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8-K - FORM 8-K - SAIA INCd234256d8k.htm

Exhibit 99.1

 

LOGO

Saia Reports Second Quarter Earnings per Share of $0.52

JOHNS CREEK, GA. – July 29, 2016 – 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 2016 financial results.

Second Quarter 2016 Compared to Second Quarter 2015 Results

 

    Revenues were $312 million, a decline of 3.6%

 

    LTL shipments per workday fell by 2.6% and LTL tonnage per workday declined 4.3%

 

    LTL yield increased 2%, in spite of lower fuel surcharge

 

    Operating income declined 30.6% from last year’s record second quarter

 

    Net income was $13.3 million compared to $19.2 million

 

    Diluted earnings per share were $0.52 compared to $0.75

 

    Operating ratio of 93.0 compared to 90.3

“Despite the challenging freight environment, we continued to deliver a high level of service and quality to our customers. We achieved 98% on-time service in the quarter and a cargo claims ratio of 0.77%. The perceived value in those measures, by our customers, enabled us to improve our yield in the quarter. Core operations continued to reach productivity and cost savings goals, but were negatively impacted by accident expense volatility and health care self-insurance during the quarter” said Saia President and Chief Executive Officer, Rick O’Dell.

“Our continued emphasis on service and quality resulted in contractual rate renewals remaining positive, up 5.4% in the quarter,” O’Dell added.

Financial Position and Capital Expenditures

Total debt was $139.4 million at June 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 23.4% compared to 20.7% at June 30, 2015. Net capital expenditures, including equipment financed with capital leases, in the first half of the year were $136.2 million compared to $73.3 million spent in the first half 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 888-438-5491 or 719-325-2354 referencing conference ID #9438415. 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 September 23, 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.


Saia, Inc. Second Quarter 2016 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, (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; (26) 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)

 

     June 30,
2016
    December 31,
2015
 

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 360      $ 124   

Accounts receivable, net

     142,331        124,222   

Prepaid expenses and other

     29,450        34,643   
  

 

 

   

 

 

 

Total current assets

     172,141        158,989   

PROPERTY AND EQUIPMENT:

    

Cost

     1,107,001        995,514   

Less: accumulated depreciation

     481,088        456,335   
  

 

 

   

 

 

 

Net property and equipment

     625,913        539,179   

OTHER ASSETS

     30,853        31,025   
  

 

 

   

 

 

 

Total assets

   $ 828,907      $ 729,193   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 49,679      $ 54,754   

Wages and employees’ benefits

     33,619        27,834   

Other current liabilities

     45,014        46,360   

Current portion of long-term debt

     16,627        12,432   
  

 

 

   

 

 

 

Total current liabilities

     144,939        141,380   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     122,747        56,540   

Deferred income taxes

     71,673        67,417   

Claims, insurance and other

     35,352        35,967   
  

 

 

   

 

 

 

Total other liabilities

     229,772        159,924   

STOCKHOLDERS’ EQUITY:

    

Common stock

     25        25   

Additional paid-in capital

     233,200        230,593   

Deferred compensation trust

     (3,252     (3,102

Retained earnings

     224,223        200,373   
  

 

 

   

 

 

 

Total stockholders’ equity

     454,196        427,889   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 828,907      $ 729,193   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Six Months Ended June 30, 2016 and 2015

(Amounts in thousands, except per share data)

(Unaudited)

 

     Second Quarter     Six Months  
     2016     2015     2016     2015  

OPERATING REVENUE

   $ 311,905      $ 323,480      $ 601,816      $ 616,502   

OPERATING EXPENSES:

        

Salaries, wages and employees’ benefits

     175,924        170,465        346,190        328,194   

Purchased transportation

     14,315        20,184        26,782        37,898   

Fuel, operating expenses and supplies

     59,026        69,165        113,066        136,310   

Operating taxes and licenses

     10,126        9,411        20,166        18,507   

Claims and insurance

     10,880        6,361        18,961        11,198   

Depreciation and amortization

     19,740        16,561        36,983        31,760   

Operating loss, net

     173        52        363        121   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     290,184        292,199        562,511        563,988   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     21,721        31,281        39,305        52,514   

NONOPERATING EXPENSES (INCOME):

        

Interest expense

     1,264        1,074        2,227        2,093   

Other, net

     (36     (14     (43     (65
  

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating expenses, net

     1,228        1,060        2,184        2,028   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     20,493        30,221        37,121        50,486   

Income tax expense

     7,218        10,974        13,271        18,634   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 13,275      $ 19,247      $ 23,850      $ 31,852   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - basic

     25,030        24,936        25,014        24,870   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - diluted

     25,583        25,561        25,560        25,526   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.53      $ 0.77      $ 0.95      $ 1.28   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.52      $ 0.75      $ 0.93      $ 1.25   
  

 

 

   

 

 

   

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2016 and 2015

(Amounts in thousands)

(Unaudited)

 

     Six Months  
     2016     2015  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 65,814      $ 67,045   
  

 

 

   

 

 

 

Net cash provided by operating activities

     65,814        67,045   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of business, net of cash received

     —          (22,238

Acquisition of property and equipment

     (102,140     (56,466

Proceeds from disposal of property and equipment

     595        517   
  

 

 

   

 

 

 

Net cash used in investing activities

     (101,545     (78,187
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Repayment of long-term debt

     (3,572     (3,571

Borrowing of revolving credit agreement, net

     42,756        13,000   

Proceeds from stock option exercises

     248        2,629   

Other financing activity

     (3,465     (1,620
  

 

 

   

 

 

 

Net cash provided by financing activities

     35,967        10,438   
  

 

 

   

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

     236        (704

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     124        4,367   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 360      $ 3,663   
  

 

 

   

 

 

 

NON-CASH ITEMS:

    

Acquisition of property and equipment financed with capital leases

   $ 34,683      $ 17,336   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended June 30, 2016 and 2015

(Unaudited)

 

                              Second Quarter         
            Second Quarter     %     Amount/Workday      %  
            2016     2015     Change     2016      2015      Change  

Workdays

              64         64      

Operating ratio

        93.0     90.3          

Tonnage (1)

     LTL         919        960        (4.3     14.36         15.00         (4.3
     TL         182        200        (8.8     2.85         3.12         (8.8

Shipments (1)

     LTL         1,639        1,683        (2.6     25.60         26.29         (2.6
     TL         26        29        (9.3     0.40         0.45         (9.3

Revenue/cwt. (2)

     LTL       $ 15.73      $ 15.42        2.0           
     TL       $ 5.50      $ 5.93        (7.2        

Revenue/shipment (2)

     LTL       $ 176.45      $ 176.02        0.2           
     TL       $ 775.05      $ 830.27        (6.7        

Pounds/shipment

     LTL         1,121        1,141        (1.7        
     TL         14,090        14,012        0.6           

Length of Haul

        786        778        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.