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8-K - 8-K - SAIA INCsaia-8k_20210428.htm

Exhibit 99.1

 

Saia Reports Record First Quarter Results

 

JOHNS CREEK, GA – April 28, 2021 – 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 2021 financial results.  Diluted earnings per share in the quarter were $1.40 compared to $1.06 in the first quarter of 2020.

 

Highlights from the first quarter operating results were as follows:

 

First Quarter 2021 Compared to First Quarter 2020 Results

 

 

Revenue was $484.1 million, a 8.4% increase

 

Operating income was $48.7 million, a 25.6% increase

 

Operating ratio of 89.9 compared to 91.3

 

LTL shipments per workday increased 2.6%

 

LTL tonnage per workday increased 5.3%

 

LTL revenue per hundredweight increased 5.6%

 

LTL revenue per shipment rose 8.4% to $261.96

 

 

 

 

 

 

 

First quarter effective tax rate was 22.3% compared to 23.7% in the same period last year.

 

“Though first quarter results were impacted by severe winter weather in February, overall I am satisfied with how we handled the disruption to our network and delivered record first quarter revenue, operating income and operating ratio,” said Saia President and Chief Executive Officer, Frederick Holzgrefe.  “For several days in mid-February we had about one-third of our network either closed or with limited operations as a result of severe winter weather which blanketed a good portion of the central U.S. Some business was undoubtedly lost during those days, but our operations team responded very well to quickly get our network productivity back to pre-storm levels,” added Holzgrefe.  

 

“March results include some catch-up activity, but business trends improved as well and we were able to post revenue growth of 8.4% for the quarter and a sub-90% operating ratio for the third consecutive quarter,” said Holzgrefe.  “Our targeted pricing actions continue to yield positive outcomes and our revenue per shipment grew 8.4% in the quarter and is driving our margin improvement,” concluded Mr. Holzgrefe.

 

Saia Executive Vice President and Chief Financial Officer, Douglas Col stated, “Record first quarter operating margins drove a 19% increase in operating cash flow and we exited the quarter with more than


Saia, Inc. First Quarter 2021 Results

Page 2

 

$53 million in cash on hand. In terms of other activity, we opened one new terminal in the first quarter and several others are in various stages of development, including a new terminal under construction in Northeast Atlanta, which we expect to open before the end of this year.”

 

Financial Position and Capital Expenditures

 

Total debt was $66.0 million at March 31, 2021 and inclusive of the cash on-hand, net debt to total capital was 1.3%.  This compares to total debt of $235.8 million and net debt to total capital of 18.3% at March 31, 2020.

 

Net capital investments were $25.4 million in the first quarter of 2021.  This compares to $102.7 million in net capital investments in the first quarter of 2020, which included equipment acquired with finance leases.  In 2021, we anticipate net capital expenditures will be approximately $275 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 800-353-6461 or 334-323-0501 referencing conference ID #2579097. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company website at https://www.saia.com/about-us/investor-relations/financial-releases. A replay of the call will be offered two hours after the completion of the call through May 26, 2021 at 1:00 p.m. Eastern Time. The replay will be available by dialing 888-203-1112.

 

Saia, Inc. (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 170 terminals serving across 44 states.  For more information on Saia, Inc. visit the Investor Relations section at www.saia.com/about-us/investor-relations.

 

Cautionary Note Regarding Forward-Looking Statements

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) operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors; (3) industry-wide external factors largely out of our control; (4) cost and availability of qualified drivers,


Saia, Inc. First Quarter 2021 Results

Page 3

 

purchased transportation and fuel; (5) claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (6) cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums, assume additional liability under its auto liability policy or be unable to obtain insurance coverage; (7) failure to successfully execute the strategy to expand our service geography; (8) costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks; (9) failure to keep pace with technological developments; (10) labor relations, including the adverse impact should a portion of our workforce become unionized; (11) cost and availability of real property and revenue equipment; (12) capacity and highway infrastructure constraints; (13) risks arising from international business operations and relationships; (14) seasonal factors, harsh weather and disasters caused by climate change; (15) economic declines in the geographic regions or industries in which our customers operate; (16) the creditworthiness of our customers and their ability to pay for services; (17) our need for capital and uncertainty of the credit markets; (18) the possibility of defaults under our debt agreements (including violation of financial covenants); (19) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (20) dependence on key employees; (21) increased costs of healthcare benefits; (22) damage to our reputation from adverse publicity, including from the use of or impact from social media; (23) failure to make future acquisitions or to achieve acquisition synergies; (24) the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future; (25) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (26) the effect of governmental regulations, including hours of service for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of the Food and Drug Administration and Homeland Security, and healthcare and environmental regulations; (27) unforeseen costs from new and existing data privacy laws; (28) changes in accounting and financial standards or practices; (29) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (30) increasing investor and customer sensitivity to social and sustainability issues, including climate change; (31) anti-terrorism measures and terrorist events; (32)  provisions in our governing documents and Delaware law that may have anti-takeover effects; (33) issuances of equity that would dilute stock ownership; and (34) 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. Accordingly, 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. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this news release. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

 

# # #

 


Saia, Inc. First Quarter 2021 Results

Page 4

 

 

 

CONTACT:Saia, Inc.

Investor Relations

investors@saia.com

770.232.4088

 


 


 

 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2021

 

 

December 31, 2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

53,260

 

 

$

25,308

 

Accounts receivable, net

 

 

242,895

 

 

 

216,899

 

Prepaid expenses and other

 

 

52,160

 

 

 

29,489

 

Total current assets

 

 

348,315

 

 

 

271,696

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,918,279

 

 

 

1,901,244

 

Less: accumulated depreciation

 

 

796,511

 

 

 

765,217

 

Net property and equipment

 

 

1,121,768

 

 

 

1,136,027

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

 

111,737

 

 

 

113,715

 

OTHER ASSETS

 

 

28,765

 

 

 

27,336

 

Total assets

 

$

1,610,585

 

 

$

1,548,774

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

121,613

 

 

$

89,381

 

Wages and employees' benefits

 

 

49,007

 

 

 

55,392

 

Other current liabilities

 

 

95,247

 

 

 

90,184

 

Current portion of long-term debt

 

 

21,055

 

 

 

20,588

 

Current portion of operating lease liability

 

 

20,336

 

 

 

20,209

 

Total current liabilities

 

 

307,258

 

 

 

275,754

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

44,962

 

 

 

50,388

 

Operating lease liability, less current portion

 

 

93,366

 

 

 

95,321

 

Deferred income taxes

 

 

121,144

 

 

 

119,818

 

Claims, insurance and other

 

 

46,237

 

 

 

46,205

 

Total other liabilities

 

 

305,709

 

 

 

311,732

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

26

 

 

 

26

 

Additional paid-in capital

 

 

267,430

 

 

 

267,666

 

Deferred compensation trust

 

 

(3,669

)

 

 

(2,944

)

Retained earnings

 

 

733,831

 

 

 

696,540

 

Total stockholders' equity

 

 

997,618

 

 

 

961,288

 

Total liabilities and stockholders' equity

 

$

1,610,585

 

 

$

1,548,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters Ended March 31, 2021 and 2020

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

First Quarter

 

 

 

2021

 

 

2020

 

OPERATING REVENUE

 

$

484,074

 

 

$

446,396

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

244,437

 

 

 

238,645

 

Purchased transportation

 

 

45,031

 

 

 

30,059

 

Fuel, operating expenses and supplies

 

 

84,901

 

 

 

82,899

 

Operating taxes and licenses

 

 

14,338

 

 

 

14,396

 

Claims and insurance

 

 

11,480

 

 

 

10,421

 

Depreciation and amortization

 

 

35,372

 

 

 

32,590

 

Gain from property disposals, net

 

 

(199

)

 

 

(1,390

)

Total operating expenses

 

 

435,360

 

 

 

407,620

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

48,714

 

 

 

38,776

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

Interest expense

 

 

852

 

 

 

1,402

 

Other, net

 

 

(131

)

 

 

547

 

Nonoperating expenses, net

 

 

721

 

 

 

1,949

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

47,993

 

 

 

36,827

 

Income tax expense

 

 

10,702

 

 

 

8,716

 

NET INCOME

 

$

37,291

 

 

$

28,111

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

26,285

 

 

 

26,070

 

Average common shares outstanding - diluted

 

 

26,671

 

 

 

26,492

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.42

 

 

$

1.08

 

Diluted earnings per share

 

$

1.40

 

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the three months ended March 31, 2021 and 2020

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

First Quarter

 

 

 

2021

 

 

2020

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

60,971

 

 

$

51,267

 

Net cash provided by operating activities

 

 

60,971

 

 

 

51,267

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(25,568

)

 

 

(107,591

)

Proceeds from disposal of property and equipment

 

 

180

 

 

 

4,915

 

Net cash used in investing activities

 

 

(25,388

)

 

 

(102,676

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowing (repayment) of revolving credit agreement, net

 

 

 

 

 

104,140

 

Proceeds from stock option exercises

 

 

3,678

 

 

 

2,137

 

Shares withheld for taxes

 

 

(6,350

)

 

 

(3,404

)

Other financing activity

 

 

(4,959

)

 

 

(4,803

)

Net cash (used in) provided by financing activities

 

 

(7,631

)

 

 

98,070

 

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

27,952

 

 

 

46,661

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

25,308

 

 

 

248

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

53,260

 

 

$

46,909

 

 

 

 


 

 

 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended March 31, 2021 and 2020

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

 

 

 

 

 

First Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

2021

 

 

2020

 

 

Change

 

 

2021

 

 

2020

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

64

 

 

 

 

 

Operating ratio

 

89.9

%

 

 

91.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL tonnage (1)

 

1,247

 

 

 

1,203

 

 

 

3.7

 

 

 

19.79

 

 

 

18.80

 

 

 

5.3

 

LTL shipments (1)

 

1,826

 

 

 

1,809

 

 

 

0.9

 

 

 

28.99

 

 

 

28.26

 

 

 

2.6

 

LTL revenue/cwt.

$

19.18

 

 

$

18.16

 

 

 

5.6

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/cwt., excluding fuel surcharges

$

16.68

 

 

$

15.78

 

 

 

5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment

$

261.96

 

 

$

241.61

 

 

 

8.4

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment, excluding fuel surcharges

$

227.82

 

 

$

209.92

 

 

 

8.5

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL pounds/shipment

 

1,366

 

 

 

1,331

 

 

 

2.6

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL length of haul (2)

 

904

 

 

 

848

 

 

 

6.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

In thousands.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

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.