• Hub Group finances rebound

    Third-party logistics provider Hub Group Inc. saw its net income rebound to $900,000 in the first quarter of this year, recovering from a $700,000 loss in the same period in 2001. For the quarter, Lombard, IL-based Hub's revenue totaled $305.3 million, a decrease of 11.7% from the same quarter last year, with intermodal revenue decreasing 15.5% to $205.7 million, brokerage revenue increasing 8.5%
    May 7, 2002
    2 min read
    Third-party logistics provider Hub Group Inc. saw its net income rebound to $900,000 in the first quarter of this year, recovering from a $700,000 loss in the same period in 2001.

    For the quarter, Lombard, IL-based Hub's revenue totaled $305.3 million, a decrease of 11.7% from the same quarter last year, with intermodal revenue decreasing 15.5% to $205.7 million, brokerage revenue increasing 8.5% to $55.5 million and supply chain services revenue climbing 13.8% to $24.8 million.

    Troubled subsidiary Hub Group Distribution Services (HGDS), however, watched its revenue decrease 34.6% to $19.3 million for the quarter.

    Last year, Hub announced that HGDS had overstated its earnings by $3 to $4 million over the last three years. Hub, which owns 65% of HGDS, is still investigating HGDS's financial statements from 1999, 2000, and 2001 to find out where the overstatement occurred.

    Those findings convinced the Nasdaq National Stock Market to begin de-listing proceedings earlier this year. Under Nasdaq's Marketplace Rule 4310(c)(14), companies are required to maintain at least three years of audited financial statements. Hub, however, managed to avert being de-listed after meeting with Nasdaq to resolve the problem.

    Hub added that it did not adjust its historical results on a quarterly basis for the accounting irregularities at HGDS. Instead, the company made all of the adjustments in its fourth quarter 2001 earnings statement.

    About the Author

    Sean Kilcarr

    Editor in Chief

    Sean Kilcarr is a former longtime FleetOwner senior editor who wrote for the publication from 2000 to 2018. He served as editor-in-chief from 2017 to 2018.

     

    Sign up for our free eNewsletters

    Voice Your Opinion!

    To join the conversation, and become an exclusive member of FleetOwner, create an account today!