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8-K - FORM 8-K - SAIA INCc64381e8vk.htm
Exhibit 99.1
(SAIA LOGO)
***FOR IMMEDIATE RELEASE***
Saia, Inc. Reports First Quarter 2011 Results
Revenues were $243 million, an increase of 15% from prior year quarter
JOHNS CREEK, GA — April 28, 2011 — Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (“LTL”) carrier (the “Company”), today reported first quarter 2011 results. Earnings per share were $0.04 compared to losses of $0.21 per share in the prior year quarter. First quarter revenue was $243 million, up 15 percent from the prior year quarter, reflecting both stronger tonnage and improved yield.
First quarter 2011 highlights include:
    Operating income was $4.1 million compared to a $2.1 million operating loss in the prior year quarter
 
    Operating ratio was 98.3 vs. 101.0 in the prior year quarter
 
    LTL tonnage per workday was up 3.9 percent from prior year quarter
 
    LTL shipments per workday were up 2.2 percent with a 1.7 percent increase in weight per shipment over the prior year quarter
 
    LTL yield was up 8.2 percent over the prior year quarter due to pricing actions and increased fuel surcharge
“Measured pricing actions initiated in 2010 continued successfully through the first quarter. The resulting higher yield combined with the increased demand for our services were the primary drivers of our 2.7 point improvement in our operating ratio. Meaningful margin advancement was achieved in spite of higher costs from purchased transportation, maintenance, accident severity and unusually harsh winter weather. While our margins are not back to historical levels or our targeted returns, I am pleased with our progress particularly with respect to achieving both significant yield improvement and tonnage gains,” said Rick O’Dell, President and Chief Executive Officer.
“Improving market fundamentals have allowed us to advance our targeted initiatives to secure customers that value our service quality resulting in improving yields and business mix. I believe that we are still in the early stages of this yield recovery with additional opportunities ahead. During 2011, we will continue to focus on our core strategy of building density, enhancing customer satisfaction and reducing costs supported by engineered process improvements. With industry dynamics improving, we feel that Saia’s broad coverage, strong service offering, focused pricing discipline and consistent cost execution provide a solid foundation for long-term profitable growth and increased shareholder and customer value,” O’Dell said.

 


 

Saia, Inc. First-Quarter 2011 Earnings
Page 2
Financial Position and Capital Expenditures
Total debt was $90.0 million at March 31, 2011. Net of the Company’s $22.0 million cash balance at March 31, 2011, net debt to total capital was 24.6 percent. This compares to total debt of $90.0 million and net debt to total capital of 29.5 percent at March 31, 2010.
Net capital expenditures for the first three months of 2011 were $6.0 million. This compares to $63 thousand of capital expenditures over the same period in 2010. The Company is now planning net capital expenditures in 2011 of approximately $63.0 million. This level reflects replacement and growth units of tractors and continued investment in technology.
Conference Call
Management will hold a conference call to discuss first-quarter results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 1-800-776-9057 or 913-312-9321 referencing conference ID #4878983. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company web site at www.saia.com. A replay of the call will be offered two hours after the completion of the call through May 5, 2011 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.
The webcast is also being distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN’s individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via CCBN’s password-protected event management site, StreetEvents (www.streetevents.com).
Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Georgia and a network of 147 terminals, the carrier employs 7,500 people. For more information, please visit the Investor Relations section of the website at www.saia.com.
The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release contains these types of statements which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “may,” “plan,” “predict,” “believe,” “should” and similar words or expressions are intended to identify forward-looking statements. Investors should not place undue reliance on forward-looking statements and the Company undertakes no obligation to update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management as of the date of this news release and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors, risks, assumptions and uncertainties include, but are not limited to, general economic conditions including downturns in the business cycle; the creditworthiness of our customers and their ability to pay for services; competitive initiatives and pricing pressures, including in connection with fuel surcharge; the Company’s need for capital and uncertainty of the current credit markets; the possibility of defaults under the

 


 

Saia, Inc. First-Quarter 2011 Earnings
Page 3
Company’s debt agreements (including violation of financial covenants); possible issuance of equity which would dilute stock ownership; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; the effect of litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; governmental regulations, including but not limited to Hours of Service, engine emissions, the “Compliance, Safety, Accountability” (CSA) initiative, compliance with legislation requiring companies to evaluate their internal control over financial reporting, changes in interpretation of accounting principles and Homeland Security; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company’s workforce become unionized; effectiveness of Company-specific performance improvement initiatives; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of recently enacted healthcare reform legislation and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s SEC filings. As a result of these and other factors, no assurance can be given as to our future results and achievements. A forward looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur.
# # #
         
CONTACT:
  Saia, Inc.
 
  Renée McKenzie, Treasurer
 
  RMcKenzie@Saia.com
678.542.3910
 
     

 


 

Saia, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
                 
    March 31,     December 31,  
    2011     2010  
ASSETS
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 22,001     $ 29,045  
Accounts receivable, net
    110,672       94,569  
Prepaid expenses and other
    30,682       29,882  
 
           
Total current assets
    163,355       153,496  
 
               
PROPERTY AND EQUIPMENT:
               
Cost
    615,281       610,572  
Less: accumulated depreciation
    327,542       319,634  
 
           
Net property and equipment
    287,739       290,938  
 
OTHER ASSETS
    7,414       7,723  
 
           
Total assets
  $ 458,508     $ 452,157  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
CURRENT LIABILITIES:
               
Accounts payable
  $ 38,162     $ 37,745  
Wages and employees’ benefits
    20,985       19,101  
Other current liabilities
    32,804       31,777  
Current portion of long-term debt
    17,143       17,143  
 
           
Total current liabilities
    109,094       105,766  
 
               
OTHER LIABILITIES:
               
Long-term debt, less current portion
    72,857       72,857  
Deferred income taxes
    39,077       39,077  
Claims, insurance and other
    29,529       28,099  
 
           
Total other liabilities
    141,463       140,033  
 
               
STOCKHOLDERS’ EQUITY:
               
Common stock
    16       16  
Additional paid-in capital
    203,087       202,751  
Deferred compensation trust
    (2,183 )     (2,727 )
Retained earnings
    7,031       6,318  
 
           
Total stockholders’ equity
    207,951       206,358  
 
           
Total liabilities and stockholders’ equity
  $ 458,508     $ 452,157  
 
           

 


 

Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters Ended March 31, 2011 and 2010
(Amounts in thousands, except per share data)
(Unaudited)
                 
    First Quarter  
    2011     2010  
OPERATING REVENUE
  $ 243,018     $ 212,224  
 
OPERATING EXPENSES:
               
Salaries, wages and employees’ benefits
    122,740       117,464  
Purchased transportation
    21,066       17,435  
Fuel, operating expenses and supplies
    69,941       55,902  
Operating taxes and licenses
    9,357       9,214  
Claims and insurance
    7,252       5,085  
Depreciation and amortization
    8,573       9,305  
Operating gains, net
    (1 )     (56 )
 
           
Total operating expenses
    238,928       214,349  
 
           
 
               
OPERATING INCOME (LOSS)
    4,090       (2,125 )
 
               
NONOPERATING EXPENSES:
               
Interest expense
    2,998       3,073  
Other, net
    (91 )     (315 )
 
           
Nonoperating expenses, net
    2,907       2,758  
 
           
 
               
INCOME (LOSS) BEFORE INCOME TAXES
    1,183       (4,883 )
Income tax expense (benefit)
    470       (1,660 )
 
           
NET INCOME (LOSS)
  $ 713     $ (3,223 )
 
           
 
               
Average common shares outstanding — basic
    15,768       15,697  
 
           
Average common shares outstanding — diluted
    16,119       15,697  
 
 
           
Basic earnings (loss) per share
  $ 0.05     $ (0.21 )
 
           
 
Diluted earnings (loss) per share
  $ 0.04     $ (0.21 )
 
           

 


 

Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Quarters Ended March 31, 2011 and 2010
(Amounts in thousands)
(Unaudited)
                 
    First Quarter  
    2011     2010  
OPERATING ACTIVITIES:
               
Net cash used in operating activities
  $ (999 )   $ (2,311 )
 
           
Net cash used in operating activities
    (999 )     (2,311 )
 
           
 
               
INVESTING ACTIVITIES:
               
Acquisition of property and equipment
    (6,106 )     (122 )
Proceeds from disposal of property and equipment
    61       59  
 
           
Net cash used in investing activities
    (6,045 )     (63 )
 
           
 
               
FINANCING ACTIVITIES:
               
 
           
Net cash provided by (used in) financing activities
           
 
           
 
               
NET DECREASE IN CASH AND CASH EQUIVALENTS
    (7,044 )     (2,374 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    29,045       8,746  
 
           
CASH AND CASH EQUIVALENTS, END OF PERIOD
  $ 22,001     $ 6,372  
 
           

 


 

Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended March 31, 2011 and 2010
(Amounts in thousands)
(Unaudited)
                                                         
                                    First Quarter        
            First Quarter     %     Amount/Workday     %  
            2011     2010     Change     2011     2010     Change  
Workdays
                                    64       63          
 
                                                       
Operating ratio
            98.3 %     101.0 %                                
 
                                                       
F/S Revenue
  LTL     225,043       197,303       14.1       3,516.3       3,131.8       12.3  
 
  TL     17,975       14,921       20.5       280.9       236.8       18.6  
 
  Total     243,018       212,224       14.5       3,797.2       3,368.6       12.7  
 
                                                       
Revenue excluding
  LTL     225,765       197,677       14.2       3,527.6       3,137.7       12.4  
revenue recognition
  TL     18,032       14,949       20.6       281.8       237.3       18.7  
adjustment
  Total     243,797       212,627       14.7       3,809.3       3,375.0       12.9  
 
                                                       
Tonnage
  LTL     906       858       5.6       14.15       13.62       3.9  
 
  TL     175       163       7.7       2.74       2.59       6.0  
 
  Total     1,081       1,021       5.9       16.89       16.20       4.3  
 
                                                       
Shipments
  LTL     1,609       1,551       3.8       25.15       24.61       2.2  
 
  TL     25       23       6.8       0.39       0.37       5.1  
 
  Total     1,634       1,574       3.8       25.54       24.98       2.2  
 
                                                       
Revenue/cwt.
  LTL     12.47       11.52       8.2                          
 
  TL     5.14       4.59       12.0                          
 
  Total     11.28       10.41       8.3                          
 
                                                       
Revenue/shipment
  LTL     140.28       127.49       10.0                          
 
  TL     723.05       640.28       12.9                          
 
  Total     149.18       135.09       10.4                          
 
                                                       
Pounds/shipment
  LTL     1,125       1,106       1.7                          
 
  TL     14,073       13,963       0.8                          
 
  Total     1,323       1,297       2.0