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8-K - FORM 8-K - SAIA INC | c62724e8vk.htm |
Exhibit 99.1
***FOR IMMEDIATE RELEASE***
Saia, Inc. Reports Fourth Quarter 2010 Results
Revenues were $224 million, an increase of 11% from prior year quarter
Revenues were $224 million, an increase of 11% from prior year quarter
JOHNS CREEK, GA January 31, 2011 Saia, Inc. (NASDAQ: SAIA), a leading multi-regional
less-than-truckload (LTL) carrier (the Company), today reported fourth quarter 2010 results.
Earnings per share were $0.04 compared to losses of $0.31 from continuing operations in the prior
year quarter. Fourth quarter revenue was $224 million, up 11 percent from the prior year quarter,
reflecting enhanced yield and increased tonnage. Operating income was $1.8 million compared to the
prior year quarter operating loss of $3.6 million from continuing operations. Fourth quarter 2009
results included $3.9 million in reduced expenses due to a change in vacation policy.
Fourth quarter 2010 highlights include:
| LTL tonnage per workday increased 6.1% over the prior year quarter | ||
| LTL yield increased 5.4% over the prior year quarter due to pricing actions and increased fuel surcharge | ||
| Operating ratio was 99.2 vs. 101.8 in the prior year quarter, which included the impact of the favorable vacation adjustment equating to 1.9 operating points | ||
| Recognition of alternative fuel tax credit of $0.06 per share. |
Our continued focus on measured pricing actions contributed to meaningful improvement in operating
results and cash flow compared to the difficult environment of 2009. The combination of tonnage
growth, increasing yield and Saias continued aggressive cost performance resulted in a significant
improvement in our fourth quarter operating ratio. While margins remain short of historical levels
and targeted returns, I am directionally pleased with the progress and encouraged by identified
opportunities and industry fundamentals as we move into 2011, said Rick ODell, President and
Chief Executive Officer.
Revenue for the full year 2010 was $903 million, an increase of 6 percent from 2009. Operating
income for 2010 was $12.1 million, compared with an operating loss of $3.7 million from continuing
operations in 2009. Net income was $2.0 million in 2010 compared to a loss of $9.0 million from
continuing operations in 2009. Earnings per share were $0.12 in 2010 compared to losses per share
of $0.67 from continuing operations in 2009.
2010 highlights are summarized as follows:
| LTL tonnage per workday increased 2.9% over 2009 | ||
| LTL yield increased 2.9% over 2009 primarily due to the impact of higher fuel surcharge | ||
| Operating ratio from continuing operations was 98.7 vs. 100.4 in the prior year. |
Saia, Inc. Fourth-Quarter 2010 Earnings
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During 2010, we continued to focus on our core strategy of building density, customer satisfaction
and cost reduction supported by engineered process improvements. I am pleased that improving
market fundamentals and customer recognition of our quality service has permitted us to achieve
meaningful pricing improvement, particularly in the second half of 2010. I believe we are in the
early stages of this yield recovery and expect continued near-term progress. We feel that Saias
broad coverage, strong service offering, effective marketing, focused pricing discipline and
consistent cost execution provide a solid foundation for long-term profitable growth and increased
shareholder and customer value as industry dynamics improve, ODell said.
Financial Position and Capital Expenditures
Total debt was $90.0 million at December 31, 2010. Net of the Companys $29.0 million cash balance
at December 31, 2010, net debt to total capital was 22.8 percent. This compares to total debt of
$90.0 million and net debt to total capital of 28.6 percent at December 31, 2009.
Net capital expenditures for 2010 were $3 million. This compares to $8 million of capital
expenditures in 2009. The Company is planning net capital expenditures in 2011 of approximately
$45 million. This level reflects a return to Saias normal replacement cycle for tractors and
continued investment in technology. This capital expenditure outlook may be reevaluated as
tonnage improves or for opportunistic purchases.
Conference Call
Management will hold a conference call to discuss fourth-quarter results today at 11:00 a.m.
Eastern Time. To participate in the call, please dial 1-800-776-9057 or 913-312-9321 referencing
conference ID #4878983. 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.saia.com. A replay of the
call will be offered two hours after the completion of the call through February 7, 2011 at 2:00
p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.
The webcast is also being distributed over CCBNs Investor Distribution Network to both
institutional and individual investors. Individual investors can listen to the call through CCBNs
individual investor center at www.companyboardroom.com or by visiting any of the investor sites in
CCBNs Individual Investor Network. Institutional investors can access the call via CCBNs
password-protected event management site, StreetEvents (www.streetevents.com).
Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and
guaranteed services covering 34 states. With headquarters in Georgia and a network of 147
terminals, the carrier employs 7,500 people. For more information, please visit the Investor
Relations section of the website at www.saia.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.
Saia, Inc. Fourth-Quarter 2010 Earnings
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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 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, general economic conditions including downturns in the business cycle; the
creditworthiness of our customers and their ability to pay for services; competitive initiatives
and pricing pressures, including in connection with fuel surcharge; the Companys need for capital
and uncertainty of the current credit markets; the possibility of defaults under the Companys debt
agreements (including violation of financial covenants); possible issuance of equity which would
dilute stock ownership; indemnification obligations associated with the 2006 sale of Jevic
Transportation, Inc.; the effect of litigation including class action lawsuits; cost and
availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment
and other assets; governmental regulations, including but not limited to Hours of Service, engine
emissions, the Comprehensive Safety Analysis 2010, compliance with legislation requiring companies
to evaluate their internal control over financial reporting, changes in interpretation of
accounting principles and Homeland Security; dependence on key employees; inclement weather; labor
relations, including the adverse impact should a portion of the Companys workforce become
unionized; effectiveness of Company-specific performance improvement initiatives; terrorism risks;
self-insurance claims and other expense volatility; increased costs as a result of recently enacted
healthcare reform legislation and other financial, operational and legal risks and uncertainties
detailed from time to time in the Companys 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. Renée McKenzie, Treasurer RMcKenzie@Saia.com 678.542.3910 |
Saia, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 29,045 | $ | 8,746 | ||||
Accounts receivable, net |
94,569 | 87,507 | ||||||
Prepaid expenses and other |
29,882 | 38,300 | ||||||
Total current assets |
153,496 | 134,553 | ||||||
PROPERTY AND EQUIPMENT: |
||||||||
Cost |
610,572 | 615,803 | ||||||
Less: accumulated depreciation |
319,634 | 292,443 | ||||||
Net property and equipment |
290,938 | 323,360 | ||||||
OTHER ASSETS |
7,723 | 8,513 | ||||||
Total assets |
$ | 452,157 | $ | 466,426 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ | 37,745 | $ | 46,997 | ||||
Wages and employees benefits |
19,101 | 18,793 | ||||||
Other current liabilities |
31,777 | 36,981 | ||||||
Current portion of long-term debt |
17,143 | | ||||||
Total current liabilities |
105,766 | 102,771 | ||||||
OTHER LIABILITIES: |
||||||||
Long-term debt, less current portion |
72,857 | 90,000 | ||||||
Deferred income taxes |
39,077 | 41,867 | ||||||
Claims, insurance and other |
28,099 | 29,107 | ||||||
Total other liabilities |
140,033 | 160,974 | ||||||
SHAREHOLDERS EQUITY: |
||||||||
Common stock |
16 | 16 | ||||||
Additional paid-in capital |
202,751 | 201,041 | ||||||
Deferred compensation trust |
(2,727 | ) | (2,737 | ) | ||||
Retained earnings |
6,318 | 4,361 | ||||||
Total shareholders equity |
206,358 | 202,681 | ||||||
Total liabilities and shareholders equity |
$ | 452,157 | $ | 466,426 | ||||
Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters and Years Ended December 31, 2010 and 2009
(Amounts in thousands, except per share data)
(Unaudited)
Consolidated Statements of Operations
For the Quarters and Years Ended December 31, 2010 and 2009
(Amounts in thousands, except per share data)
(Unaudited)
Fourth Quarters | Years | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
OPERATING REVENUE |
$ | 224,432 | $ | 202,400 | $ | 902,660 | $ | 849,141 | ||||||||
OPERATING EXPENSES: |
||||||||||||||||
Salaries, wages and employees benefits |
119,014 | 115,106 | 481,197 | 486,473 | ||||||||||||
Purchased transportation |
19,796 | 15,358 | 80,859 | 64,728 | ||||||||||||
Fuel, operating expenses and supplies |
60,502 | 51,546 | 233,771 | 197,108 | ||||||||||||
Operating taxes and licenses |
9,301 | 8,708 | 36,981 | 35,465 | ||||||||||||
Claims and insurance |
5,377 | 5,796 | 21,870 | 29,812 | ||||||||||||
Depreciation and amortization |
8,686 | 9,523 | 36,159 | 39,342 | ||||||||||||
Operating gains, net |
(48 | ) | (45 | ) | (277 | ) | (94 | ) | ||||||||
Total operating expenses |
222,628 | 205,992 | 890,560 | 852,834 | ||||||||||||
OPERATING INCOME (LOSS) |
1,804 | (3,592 | ) | 12,100 | (3,693 | ) | ||||||||||
NONOPERATING EXPENSES: |
||||||||||||||||
Interest expense |
2,375 | 3,786 | 10,602 | 12,156 | ||||||||||||
Other, net |
(88 | ) | (47 | ) | (435 | ) | (208 | ) | ||||||||
Nonoperating expenses, net |
2,287 | 3,739 | 10,167 | 11,948 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES |
(483 | ) | (7,331 | ) | 1,933 | (15,641 | ) | |||||||||
Income tax benefit |
(1,188 | ) | (3,040 | ) | (24 | ) | (6,605 | ) | ||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS |
705 | (4,291 | ) | 1,957 | (9,036 | ) | ||||||||||
Income from discontinued operations, net |
| 1,161 | 1,161 | |||||||||||||
NET INCOME (LOSS) |
$ | 705 | $ | (3,130 | ) | $ | 1,957 | $ | (7,875 | ) | ||||||
Average common shares outstanding basic |
15,730 | 13,976 | 15,713 | 13,423 | ||||||||||||
Average common shares outstanding diluted |
16,135 | 13,976 | 16,115 | 13,423 | ||||||||||||
Basic earnings (loss) per share-continuing operations |
$ | 0.04 | $ | (0.31 | ) | $ | 0.12 | $ | (0.67 | ) | ||||||
Basic earnings per share-discontinued operations |
| 0.09 | | 0.08 | ||||||||||||
Basic earnings (loss) per share |
$ | 0.04 | $ | (0.22 | ) | $ | 0.12 | $ | (0.59 | ) | ||||||
Diluted earnings (loss) per share-continuing operations |
$ | 0.04 | $ | (0.31 | ) | $ | 0.12 | $ | (0.67 | ) | ||||||
Diluted earnings per share-discontinued operations |
| 0.09 | | 0.08 | ||||||||||||
Diluted earnings (loss) per share |
$ | 0.04 | $ | (0.22 | ) | $ | 0.12 | $ | (0.59 | ) | ||||||
Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Years Ended December 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
Condensed Consolidated Statements of Cash Flows
For the Years Ended December 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
Years | ||||||||
2010 | 2009 | |||||||
OPERATING ACTIVITIES: |
||||||||
Net cash provided by operating activities |
$ | 23,386 | $ | 14,088 | ||||
Net cash provided by operating activities |
23,386 | 14,088 | ||||||
INVESTING ACTIVITIES: |
||||||||
Acquisition of property and equipment |
(3,815 | ) | (8,362 | ) | ||||
Proceeds from disposal of property and equipment |
560 | 788 | ||||||
Net cash used in investing activities |
(3,255 | ) | (7,574 | ) | ||||
FINANCING ACTIVITIES: |
||||||||
Repayment of long-term debt |
| (46,500 | ) | |||||
Net proceeds from sale of common stock |
| 24,868 | ||||||
Proceeds from stock option exercises |
168 | 296 | ||||||
Payment of debt issuance costs |
| (3,493 | ) | |||||
Net cash provided by (used in) financing activities |
168 | (24,829 | ) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
20,299 | (18,315 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
8,746 | 27,061 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 29,045 | $ | 8,746 | ||||
Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended December 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
Financial Information
For the Quarters Ended December 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
Fourth Quarter | ||||||||||||||||||||||||||||
Fourth Quarter | % | Amount/Workday | % | |||||||||||||||||||||||||
2010 | 2009 | Change | 2010 | 2009 | Change | |||||||||||||||||||||||
Workdays |
61 | 62 | ||||||||||||||||||||||||||
Operating ratio |
99.2 | % | 101.8 | % | ||||||||||||||||||||||||
F/S Revenue |
LTL | 207,716 | 188,756 | 10.0 | 3,405.2 | 3,044.4 | 11.8 | |||||||||||||||||||||
TL | 16,715 | 13,645 | 22.5 | 274.0 | 220.1 | 24.5 | ||||||||||||||||||||||
Total | 224,432 | 202,400 | 10.9 | 3,679.2 | 3,264.5 | 12.7 | ||||||||||||||||||||||
Revenue excluding |
LTL | 207,426 | 188,376 | 10.1 | 3,400.4 | 3,038.3 | 11.9 | |||||||||||||||||||||
revenue recognition |
TL | 16,692 | 13,616 | 22.6 | 273.6 | 219.6 | 24.6 | |||||||||||||||||||||
adjustment |
Total | 224,118 | 201,992 | 11.0 | 3,674.1 | 3,257.9 | 12.8 | |||||||||||||||||||||
Tonnage |
LTL | 863 | 827 | 4.4 | 14.15 | 13.33 | 6.1 | |||||||||||||||||||||
TL | 166 | 149 | 11.4 | 2.73 | 2.41 | 13.2 | ||||||||||||||||||||||
Total | 1,030 | 976 | 5.5 | 16.88 | 15.74 | 7.2 | ||||||||||||||||||||||
Shipments |
LTL | 1,536 | 1,508 | 1.8 | 25.17 | 24.32 | 3.5 | |||||||||||||||||||||
TL | 24 | 21 | 10.9 | 0.39 | 0.34 | 12.7 | ||||||||||||||||||||||
Total | 1,559 | 1,529 | 2.0 | 25.56 | 24.67 | 3.6 | ||||||||||||||||||||||
Revenue/cwt. |
LTL | 12.01 | 11.40 | 5.4 | ||||||||||||||||||||||||
TL | 5.02 | 4.56 | 10.0 | |||||||||||||||||||||||||
Total | 10.88 | 10.35 | 5.2 | |||||||||||||||||||||||||
Revenue/shipment |
LTL | 135.08 | 124.92 | 8.1 | ||||||||||||||||||||||||
TL | 708.01 | 640.61 | 10.5 | |||||||||||||||||||||||||
Total | 143.74 | 132.08 | 8.8 | |||||||||||||||||||||||||
Pounds/shipment |
LTL | 1,124 | 1,096 | 2.6 | ||||||||||||||||||||||||
TL | 14,110 | 14,050 | 0.4 | |||||||||||||||||||||||||
Total | 1,321 | 1,276 | 3.5 |