Q2 2024 Hub Group Inc Earnings Call Transcript
Key Points
- Intermodal volume grew 8% year over year, highlighting strong performance in this segment.
- Final Mile business generated strong growth on both the top and bottom line, with several new customer implementations.
- Managed transportation team is onboarding nearly $60 million of new freight, enhancing purchasing power and optimization opportunities.
- Hub Group Inc (HUBG) has a strong financial position with $220 million in cash on hand and minimal net debt.
- The company is seeing significant growth in Mexico, with volumes up 60% year over year.
- Revenue declined 5% compared to last year, indicating challenges in the broader market.
- ITS revenue was down 9% from the prior year due to lower rates, lower fuel, and softer market conditions.
- Dedicated segment profitability was impacted by increased expenses to support strong demand from customers.
- Brokerage business faced challenges with the first volume decline in several quarters.
- The macro environment remains challenging, with competitive pricing expected to continue through the rest of 2024.
Hello, and welcome to the Hub Group second-quarter 2024 earnings conference call. Phil Yeager, Hub's President, Chief Executive Officer and Vice Chairman; Brian Alexander, Chief Operating Officer; and Kevin Beth, Chief Financial Officer, are joining the call. (Operator Instructions)
Any forward-looking statements made during the course of the call or contained in the release represent the company's best good-faith judgment as to what may happen in the future. Statements that are forward looking can be identified by the use of words such as belief, expect, anticipate and project and variations of these words. Please review the cautionary statements in the release. In addition, you should refer to the disclosures in the company's Form 10-K and other SEC filings regarding factors that could cause actual results to differ materially from those projected in these forward-looking statements.
As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to your host, Phil Yeager. You may now begin.
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