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Exhibit 99.1

 

LOGO

For Immediate Release

Saia Reports Third Quarter Earnings Per Share of $0.56

Revenues were $278 million and earnings per share increased 87%

JOHNS CREEK, GA. – November 1, 2012 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering less-than-truckload, non-asset truckload, expedited and logistics services, today reported improved third quarter 2012 results on higher revenue, favorable pricing actions and operational efficiencies.

Third Quarter 2012 Compared to Third Quarter 2011 Results

 

  Revenues were $278 million, an increase of 3.6 percent

 

  Operating income increased 71 percent to $16.4 million compared to $9.6 million

 

  Earnings per share were $0.56 vs. $0.30

 

  Operating ratio was 94.1 vs. 96.4

 

  Revenue per workday increased by 5.3 percent with one less workday in the third quarter of 2012

 

  LTL tonnage per workday decreased by 1.6 percent

 

  LTL yield was up 6.6 percent due to effective yield management and fuel surcharge revenue

“Saia’s 230 basis point improvement in our operating ratio for the quarter demonstrates continued effective execution across a number of key initiatives. Saia’s best-in-class service quality, strong yield results and focus on operational excellence were the primary drivers to our margin improvement. While recovery in the transportation market appears to be moderating, we continue to advance our value proposition through investments in quality and by providing consistent, superior customer service. Simultaneously, we remain committed to receiving fair compensation from all the shippers who value Saia’s service quality,” said Rick O’Dell, president and chief executive officer.

“Saia’s Quality Matters initiative resulted in improvements in every major quality metric. Our dedicated associates again delivered 98 percent on-time service and achieved a 36 percent reduction in cargo claims. Implementation of our industrial engineering projects and improved operating efficiencies have reduced our reliance on purchased transportation, increased fuel efficiency and enhanced customer service. The quarter did include higher costs from wage increases and depreciation due to investments in employees, equipment and technology to meet increasing customer and regulatory requirements,” continued O’Dell.

On July 2nd, Saia announced the acquisition of Robart Transportation, Inc. and its subsidiary (the Companies). The Companies, now rebranded as Saia TL Plus, Inc. and Saia Logistics Services, LLC., have provided customers with quality truckload, expedited and full service logistics solutions since 1981.

“The acquisition supports our strategic goal of diversifying our service portfolio providing further growth opportunities over time,” said O’Dell. “Expanded offerings combined with impressive execution on quality, yield management and optimization initiatives provide Saia with a clear course for long term profitable growth.”


Saia, Inc. Third Quarter 2012 Results

Page 2

 

Year to Date 2012 Compared to Year to Date 2011 Results

 

  Revenues were $834 million compared to $777 million in the prior year period, an increase of 7.3 percent

 

  Operating income was $48.7 million compared to $22.0 million in the prior year period

 

  Net income was $26.6 million compared to $8.9 million in the prior year period

 

  Earnings per share were $1.61 compared to $0.55 in the prior year period

 

  Operating ratio was 94.2 vs. 97.2 in the prior year period

Financial Position and Capital Expenditures

Total debt was $81.2 million at September 30, 2012. Net of the Company’s $0.8 million cash balance at quarter-end, net debt to total capital was 24.5 percent. This compares to total debt of $81.4 million and net debt to total capital of 26.5 percent in the prior year quarter.

Net capital expenditures for the first nine months of 2012 were $79.3 million. This compares to $51.8 million in the prior year period. The Company is planning net capital expenditures in 2012 of approximately $83.0 million. This expenditure level reflects the purchase of replacement tractors and trailers and the Company’s continued investment in technology.

Conference Call

The Company will hold a conference call to discuss these results today at 11:00 a.m. Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-877-419-6603 or dial 719-325-4790 for international calls and use conference ID #8643130. Callers should dial in five minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through November 7, 2012 at 2:00 p.m. Eastern Time. 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) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. Saia LTL Freight operates 147 terminals in 34 states. With headquarters in Georgia, Saia employs 8,000 people. For more information on Saia, Inc. 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.


Saia, Inc. Third Quarter 2012 Results

Page 3

 

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 Company’s debt agreements (including violation of financial covenants); possible issuance of equity which would dilute stock ownership; integration risks; 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 Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     September 30,
2012
    December 31,
2011
 

ASSETS

  

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 804      $ 1,317   

Accounts receivable, net

     124,822        107,436   

Prepaid expenses and other

     31,115        34,063   
  

 

 

   

 

 

 

Total current assets

     156,741        142,816   

PROPERTY AND EQUIPMENT:

    

Cost

     722,128        669,345   

Less: accumulated depreciation

     353,328        344,890   
  

 

 

   

 

 

 

Net property and equipment

     368,800        324,455   

OTHER ASSETS

     16,721        7,615   
  

 

 

   

 

 

 

Total assets

   $ 542,262      $ 474,886   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 52,442      $ 39,783   

Wages and employees’ benefits

     33,838        21,185   

Other current liabilities

     41,201        41,237   

Current portion of long-term debt

     22,143        22,143   
  

 

 

   

 

 

 

Total current liabilities

     149,624        124,348   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     59,034        50,714   

Deferred income taxes

     52,822        51,289   

Claims, insurance and other

     32,503        29,234   
  

 

 

   

 

 

 

Total other liabilities

     144,359        131,237   

STOCKHOLDERS’ EQUITY:

    

Common stock

     16        16   

Additional paid-in capital

     206,159        203,793   

Deferred compensation trust

     (2,229     (2,199

Retained earnings

     44,333        17,691   
  

 

 

   

 

 

 

Total stockholders’ equity

     248,279        219,301   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 542,262      $ 474,886   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Nine Months Ended September 30, 2012 and 2011

(Amounts in thousands, except per share data)

(Unaudited)

 

     Third Quarter      Nine Months  
     2012     2011      2012     2011  

OPERATING REVENUE

   $ 278,024      $ 268,285       $ 834,252      $ 777,204   

OPERATING EXPENSES:

         

Salaries, wages and employees’ benefits

     138,532        133,460         410,471        386,869   

Purchased transportation

     18,810        23,345         59,171        69,064   

Fuel, operating expenses and supplies

     76,461        75,510         233,212        221,637   

Operating taxes and licenses

     9,445        9,830         29,061        28,787   

Claims and insurance

     6,133        6,766         18,409        21,854   

Depreciation and amortization

     12,315        9,723         35,681        27,099   

Operating (gains) loss, net

     (88     31         (409     (72
  

 

 

   

 

 

    

 

 

   

 

 

 

Total operating expenses

     261,608        258,665         785,596        755,238   
  

 

 

   

 

 

    

 

 

   

 

 

 

OPERATING INCOME

     16,416        9,620         48,656        21,966   

NONOPERATING EXPENSES:

         

Interest expense

     1,941        2,194         6,100        8,147   

Other, net

     (44     122         (142     12   
  

 

 

   

 

 

    

 

 

   

 

 

 

Nonoperating expenses, net

     1,897        2,316         5,958        8,159   
  

 

 

   

 

 

    

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     14,519        7,304         42,698        13,807   

Income tax expense

     5,263        2,475         16,056        4,907   
  

 

 

   

 

 

    

 

 

   

 

 

 

NET INCOME

   $ 9,256      $ 4,829       $ 26,642      $ 8,900   
  

 

 

   

 

 

    

 

 

   

 

 

 

Average common shares outstanding—basic

     15,900        15,800         15,873        15,786   
  

 

 

   

 

 

    

 

 

   

 

 

 

Average common shares outstanding—diluted

     16,575        16,160         16,529        16,145   
  

 

 

   

 

 

    

 

 

   

 

 

 

Basic earnings per share

   $ 0.58      $ 0.31       $ 1.68      $ 0.56   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted earnings per share

   $ 0.56      $ 0.30       $ 1.61      $ 0.55   
  

 

 

   

 

 

    

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2012 and 2011

(Amounts in thousands)

(Unaudited)

 

     Nine Months  
     2012     2011  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 77,425      $ 34,653   
  

 

 

   

 

 

 

Net cash provided by operating activities

     77,425        34,653   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (81,888     (52,309

Proceeds from disposal of property and equipment

     2,609        555   

Acquisition of subsidiary, net of cash

     (7,616     —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (86,895     (51,754
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Repayment of long-term debt

     (11,071     (8,571

Borrowings of revolving credit agreement, net

     19,391        —     

Proceeds from stock option exercises

     637        149   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     8,957        (8,422
  

 

 

   

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

     (513     (25,523

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     1,317        29,045   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 804      $ 3,522   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended September 30, 2012 and 2011

(Unaudited)

 

                            Third Quarter         
          Third Quarter     %     Amount/Workday      %  
          2012     2011     Change     2012      2011      Change  

Workdays

              63         64      

Operating ratio

        94.1     96.4          

Tonnage (1)

   LTL      918        947        (3.1     14.57         14.80         (1.6
   TL      176        180        (2.2     2.79         2.81         (0.6

Shipments (1)

   LTL      1,574        1,670        (5.8     24.98         26.09         (4.3
   TL      25        26        (1.5     0.40         0.40         0.1   

Revenue/cwt. (2)

   LTL    $ 14.00      $ 13.14        6.6           
   TL    $ 5.71      $ 5.42        5.3           

Revenue/shipment (2)

   LTL    $ 163.32      $ 149.04        9.6           
   TL    $ 793.48      $ 758.55        4.6           

Pounds/shipment

   LTL      1,167        1,135        2.8           
   TL      13,896        13,992        (0.7        

Length of Haul

        727        732        (0.7        

 

(1) In thousands
(2) Revenue does not include the adjustment required for financial statement purposes in accordance with the Company's Revenue Recognition Policy and other revenue.