Attached files

file filename
8-K - FORM 8-K - SAIA INCc65618e8vk.htm
Exhibit 99.1
(SAIA LOGO)
Saia Reports Second Quarter Earnings Per Share of $0.21
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 O’Dell, 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 O’Dell.
“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, Saia’s 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,” O’Dell said.

 


 

Saia, Inc. Second Quarter 2011 Results
Page 2
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 Company’s $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 Company’s 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, Thomson’s 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
Page 3
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 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)
                 
    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)
                                 
    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)
                 
    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)
                                                         
                                    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