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8-K - 8-K - SAIA INCsaia-8k_20180427.htm

Exhibit 99.1

 

Saia Reports First Quarter Earnings per Share of $0.80

 

JOHNS CREEK, GA. – April 27, 2018 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported first quarter 2018 financial results. Diluted earnings per share were $0.80 for the first quarter and include a $0.03 per share positive impact from alternative fuel tax credits for the full year 2017, enacted in the first quarter of this year.  The Company earned $0.44 per diluted share in the first quarter of 2017.

 

First Quarter 2018 Compared to First Quarter 2017 Results

 

Revenues were $393 million, a 22% increase

 

LTL Shipments and Tonnage rose 8.4% and 12.2%, respectively

 

LTL Revenue per hundredweight increased 7.7%

 

Operating ratio improved by 160 basis points to 93.0%

 

Operating income rose 57% to a record $27.6 million

 

Net income benefitted from a lower effective income tax rate as well as the aforementioned fuel tax credit, and rose 85% to $21.1 million

 

“I am pleased that we were able to translate the strong shipment and tonnage growth in the quarter into improved operating results”, said Saia President and Chief Executive Officer, Rick O’Dell.  “During the quarter we opened two new terminals and put hundreds of new tractors and trailers into service across our network, while maintaining high quality service for our customers.  The rate environment remains constructive and our contractual renewals in the quarter saw an average increase of 7.6%,” O’Dell continued.

 

“We have now opened a total of eight new terminals in the past year.  All but one are in markets where we previously had not offered direct service.  Our customers are embracing the better geographic coverage as we continue to extend Saia’s service capabilities,” concluded Mr. O’Dell.

 

Financial Position and Capital Expenditures

Total debt was $142.6 million at March 31, 2018 and inclusive of the cash on-hand, net debt to total capital was 19.0%.  This compares to total debt of $156.9 million and net debt to total capital of 24.0% at March 31, 2017.

 

Net capital expenditures in the first quarter of 2018 were $52.1 million including equipment acquired with capital leases.  This compares to $108.2 million in net capital expenditures in the first quarter of 2017.  The Company currently plans net capital expenditures in 2018 of approximately $265 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 866-548-4713 or 323-794-2093 referencing conference ID #6971125.  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, May 25, 2018 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 156 terminals across 39 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 may contain 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 2018 Results

Page 2

 

These factors, risks, uncertainties and assumptions 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, tax law changes, potential changes to the North American Free Trade Agreement 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) failure to successfully execute the strategy to expand the Company’s service geography into the Northeastern United States; and (27) 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, 2018

 

 

December 31, 2017

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

496

 

 

$

4,720

 

Accounts receivable, net (1)

 

 

191,437

 

 

 

170,278

 

Prepaid expenses and other

 

 

34,066

 

 

 

28,251

 

Total current assets

 

 

225,999

 

 

 

203,249

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,334,557

 

 

 

1,289,994

 

Less: accumulated depreciation

 

 

573,699

 

 

 

554,214

 

Net property and equipment

 

 

760,858

 

 

 

735,780

 

OTHER ASSETS

 

 

28,690

 

 

 

28,286

 

Total assets

 

$

1,015,547

 

 

$

967,315

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable (1)

 

$

65,866

 

 

$

57,438

 

Wages and employees' benefits

 

 

38,939

 

 

 

39,748

 

Other current liabilities

 

 

59,082

 

 

 

55,657

 

Current portion of long-term debt

 

 

14,791

 

 

 

14,083

 

Total current liabilities

 

 

178,678

 

 

 

166,926

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

127,781

 

 

 

118,833

 

Deferred income taxes

 

 

61,031

 

 

 

59,423

 

Claims, insurance and other

 

 

40,663

 

 

 

39,639

 

Total other liabilities

 

 

229,475

 

 

 

217,895

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

26

 

 

 

26

 

Additional paid-in capital

 

 

250,233

 

 

 

246,454

 

Deferred compensation trust

 

 

(3,490

)

 

 

(3,486

)

Retained earnings (1)

 

 

360,625

 

 

 

339,500

 

Total stockholders' equity

 

 

607,394

 

 

 

582,494

 

Total liabilities and stockholders' equity

 

$

1,015,547

 

 

$

967,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) - These accounts have been retrospectively adjusted for the January 1, 2018 adoption of the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers.

 

 

 

 

 

 

 


 

 

 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters Ended March 31, 2018 and 2017

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

First Quarter

 

 

 

2018

 

 

2017 (1)

 

OPERATING REVENUE

 

$

392,805

 

 

$

323,090

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

211,124

 

 

 

180,903

 

Purchased transportation

 

 

29,916

 

 

 

20,820

 

Fuel, operating expenses and supplies

 

 

78,794

 

 

 

63,990

 

Operating taxes and licenses

 

 

12,150

 

 

 

10,582

 

Claims and insurance

 

 

10,191

 

 

 

9,049

 

Depreciation and amortization

 

 

23,030

 

 

 

20,087

 

Loss from property disposals, net

 

 

21

 

 

 

132

 

Total operating expenses

 

 

365,226

 

 

 

305,563

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

27,579

 

 

 

17,527

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

Interest expense

 

 

1,226

 

 

 

911

 

Other, net

 

 

(103

)

 

 

98

 

Nonoperating expenses, net

 

 

1,123

 

 

 

1,009

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

26,456

 

 

 

16,518

 

Income tax expense

 

 

5,331

 

 

 

5,123

 

NET INCOME

 

$

21,125

 

 

$

11,395

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,698

 

 

 

25,225

 

Average common shares outstanding - diluted

 

 

26,308

 

 

 

25,971

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.82

 

 

$

0.45

 

Diluted earnings per share

 

$

0.80

 

 

$

0.44

 

 

 

 

 

 

 

 

 

 

(1) - First quarter 2017 amounts have been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers.

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Quarters Ended March 31, 2018 and 2017

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

First Quarter

 

 

 

2018

 

 

2017

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

35,502

 

 

$

24,128

 

Net cash provided by operating activities

 

 

35,502

 

 

 

24,128

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(46,881

)

 

 

(88,388

)

Proceeds from disposal of property and equipment

 

 

100

 

 

 

607

 

Net cash used in investing activities

 

 

(46,781

)

 

 

(87,781

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowing of revolving credit agreement, net

 

 

7,832

 

 

 

65,183

 

Proceeds from stock option exercises

 

 

4,018

 

 

 

1,288

 

Shares withheld for taxes

 

 

(1,302

)

 

 

(1,211

)

Other financing activity

 

 

(3,493

)

 

 

(2,435

)

Net cash provided by financing activities

 

 

7,055

 

 

 

62,825

 

 

 

 

 

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(4,224

)

 

 

(828

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

4,720

 

 

 

1,539

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

496

 

 

$

711

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

5,318

 

 

$

20,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended March 31, 2018 and 2017

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

 

 

 

 

 

First Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

2018

 

 

2017

 

 

Change

 

 

2018

 

 

2017

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

Operating ratio (1)

 

93.0

%

 

 

94.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL tonnage (2)

 

1,199

 

 

 

1,068

 

 

 

12.2

 

 

 

18.73

 

 

 

16.69

 

 

 

12.2

 

LTL shipments (2)

 

1,770

 

 

 

1,633

 

 

 

8.4

 

 

 

27.65

 

 

 

25.52

 

 

 

8.4

 

LTL revenue/cwt.

$

15.92

 

 

$

14.78

 

 

 

7.7

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment

$

215.79

 

 

$

193.39

 

 

 

11.6

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL pounds/shipment

 

1,355

 

 

 

1,308

 

 

 

3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL length of haul (3)

 

837

 

 

 

797

 

 

 

5.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

First quarter 2017 operating ratio has been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

In thousands.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

In miles.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

LTL operating statistics exclude transportation and logistics services where pricing is generally not determined by weight.  The LTL operating statistics also exclude the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy.  2017 LTL operating statistics have been restated to reflect this presentation.