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Exhibit 99.1

 

 

Saia Reports Third Quarter Earnings per Share of $0.54

 

JOHNS CREEK, GA. – October 26, 2016 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported third quarter 2016 financial results.

 

Third Quarter 2016 Compared to Third Quarter 2015 Results

 

Revenue declined by 0.2% to $316 million

 

LTL shipments per workday declined by 1.2%

 

LTL tonnage per workday fell by 2.9%

 

LTL yield increased 3.7%

 

Operating ratio of 92.8 compared to 93.7

 

Operating income increased 14.1% to $22.6 million

 

Net income increased 17.4% to $13.8 million

 

Diluted earnings per share were $0.54 compared to $0.46

 

“Third quarter operating results reflect our continued pricing discipline and our company-wide efforts aimed at achieving operating efficiencies across all areas of our network.  In the quarter we saw year-over-year improvements in dock, city and linehaul productivity,” said Saia President and Chief Executive Officer, Rick O’Dell.  “The combination of improved productivity with continued positive pricing actions enabled us to post a 90 basis point improvement in our operating ratio in the third quarter compared to third quarter last year.   Rates increased an average of 5.7% on contractual renewals in the quarter and in early October we implemented a general rate increase of 4.9%,” O’Dell added.

 

“Though the economic environment continues to offer only tepid growth, I was encouraged to see our LTL shipment trend turn positive in September for the first time since February,” O’Dell concluded.

 

Financial Position and Capital Expenditures

Total debt was $94.2 million at September 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 16.6% compared to 15.6% at September 30, 2015.  Net capital expenditures, including equipment financed with capital leases, in the year-to-date period through September were $142.5 million compared to $114.4 million in the first nine months of 2015.

 

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 800-499-4035 or 416-204-9269 referencing conference ID #3198861.  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 December 21, 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. 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


Saia, Inc. Third Quarter 2016 Results

Page 2

 

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)

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2016

 

 

December 31, 2015

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

789

 

 

$

124

 

Accounts receivable, net

 

 

143,461

 

 

 

124,222

 

Prepaid expenses and other

 

 

22,152

 

 

 

34,643

 

Total current assets

 

 

166,402

 

 

 

158,989

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,104,495

 

 

 

995,514

 

Less: accumulated depreciation

 

 

492,577

 

 

 

456,335

 

Net property and equipment

 

 

611,918

 

 

 

539,179

 

OTHER ASSETS

 

 

30,292

 

 

 

31,025

 

Total assets

 

$

808,612

 

 

$

729,193

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

48,129

 

 

$

54,754

 

Wages and employees' benefits

 

 

38,277

 

 

 

27,834

 

Other current liabilities

 

 

50,300

 

 

 

46,360

 

Current portion of long-term debt

 

 

16,695

 

 

 

12,432

 

Total current liabilities

 

 

153,401

 

 

 

141,380

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

77,543

 

 

 

56,540

 

Deferred income taxes

 

 

74,091

 

 

 

67,417

 

Claims, insurance and other

 

 

34,687

 

 

 

35,967

 

Total other liabilities

 

 

186,321

 

 

 

159,924

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

234,045

 

 

 

230,593

 

Deferred compensation trust

 

 

(3,229

)

 

 

(3,102

)

Retained earnings

 

 

238,049

 

 

 

200,373

 

Total stockholders' equity

 

 

468,890

 

 

 

427,889

 

Total liabilities and stockholders' equity

 

$

808,612

 

 

$

729,193

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Nine Months Ended September 30, 2016 and 2015

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

Nine Months

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

OPERATING REVENUE

 

$

316,442

 

 

$

317,199

 

 

$

918,258

 

 

$

933,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

178,687

 

 

 

177,623

 

 

 

524,877

 

 

 

505,817

 

Purchased transportation

 

 

15,657

 

 

 

19,314

 

 

 

42,439

 

 

 

57,212

 

Fuel, operating expenses and supplies

 

 

59,345

 

 

 

65,122

 

 

 

172,411

 

 

 

201,432

 

Operating taxes and licenses

 

 

10,061

 

 

 

9,258

 

 

 

30,227

 

 

 

27,765

 

Claims and insurance

 

 

9,988

 

 

 

9,146

 

 

 

28,949

 

 

 

20,344

 

Depreciation and amortization

 

 

19,927

 

 

 

16,765

 

 

 

56,910

 

 

 

48,525

 

Operating loss, net

 

 

133

 

 

 

126

 

 

 

496

 

 

 

247

 

Total operating expenses

 

 

293,798

 

 

 

297,354

 

 

 

856,309

 

 

 

861,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

22,644

 

 

 

19,845

 

 

 

61,949

 

 

 

72,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,183

 

 

 

1,033

 

 

 

3,410

 

 

 

3,126

 

Other, net

 

 

(104

)

 

 

46

 

 

 

(147

)

 

 

(19

)

Nonoperating expenses, net

 

 

1,079

 

 

 

1,079

 

 

 

3,263

 

 

 

3,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

21,565

 

 

 

18,766

 

 

 

58,686

 

 

 

69,252

 

Income tax expense

 

 

7,739

 

 

 

6,989

 

 

 

21,010

 

 

 

25,623

 

NET INCOME

 

$

13,826

 

 

$

11,777

 

 

$

37,676

 

 

$

43,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,038

 

 

 

24,963

 

 

 

25,022

 

 

 

24,901

 

Average common shares outstanding - diluted

 

 

25,658

 

 

 

25,555

 

 

 

25,625

 

 

 

25,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.55

 

 

$

0.47

 

 

$

1.51

 

 

$

1.75

 

Diluted earnings per share

 

$

0.54

 

 

$

0.46

 

 

$

1.47

 

 

$

1.71

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Nine Months Ended September 30, 2016 and 2015

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Nine Months

 

 

 

2016

 

 

2015

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

117,659

 

 

$

114,038

 

Net cash provided by operating activities

 

 

117,659

 

 

 

114,038

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of business, net of cash received

 

 

 

 

 

(22,238

)

Acquisition of property and equipment

 

 

(108,871

)

 

 

(68,835

)

Proceeds from disposal of property and equipment

 

 

1,046

 

 

 

665

 

Net cash used in investing activities

 

 

(107,825

)

 

 

(90,408

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(3,571

)

 

 

(3,571

)

Borrowing of revolving credit agreement, net

 

 

(35

)

 

 

(20,000

)

Proceeds from stock option exercises

 

 

248

 

 

 

2,816

 

Other financing activity

 

 

(5,811

)

 

 

(2,702

)

Net cash used in financing activities

 

 

(9,169

)

 

 

(23,457

)

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

665

 

 

 

173

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

124

 

 

 

4,367

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

789

 

 

$

4,540

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

34,683

 

 

$

23,979

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended September 30, 2016 and 2015

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

 

 

 

 

 

 

Third Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2016

 

 

2015

 

 

Change

 

 

2016

 

 

2015

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

92.8

%

 

 

93.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

913

 

 

 

940

 

 

 

(2.9

)

 

 

14.26

 

 

 

14.68

 

 

 

(2.9

)

 

 

TL

 

182

 

 

 

188

 

 

 

(2.9

)

 

 

2.85

 

 

 

2.93

 

 

 

(2.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,638

 

 

 

1,658

 

 

 

(1.2

)

 

 

25.59

 

 

 

25.91

 

 

 

(1.2

)

 

 

TL

 

26

 

 

 

27

 

 

 

(4.7

)

 

 

0.40

 

 

 

0.42

 

 

 

(4.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

16.08

 

 

$

15.51

 

 

 

3.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.51

 

 

$

5.87

 

 

 

(6.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

179.17

 

 

$

175.77

 

 

 

1.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

783.61

 

 

$

820.00

 

 

 

(4.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,114

 

 

 

1,134

 

 

 

(1.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,229

 

 

 

13,967

 

 

 

1.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul (3)

 

 

789

 

 

 

773

 

 

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

In miles