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8-K - 8-K - SAIA INCsaia-8k_20160428.htm

Exhibit 99.1

 

 

Saia Reports First Quarter Earnings per Share of $0.42

 

JOHNS CREEK, GA. – April 27, 2016 – 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 2016 financial results.

 

First Quarter 2016 Compared to First Quarter 2015 Results

 

·

Revenues were $290 million, a decline of 1.1%

 

·

Operating income decreased by 17% to $17.6 million

 

·

Net income fell 16% to $10.6 million

 

·

Diluted earnings per share were $0.42 compared to $0.49

 

·

Operating ratio of 93.9 compared to 92.8

 

·

LTL shipments per workday fell by 0.8% and LTL tonnage per workday declined 3.4%

 

·

LTL revenue per hundredweight increased 2.1%

 

“While we were not able to match last year’s record first quarter earnings results, I am pleased with the trajectory of our productivity and expense control initiatives.  We continue to see benefits in the areas of dock productivity and maintenance expenditures, while maintaining service and advancing quality initiatives. We also reduced purchased transportation expense, which represented 4.3% of revenue compared to 6.0% of revenue in the first quarter last year,” said Saia President and Chief Executive Officer, Rick O’Dell.

 

“Despite no noticeable improvement in the level of general economic activity, we secured average rate increases of 5.3% on contractual renewals in the period” O’Dell added.  

 

Financial Position and Capital Expenditures

Total debt was $116.4 million at March 31, 2016 and inclusive of the cash on-hand, net debt to total capital was 20.9%.  Due primarily to the timing of capital expenditures and seasonality factors, this represents an increase to the  total debt of $69.0 million and net debt to total capital of 13.9% at December 31, 2015.  

 

Net capital expenditures in the first quarter of 2016 were $63.7 million including equipment acquired with capital leases.  This compares to $33.2 million of net capital expenditures in the first quarter of 2015.  The Company currently plans net capital expenditures in 2016 of approximately $140 million.

 

Conference Call

Management will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 888-876-9177 or 785-424-1666 referencing conference ID #8234961.  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 June 22, 2016 at 1:00 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 148 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 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.

 


Saia, Inc. First Quarter 2016 Results

Page 2

 

These factors, risks, assumptions and uncertainties include, but are not limited to, (1) general economic conditions including downturns in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company’s need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company’s debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; (15) 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; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company’s workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) cost and availability of insurance coverage; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) cyber security risk; (25) 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, 2016

 

 

December 31, 2015

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

238

 

 

$

124

 

Accounts receivable, net

 

 

137,607

 

 

 

124,222

 

Prepaid expenses and other

 

 

37,590

 

 

 

34,643

 

Total current assets

 

 

175,435

 

 

 

158,989

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,056,435

 

 

 

995,514

 

Less: accumulated depreciation

 

 

467,212

 

 

 

456,335

 

Net property and equipment

 

 

589,223

 

 

 

539,179

 

OTHER ASSETS

 

 

31,047

 

 

 

31,025

 

Total assets

 

$

795,705

 

 

$

729,193

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

59,723

 

 

$

54,754

 

Wages and employees' benefits

 

 

30,423

 

 

 

27,834

 

Other current liabilities

 

 

46,700

 

 

 

46,360

 

Current portion of long-term debt

 

 

13,659

 

 

 

12,432

 

Total current liabilities

 

 

150,505

 

 

 

141,380

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

102,780

 

 

 

56,540

 

Deferred income taxes

 

 

69,078

 

 

 

67,417

 

Claims, insurance and other

 

 

34,574

 

 

 

35,967

 

Total other liabilities

 

 

206,432

 

 

 

159,924

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

231,114

 

 

 

230,593

 

Deferred compensation trust

 

 

(3,319

)

 

 

(3,102

)

Retained earnings

 

 

210,948

 

 

 

200,373

 

Total stockholders' equity

 

 

438,768

 

 

 

427,889

 

Total liabilities and stockholders' equity

 

$

795,705

 

 

$

729,193

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters Ended March 31, 2016 and 2015

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

First Quarters

 

 

 

2016

 

 

2015

 

OPERATING REVENUE

 

$

289,911

 

 

$

293,022

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

170,266

 

 

 

157,729

 

Purchased transportation

 

 

12,467

 

 

 

17,714

 

Fuel, operating expenses and supplies

 

 

54,040

 

 

 

67,145

 

Operating taxes and licenses

 

 

10,040

 

 

 

9,096

 

Claims and insurance

 

 

8,081

 

 

 

4,837

 

Depreciation and amortization

 

 

17,243

 

 

 

15,199

 

Operating loss, net

 

 

190

 

 

 

69

 

Total operating expenses

 

 

272,327

 

 

 

271,789

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

17,584

 

 

 

21,233

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

Interest expense

 

 

963

 

 

 

1,019

 

Other, net

 

 

(7

)

 

 

(51

)

Nonoperating expenses, net

 

 

956

 

 

 

968

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

16,628

 

 

 

20,265

 

Income tax expense

 

 

6,053

 

 

 

7,660

 

NET INCOME

 

$

10,575

 

 

$

12,605

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

24,998

 

 

 

24,803

 

Average common shares outstanding - diluted

 

 

25,445

 

 

 

25,513

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.42

 

 

$

0.51

 

Diluted earnings per share

 

$

0.42

 

 

$

0.49

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Quarters Ended March 31, 2016 and 2015

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Quarters

 

 

 

2016

 

 

2015

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

16,306

 

 

$

26,160

 

Net cash provided by operating activities

 

 

16,306

 

 

 

26,160

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of business, net of cash received

 

 

 

 

 

(23,080

)

Acquisition of property and equipment

 

 

(53,995

)

 

 

(30,064

)

Proceeds from disposal of property and equipment

 

 

367

 

 

 

294

 

Net cash used in investing activities

 

 

(53,628

)

 

 

(52,850

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowing of revolving credit agreement, net

 

 

38,826

 

 

 

21,577

 

Proceeds from stock option exercises

 

 

 

 

 

1,842

 

Other financing activity

 

 

(1,390

)

 

 

(900

)

Net cash provided by financing activities

 

 

37,436

 

 

 

22,519

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

114

 

 

 

(4,171

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

124

 

 

 

4,367

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

238

 

 

$

196

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Acquisition of property and equipment financed with capital leases

 

$

10,032

 

 

$

3,471

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended March 31, 2016 and 2015

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarters

 

 

 

 

 

 

 

 

First Quarters

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2016

 

 

2015

 

 

Change

 

 

2016

 

 

2015

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

93.9

%

 

 

92.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

868

 

 

 

884

 

 

 

(1.8

)

 

 

13.56

 

 

 

14.04

 

 

 

(3.4

)

 

 

TL

 

168

 

 

 

188

 

 

 

(10.6

)

 

 

2.62

 

 

 

2.98

 

 

 

(12.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,553

 

 

 

1,542

 

 

 

0.7

 

 

 

24.26

 

 

 

24.47

 

 

 

(0.8

)

 

 

TL

 

24

 

 

 

27

 

 

 

(9.9

)

 

 

0.38

 

 

 

0.42

 

 

 

(11.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

15.49

 

 

$

15.17

 

 

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.64

 

 

$

5.89

 

 

 

(4.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

173.20

 

 

$

174.12

 

 

 

(0.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

786.24

 

 

$

828.54

 

 

 

(5.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,118

 

 

 

1,147

 

 

 

(2.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

13,942

 

 

 

14,061

 

 

 

(0.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul

 

 

781

 

 

 

773

 

 

 

1.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.