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8-K - FORM 8-K - SAIA INCd476419d8k.htm

Exhibit 99.1

 

LOGO

***FOR IMMEDIATE RELEASE***

Saia Reports Fourth Quarter Earnings Per Share of $0.33

Revenues were $264 million with a 63 percent increase in operating income

JOHNS CREEK, GA. – January 30, 2013 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics, today reported improved fourth quarter 2012 results on stronger revenue, favorable pricing actions and operational efficiencies.

Fourth Quarter 2012 Compared to Fourth Quarter 2011 Results

 

   

Revenues were $264 million, an increase of 4.5 percent from the prior year period

 

   

Revenue per workday increased by 2.8 percent with one more workday in the fourth quarter of 2012

 

   

Operating income increased 63 percent to $10.1 million compared to $6.2 million in the prior year period

 

   

Earnings per share were $0.33 compared to $0.15 in the prior year period

 

   

Operating ratio was 96.2 compared to 97.6 in the prior year period

 

   

LTL tonnage per workday decreased by 3.2 percent

 

   

LTL yield was up 6 percent due to effective yield management and fuel surcharge revenue

“Saia’s best-in-class service quality, demonstrated yield results and emphasis on operational excellence were again the primary drivers behind our margin improvement. We continue to advance our value proposition through investments in quality and by providing consistent, superior customer service. Additionally, we remain focused on yield improvement and advancing our operational efficiency goals. I believe the positive contribution from further advancing and institutionalizing practices in these key areas will continue to favorably impact our results going forward,” said Rick O’Dell, president and chief executive officer.

“In spite of a lack-luster economic environment, Saia again produced significant earnings gains. The continued implementation of industrial engineering initiatives has improved operating efficiencies, reduced our reliance on purchased transportation, increased fuel efficiency, reduced cargo claims expense and enhanced customer service. The quarter did include increased healthcare and workers’ compensation expense which virtually offset more normal accident severity, in addition to the higher costs from wage increases and depreciation due to our investments in employees, equipment and technology to meet increasing customer demands. Saia’s dedicated employees provided 98% on-time service and solid customer satisfaction. Our balance sheet is strong and we are making significant investments in our business to provide a solid foundation for additional progress in 2013,” O’Dell said.


Saia, Inc. Fourth Quarter 2012 Results

Page 2

2012 Results Compared to 2011 Results

 

   

Revenues were $1.1 billion, an increase of 7 percent from the prior year period

 

   

Operating income was $58.7 million compared to $28.1 million in the prior year

 

   

Net income was $32.0 million compared to $11.4 million in the prior year

 

   

Earnings per share were $1.94 compared to earnings per share of $0.70 in the prior year

 

   

Operating ratio was 94.7 compared to 97.3 in the prior year

Financial Position and Capital Expenditures

Total debt was $60.7 million at December 31, 2012. This compares to total debt of $72.9 million at December 31, 2011. Net of the Company’s $0.3 million cash balance at quarter-end, net debt to total capital was 19.2 percent.

Net capital expenditures in 2012 were $83 million. This compares to $68 million in the prior year. The Company currently plans net capital expenditures in 2013 of approximately $90 million. This expenditure level reflects replacement tractors and trailers and the Company’s continued investment in technology.

Conference Call

The Company will hold a conference call to discuss these results today at 11:00 am Eastern Time. This call will be webcast live via the Company web site at www.saiacorp.com. To participate in the call, please dial 1-888-364-3109 or dial 719-325-2308 for international calls and use conference ID 3815447. Callers should dial in five to 10 minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through February 5, 2013. The replay is available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. Saia LTL Freight operates 147 terminals in 34 states. With headquarters in Georgia, Saia employs 7,900 people. 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 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


Saia, Inc. Fourth Quarter 2012 Results

Page 3

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 Company’s need for capital and uncertainty of the current credit markets; the possibility of defaults under the Company’s 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 “Compliance, Safety, Accountability” (CSA) initiative, 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 Company’s 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 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.

Renée McKenzie, Treasurer

678.542.3910

Investors@Saia.com


Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     December 31,
2012
    December 31,
2011
 

ASSETS

  

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 321      $ 1,317   

Accounts receivable, net

     106,814        107,436   

Prepaid expenses and other

     37,028        34,063   
  

 

 

   

 

 

 

Total current assets

     144,163        142,816   

PROPERTY AND EQUIPMENT:

    

Cost

     718,527        669,345   

Less: accumulated depreciation

     356,823        344,890   
  

 

 

   

 

 

 

Net property and equipment

     361,704        324,455   

OTHER ASSETS

     13,821        7,615   
  

 

 

   

 

 

 

Total assets

   $ 519,688      $ 474,886   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 43,706      $ 39,783   

Wages and employees' benefits

     30,842        21,185   

Other current liabilities

     44,609        41,237   

Current portion of long-term debt

     22,143        22,143   
  

 

 

   

 

 

 

Total current liabilities

     141,300        124,348   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     38,562        50,714   

Deferred income taxes

     55,611        51,289   

Claims, insurance and other

     29,696        29,234   
  

 

 

   

 

 

 

Total other liabilities

     123,869        131,237   

STOCKHOLDERS' EQUITY:

    

Common stock

     16        16   

Additional paid-in capital

     206,977        203,793   

Deferred compensation trust

     (2,213     (2,199

Retained earnings

     49,739        17,691   
  

 

 

   

 

 

 

Total stockholders' equity

     254,519        219,301   
  

 

 

   

 

 

 

Total liabilities and stockholders' equity

   $ 519,688      $ 474,886   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Years Ended December 31, 2012 and 2011

(Amounts in thousands, except per share data)

(Unaudited)

 

     Fourth Quarter     Years  
     2012     2011     2012     2011  

OPERATING REVENUE

   $ 264,427      $ 253,020      $ 1,098,679      $ 1,030,224   

OPERATING EXPENSES:

        

Salaries, wages and employees' benefits

     136,284        127,108        546,755        513,977   

Purchased transportation

     15,350        18,095        74,521        87,159   

Fuel, operating expenses and supplies

     74,964        71,897        308,176        293,534   

Operating taxes and licenses

     9,222        9,441        38,283        38,228   

Claims and insurance

     6,303        10,213        24,712        32,067   

Depreciation and amortization

     12,304        10,179        47,985        37,278   

Operating gains, net

     (78     (93     (487     (165
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     254,349        246,840        1,039,945        1,002,078   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     10,078        6,180        58,734        28,146   

NONOPERATING EXPENSES:

        

Interest expense

     1,707        2,321        7,807        10,468   

Other, net

     (70     (64     (212     (52
  

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating expenses, net

     1,637        2,257        7,595        10,416   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     8,441        3,923        51,139        17,730   

Income tax expense

     3,035        1,450        19,091        6,357   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 5,406      $ 2,473      $ 32,048      $ 11,373   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding—basic

     15,908        15,798        15,882        15,789   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding—diluted

     16,586        16,143        16,543        16,136   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.34      $ 0.16      $ 2.02      $ 0.72   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.33      $ 0.15      $ 1.94      $ 0.70   
  

 

 

   

 

 

   

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Years Ended December 31, 2012 and 2011

(Amounts in thousands)

(Unaudited)

 

     Years  
     2012     2011  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 100,675      $ 58,211   
  

 

 

   

 

 

 

Net cash provided by operating activities

     100,675        58,211   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (86,120     (70,862

Proceeds from disposal of property and equipment

     3,305        2,963   

Acquisition of subsidiary, net of cash

     (7,616     —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (90,431     (67,899
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Repayment of long-term debt

     (22,143     (17,143

Borrowings of revolving credit agreement, net

     9,990        —     

Payment of debt issuance costs

     —          (1,046

Proceeds from stock option exercises

     913        149   
  

 

 

   

 

 

 

Net cash used in financing activities

     (11,240     (18,040
  

 

 

   

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

     (996     (27,728

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     1,317        29,045   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 321      $ 1,317   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended December 31, 2012 and 2011

(Unaudited)

 

                            Fourth Quarter         
          Fourth Quarter     %
Change
    Amount/Workday      %
Change
 
          2012     2011       2012      2011     

Workdays

              62         61      

Operating ratio

        96.2     97.6          

Tonnage (1)

   LTL      863        877        (1.6     13.91         14.37         (3.2
   TL      157        164        (4.5     2.53         2.69         (6.0

Shipments (1)

   LTL      1,466        1,517        (3.4     23.64         24.86         (4.9
   TL      23        23        (3.0     0.37         0.38         (4.6

Revenue/cwt. (2)

   LTL    $ 14.13      $ 13.33        6.0           
   TL    $ 5.90      $ 5.51        6.9           

Revenue/shipment (2)

   LTL    $ 166.36      $ 154.10        8.0           
   TL    $ 816.62      $ 775.09        5.4           

Pounds/shipment

   LTL      1,177        1,156        1.8           
   TL      13,851        14,060        (1.5        

Length of Haul

        728        728                  

 

(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.