Hub Group, Inc., the trucking, logistics and distribution company, on Thursday said adjusted net income for the third quarter jumped by 170 percent to $7.8 million from the same quarter last year.
The company, based in Downers Grove, Ill., said total revenues increased to $362.1 million, up 6.7 percent from $339.5 million in the third quarter of 2003
The figure for net income excluded $4.2 million of after-tax costs, or $7.3 million pre-tax, related to the early extinguishment of debt following the successful offering of 1.8 million shares of common stock.
Gross margin, or net revenue, grew by 10.5 percent to $48 million as compared to $43.5 million.
As a percentage of revenue, Hub's gross margin increased to 13.3 percent from 12.8 percent in 2003 due to more effective yield management.
The company said it paid off $62 million in debt during the quarter and is now debt-free.
On an as-reported basis, net income increased to $3.6 million from $2.9 million in the same quarter last year.
Transportation-related revenue, generated by the company's intermodal, truckload brokerage and logistics business units, increased 5.6 percent to $350.1 million in the third quarter compared to the third quarter of 2003, due primarily to price increases and fuel surcharges.
Third-quarter intermodal revenue increased 5.9 percent to $254.4 million. Truckload brokerage revenue increased 4.5 percent to $56.1 million, while logistics revenue increased 5.4 percent to $39.6 million.
Revenue from distribution services increased to $12 million from $8 million in the same period last year due to an increase in installation business offset partially by a decrease in pharmaceutical revenue which was transferred to the logistics unit.
"Despite the fact that our intermodal volume declined 2 percent, our top line and bottom line have improved and our balance sheet is stronger than ever," said Vice Chairman and Chief Executive David P. Yeager, in a statement. "This demonstrates that our focus on yield management is delivering results."