Attached files

file filename
8-K - 02.03 - 2016 Q4 EARNINGS RELEASE - SAIA INCsaia-8k_20170203.htm

Exhibit 99.1

 

 

Saia Reports Fourth Quarter Earnings per Share of $0.40

 

JOHNS CREEK, GA. – February 3, 2017 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported fourth quarter and year-end 2016 financial results.

 

Fourth Quarter 2016 Compared to Fourth Quarter 2015 Results

 

Revenues were $300.2 million, a 4.4% increase despite one less workday

 

Operating income decreased 2.4% to $17.2 million

 

Net income fell 9.1% to $10.3 million

 

Diluted earnings per share were $0.40 compared to $0.45

 

Operating ratio deteriorated by 40 basis points to 94.3

 

LTL shipments per workday increased 2.1%

 

LTL tonnage per workday increased 1.4%

 

LTL revenue per hundredweight increased 5.1%

 

2016 Results Compared to 2015 Results

 

Revenues were essentially flat at $1.2 billion

 

Operating income fell by 12.0% to $79.1 million

 

Net income of $48.0 million was 12.7% lower than the prior year

 

Diluted earnings per share were $1.87 versus the $2.16 earned in 2015  

 

Operating ratio of 93.5 compares to 92.6 last year

 

LTL shipments were down 0.7%

 

LTL tonnage declined 2.4%

 

LTL revenue per hundredweight increased 3.2%

 

“We were encouraged by shipment and tonnage per workday trends in the fourth quarter and our results reflected some of the same themes we saw in the business all year”, said Saia President and Chief Executive Officer, Rick O’Dell.  “We continued our very positive pricing actions and saw fourth quarter contractual renewals average 5.2%.  Customer service standards remain very high and we achieved a cargo claims ratio of 0.74% in the fourth quarter compared to 0.97% in the fourth quarter last year.  It is with our customers in mind that we turn our sights towards opportunities in 2017 and beyond.  We at Saia are all excited about the prospects of serving our customers in an expanded geography.  We are moving forward with plans to begin service in select markets in Pennsylvania and New Jersey in the second quarter.  These are the first steps in our multi-year strategy of becoming a 48-state LTL service provider,” O’Dell continued.

 

“We continue to see productivity improvements across the network offset some of the ongoing cost challenges in the business.  On the cost side, the year-over results were impacted by a couple of trends.  First of all, depreciation and amortization expense was up 17.2% in the fourth quarter, a reflection of the significant investments we are making in our fleet, real estate and information technology.  The benefits of a newer fleet accrue to us in the form of lower maintenance costs, better reliability, advanced safety technology in our tractors and better fuel mileage.  The other significant expense item was our claims and insurance line, which increased by more than $4 million in the fourth quarter versus the prior year.  The increase was not the result of one or two major accidents, rather it reflects the general inflationary trends in the costs of settlement and litigation in the trucking industry,” O’Dell concluded.

 

Financial Position and Capital Expenditures

Total debt was $73.8 million at December 31, 2016 and inclusive of the cash on-hand, net debt to total capital was 13.0% at year end.  This compares to total debt of $69.0 million and net debt to total capital of 13.9% at December 31, 2015.

 

Net capital expenditures in 2016 were $152 million including equipment acquired with capital leases.  This compares to $113 million in net capital expenditures in 2015, which included equipment acquired with capital leases, but excluded the acquisition of LinkEx.  The Company currently plans net capital expenditures in 2017 of approximately $200 million.

 

 


Saia, Inc. Fourth Quarter 2016 Results

Page 2

 

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 888-724-9518 or 913-312-1496 referencing conference ID #4025429.  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 Friday, March 31, 2017 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 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; and (26) 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, 2016

 

 

December 31, 2015

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,539

 

 

$

124

 

Accounts receivable, net

 

 

135,083

 

 

 

124,222

 

Prepaid expenses and other

 

 

29,857

 

 

 

34,643

 

Total current assets

 

 

166,479

 

 

 

158,989

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,101,946

 

 

 

995,514

 

Less: accumulated depreciation

 

 

497,827

 

 

 

456,335

 

Net property and equipment

 

 

604,119

 

 

 

539,179

 

OTHER ASSETS

 

 

29,772

 

 

 

31,025

 

Total assets

 

$

800,370

 

 

$

729,193

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

45,149

 

 

$

54,754

 

Wages and employees' benefits

 

 

31,700

 

 

 

27,834

 

Other current liabilities

 

 

51,333

 

 

 

46,360

 

Current portion of long-term debt

 

 

16,762

 

 

 

12,432

 

Total current liabilities

 

 

144,944

 

 

 

141,380

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

57,041

 

 

 

56,540

 

Deferred income taxes

 

 

80,199

 

 

 

67,417

 

Claims, insurance and other

 

 

35,108

 

 

 

35,967

 

Total other liabilities

 

 

172,348

 

 

 

159,924

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

237,846

 

 

 

230,593

 

Deferred compensation trust

 

 

(3,190

)

 

 

(3,102

)

Retained earnings

 

 

248,397

 

 

 

200,373

 

Total stockholders' equity

 

 

483,078

 

 

 

427,889

 

Total liabilities and stockholders' equity

 

$

800,370

 

 

$

729,193

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Years Ended December 31, 2016 and 2015

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

 

Years

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

OPERATING REVENUE

 

$

300,223

 

 

$

287,610

 

 

$

1,218,481

 

 

$

1,221,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

171,169

 

 

 

164,356

 

 

 

696,046

 

 

 

670,173

 

Purchased transportation

 

 

13,890

 

 

 

13,399

 

 

 

56,329

 

 

 

70,611

 

Fuel, operating expenses and supplies

 

 

57,953

 

 

 

59,955

 

 

 

230,364

 

 

 

261,387

 

Operating taxes and licenses

 

 

9,798

 

 

 

9,238

 

 

 

40,025

 

 

 

37,003

 

Claims and insurance

 

 

10,676

 

 

 

6,488

 

 

 

39,625

 

 

 

26,832

 

Depreciation and amortization

 

 

19,330

 

 

 

16,495

 

 

 

76,240

 

 

 

65,020

 

Operating loss, net

 

 

220

 

 

 

63

 

 

 

716

 

 

 

310

 

Total operating expenses

 

 

283,036

 

 

 

269,994

 

 

 

1,139,345

 

 

 

1,131,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

17,187

 

 

 

17,616

 

 

 

79,136

 

 

 

89,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

984

 

 

 

981

 

 

 

4,394

 

 

 

4,107

 

Other, net

 

 

(30

)

 

 

(76

)

 

 

(177

)

 

 

(95

)

Nonoperating expenses, net

 

 

954

 

 

 

905

 

 

 

4,217

 

 

 

4,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

16,233

 

 

 

16,711

 

 

 

74,919

 

 

 

85,963

 

Income tax expense

 

 

5,885

 

 

 

5,324

 

 

 

26,895

 

 

 

30,947

 

NET INCOME

 

$

10,348

 

 

$

11,387

 

 

$

48,024

 

 

$

55,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,084

 

 

 

24,972

 

 

 

25,038

 

 

 

24,919

 

Average common shares outstanding - diluted

 

 

25,782

 

 

 

25,483

 

 

 

25,680

 

 

 

25,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.41

 

 

$

0.46

 

 

$

1.92

 

 

$

2.21

 

Diluted earnings per share

 

$

0.40

 

 

$

0.45

 

 

$

1.87

 

 

$

2.16

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Years Ended December 31, 2016 and 2015

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Years

 

 

 

2016

 

 

2015

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

145,776

 

 

$

142,714

 

Net cash provided by operating activities

 

 

145,776

 

 

 

142,714

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of business, net of cash received

 

 

 

 

 

(22,238

)

Acquisition of property and equipment

 

 

(119,365

)

 

 

(86,499

)

Proceeds from disposal of property and equipment

 

 

1,682

 

 

 

818

 

Net cash used in investing activities

 

 

(117,683

)

 

 

(107,919

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(7,143

)

 

 

(7,143

)

Repayment of revolving credit agreement, net

 

 

(14,534

)

 

 

(30,466

)

Proceeds from stock option exercises

 

 

3,173

 

 

 

2,533

 

Other financing activity

 

 

(8,174

)

 

 

(3,962

)

Net cash used in financing activities

 

 

(26,678

)

 

 

(39,038

)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

1,415

 

 

 

(4,243

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

124

 

 

 

4,367

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

1,539

 

 

$

124

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

34,683

 

 

$

27,054

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended December 31, 2016 and 2015

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

 

 

 

 

 

 

 

Fourth Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2016

 

 

2015

 

 

Change

 

 

2016

 

 

2015

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

94.3

%

 

 

93.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

842

 

 

 

844

 

 

 

(0.2

)

 

 

13.80

 

 

 

13.61

 

 

 

1.4

 

 

 

TL

 

172

 

 

 

165

 

 

 

4.3

 

 

 

2.83

 

 

 

2.67

 

 

 

6.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,506

 

 

 

1,499

 

 

 

0.5

 

 

 

24.69

 

 

 

24.18

 

 

 

2.1

 

 

 

TL

 

24

 

 

 

24

 

 

 

2.3

 

 

 

0.40

 

 

 

0.38

 

 

 

4.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

16.45

 

 

$

15.66

 

 

 

5.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.61

 

 

$

5.84

 

 

 

(3.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

183.91

 

 

$

176.23

 

 

 

4.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

798.53

 

 

$

815.23

 

 

 

(2.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,118

 

 

 

1,125

 

 

 

(0.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,237

 

 

 

13,969

 

 

 

1.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul (3)

 

 

792

 

 

 

775

 

 

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Years Ended December 31, 2016 and 2015

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Over Year

 

 

 

 

 

 

 

 

Year Over Year

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2016

 

 

2015

 

 

Change

 

 

2016

 

 

2015

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

253

 

 

 

253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

93.5

%

 

 

92.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

3,541

 

 

 

3,628

 

 

 

(2.4

)

 

 

14.00

 

 

 

14.34

 

 

 

(2.4

)

 

 

TL

 

705

 

 

 

741

 

 

 

(4.9

)

 

 

2.79

 

 

 

2.93

 

 

 

(4.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

6,335

 

 

 

6,381

 

 

 

(0.7

)

 

 

25.04

 

 

 

25.22

 

 

 

(0.7

)

 

 

TL

 

100

 

 

 

106

 

 

 

(5.7

)

 

 

0.39

 

 

 

0.42

 

 

 

(5.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

15.93

 

 

$

15.44

 

 

 

3.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.56

 

 

$

5.88

 

 

 

(5.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

178.13

 

 

$

175.55

 

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

785.65

 

 

$

823.86

 

 

 

(4.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,118

 

 

 

1,137

 

 

 

(1.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,126

 

 

 

14,003

 

 

 

0.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul (3)

 

 

787

 

 

 

775

 

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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