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8-K - 8-K - SAIA INCd667839d8k.htm

Exhibit 99.1

 

LOGO

Saia Reports Fourth Quarter Earnings per Share of $0.32

Revenues were $280 million with operating income increasing 46%

JOHNS CREEK, GA. – January 31, 2014 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported improved fourth quarter 2013 results driven by effective revenue management and operational efficiencies. All prior period share and per share data in this release have been adjusted to reflect the Company’s June 2013 three for two stock split.

Fourth Quarter 2013 Compared to Fourth Quarter 2012 Results

 

    Revenues were $280 million, an increase of 5.8%

 

    Operating income increased 46% to $14.7 million compared to $10.1 million

 

    Diluted earnings per share were $0.32 compared to $0.22

 

    Operating ratio was 94.7 compared to 96.2

 

    LTL tonnage per workday increased 2.9% as LTL shipments per workday were up 1.7% with a 1.2% increase in weight per shipment

 

    LTL yield was up 2.3%

“Saia’s Quality Matters initiative continues to be the guiding force in advancing our value proposition in the marketplace. Saia employees across our organization are focused on providing consistent, superior customer service. These efforts have fueled another quarter of meaningful yield increase which combined with efficiency and technology initiatives led us to a 45% increase in earnings per share compared to the fourth quarter last year” said Saia President and Chief Executive Officer Rick O’Dell.

“Investments in technology, equipment and continuous on-going employee training have allowed Saia to post its ninth consecutive quarter of 98% on-time service. The combination of strong service and our committed pricing effort enabled Saia to improve its operating ratio by 150 basis points versus fourth quarter last year. With our recently expanded sales force, Saia ended the year with improving tonnage trends and we believe we are well positioned to grow our market share going forward,” O’Dell said.

2013 Results Compared to 2012 Results

 

    Revenues were $1,139 million compared to $1,099 million

 

    Operating income was $74.4 million compared to $58.7 million

 

    Net income was $43.6 million compared to $32.0 million

 

    Diluted earnings per share were $1.73 compared to $1.29

 

    Operating ratio was 93.5 compared to 94.7


Saia, Inc. Fourth Quarter 2013 Results

Page 2

 

Financial Position and Capital Expenditures

Total debt was $76.9 million at December 31, 2013. Net of the Company’s $0.2 million cash balance at quarter end, debt to total capital was 20.1%. This compares to total debt of $60.7 million and net debt to total capital of 19.2% in the prior year quarter.

Net capital expenditures in 2013 were $122 million. This compares to $83 million in the prior year. The Company currently plans net capital expenditures in 2014 of approximately $85 million. This expenditure level reflects primarily replacement of revenue equipment, and investments in technology and real estate projects.

Conference Call

Management will hold a conference call to discuss quarterly results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 888-500-6950 or 719-457-2697 referencing conference ID #7135869. 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 February 6, 2014 at 2:00 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 147 terminals in 34 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 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 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; integration risks; 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


Saia, Inc. Fourth Quarter 2013 Results

Page 3

 

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.
  Doug Col
  dcol@saia.com
  678.542.3910


Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     December 31,     December 31,  
     2013     2012  

ASSETS

  

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 159      $ 321   

Accounts receivable, net

     117,937        106,814   

Prepaid expenses and other

     52,157        37,028   
  

 

 

   

 

 

 

Total current assets

     170,253        144,163   

PROPERTY AND EQUIPMENT:

    

Cost

     797,527        718,527   

Less: accumulated depreciation

     365,301        356,823   
  

 

 

   

 

 

 

Net property and equipment

     432,226        361,704   

OTHER ASSETS

     14,322        13,821   
  

 

 

   

 

 

 

Total assets

   $ 616,801      $ 519,688   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 50,799      $ 43,706   

Wages and employees’ benefits

     35,248        30,842   

Other current liabilities

     47,667        44,609   

Current portion of long-term debt

     7,143        22,143   
  

 

 

   

 

 

 

Total current liabilities

     140,857        141,300   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     69,740        38,562   

Deferred income taxes

     69,916        55,611   

Claims, insurance and other

     31,496        29,696   
  

 

 

   

 

 

 

Total other liabilities

     171,152        123,869   

STOCKHOLDERS’ EQUITY:

    

Common stock

     24        24   

Additional paid-in capital

     213,648        206,969   

Deferred compensation trust

     (2,246     (2,213

Retained earnings

     93,366        49,739   
  

 

 

   

 

 

 

Total stockholders’ equity

     304,792        254,519   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 616,801      $ 519,688   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Years Ended December 31, 2013 and 2012

(Amounts in thousands, except per share data)

(Unaudited)

 

     Fourth Quarter     Years  
     2013     2012     2013     2012  

OPERATING REVENUE

   $ 279,655      $ 264,427      $ 1,139,094      $ 1,098,679   

OPERATING EXPENSES:

        

Salaries, wages and employees’ benefits

     144,019        136,284        572,487        546,755   

Purchased transportation

     17,952        15,350        72,975        74,521   

Fuel, operating expenses and supplies

     73,405        74,964        306,364        308,176   

Operating taxes and licenses

     8,530        9,222        36,513        38,283   

Claims and insurance

     7,409        6,303        25,494        24,712   

Depreciation and amortization

     13,799        12,304        51,564        47,985   

Operating gains, net

     (151     (78     (721     (487
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     264,963        254,349        1,064,676        1,039,945   
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     14,692        10,078        74,418        58,734   

NONOPERATING EXPENSES:

        

Interest expense

     1,584        1,707        6,490        7,807   

Other, net

     (37     (70     (217     (212
  

 

 

   

 

 

   

 

 

   

 

 

 

Nonoperating expenses, net

     1,547        1,637        6,273        7,595   
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     13,145        8,441        68,145        51,139   

Income tax expense

     5,081        3,035        24,518        19,091   
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 8,064      $ 5,406      $ 43,627      $ 32,048   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - basic

     24,246        23,862        24,154        23,823   
  

 

 

   

 

 

   

 

 

   

 

 

 

Average common shares outstanding - diluted

     25,289        24,879        25,205        24,815   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.33      $ 0.23      $ 1.81      $ 1.35   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.32      $ 0.22      $ 1.73      $ 1.29   
  

 

 

   

 

 

   

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Years Ended December 31, 2013 and 2012

(Amounts in thousands)

(Unaudited)

 

     Years  
     2013     2012  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 101,312      $ 100,675   
  

 

 

   

 

 

 

Net cash provided by operating activities

     101,312        100,675   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (126,358     (86,120

Proceeds from disposal of property and equipment

     4,338        3,305   

Acquisition of subsidiary, net of cash

     —          (7,616
  

 

 

   

 

 

 

Net cash used in investing activities

     (122,020     (90,431
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Repayment of long-term debt

     (22,143     (22,143

Borrowings of revolving credit agreement, net

     38,327        9,990   

Proceeds from stock option exercises

     4,948        913   

Other financing activities

     (586     —     
  

 

 

   

 

 

 

Net cash used in financing activities

     20,546        (11,240
  

 

 

   

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

     (162     (996

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     321        1,317   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 159      $ 321   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended December 31, 2013 and 2012

(Unaudited)

 

                              Fourth Quarter         
            Fourth Quarter     %     Amount/Workday      %  
            2013     2012     Change     2013      2012      Change  

Workdays

              62         62      

Operating ratio

        94.7     96.2          

Tonnage (1)

     LTL         888        863        2.9        14.32         13.91         2.9   
     TL         187        157        19.2        3.02         2.53         19.2   

Shipments (1)

     LTL         1,490        1,466        1.7        24.04         23.64         1.7   
     TL         27        23        18.0        0.43         0.37         18.0   

Revenue/cwt. (2)

     LTL       $ 14.46      $ 14.13        2.3           
     TL       $ 5.73      $ 5.90        (2.7        

Revenue/shipment (2)

     LTL       $ 172.22      $ 166.36        3.5           
     TL       $ 802.35      $ 816.62        (1.7        

Pounds/shipment

     LTL         1,191        1,177        1.2           
     TL         13,992        13,851        1.0           

Length of Haul

        746        728        2.5           

 

(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.