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8-K - FORM 8-K - SAIA INC | c64381e8vk.htm |
Exhibit 99.1
***FOR IMMEDIATE RELEASE***
Saia, Inc. Reports First Quarter 2011 Results
Revenues were $243 million, an increase of 15% from prior year quarter
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 ODell, 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 Saias 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, ODell said.
Saia, Inc. First-Quarter 2011 Earnings
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Financial Position and Capital Expenditures
Total debt was $90.0 million at March 31, 2011. Net of the Companys $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 CCBNs Investor Distribution Network to both
institutional and individual investors. Individual investors can listen to the call through CCBNs
individual investor center at www.companyboardroom.com or by visiting any of the investor sites in
CCBNs Individual Investor Network. Institutional investors can access the call via CCBNs
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 Companys need
for capital and uncertainty of the current credit markets; the possibility of defaults under the
Saia, Inc. First-Quarter 2011 Earnings
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Companys 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 Companys
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 Companys 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)
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)
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)
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)
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 |