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8-K - 8-K - SAIA INCsaia-8k_20160208.htm

Exhibit 99.1

 

 

Saia Reports Fourth Quarter Earnings per Share of $0.45

 

JOHNS CREEK, GA. – February 5, 2016 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported fourth quarter and full year 2015 results.  Diluted earnings per share were $0.45 for the fourth quarter and include a $0.04 per share positive impact from tax credits for the full year 2015, enacted in the fourth quarter.  The Company earned $0.53 per diluted share in the fourth quarter 2014.

 

Fourth Quarter 2015 Compared to Fourth Quarter 2014 Results

 

·

Revenues were $288 million, a 7% decrease

 

·

Operating income decreased 14% to $17.6 million

 

·

Net income fell 16% to $11.4 million

 

·

Diluted earnings per share were $0.45 compared to $0.53

 

·

Operating ratio of 93.9 compared to 93.4

 

·

LTL shipments were down 6.2% and LTL tonnage declined 8.9%

 

·

LTL revenue per hundredweight increased 2.1% despite the impact of lower year-over-year fuel surcharges

 

“Consistent with our strategy over the past several years, we continued to focus on yield improvement in the fourth quarter.  With effective mix management, we realized improvements in both our yield and revenue per shipment, despite weak industrial freight volumes.  We are closely managing costs across our organization and working to refine our processes to optimize all of our Company assets,” said Saia President and Chief Executive Officer, Rick O’Dell.

 

“While it is somewhat satisfying to report our fourth consecutive year of record earnings per share, we enter 2016 with some uncertainty with regarding the health of the industrial economy.  At Saia, we will continue to focus on the elements of the business we can control and stay the course towards delivering a strong value proposition to our customers,” O’Dell added.

 

2015 Results Compared to 2014 Results

 

·

Revenues were $1.2 billion, a 4% decrease

 

·

Operating income increased 5% to $90.0 million

 

·

Net income of $55.0 million rose 5.8%

 

·

Diluted earnings per share were $2.16 versus the $2.04 earned in 2014.  Both years included a positive $0.04 per share impact from tax credits

 

·

Operating ratio improved 70 basis points to 92.6% from 93.3%

 

·

LTL revenue per hundredweight increased 3.2% on 4.0% fewer LTL shipments

 

Financial Position and Capital Expenditures

Total debt was $69.0 million at December 31, 2015 and inclusive of the cash on-hand, net debt to total capital was 13.9% at year 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 2015 were $113 million including equipment acquired with capital leases and excluding our acquisition of LinkEx in February.  This compares to $112 million in capital expenditures in 2014.  The Company currently plans net capital expenditures in 2016 of approximately $130 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 888-481-2877 or 719-325-2393 referencing conference ID #561452.  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 April 1, 2016 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.


Saia, Inc. Fourth Quarter 2015 Results

Page 2

 

 

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 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 of healthcare and prescription drugs, including 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)

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

December 31, 2014

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

124

 

 

$

4,367

 

Accounts receivable, net

 

 

124,222

 

 

 

128,367

 

Prepaid expenses and other (1)

 

 

34,642

 

 

 

37,442

 

Total current assets

 

 

158,988

 

 

 

170,176

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

995,514

 

 

 

891,145

 

Less: accumulated depreciation

 

 

456,335

 

 

 

407,505

 

Net property and equipment

 

 

539,179

 

 

 

483,640

 

OTHER ASSETS

 

 

31,026

 

 

 

13,169

 

Total assets

 

$

729,193

 

 

$

666,985

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

54,754

 

 

$

42,388

 

Wages and employees' benefits

 

 

27,834

 

 

 

28,777

 

Other current liabilities

 

 

46,360

 

 

 

50,176

 

Current portion of long-term debt

 

 

12,432

 

 

 

9,138

 

Total current liabilities

 

 

141,380

 

 

 

130,479

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

56,540

 

 

 

73,897

 

Deferred income taxes (1)

 

 

67,417

 

 

 

58,946

 

Claims, insurance and other

 

 

35,967

 

 

 

36,757

 

Total other liabilities

 

 

159,924

 

 

 

169,600

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

230,593

 

 

 

223,713

 

Deferred compensation trust

 

 

(3,102

)

 

 

(2,189

)

Retained earnings

 

 

200,373

 

 

 

145,357

 

Total stockholders' equity

 

 

427,889

 

 

 

366,906

 

Total liabilities and stockholders' equity

 

$

729,193

 

 

$

666,985

 

 

 

 

 

 

 

 

 

 

(1) - December 31, 2014 balances have been reclassified to conform with the December 31, 2015 adoption of the Financial Accounting Standards Board Accounting Standards Update 2015-17 regarding Balance Sheet Classification of Deferred Taxes.

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Years Ended December 31, 2015 and 2014

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Fourth Quarters

 

 

Years

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

OPERATING REVENUE

 

$

287,610

 

 

$

309,648

 

 

$

1,221,311

 

 

$

1,272,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

164,356

 

 

 

162,854

 

 

 

670,173

 

 

 

639,633

 

Purchased transportation

 

 

13,399

 

 

 

22,214

 

 

 

70,611

 

 

 

99,610

 

Fuel, operating expenses and supplies

 

 

59,955

 

 

 

73,347

 

 

 

261,387

 

 

 

314,788

 

Operating taxes and licenses

 

 

9,238

 

 

 

9,027

 

 

 

37,003

 

 

 

36,028

 

Claims and insurance

 

 

6,488

 

 

 

6,912

 

 

 

26,832

 

 

 

37,563

 

Depreciation and amortization

 

 

16,495

 

 

 

14,758

 

 

 

65,020

 

 

 

59,022

 

Operating loss (gain), net

 

 

63

 

 

 

(36

)

 

 

310

 

 

 

(16

)

Total operating expenses

 

 

269,994

 

 

 

289,076

 

 

 

1,131,336

 

 

 

1,186,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

17,616

 

 

 

20,572

 

 

 

89,975

 

 

 

85,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

981

 

 

 

1,007

 

 

 

4,107

 

 

 

4,564

 

Other, net

 

 

(76

)

 

 

(50

)

 

 

(95

)

 

 

(99

)

Nonoperating expenses, net

 

 

905

 

 

 

957

 

 

 

4,012

 

 

 

4,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

16,711

 

 

 

19,615

 

 

 

85,963

 

 

 

81,228

 

Income tax expense

 

 

5,324

 

 

 

6,046

 

 

 

30,947

 

 

 

29,237

 

NET INCOME

 

$

11,387

 

 

$

13,569

 

 

$

55,016

 

 

$

51,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

24,972

 

 

 

24,624

 

 

 

24,919

 

 

 

24,505

 

Average common shares outstanding - diluted

 

 

25,483

 

 

 

25,565

 

 

 

25,471

 

 

 

25,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.46

 

 

$

0.55

 

 

$

2.21

 

 

$

2.12

 

Diluted earnings per share

 

$

0.45

 

 

$

0.53

 

 

$

2.16

 

 

$

2.04

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Years Ended December 31, 2015 and 2014

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Years

 

 

 

2015

 

 

2014

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

142,714

 

 

$

102,170

 

Net cash provided by operating activities

 

 

142,714

 

 

 

102,170

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of business

 

 

(22,238

)

 

 

 

Acquisition of property and equipment

 

 

(86,499

)

 

 

(97,750

)

Proceeds from disposal of property and equipment

 

 

818

 

 

 

2,905

 

Net cash used in investing activities

 

 

(107,919

)

 

 

(94,845

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(7,143

)

 

 

(7,143

)

Repayment of revolving credit agreement, net

 

 

(30,466

)

 

 

(3,317

)

Proceeds from stock option exercises

 

 

2,533

 

 

 

7,623

 

Other financing activities

 

 

(3,962

)

 

 

(280

)

Net cash used in financing activities

 

 

(39,038

)

 

 

(3,117

)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(4,243

)

 

 

4,208

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

4,367

 

 

 

159

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

124

 

 

$

4,367

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Acquisition of property and equipment financed with capital leases

 

$

27,054

 

 

$

16,886

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended December 31, 2015 and 2014

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarters

 

 

 

 

 

 

 

 

Fourth Quarters

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2015

 

 

2014

 

 

Change

 

 

2015

 

 

2014

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

93.9

%

 

 

93.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

844

 

 

 

926

 

 

 

(8.9

)

 

 

13.61

 

 

 

14.94

 

 

 

(8.9

)

 

 

TL

 

165

 

 

 

195

 

 

 

(15.1

)

 

 

2.67

 

 

 

3.14

 

 

 

(15.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,499

 

 

 

1,597

 

 

 

(6.2

)

 

 

24.18

 

 

 

25.77

 

 

 

(6.2

)

 

 

TL

 

24

 

 

 

28

 

 

 

(15.3

)

 

 

0.38

 

 

 

0.45

 

 

 

(15.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

15.66

 

 

$

15.33

 

 

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.84

 

 

$

6.16

 

 

 

(5.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

176.23

 

 

$

177.72

 

 

 

(0.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

815.23

 

 

$

858.96

 

 

 

(5.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,125

 

 

 

1,159

 

 

 

(2.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

13,969

 

 

 

13,940

 

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul

 

 

775

 

 

 

773

 

 

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Years Ended December 31, 2015 and 2014

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Over Year

 

 

 

 

 

 

 

 

Year Over Year

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2015

 

 

2014

 

 

Change

 

 

2015

 

 

2014

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

253

 

 

 

253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

92.6

%

 

 

93.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

3,628

 

 

 

3,902

 

 

 

(7.0

)

 

 

14.34

 

 

 

15.42

 

 

 

(7.0

)

 

 

TL

 

741

 

 

 

853

 

 

 

(13.2

)

 

 

2.93

 

 

 

3.37

 

 

 

(13.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

6,381

 

 

 

6,646

 

 

 

(4.0

)

 

 

25.22

 

 

 

26.27

 

 

 

(4.0

)

 

 

TL

 

106

 

 

 

122

 

 

 

(13.3

)

 

 

0.42

 

 

 

0.48

 

 

 

(13.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

15.44

 

 

$

14.96

 

 

 

3.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.88

 

 

$

5.87

 

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

175.55

 

 

$

175.71

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

823.86

 

 

$

821.46

 

 

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,137

 

 

 

1,174

 

 

 

(3.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,003

 

 

 

13,993

 

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul

 

 

775

 

 

 

763

 

 

 

1.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.