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8-K - FORM 8-K - SAIA INCd917112d8k.htm

Exhibit 99.1

 

LOGO

Saia Reports Record First Quarter Earnings per Share of $0.49

JOHNS CREEK, GA. – April 29, 2015 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported first quarter 2015 results.

First Quarter 2015 Compared to First Quarter 2014 Results

 

    Revenues were $293 million, a 2.2% decrease

 

    Operating income increased 39% to $21.2 million compared to $15.2 million

 

    Diluted earnings per share were $0.49 compared to $0.34

 

    Operating ratio improved to 92.8 compared to 94.9

 

    LTL tonnage decreased 6.6% as LTL shipments were down 2.8%

 

    LTL revenue per hundredweight increased by 4.6% even with materially lower fuel surcharges

“Despite a first quarter that was more sluggish than typical, I am pleased to report that our focus on pricing, safety, network optimization and service enabled us to post significantly improved financial results. Difficult year over year shipment and tonnage comparisons were further challenged by winter weather, softness in the oil patch and our continued optimization of pricing programs.” said Saia President and Chief Executive Officer, Rick O’Dell.

“Our value proposition led to strong yield improvements and a better customer mix which were key to our achieving a record low first quarter operating ratio. Amidst seasonally improving demand trends and positive operational momentum, we look forward to the remainder of the year,” O’Dell added.

Financial Position and Capital Expenditures

Total debt was $107.6 million at March 31, 2015 and net debt to total capital was 22.1%. This compares to total debt of $79.7 million and net debt to total capital of 20.0% at March 31, 2014.

Net capital expenditures in the first quarter were $33.2 million including equipment acquired with capital leases. This compares to $8.2 million spent in the first quarter of 2014. The Company currently plans net capital expenditures in 2015 of approximately $125 million.

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 888-510-1786 or 719-325-2315 referencing conference ID #3672683. 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 May 5, 2015 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.


Saia, Inc. First Quarter 2015 Results

Page 2

 

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; failure to achieve acquisition synergies; competitive initiatives and pricing pressures, including in connection with fuel surcharge; loss of significant customers; 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; cyber security risks; 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; social media risk; 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.
Doug Col
dcol@saia.com
678.542.3910


Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     March 31,
2015
    December 31,
2014
 

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 196      $ 4,367   

Accounts receivable, net

     140,330        128,367   

Prepaid expenses and other

     55,492        56,902   
  

 

 

   

 

 

 

Total current assets

  196,018      189,636   

PROPERTY AND EQUIPMENT:

Cost

  924,466      891,145   

Less: accumulated depreciation

  417,271      407,505   
  

 

 

   

 

 

 

Net property and equipment

  507,195      483,640   

OTHER ASSETS

  36,310      13,169   
  

 

 

   

 

 

 

Total assets

$ 739,523    $ 686,445   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:

Accounts payable

$ 57,346    $ 42,388   

Wages and employees’ benefits

  33,187      28,777   

Other current liabilities

  46,948      50,176   

Current portion of long-term debt

  9,560      9,138   
  

 

 

   

 

 

 

Total current liabilities

  147,041      130,479   

OTHER LIABILITIES:

Long-term debt, less current portion

  98,076      73,897   

Deferred income taxes

  76,853      78,406   

Claims, insurance and other

  38,300      36,757   
  

 

 

   

 

 

 

Total other liabilities

  213,229      189,060   

STOCKHOLDERS’ EQUITY:

Common stock

  25      25   

Additional paid-in capital

  223,846      223,713   

Deferred compensation trust

  (2,580   (2,189

Retained earnings

  157,962      145,357   
  

 

 

   

 

 

 

Total stockholders’ equity

  379,253      366,906   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 739,523    $ 686,445   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters Ended March 31, 2015 and 2014

(Amounts in thousands, except per share data)

(Unaudited)

 

     First Quarter  
     2015     2014  

OPERATING REVENUE

   $ 293,022      $ 299,730   

OPERATING EXPENSES:

    

Salaries, wages and employees’ benefits

     157,729        150,222   

Purchased transportation

     17,714        21,991   

Fuel, operating expenses and supplies

     67,145        79,959   

Operating taxes and licenses

     9,096        8,975   

Claims and insurance

     4,837        9,518   

Depreciation and amortization

     15,199        13,841   

Operating loss (gains), net

     69        (7
  

 

 

   

 

 

 

Total operating expenses

  271,789      284,499   
  

 

 

   

 

 

 

OPERATING INCOME

  21,233      15,231   

NONOPERATING EXPENSES:

Interest expense

  1,019      1,316   

Other, net

  (51   (30
  

 

 

   

 

 

 

Nonoperating expenses, net

  968      1,286   
  

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

  20,265      13,945   

Income tax expense

  7,660      5,369   
  

 

 

   

 

 

 

NET INCOME

$ 12,605    $ 8,576   
  

 

 

   

 

 

 

Average common shares outstanding - basic

  24,803      24,382   
  

 

 

   

 

 

 

Average common shares outstanding - diluted

  25,513      25,361   
  

 

 

   

 

 

 

Basic earnings per share

$ 0.51    $ 0.35   
  

 

 

   

 

 

 

Diluted earnings per share

$ 0.49    $ 0.34   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Quarters Ended March 31, 2015 and 2014

(Amounts in thousands)

(Unaudited)

 

     Quarters  
     2015     2014  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 26,160      $ 4,119   
  

 

 

   

 

 

 

Net cash provided by operating activities

  26,160      4,119   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

Acquisition of business

  (23,080   —     

Acquisition of property and equipment

  (30,064   (8,379

Proceeds from disposal of property and equipment

  294      156   
  

 

 

   

 

 

 

Net cash used in investing activities

  (52,850   (8,223
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

Borrowings of revolving credit agreement, net

  21,577      2,831   

Proceeds from stock option exercises

  1,842      1,956   

Other financing activities

  (900   —     
  

 

 

   

 

 

 

Net cash provided by financing activities

  22,519      4,787   
  

 

 

   

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

  (4,171   683   

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

  4,367      159   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

$ 196    $ 842   
  

 

 

   

 

 

 

NON-CASH ITEMS:

Acquisition of property and equipment financed with capital leases

$ 3,471    $ —     
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended March 31, 2015 and 2014

(Unaudited)

 

            First Quarter         
          First Quarter     %     Amount/Workday      %  
          2015     2014     Change     2015      2014      Change  

Workdays

              63         63      

Operating ratio

        92.8     94.9          

Tonnage (1)

   LTL      884        947        (6.6     14.04         15.04         (6.6
  

TL

     188        216        (13.0     2.98         3.42         (13.0

Shipments (1)

   LTL      1,542        1,586        (2.8     24.47         25.18         (2.8
  

TL

     27        31        (13.0     0.42         0.49         (13.0

Revenue/cwt. (2)

   LTL    $ 15.17      $ 14.51        4.6           
  

TL

   $ 5.89      $ 5.71        3.3           

Revenue/shipment (2)

   LTL    $ 174.12      $ 173.28        0.5           
  

TL

   $ 828.54      $ 801.82        3.3           

Pounds/shipment

   LTL      1,147        1,195        (3.9        
   TL      14,061        14,051        0.1           

Length of Haul

        773        753        2.7           

 

(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.