Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04 Intangibles – Goodwill and other (Topic 350): simplifying the test for goodwill impairment. This ASU simplifies how all entities assess goodwill for impairment by eliminating step two from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard is effective for fiscal years beginning after December 15, 2019. We adopted this standard on January 1, 2020, as required. The adoption of Topic 350 did not have a material effect on our financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement. This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years. This standard requires changes to the disclosure requirements for fair value measurements for certain Level 3 items and specifies that some of the changes must be applied prospectively, while others should be applied retrospectively. We adopted the standard as of January 1, 2020, but it did not have an impact on our financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU clarifies and simplifies accounting for income taxes by eliminating certain exceptions for intraperiod tax allocation principles, the methodology for calculating income tax rates in an interim period, and recognition of deferred taxes for outside basis differences in an investment, among other updates. The effective date of this ASU is for fiscal years and interim periods beginning after December 15, 2020. The Company is evaluating the impact of this ASU. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | The following is a reconciliation of our earnings per share (in thousands, except for per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net income $ 24,781 $ 26,105 $ 51,171 $ 79,216 Weighted average shares outstanding - basic 33,177 33,034 33,169 33,385 Dilutive effect of stock options and restricted stock 420 231 344 137 Weighted average shares outstanding - diluted 33,597 33,265 33,513 33,522 Earnings per share - basic $ 0.75 $ 0.79 $ 1.54 $ 2.37 Earnings per share - diluted $ 0.74 $ 0.78 $ 1.53 $ 2.36 |
Revenue from Contract with Cu_2
Revenue from Contract with Customers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregated Revenue by Business Line | The following table summarizes our disaggregated revenue by business line (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Intermodal $ 559,759 $ 539,484 $ 1,515,759 $ 1,618,407 Logistics 175,892 189,470 522,890 586,196 Truck brokerage 119,994 109,543 304,686 334,211 Dedicated 69,167 74,778 199,579 228,622 Total revenue $ 924,812 $ 913,275 $ 2,542,914 $ 2,767,436 |
Long-Term Debt and Financing _2
Long-Term Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | September 30, December 31, 2020 2019 (in thousands) Interim Funding for a deposit on equipment expected to be received in the fourth quarter of 2020; interest paid monthly at a variable rate $ 3,820 $ - Secured Equipment Notes due on various dates in 2025 commencing on various dates in 2020; interest is paid monthly at a fixed annual rate between 1.51% and 1.80% 22,036 - Secured Equipment Notes due on various dates in 2024 commencing on various dates in 2017 to 2020; interest is paid monthly at a fixed annual rate between 2.49% and 3.59% 53,497 62,690 Secured Equipment Notes due on various dates in 2023 commencing on various dates in 2016 to 2019; interest is paid monthly at a fixed annual rate between 2.23% and 4.16% 123,314 153,350 Secured Equipment Notes due on various dates in 2022 commencing on various dates in 2015 to 2017; interest is paid monthly at a fixed annual rate of between 2.16% and 2.85% 10,687 16,892 Secured Equipment Notes due on various dates in 2021 commencing on various dates from 2014 to 2017; interest is paid monthly at a fixed annual rate between 2.04% and 2.96% 20,043 35,076 Secured Equipment Notes due on various dates in 2020 commencing on various dates from 2013 to 2016; interest is paid monthly at a fixed annual rate between 1.84% and 2.74% 2,571 13,617 235,968 281,625 Less current portion (86,964 ) (94,691 ) Total long-term debt $ 149,004 $ 186,934 |
Reconciliation of Earnings Per
Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 24,781 | $ 26,105 | $ 51,171 | $ 79,216 |
Weighted average shares outstanding - basic | 33,177 | 33,034 | 33,169 | 33,385 |
Dilutive effect of stock options and restricted stock | 420 | 231 | 344 | 137 |
Weighted average shares outstanding - diluted | 33,597 | 33,265 | 33,513 | 33,522 |
Earnings per share - basic | $ 0.75 | $ 0.79 | $ 1.54 | $ 2.37 |
Earnings per share - diluted | $ 0.74 | $ 0.78 | $ 1.53 | $ 2.36 |
Summary of Disaggregated Revenu
Summary of Disaggregated Revenue by Business Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 924,812 | $ 913,275 | $ 2,542,914 | $ 2,767,436 |
Intermodal [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 559,759 | 539,484 | 1,515,759 | 1,618,407 |
Logistics [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 175,892 | 189,470 | 522,890 | 586,196 |
Truck brokerage [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 119,994 | 109,543 | 304,686 | 334,211 |
Dedicated [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 69,167 | $ 74,778 | $ 199,579 | $ 228,622 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value Measurement [Line Items] | ||
Carrying value of debt | $ 235,968 | $ 281,625 |
Restricted investments | 21,500 | 22,600 |
Fixed-rate Borrowings [Member] | ||
Fair Value Measurement [Line Items] | ||
Increase (decrease) in fair value of debt | 7,300 | 3,800 |
Carrying value of debt | $ 236,000 | $ 281,600 |
Long-Term Debt and Financing _3
Long-Term Debt and Financing Arrangements - Additional Information (Detail) - USD ($) | Jul. 01, 2017 | Jun. 30, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Standby Letters of Credit [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Outstanding letters of credit | $ 32,600,000 | ||||
Standby Letters of Credit [Member] | Minimum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Letters of credit expiration, year | 2020 | ||||
Standby Letters of Credit [Member] | Maximum [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Letters of credit expiration, year | 2021 | ||||
Revolving Line of Credit Facility [Member] | Bank Revolving Line of Credit [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Unused and available borrowings under bank revolving line of credit | $ 317,400,000 | $ 318,500,000 | |||
Credit Agreement [Member] | |||||
Line Of Credit Facility [Line Items] | |||||
Credit agreement, maximum borrowing capacity | $ 350,000,000 | ||||
Credit agreement, matures | Jul. 1, 2022 | ||||
Borrowings under credit agreement | $ 100,000,000 | ||||
Credit agreement, repaid | $ 100,000,000 |
Schedule of Outstanding Debt (D
Schedule of Outstanding Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Interim Funding for a deposit on equipment expected to be received in the fourth quarter of 2020; interest paid monthly at a variable rate | $ 3,820 | |
Total debt | 235,968 | $ 281,625 |
Less current portion | (86,964) | (94,691) |
Total long-term debt | 149,004 | 186,934 |
Secured Equipment Notes due in 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 22,036 | |
Secured Equipment Notes due in 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 53,497 | 62,690 |
Secured Equipment Notes due in 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 123,314 | 153,350 |
Secured Equipment Notes due in 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 10,687 | 16,892 |
Secured Equipment Notes due in 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | 20,043 | 35,076 |
Secured Equipment Notes due in 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Secured long-term debt | $ 2,571 | $ 13,617 |
Schedule of Outstanding Debt (P
Schedule of Outstanding Debt (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Instrument [Line Items] | |
Payment frequency for interim funding for deposit on equipment | monthly |
Secured Equipment Notes due in 2025 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2025 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2025 [Member] | Commencing on 2020 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2020 |
Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2024 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2024 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2017 |
Secured Equipment Notes due in 2024 [Member] | Commencing on 2020 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2020 |
Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2023 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2016 |
Secured Equipment Notes due in 2023 [Member] | Commencing on 2019 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2019 |
Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2022 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2022 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2017 |
Secured Equipment Notes due in 2022 [Member] | Commencing on 2015 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2015 |
Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2021 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2017 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2017 |
Secured Equipment Notes due in 2021 [Member] | Commencing on 2014 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2014 |
Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes due period | 2020 |
Payment Frequency | monthly |
Secured Equipment Notes due in 2020 [Member] | Commencing on 2016 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2016 |
Secured Equipment Notes due in 2020 [Member] | Commencing on 2013 [Member] | |
Debt Instrument [Line Items] | |
Equipment notes, date of first required payment | 2013 |
Minimum [Member] | Secured Equipment Notes due in 2025 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 1.51% |
Minimum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.49% |
Minimum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.23% |
Minimum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.16% |
Minimum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.04% |
Minimum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 1.84% |
Maximum [Member] | Secured Equipment Notes due in 2025 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 1.80% |
Maximum [Member] | Secured Equipment Notes due in 2024 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 3.59% |
Maximum [Member] | Secured Equipment Notes due in 2023 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 4.16% |
Maximum [Member] | Secured Equipment Notes due in 2022 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.85% |
Maximum [Member] | Secured Equipment Notes due in 2021 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.96% |
Maximum [Member] | Secured Equipment Notes due in 2020 [Member] | |
Debt Instrument [Line Items] | |
Interest rate secured debt | 2.74% |
Legal Matters - Additional Info
Legal Matters - Additional Information (Detail) $ in Millions | Aug. 05, 2015USD ($)PlaintiffEmployee |
Robles Lawsuits [Member] | |
Loss Contingencies [Line Items] | |
Number of plaintiffs against Hub Group Trucking | Plaintiff | 63 |
Number of employees filed lawsuit | Employee | 5 |
Robles and Adame Lawsuits [Member] | Accrued Other [Member] | |
Loss Contingencies [Line Items] | |
Claims settlement recorded in consolidated balance sheet | $ | $ 4.8 |