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.