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8-K - 8-K - SAIA INCd620821d8k.htm

Exhibit 99.1

 

LOGO

Saia Reports Third Quarter Earnings per Share of $0.51

Revenues were $293 million with operating income increasing 34%

JOHNS CREEK, GA. – October 30, 2013 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported improved third quarter 2013 results driven by effective revenue management and operational efficiencies. All prior period share and per share data in this release have been adjusted to reflect the Company’s June 2013 three for two stock split.

Third Quarter 2013 Compared to Third Quarter 2012 Results

 

    Revenues were $293 million, an increase of 5.4 percent

 

    Operating income increased 34 percent to $21.9 million compared to $16.4 million

 

    Earnings per share were $0.51 compared to $0.37

 

    Operating ratio was 92.5 compared to 94.1

 

    LTL tonnage per workday decreased 0.1 percent as LTL shipments per workday were up 0.6 percent with a 0.7 percent decrease in weight per shipment

 

    LTL yield was up 3.8 percent

“Saia continues to advance our value proposition in the marketplace through investments in quality and the consistent, superior customer service we provide. These efforts have fueled another quarter of meaningful yield increase which combined with efficiency initiatives led us to a 37% increase in earnings per share,” said Saia President and Chief Executive Officer Rick O’Dell.

“The infusion of new equipment into our network and our planned industrial engineering initiatives are continuing to result in cost reductions, particularly in linehaul miles driven and fuel efficiency. The quarter did include increased wage, health care and depreciation expense due to investments in employees, equipment and technology to support customer satisfaction. Saia’s dedicated employees provided 98% on-time service for the eighth consecutive quarter and quality initiatives further reduced our cargo claim ratio. I believe the Company’s strong balance sheet, effective revenue management and demonstrated operational excellence provide a solid foundation for additional progress as we move forward,” O’Dell concluded.


Saia, Inc. Third Quarter 2013 Results

Page 2

 

Year to Date 2013 Compared to Year to Date 2012 Results

 

    Revenues were $859 million compared to $834 million

 

    Operating income was $59.7 million compared to $48.7 million

 

    Net income was $35.6 million compared to $26.6 million

 

    Earnings per share were $1.41 compared to $1.07

 

    Operating ratio was 93.1 compared to 94.2

Financial Position and Capital Expenditures

Total debt was $91.5 million at September 30, 2013. Net of the Company’s $4.1 million cash balance at quarter-end, net debt to total capital was 22.9 percent. This compares to total debt of $81.2 million and net debt to total capital of 24.5 percent in the prior year quarter.

Net capital expenditures for the first nine months of 2013 were $97.7 million. This compares to $79.3 million in the prior year period. The Company is now planning net capital expenditures in 2013 of approximately $115 million. This expenditure includes a significant investment in tractors and trailers to reduce the average age of our fleet and the Company’s continued investment in technology.

Conference Call

Management will hold a conference call to discuss quarterly results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 888-417-8533 or 719-457-2085 referencing conference ID #6722348. 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.saiacorp.com. A replay of the call will be offered two hours after the completion of the call through November 5, 2013 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. With headquarters in Georgia, Saia LTL Freight operates 147 terminals in 34 states. For more information on Saia, Inc. visit the Investor Relations section at www.saiacorp.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


Saia, Inc. Third Quarter 2013 Results

Page 3

 

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.
 

Melanie Baker

mbaker@saia.com

770.232.4088


Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     September 30,     December 31,  
     2013     2012  

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 4,060      $ 321   

Accounts receivable, net

     127,542        106,814   

Prepaid expenses and other

     37,551        37,028   
  

 

 

   

 

 

 

Total current assets

     169,153        144,163   

PROPERTY AND EQUIPMENT:

    

Cost

     787,677        718,527   

Less: accumulated depreciation

     365,798        356,823   
  

 

 

   

 

 

 

Net property and equipment

     421,879        361,704   

OTHER ASSETS

     14,643        13,821   
  

 

 

   

 

 

 

Total assets

   $ 605,675      $ 519,688   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 48,974      $ 43,706   

Wages and employees’ benefits

     35,338        30,842   

Other current liabilities

     44,286        44,609   

Current portion of long-term debt

     14,643        22,143   
  

 

 

   

 

 

 

Total current liabilities

     143,241        141,300   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     76,863        38,562   

Deferred income taxes

     59,514        55,611   

Claims, insurance and other

     31,215        29,696   
  

 

 

   

 

 

 

Total other liabilities

     167,592        123,869   

STOCKHOLDERS’ EQUITY:

    

Common stock

     24        24   

Additional paid-in capital

     211,762        206,969   

Deferred compensation trust

     (2,246     (2,213

Retained earnings

     85,302        49,739   
  

 

 

   

 

 

 

Total stockholders’ equity

     294,842        254,519   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 605,675      $ 519,688   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Nine Months Ended September 30, 2013 and 2012

(Amounts in thousands, except per share data)

(Unaudited)

 

     Third Quarter     Nine Months  
     2013     2012     2013     2012  

OPERATING REVENUE

   $ 293,087      $ 278,024      $ 859,439      $ 834,252   

OPERATING EXPENSES:

        

Salaries, wages and employees’ benefits

     147,305        138,532        428,468        410,471   

Purchased transportation

     18,914        18,810        55,023        59,171   

Fuel, operating expenses and supplies

     75,803        76,461        232,959        233,212   

Operating taxes and licenses

     9,074        9,445        27,983        29,061   

Claims and insurance

     6,607        6,133        18,085        18,409   

Depreciation and amortization

     13,745        12,315        37,765        35,681   

Operating gains, net

     (296     (88     (570     (409
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     271,152        261,608        799,713        785,596   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     21,935        16,416        59,726        48,656   

NONOPERATING EXPENSES:

        

Interest expense

     1,760        1,941        4,906        6,100   

Other, net

     (85     (44     (180     (142
  

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating expenses, net

     1,675        1,897        4,726        5,958   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     20,260        14,519        55,000        42,698   

Income tax expense

     7,352        5,263        19,437        16,056   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 12,908      $ 9,256      $ 35,563      $ 26,642   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - basic

     24,220        23,850        24,123        23,810   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - diluted

     25,269        24,863        25,173        24,794   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.53      $ 0.39      $ 1.47      $ 1.12   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.51      $ 0.37      $ 1.41      $ 1.07   
  

 

 

   

 

 

   

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2013 and 2012

(Amounts in thousands)

(Unaudited)

 

     Nine Months  
     2013     2012  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 67,557      $ 77,425   
  

 

 

   

 

 

 

Net cash provided by operating activities

     67,557        77,425   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (100,799     (81,888

Proceeds from disposal of property and equipment

     3,058        2,609   

Acquisition, net of cash

     —          (7,616
  

 

 

   

 

 

 

Net cash used in investing activities

     (97,741     (86,895
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Repayment of long-term debt

     (11,071     (11,071

Borrowings of revolving credit agreement, net

     41,872        19,391   

Proceeds from stock option exercises

     3,708        637   

Other financing activities

     (586     —     
  

 

 

   

 

 

 

Net cash provided by financing activities

     33,923        8,957   
  

 

 

   

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

     3,739        (513

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     321        1,317   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 4,060      $ 804   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended September 30, 2013 and 2012

(Unaudited)

 

                      Third Quarter         
          Third Quarter     %     Amount/Workday      %  
          2013     2012     Change     2013      2012      Change  

Workdays

              64         63      

Operating Ratio (1)

        92.5     94.1          

Tonnage (2)

   LTL      932        918        1.5        14.56         14.57         (0.1
   TL      178        176        1.1        2.78         2.79         (0.4

Shipments (2)

   LTL      1,608        1,574        2.2        25.13         24.98         0.6   
   TL      26        25        2.4        0.40         0.40         0.8   

Revenue/cwt. (3)

   LTL    $ 14.54      $ 14.00        3.8           
   TL    $ 5.89      $ 5.71        3.2           

Revenue/shipment (3)

   LTL    $ 168.43      $ 163.32        3.1           
   TL    $ 808.48      $ 793.48        1.9           

Pounds/shipment

   LTL      1,159        1,167        (0.7        
   TL      13,719        13,896        (1.3        

Length of Haul

        742        727        2.0           

 

(1) The operating ratio is the calculation of operating expenses divided by operating revenue.
(2) In thousands
(3) Revenue does not include the adjustment required for financial statement purposes in accordance with the Company’s revenue recognition policy and other revenue.