The information contained in this quarterly report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "hopes," "believes," "intends," "estimates," "anticipates," and variations of these words and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are inherently uncertain and subject to risks. Such statements should be viewed with caution. Actual results or experience could differ materially from the forward-looking statements as a result of many factors. We assume no liability to update any such forward-looking statements contained in this quarterly report. Factors that could cause our actual results to differ materially include:

· the degree and rate of market growth in the domestic intermodal, truck brokerage and logistics markets served by us;

· deterioration in our relationships with existing railroads or adverse changes to the railroads' operating rules;

· changes in rail service conditions or adverse weather conditions;

· further consolidation of railroads;

· the impact of competitive pressures in the marketplace, including entry of new competitors, direct marketing efforts by the railroads or marketing efforts of asset-based carriers;

· changes in rail, drayage and trucking company capacity;

· railroads moving away from ownership of intermodal assets;

· equipment shortages or equipment surplus;

· changes in the cost of services from rail, drayage, truck or other vendors;

· increases in costs for independent contractors due to regulatory, judicial and legal changes;

· labor unrest in the rail, drayage or trucking company communities;

· general economic and business conditions;

· significant deterioration in our customer's financial condition, particularly in the retail and durable goods sectors;

· fuel shortages or fluctuations in fuel prices;

· increases in interest rates;

· changes in homeland security or terrorist activity;

· difficulties in maintaining or enhancing our information technology systems;

· changes to or new governmental regulation;

· loss of several of our largest customers;

· inability to recruit and retain key personnel;

· inability to recruit and retain drivers and owner operators;

· changes in insurance costs and claims expense;

· changes to current laws which will aid union organizing efforts; and

· inability to close and successfully integrate any future business combinations.

EXECUTIVE SUMMARY

Hub Group, Inc. ("we", "us" or "our") is the largest intermodal marketing company ("IMC") in the United States and a full service transportation provider offering intermodal, truck brokerage and logistics services. We operate through a nationwide network of operating centers.

As an IMC, we arrange for the movement of our customers' freight in containers and trailers over long distances. We contract with railroads to provide transportation for the long-haul portion of the shipment and with local trucking companies, known as "drayage companies," for local pickup and delivery. As part of the intermodal services, we negotiate rail and drayage rates, electronically track shipments in transit, consolidate billing and handle claims for freight loss or damage on behalf of our customers.

Our drayage services are provided by our subsidiary, Comtrak Logistics, Inc. ("Comtrak"), that assists us in providing reliable, cost effective intermodal services to our customers. Our subsidiary has terminals in Atlanta, Birmingham, Charleston, Charlotte, Chattanooga, Chicago, Cleveland, Columbus, Dallas, Harrisburg, Huntsville, Jacksonville, Kansas City, Los Angeles, Memphis, Nashville, Perry, Savannah, St. Louis, Stockton, and Tampa. At March 31, 2009, Comtrak owned 287 tractors, leased 21 tractors, leased or owned 603 trailers, and employed 297 drivers and contracted with 946 owner-operators.

We also arrange for the transportation of freight by truck, providing customers with another option for their transportation needs. We match the customers' needs with carriers' capacity to provide the most effective service and price combinations. 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.

Our logistics service consists of complex transportation management services, including load consolidation, mode optimization and carrier management. These service offerings are designed to take advantage of the increasing trend for shippers to outsource all or a greater portion of their transportation needs.

We have full time marketing representatives throughout North America who service local, regional and national accounts. We believe that fostering long-term customer relationships is critical to our success and allows us to better understand our customers' needs and specifically tailor our transportation services to them.

Our top 50 customers' revenue represents approximately 51% of our revenue as of March 31, 2009. We use various performance indicators to manage our business. We closely monitor margin and gains and losses for our top 50 customers. We also evaluate on-time performance, costs per load and daily sales outstanding by customer account. Vendor cost changes and vendor service issues are also monitored closely.

RESULTS OF OPERATIONS

The following table summarizes our revenue by business line (in thousands):

                                            Three Months Ended
                                                 March 31,
                                                                   %
                                      2009          2008        Change

                  Revenue
                  Intermodal        $ 245,569     $ 302,771       (18.9 %)
                  Truck brokerage      68,040        89,908       (24.3 )
                  Logistics            38,086        32,316        17.9
                  Total revenue     $ 351,695     $ 424,995       (17.2 %)

The following table includes certain items in the consolidated statements of income as a percentage of revenue:

                                             Three Months Ended
                                                  March 31,
                                              2009          2008

Revenue                                         100.0 %      100.0 %

Transportation costs                             87.2         86.5

Gross margin                                     12.8         13.5

Costs and expenses:
   Salaries and benefits                          6.6          6.0
   General and administrative                     2.9          2.4
   Depreciation and amortization                  0.3          0.2
Total costs and expenses                          9.8          8.6

Operating income                                  3.0          4.9

Other income:
   Interest and dividend income                   0.0          0.1
   Total other income                             0.0          0.1

Income before provision for income taxes          3.0          5.0

Provision for income taxes                        1.2          1.9

Net income                                        1.8 %        3.1 %

Three Months Ended March 31, 2009 Compared to the Three Months Ended March 31, 2008

Revenue

Revenue decreased 17.2% to $351.7 million in 2009 from $425.0 million in 2008. Intermodal revenue decreased 18.9% to $245.6 million due to a 4.9% decrease in volume, an 11.0% decline for fuel, a 2.0% price decrease and 1.0% due to unfavorable mix. Truck brokerage revenue decreased 24.3% to $68.0 million due to a decrease in volume, a 9% decrease related to fuel, lower prices and an unfavorable mix change due to a shorter length of haul. Our length of haul for truck brokerage was down 8% or 70 miles. Logistics revenue increased 17.9% to $38.1 million related to several new customers added in 2008 and an increase in business with existing accounts.

Gross Margin

Gross margin decreased 21.4% to $45.2 million in 2009 from $57.5 million in 2008. This $12.3 million margin decline comes from, in order of magnitude, first intermodal and then truck brokerage. Margin decline was attributed to pricing being down in the quarter, lower volume and changes in customer mix. As a percent of revenue, gross margin has decreased to 12.8% in 2009 from 13.5% in 2008. The decrease in gross margin as a percent of revenue was driven primarily by intermodal pricing pressure, and lower margins from our drayage company, Comtrak.

Salaries and Benefits

As a percentage of revenue, salaries and benefits increased to 6.6% in 2009 from 6.0% in 2008. Salaries and benefits decreased to $23.2 million in 2009 from $25.4 million in 2008 due primarily to a decrease in bonus expense and headcount. Bonus is $2.0 million lower in the first quarter of 2009 due to not earning any EPS-based bonus in 2009. This decrease was partially offset by an increase in salaries which included severance costs for the three months ended March 31, 2009 of $0.9 million. Headcount as of March 31, 2009 was 1,004 which excludes drivers as driver costs are included in transportation costs.

General and Administrative

General and administrative expenses decreased to $10.1 million in 2009 from $10.2 million in 2008. As a percentage of revenue, these expenses increased to 2.9% from 2.4%. Total expenses decreased due to a reduction in outside services of $0.5 million, and a reduction of $0.2 million each for sales commissions, advertising expenses and travel and entertainment expenses. These decreases were partially offset by a $1.0 million increase in bad debt expense, quarter over quarter.

Depreciation and Amortization

Depreciation and amortization increased to $1.2 million in 2009 from $1.0 million in 2008. This expense as a percentage of revenue increased to 0.3% in 2009 from 0.2% in 2008. The increase in depreciation and amortization is due primarily to a decrease in the salvage value of certain assets.

Other Income (Expense)

Interest and other income decreased to $0.04 million in 2009 from $0.40 million in 2008. The decrease in interest and dividend income is a result of lower interest rates in 2009 due to investing our cash in money market funds comprised of U.S. Treasury Securities and repurchase agreements for these securities rather than commercial paper.

Provision for Income Taxes

The provision for income taxes decreased to $4.5 million in 2009 compared to $8.3 million in 2008. We provided for income taxes using an effective rate of 42.3% in 2009 and an effective rate of 38.6% in 2008. The 2009 effective rate was higher due to income tax law changes enacted in February, 2009 by Wisconsin and California. The combined effect of the changes is approximately a $0.4 million increase in expense.

Net Income

Net income decreased to $6.2 million in 2009 from $13.1 million in 2008 due to lower gross margin partially offset by decreases in both operating expenses and income tax expense.

Earnings Per Common Share

Basic earnings per share were $0.17 in 2009 and $0.35 in 2008. Diluted earnings per share were $0.17 in 2009 and $0.35 in 2008.

LIQUIDITY AND CAPITAL RESOURCES

During 2009, we have funded operations, capital expenditures and stock buy backs through cash flows from operations.

Cash provided by operating activities for the three months ended March 31, 2009 was approximately $29.1 million, which resulted primarily from income of $6.2 million adjusted for non-cash charges of $6.3 million and the change in operating assets and liabilities of $16.6 million.

Net cash used in investing activities for the three months ended March 31, 2009 was $1.4 million and related primarily to capital expenditures of $1.4 million. We expect capital expenditures to be between $7.0 million and $8.0 million for all of 2009.

The net cash used in financing activities for the three months ended March 31, 2009 was $0.9 million. We used $1.0 million of cash to purchase treasury stock and reported $0.1 million of excess tax benefits from share-based compensation as a financing cash in-flow.

We had $47.4 million of unused and available borrowings under our bank revolving line of credit at March 31, 2009. We were in compliance with our debt covenants at March 31, 2009.

We have standby letters of credit that expire at various dates from 2009 to 2012. As of March 31, 2009, the outstanding letters of credit were $2.6 million.

We have authorization to spend up to $73.6 million to purchase common stock through June of 2009. No shares were purchased under this authorization in the first quarter of 2009. We may make additional purchases from time to time as market conditions warrant.

Contractual Obligations

Our contractual cash obligations as of March 31, 2009 are minimum rental
commitments. Minimum annual rental commitments at March 31, 2009, under
non-cancelable operating leases, principally for real estate, containers and
equipment are payable as follows (in thousands):


2009                  $ 16,022
2010                    18,995
2011                    17,331
2012                    14,355
2013                     4,747
2014 and thereafter      2,480
                      $ 73,930

Deferred Compensation

Under our Nonqualified Deferred Compensation Plans (the "Plans"), participants
can elect to defer certain compensation. Payments under the Plans are due as
follows as of March 31, 2009 (in thousands):

2010                  $ 1,596
2011                      479
2012                      606
2013                      507
2014 and thereafter     5,453
                      $ 8,641