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8-K - FORM 8-K - SAIA INC | c65618e8vk.htm |
Exhibit 99.1
Saia Reports Second Quarter Earnings Per Share of $0.21
Revenues were $266 million, an increase of 15 percent from prior year quarter
Revenues were $266 million, an increase of 15 percent from prior year quarter
JOHNS CREEK, GA. July 27, 2011 Saia, Inc. (NASDAQ: SAIA), a leading multi-regional
less-than-truckload (LTL) carrier, today reported improved second quarter 2011 results on stronger
revenue, improved pricing fundamentals and increased tonnage.
Second Quarter 2011 Compared to Second Quarter 2010 Results
| Revenues were $266 million, an increase of 15 percent. | ||
| Operating income increased 41 percent to $8.3 million compared to $5.9 million. | ||
| Earnings per share were $0.21 vs. $0.12. | ||
| Operating ratio was 96.9 vs. 97.5. | ||
| LTL tonnage increased by 4.5 percent as LTL shipments per workday were up 3.0 percent with a 1.5 percent increase in weight per shipment. | ||
| LTL yield was up 9.6 percent due to the impact of higher fuel surcharge and measured pricing actions. |
I continue to be encouraged that improvements in the transportation landscape have permitted us to
employ prudent pricing actions across our customer base. We continue to achieve increases in
contract renewals which are greater this quarter than those secured in the first quarter. As in
prior quarters, our measured pricing actions have resulted in deselecting a number of unprofitable
accounts. This is part of a slow but steady improvement plan and is a welcome change from the
challenging pricing and volume environment in which we had been operating the past several years,
said Rick ODell, president and chief executive officer.
The quarter was not without its challenges including significantly higher costs from health care,
purchased transportation, maintenance and self insurance costs. We continue to focus on service
and productivity initiatives which will produce improvements in terminal cost per freight bill.
Our safety and cargo claims programs are at the heart of our initiatives across the network,
continued ODell.
As the result of increased demand by shippers in our newer geography, we took the opportunity to
open a new terminal in Bloomington, IL, allowing us to offer 100% coverage of Illinois. The new
terminal in Bloomington supports our strategy of providing 100% coverage in the states which we
operate and contributes to our efforts to build density in our geographic footprint.
We also continue to move forward with our initiatives to improve pricing and remain focused on our
cost and quality initiatives. As always, Saias dedicated employees remain focused on providing
best in class customer service. We believe Saia is well positioned to take advantage of any future
industry consolidations and to capitalize on what appears to be improving industry fundamentals,
ODell said.
Saia, Inc. Second Quarter 2011 Results
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Year to Date 2011 Compared to Year to Date 2010 Results
| Revenues were $509 million compared to $444 million in the prior year period, an increase of 15 percent. | ||
| Operating income was $12.3 million compared to $3.7 million in the prior year period. | ||
| Net income was $4.1 million compared to net loss of $1.2 million in the prior year period. | ||
| Earnings per share were $0.25 compared to losses per share of $0.08 in the prior year period. | ||
| Operating ratio was 97.6 vs. 99.2 in the prior year period. |
Financial Position and Capital Expenditures
Total debt was $81.4 million at June 30, 2011. Net of the Companys $10.7 million cash balance at
quarter-end, net debt to total capital was 25.1 percent. This compares to total debt of $90.0
million and net debt to total capital of 27.4 percent in the prior year quarter.
Net capital expenditures for the first six months of 2011 were $20.6 million. This compares to
$0.2 million in the prior year period. The Company is planning net capital expenditures in 2011 of
approximately $63.0 million. This expenditure level reflects replacement and growth units of
tractors and the Companys continued investment in technology.
Conference Call
The Company will hold a conference call to discuss these results today at 12:00 noon Eastern Time.
This call will be webcast live via the Company web site at www.saia.com. To participate in the
call, please dial 1-800-723-6498 or dial 785-830-7989 for international calls and use conference ID
#4878983. Callers should dial in five to 10 minutes in advance of the conference call. A replay of
the call will be available two hours after the completion of the call through August 5, 2011. The
replay is available by dialing 1-888-203-1112 or 719-457-0820.
The webcast is also being distributed through the Thomson StreetEvents Network. Individual
investors can listen to the call at www.earnings.com, Thomsons individual investor portal, powered
by StreetEvents. Institutional investors can access the call via Thomson StreetEvents
(www.streetevents.com), a password-protected event management site.
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 148
terminals, Saia employs 7,900 people. For more information, visit the Investor Relations section 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-
Saia, Inc. Second Quarter 2011 Results
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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 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)
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 10,716 | $ | 29,045 | ||||
Accounts receivable, net |
114,661 | 94,569 | ||||||
Prepaid expenses and other |
30,019 | 29,882 | ||||||
Total current assets |
155,396 | 153,496 | ||||||
PROPERTY AND EQUIPMENT: |
||||||||
Cost |
632,669 | 610,572 | ||||||
Less: accumulated depreciation |
335,177 | 319,634 | ||||||
Net property and equipment |
297,492 | 290,938 | ||||||
OTHER ASSETS |
7,261 | 7,723 | ||||||
Total assets |
$ | 460,149 | $ | 452,157 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ | 41,146 | $ | 37,745 | ||||
Wages and employees benefits |
22,937 | 19,101 | ||||||
Other current liabilities |
31,945 | 31,777 | ||||||
Current portion of long-term debt |
19,643 | 17,143 | ||||||
Total current liabilities |
115,671 | 105,766 | ||||||
OTHER LIABILITIES: |
||||||||
Long-term debt, less current portion |
61,786 | 72,857 | ||||||
Deferred income taxes |
42,077 | 39,077 | ||||||
Claims, insurance and other |
29,239 | 28,099 | ||||||
Total other liabilities |
133,102 | 140,033 | ||||||
STOCKHOLDERS EQUITY: |
||||||||
Common stock |
16 | 16 | ||||||
Additional paid-in capital |
203,153 | 202,751 | ||||||
Deferred compensation trust |
(2,182 | ) | (2,727 | ) | ||||
Retained earnings |
10,389 | 6,318 | ||||||
Total stockholders equity |
211,376 | 206,358 | ||||||
Total liabilities and stockholders equity |
$ | 460,149 | $ | 452,157 | ||||
Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarter and Six Months Ended June 30, 2011 and 2010
(Amounts in thousands, except per share data)
(Unaudited)
Consolidated Statements of Operations
For the Quarter and Six Months Ended June 30, 2011 and 2010
(Amounts in thousands, except per share data)
(Unaudited)
Second Quarter | Six Months | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
OPERATING REVENUE |
$ | 265,901 | $ | 231,342 | $ | 508,919 | $ | 443,566 | ||||||||
OPERATING EXPENSES: |
||||||||||||||||
Salaries, wages and employees benefits |
130,669 | 121,421 | 253,409 | 238,885 | ||||||||||||
Purchased transportation |
24,653 | 22,011 | 45,719 | 39,446 | ||||||||||||
Fuel, operating expenses and supplies |
76,186 | 58,380 | 146,127 | 114,282 | ||||||||||||
Operating taxes and licenses |
9,600 | 9,173 | 18,957 | 18,387 | ||||||||||||
Claims and insurance |
7,836 | 5,411 | 15,088 | 10,496 | ||||||||||||
Depreciation and amortization |
8,803 | 9,222 | 17,376 | 18,527 | ||||||||||||
Operating gains, net |
(102 | ) | (150 | ) | (103 | ) | (206 | ) | ||||||||
Total operating expenses |
257,645 | 225,468 | 496,573 | 439,817 | ||||||||||||
OPERATING INCOME |
8,256 | 5,874 | 12,346 | 3,749 | ||||||||||||
NONOPERATING EXPENSES: |
||||||||||||||||
Interest expense |
2,955 | 2,685 | 5,953 | 5,758 | ||||||||||||
Other, net |
(19 | ) | 63 | (110 | ) | (252 | ) | |||||||||
Nonoperating expenses, net |
2,936 | 2,748 | 5,843 | 5,506 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
5,320 | 3,126 | 6,503 | (1,757 | ) | |||||||||||
Income tax expense (benefit) |
1,962 | 1,146 | 2,432 | (514 | ) | |||||||||||
NET INCOME (LOSS) |
$ | 3,358 | $ | 1,980 | $ | 4,071 | $ | (1,243 | ) | |||||||
Average common shares outstanding basic |
15,791 | 15,703 | 15,780 | 15,700 | ||||||||||||
Average common shares outstanding diluted |
16,188 | 16,124 | 16,167 | 15,700 | ||||||||||||
Basic earnings (loss) per share |
$ | 0.21 | $ | 0.13 | $ | 0.26 | $ | (0.08 | ) | |||||||
Diluted earnings (loss) per share |
$ | 0.21 | $ | 0.12 | $ | 0.25 | $ | (0.08 | ) | |||||||
Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Six Months | ||||||||
2011 | 2010 | |||||||
OPERATING ACTIVITIES: |
||||||||
Net cash provided by operating activities |
$ | 10,711 | $ | 5,049 | ||||
Net cash provided by operating activities |
10,711 | 5,049 | ||||||
INVESTING ACTIVITIES: |
||||||||
Acquisition of property and equipment |
(20,893 | ) | (560 | ) | ||||
Proceeds from disposal of property and equipment |
275 | 337 | ||||||
Net cash used in investing activities |
(20,618 | ) | (223 | ) | ||||
FINANCING ACTIVITIES: |
||||||||
Repayment of long-term debt |
(8,571 | ) | | |||||
Proceeds from stock option exercises |
149 | 57 | ||||||
Net cash (used in) provided by financing activities |
(8,422 | ) | 57 | |||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
(18,329 | ) | 4,883 | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
29,045 | 8,746 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 10,716 | $ | 13,629 | ||||
Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended June 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Financial Information
For the Quarters Ended June 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Second Quarter | ||||||||||||||||||||||||||||
Second Quarter | % | Amount/Workday | % | |||||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||||||
Workdays |
64 | 64 | ||||||||||||||||||||||||||
Operating ratio |
96.9 | % | 97.5 | % | ||||||||||||||||||||||||
F/S Revenue |
LTL | 245,530 | 213,850 | 14.8 | 3,836.4 | 3,341.4 | 14.8 | |||||||||||||||||||||
TL | 20,371 | 17,492 | 16.5 | 318.3 | 273.3 | 16.5 | ||||||||||||||||||||||
Total | 265,901 | 231,342 | 14.9 | 4,154.7 | 3,614.7 | 14.9 | ||||||||||||||||||||||
Revenue excluding |
LTL | 245,601 | 214,308 | 14.6 | 3,837.5 | 3,348.6 | 14.6 | |||||||||||||||||||||
revenue recognition |
TL | 20,377 | 17,530 | 16.2 | 318.4 | 273.9 | 16.2 | |||||||||||||||||||||
adjustment |
Total | 265,978 | 231,838 | 14.7 | 4,155.9 | 3,622.5 | 14.7 | |||||||||||||||||||||
Tonnage |
LTL | 959 | 918 | 4.5 | 14.99 | 14.34 | 4.5 | |||||||||||||||||||||
TL | 189 | 186 | 1.4 | 2.95 | 2.91 | 1.4 | ||||||||||||||||||||||
Total | 1,148 | 1,104 | 4.0 | 17.94 | 17.25 | 4.0 | ||||||||||||||||||||||
Shipments |
LTL | 1,691 | 1,642 | 3.0 | 26.42 | 25.66 | 3.0 | |||||||||||||||||||||
TL | 27 | 26 | 1.9 | 0.42 | 0.41 | 1.9 | ||||||||||||||||||||||
Total | 1,718 | 1,669 | 2.9 | 26.84 | 26.08 | 2.9 | ||||||||||||||||||||||
Revenue/cwt. |
LTL | 12.80 | 11.68 | 9.6 | ||||||||||||||||||||||||
TL | 5.39 | 4.71 | 14.6 | |||||||||||||||||||||||||
Total | 11.58 | 10.50 | 10.3 | |||||||||||||||||||||||||
Revenue/shipment |
LTL | 145.24 | 130.48 | 11.3 | ||||||||||||||||||||||||
TL | 755.80 | 662.24 | 14.1 | |||||||||||||||||||||||||
Total | 154.82 | 138.91 | 11.4 | |||||||||||||||||||||||||
Pounds/shipment |
LTL | 1,134 | 1,117 | 1.5 | ||||||||||||||||||||||||
TL | 14,013 | 14,071 | (0.4 | ) | ||||||||||||||||||||||||
Total | 1,337 | 1,323 | 1.0 |