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8-K - 8-K - SAIA INCsaia-8k_20180801.htm

Exhibit 99.1

 

Saia Reports Record Second Quarter Earnings per Share of $1.15

 

JOHNS CREEK, GA. – August 1, 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 second quarter 2018 financial results. Diluted earnings per share were $1.15 for the second quarter compared to $0.68 per diluted share in the second quarter of 2017.

 

Second Quarter 2018 Compared to Second Quarter 2017 Results

 

Record quarterly revenue of $429 million, an 17.7% increase

 

LTL Shipments and Tonnage rose 4.3% and 7.7%, respectively

 

LTL Revenue per hundredweight increased 9.6%

 

Operating ratio improved by 160 basis points to 90.3%

 

Operating income rose 40% to a record $41.6 million

 

Net income rose 72% to $30.3 million

 

“I am pleased to announce record quarterly revenue and earnings for the second quarter of 2018”, said Saia President and Chief Executive Officer, Rick O’Dell.  “While the freight environment was robust in the period, our results were primarily driven by our work on mix management and yield improvement initiatives across our customer base.  Contractual renewals were up 9.1% in the quarter, contributing to our overall increase in revenue per hundredweight of 9.6%,” O’Dell continued.

 

“We have opened three new terminals in 2018 and have plans to open three more by year end.  Our high service levels and expanded geographic reach position us well for continued share gains in the LTL marketplace,” concluded Mr. O’Dell.

 

Financial Position and Capital Expenditures

Total debt was $155.0 million at June 30, 2018 and inclusive of the cash on-hand, net debt to total capital was 19.4%.  This compares to total debt of $148.4 million and net debt to total capital of 22.3% at June 30, 2017.

 

Net capital expenditures in the first half of 2018 were $140.6 million including equipment acquired with capital leases.  This compares to $155.1 million in net capital expenditures in the first half 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 10:30 a.m. Eastern Time. To participate in the call, please dial 877-260-1479 or 334-323-0522 referencing conference ID #9757810.  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 Wednesday, August 29, 2018 at 1:30 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 157 terminals across 40 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. 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, technology 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) disruption in or failure of the Company’s technology including services essential to operations of the Company and/or 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)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

December 31, 2017

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,189

 

 

$

4,720

 

Accounts receivable, net (1)

 

 

200,644

 

 

 

170,278

 

Prepaid expenses and other

 

 

30,854

 

 

 

28,251

 

Total current assets

 

 

232,687

 

 

 

203,249

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,419,359

 

 

 

1,289,994

 

Less: accumulated depreciation

 

 

594,678

 

 

 

554,214

 

Net property and equipment

 

 

824,681

 

 

 

735,780

 

OTHER ASSETS

 

 

28,590

 

 

 

28,286

 

Total assets

 

$

1,085,958

 

 

$

967,315

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable (1)

 

$

71,045

 

 

$

57,438

 

Wages and employees' benefits

 

 

46,739

 

 

 

39,748

 

Other current liabilities

 

 

70,954

 

 

 

55,657

 

Current portion of long-term debt

 

 

16,839

 

 

 

14,083

 

Total current liabilities

 

 

205,577

 

 

 

166,926

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

138,161

 

 

 

118,833

 

Deferred income taxes

 

 

63,419

 

 

 

59,423

 

Claims, insurance and other

 

 

38,827

 

 

 

39,639

 

Total other liabilities

 

 

240,407

 

 

 

217,895

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

26

 

 

 

26

 

Additional paid-in capital

 

 

252,536

 

 

 

246,454

 

Deferred compensation trust

 

 

(3,494

)

 

 

(3,486

)

Retained earnings (1)

 

 

390,906

 

 

 

339,500

 

Total stockholders' equity

 

 

639,974

 

 

 

582,494

 

Total liabilities and stockholders' equity

 

$

1,085,958

 

 

$

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 and Six Months Ended June 30, 2018 and 2017

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

Six Months

 

 

 

2018

 

 

2017 (1)

 

 

2018

 

 

2017 (1)

 

OPERATING REVENUE

 

$

428,732

 

 

$

364,404

 

 

$

821,537

 

 

$

687,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

220,406

 

 

 

196,388

 

 

 

431,530

 

 

 

377,291

 

Purchased transportation

 

 

34,113

 

 

 

28,639

 

 

 

64,029

 

 

 

49,459

 

Fuel, operating expenses and supplies

 

 

84,745

 

 

 

66,092

 

 

 

163,539

 

 

 

130,082

 

Operating taxes and licenses

 

 

12,794

 

 

 

10,875

 

 

 

24,944

 

 

 

21,457

 

Claims and insurance

 

 

9,910

 

 

 

10,426

 

 

 

20,101

 

 

 

19,475

 

Depreciation and amortization

 

 

25,241

 

 

 

22,182

 

 

 

48,271

 

 

 

42,269

 

Loss (gain) from property disposals, net

 

 

(42

)

 

 

116

 

 

 

(21

)

 

 

248

 

Total operating expenses

 

 

387,167

 

 

 

334,718

 

 

 

752,393

 

 

 

640,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

41,565

 

 

 

29,686

 

 

 

69,144

 

 

 

47,213

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,454

 

 

 

1,538

 

 

 

2,680

 

 

 

2,449

 

Other, net

 

 

(142

)

 

 

90

 

 

 

(245

)

 

 

188

 

Nonoperating expenses, net

 

 

1,312

 

 

 

1,628

 

 

 

2,435

 

 

 

2,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

40,253

 

 

 

28,058

 

 

 

66,709

 

 

 

44,576

 

Income tax expense

 

 

9,972

 

 

 

10,487

 

 

 

15,303

 

 

 

15,610

 

NET INCOME

 

$

30,281

 

 

$

17,571

 

 

$

51,406

 

 

$

28,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,766

 

 

 

25,501

 

 

 

25,732

 

 

 

25,477

 

Average common shares outstanding - diluted

 

 

26,354

 

 

 

26,000

 

 

 

26,326

 

 

 

25,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.18

 

 

$

0.69

 

 

$

2.00

 

 

$

1.14

 

Diluted earnings per share

 

$

1.15

 

 

$

0.68

 

 

$

1.95

 

 

$

1.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) - Second quarter and six months 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 Six Months Ended June 30, 2018 and 2017

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Six Months

 

 

 

2018

 

 

2017

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

112,118

 

 

$

79,317

 

Net cash provided by operating activities

 

 

112,118

 

 

 

79,317

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(118,573

)

 

 

(127,330

)

Proceeds from disposal of property and equipment

 

 

418

 

 

 

923

 

Net cash used in investing activities

 

 

(118,155

)

 

 

(126,407

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

 

 

 

(3,571

)

Borrowing of revolving credit agreement, net

 

 

7,000

 

 

 

55,014

 

Proceeds from stock option exercises

 

 

4,165

 

 

 

1,288

 

Shares withheld for taxes

 

 

(1,321

)

 

 

(1,211

)

Other financing activity

 

 

(7,338

)

 

 

(5,570

)

Net cash provided by financing activities

 

 

2,506

 

 

 

45,950

 

 

 

 

 

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(3,531

)

 

 

(1,140

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

4,720

 

 

 

1,539

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

1,189

 

 

$

399

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

22,422

 

 

$

28,691

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended June 30, 2018 and 2017

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

Second Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

2018

 

 

2017

 

 

Change

 

 

2018

 

 

2017

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

Operating ratio (1)

 

90.3

%

 

 

91.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL tonnage (2)

 

1,278

 

 

 

1,187

 

 

 

7.7

 

 

 

19.97

 

 

 

18.54

 

 

 

7.7

 

LTL shipments (2)

 

1,866

 

 

 

1,788

 

 

 

4.3

 

 

 

29.15

 

 

 

27.94

 

 

 

4.3

 

LTL revenue/cwt.

$

16.44

 

 

$

14.99

 

 

 

9.6

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment

$

225.24

 

 

$

199.00

 

 

 

13.2

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL pounds/shipment

 

1,370

 

 

 

1,327

 

 

 

3.2

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL length of haul (3)

 

837

 

 

 

806

 

 

 

3.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Second 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.