Attached files

file filename
8-K - 8-K - SAIA INCd767103d8k.htm

Exhibit 99.1

 

LOGO

Saia Reports Second Quarter Earnings per Share of $0.53

Revenues rose 12.9% on 6.9% LTL tonnage growth

JOHNS CREEK, GA. – July 30, 2014 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported second quarter 2014 results. Despite favorable tonnage trends and improving yield, the operating results were negatively impacted by adverse claims and insurance experience.

Second Quarter 2014 Compared to Second Quarter 2013 Results

 

    Revenues were $330 million, an increase of 12.9%

 

    LTL tonnage increased 6.9% as LTL shipments were up 5.5% with a 1.4% increase in weight per shipment

 

    Operating income decreased to $22.7 million compared to $23.3 million

 

    Operating ratio was 93.1 compared to 92.0

 

    Diluted earnings per share were $0.53 compared to $0.54

 

    Claims and insurance expense was $8.3 million higher than the second quarter last year due primarily to accident severity.

“The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved. LTL yield improved 4.9%, reflective of our customers’ recognition of the value proposition Saia provides,” said Saia President and Chief Executive Officer, Rick O’Dell.

“The 12.9% second quarter revenue increase was the highest that we have achieved at Saia in seven years. The top line growth driven by last year’s investment in sales and marketing resources coupled with effective yield management provided the opportunity to overcome a capacity constrained environment which significantly increased costs for driver recruiting, training and purchased transportation. This revenue momentum combined with our focus on service and operational excellence positions Saia well to capitalize on the unique market dynamics we are currently experiencing to improve customer and shareholder value in the future,” O’Dell added.

Financial Position and Capital Expenditures

Total debt was $95.7 million at June 30, 2014 resulting in net debt to total capital of 22.1%. This compares to total debt of $99.0 million and net debt to total capital of 25.5% at the end of last year’s second quarter.


Saia, Inc. Second Quarter 2014 Results

Page 2

 

Net capital expenditures in the first half of 2014 were $67 million compared to $71 million in the first half of 2013. The Company currently projects net capital expenditures for the full year of approximately $110 million. In July, Saia began taking delivery of some of the 800 additional linehaul trailers that will be put in service this year and provide additional capacity.

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 888-427-9376 or 719-457-2085 referencing conference ID #6869513. 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 August 5, 2014 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 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; 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 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.

# # #


Saia, Inc. Second Quarter 2014 Results

Page 3

 

CONTACT: Saia, Inc.
  Doug Col
  dcol@saia.com
  678.542.3910


Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     June 30,     December 31,  
     2014     2013  

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 1,788      $ 159   

Accounts receivable, net

     148,850        117,937   

Prepaid expenses and other

     43,877        52,157   
  

 

 

   

 

 

 

Total current assets

     194,515        170,253   

PROPERTY AND EQUIPMENT:

    

Cost

     863,193        797,527   

Less: accumulated depreciation

     389,041        365,301   
  

 

 

   

 

 

 

Net property and equipment

     474,152        432,226   

OTHER ASSETS

     14,024        14,322   
  

 

 

   

 

 

 

Total assets

   $ 682,691      $ 616,801   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 62,885      $ 50,799   

Wages and employees’ benefits

     34,502        35,248   

Other current liabilities

     48,922        47,667   

Current portion of long-term debt

     7,143        7,143   
  

 

 

   

 

 

 

Total current liabilities

     153,452        140,857   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     88,597        69,740   

Deferred income taxes

     68,472        69,916   

Claims, insurance and other

     41,932        31,496   
  

 

 

   

 

 

 

Total other liabilities

     199,001        171,152   

STOCKHOLDERS’ EQUITY:

    

Common stock

     25        24   

Additional paid-in capital

     216,926        213,648   

Deferred compensation trust

     (2,223     (2,246

Retained earnings

     115,510        93,366   
  

 

 

   

 

 

 

Total stockholders’ equity

     330,238        304,792   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 682,691      $ 616,801   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Six Months Ended June 30, 2014 and 2013

(Amounts in thousands, except per share data)

(Unaudited)

 

     Second Quarter     Six Months  
     2014     2013     2014     2013  

OPERATING REVENUE

   $ 330,399      $ 292,557      $ 630,129      $ 566,352   

OPERATING EXPENSES:

        

Salaries, wages and employees’ benefits

     160,204        144,309        310,426        281,163   

Purchased transportation

     27,926        19,338        49,917        36,109   

Fuel, operating expenses and supplies

     81,276        78,154        161,235        157,156   

Operating taxes and licenses

     8,993        9,330        17,968        18,909   

Claims and insurance

     14,177        5,883        23,695        11,478   

Depreciation and amortization

     15,087        12,386        28,928        24,020   

Operating gains, net

     (5     (102     (12     (274
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     307,658        269,298        592,157        528,561   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     22,741        23,259        37,972        37,791   

NONOPERATING EXPENSES:

        

Interest expense

     1,177        1,618        2,493        3,146   

Other, net

     (35     (29     (65     (95
  

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating expenses, net

     1,142        1,589        2,428        3,051   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     21,599        21,670        35,544        34,740   

Income tax expense

     8,031        8,170        13,400        12,085   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 13,568      $ 13,500      $ 22,144      $ 22,655   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - basic

     24,484        24,163        24,434        24,073   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - diluted

     25,447        25,218        25,396        25,123   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.55      $ 0.56      $ 0.91      $ 0.94   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.53      $ 0.54      $ 0.87      $ 0.90   
  

 

 

   

 

 

   

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2014 and 2013

(Amounts in thousands)

(Unaudited)

 

     Six Months  
     2014     2013  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 46,875      $ 31,982   
  

 

 

   

 

 

 

Net cash provided by operating activities

     46,875        31,982   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (67,077     (72,092

Proceeds from disposal of property and equipment

     421        1,273   
  

 

 

   

 

 

 

Net cash used in investing activities

     (66,656     (70,819
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Repayment of long-term debt

     (3,571     (11,071

Borrowings of revolving credit agreement, net

     22,422        49,386   

Proceeds from stock option exercises

     2,559        3,659   

Other financing activities

     —          (586
  

 

 

   

 

 

 

Net cash provided by financing activities

     21,410        41,388   
  

 

 

   

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

     1,629        2,551   

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     159        321   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 1,788      $ 2,872   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended June 30, 2014 and 2013

(Unaudited)

 

                            Second Quarter         
          Second Quarter     %     Amount/Workday      %  
          2014     2013     Change     2014      2013      Change  

Workdays

              64         64      

Operating Ratio (1)

        93.1     92.0          

Tonnage (2)

   LTL      1,021        955        6.9        15.96         14.92         6.9   
   TL      228        178        28.1        3.56         2.78         28.1   

Shipments (2)

   LTL      1,732        1,642        5.5        27.07         25.65         5.5   
   TL      33        26        25.9        0.51         0.40         25.9   

Revenue/cwt. (3)

   LTL    $ 14.85      $ 14.16        4.9           
   TL    $ 5.70      $ 5.84        (2.4        

Revenue/shipment (3)

   LTL    $ 175.09      $ 164.68        6.3           
   TL    $ 798.13      $ 804.16        (0.7        

Pounds/shipment

   LTL      1,179        1,163        1.4           
   TL      14,000        13,763        1.7           

Length of Haul

        759        743        2.2           

 

(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.