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8-K - 8-K - SAIA INCsaia-8k_20151030.htm

Exhibit 99.1

 

 

Saia Reports Third Quarter Earnings per Share of $0.46

 

JOHNS CREEK, GA. – October 28, 2015 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported third quarter 2015 results.  

 

Third Quarter 2015 Compared to Third Quarter 2014 Results

 

·

Revenues were $317 million, a 4.6% decrease

 

·

Operating income decreased 27% to $19.8 million

 

·

Diluted earnings per share were $0.46 compared to $0.64

 

·

Operating ratio of 93.7 compared to 91.8

 

·

LTL shipments were down 4.2% and LTL tonnage declined 6.7%

 

·

LTL revenue per hundredweight increased 2.2% despite the impact of lower year-over-year fuel surcharges

 

“Our disappointing third quarter results were primarily the result of declining tonnage trends during the quarter, which made it difficult to offset higher investments in driver wages. Additionally, we incurred increased expenses associated with self-insurance claims.  In this type of volume environment we will more aggressively manage costs and maintain a constant focus on mix management to ensure that proper compensatory pricing is in place,” said Saia President and Chief Executive Officer, Rick O’Dell.

 

“Despite the negative year-over-year earnings results, we improved pricing and LTL yield for the 21st consecutive quarter.  Our level of service remains excellent at 98% on-time and we further improved our cargo claims results in the quarter,” O’Dell added.

 

Financial Position and Capital Expenditures

Total debt was $81.2 million at September 30, 2015 and inclusive of the $4.5 million of cash on-hand, net debt to total capital was 15.6% at quarter end.  This compares to total debt of $83.0 million and net debt to total capital of 17.7% at December 31, 2014.

 

Net capital expenditures in the first nine months of the year were $92.1 million including equipment acquired with capital leases and excluding our acquisition of LinkEx in February.  This compares to $85.5 million spent in the first nine months 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 888-401-4669 or 719-325-2472 referencing conference ID #6997115.  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 3, 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. (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.

 



Saia, Inc. Third Quarter 2015 Results

Page 2

 

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 publicly 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; effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; the creditworthiness of our customers and their ability to pay for services; failure to achieve acquisition synergies; failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; 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 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, Homeland Security, environmental regulations and the Food and Drug Administration; changes in interpretation of accounting principles; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company’s workforce become unionized; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of healthcare reform legislation; social media risks; cyber security 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)

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 

 

December 31, 2014

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,540

 

 

$

4,367

 

Accounts receivable, net

 

 

139,041

 

 

 

128,367

 

Prepaid expenses and other

 

 

42,156

 

 

 

56,902

 

Total current assets

 

 

185,737

 

 

 

189,636

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

975,874

 

 

 

891,145

 

Less: accumulated depreciation

 

 

443,330

 

 

 

407,505

 

Net property and equipment

 

 

532,544

 

 

 

483,640

 

OTHER ASSETS

 

 

32,706

 

 

 

13,169

 

Total assets

 

$

750,987

 

 

$

686,445

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

59,504

 

 

$

42,388

 

Wages and employees' benefits

 

 

32,463

 

 

 

28,777

 

Other current liabilities

 

 

50,495

 

 

 

50,176

 

Current portion of long-term debt

 

 

12,031

 

 

 

9,138

 

Total current liabilities

 

 

154,493

 

 

 

130,479

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

69,163

 

 

 

73,897

 

Deferred income taxes

 

 

77,775

 

 

 

78,406

 

Claims, insurance and other

 

 

35,728

 

 

 

36,757

 

Total other liabilities

 

 

182,666

 

 

 

189,060

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

228,015

 

 

 

223,713

 

Deferred compensation trust

 

 

(3,198

)

 

 

(2,189

)

Retained earnings

 

 

188,986

 

 

 

145,357

 

Total stockholders' equity

 

 

413,828

 

 

 

366,906

 

Total liabilities and stockholders' equity

 

$

750,987

 

 

$

686,445

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Nine Months Ended September 30, 2015 and 2014

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

Nine Months

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

OPERATING REVENUE

 

$

317,199

 

 

$

332,544

 

 

$

933,701

 

 

$

962,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

177,623

 

 

 

166,353

 

 

 

505,817

 

 

 

476,779

 

Purchased transportation

 

 

19,314

 

 

 

27,479

 

 

 

57,212

 

 

 

77,396

 

Fuel, operating expenses and supplies

 

 

65,122

 

 

 

80,206

 

 

 

201,432

 

 

 

241,441

 

Operating taxes and licenses

 

 

9,258

 

 

 

9,033

 

 

 

27,765

 

 

 

27,001

 

Claims and insurance

 

 

9,146

 

 

 

6,956

 

 

 

20,344

 

 

 

30,651

 

Depreciation and amortization

 

 

16,765

 

 

 

15,336

 

 

 

48,525

 

 

 

44,264

 

Operating loss, net

 

 

126

 

 

 

32

 

 

 

247

 

 

 

20

 

Total operating expenses

 

 

297,354

 

 

 

305,395

 

 

 

861,342

 

 

 

897,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

19,845

 

 

 

27,149

 

 

 

72,359

 

 

 

65,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,033

 

 

 

1,064

 

 

 

3,126

 

 

 

3,557

 

Other, net

 

 

46

 

 

 

16

 

 

 

(19

)

 

 

(49

)

Nonoperating expenses, net

 

 

1,079

 

 

 

1,080

 

 

 

3,107

 

 

 

3,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

18,766

 

 

 

26,069

 

 

 

69,252

 

 

 

61,613

 

Income tax expense

 

 

6,989

 

 

 

9,791

 

 

 

25,623

 

 

 

23,191

 

NET INCOME

 

$

11,777

 

 

$

16,278

 

 

$

43,629

 

 

$

38,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

24,963

 

 

 

24,527

 

 

 

24,901

 

 

 

24,465

 

Average common shares outstanding - diluted

 

 

25,555

 

 

 

25,505

 

 

 

25,525

 

 

 

25,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.47

 

 

$

0.66

 

 

$

1.75

 

 

$

1.57

 

Diluted earnings per share

 

$

0.46

 

 

$

0.64

 

 

$

1.71

 

 

$

1.51

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Nine Months Ended September 30, 2015 and 2014

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Nine Months

 

 

 

2015

 

 

2014

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

114,038

 

 

$

92,017

 

Net cash provided by operating activities

 

 

114,038

 

 

 

92,017

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of business

 

 

(22,238

)

 

 

 

Acquisition of property and equipment

 

 

(68,835

)

 

 

(79,773

)

Proceeds from disposal of property and equipment

 

 

665

 

 

 

2,590

 

Net cash used in investing activities

 

 

(90,408

)

 

 

(77,183

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(3,571

)

 

 

(3,571

)

Repayment of revolving credit agreement, net

 

 

(20,000

)

 

 

(8,317

)

Proceeds from stock option exercises

 

 

2,816

 

 

 

4,159

 

Other financing activities

 

 

(2,702

)

 

 

(20

)

Net cash used in financing activities

 

 

(23,457

)

 

 

(7,749

)

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

173

 

 

 

7,085

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

4,367

 

 

 

159

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

4,540

 

 

$

7,244

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Acquisition of property and equipment financed with capital leases

 

$

23,979

 

 

$

8,328

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended September 30, 2015 and 2014

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

 

 

 

 

 

 

Third Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2015

 

 

2014

 

 

Change

 

 

2015

 

 

2014

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

93.7

%

 

 

91.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

940

 

 

 

1,008

 

 

 

(6.7

)

 

 

14.68

 

 

 

15.75

 

 

 

(6.8

)

 

 

TL

 

188

 

 

 

215

 

 

 

(12.6

)

 

 

2.93

 

 

 

3.36

 

 

 

(12.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,658

 

 

 

1,730

 

 

 

(4.2

)

 

 

25.91

 

 

 

27.03

 

 

 

(4.1

)

 

 

TL

 

27

 

 

 

31

 

 

 

(12.6

)

 

 

0.42

 

 

 

0.48

 

 

 

(12.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

15.51

 

 

$

15.17

 

 

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.87

 

 

$

5.95

 

 

 

(1.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

175.77

 

 

$

176.71

 

 

 

(0.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

820.00

 

 

$

831.69

 

 

 

(1.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,134

 

 

 

1,165

 

 

 

(2.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

13,967

 

 

 

13,978

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul

 

 

773

 

 

 

766

 

 

 

0.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.