Attached files

file filename
8-K - 8-K - SAIA INCd718055d8k.htm

Exhibit 99.1

 

 

LOGO

Saia Reports First Quarter Earnings per Share of $0.34

Revenues rose 9.5% on 5.7% LTL tonnage growth

JOHNS CREEK, GA. – April 25, 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 first quarter 2014 results on solid tonnage growth despite difficult winter weather. 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.

First Quarter 2014 Compared to First Quarter 2013 Results

 

    Revenues were $300 million, an increase of 9.5%

 

    LTL tonnage increased 5.7% as LTL shipments were up 4.4% with a 1.3% increase in weight per shipment

 

    Operating income increased 4.8% to $15.2 million compared to $14.5 million

 

    Operating ratio was 94.9 compared to 94.7

 

    Diluted earnings per share were $0.34 compared to $0.37 last year (last year’s first quarter included the benefit of tax credits of $0.04 enacted in 2013 which were retroactive to 2012)

“Saia’s first quarter results are very gratifying, given the disruptive weather patterns that challenged our entire industry. Our ability to handle nearly 6% more tons in this year’s first quarter while maintaining solid service metrics is a direct result of the talents and commitment of our entire workforce. Saia’s customers continue to appreciate our value-proposition and we were able to improve LTL pricing by 2.3% in the quarter,” said Saia President and Chief Executive Officer, Rick O’Dell.

“In addition to the harsh weather, quarterly results were further unfavorably impacted by higher accident severity and increased usage of costly purchased transportation. With the operational challenges of the first quarter weather behind us, we are encouraged about our prospects for the remainder of 2014. We continue to invest in new equipment and technology, both necessary to drive efficiency and reliability across our service network. I believe that Saia’s consistent message of service, operational excellence and focused pricing position us well for increasing shareholder and customer value,” O’Dell said.

Financial Position and Capital Expenditures

Total debt was $79.7 million at March 31, 2014 resulting in net debt to total capital of 20.0%. This compares to total debt of $58.8 million and net debt to total capital of 18.1% at the end of last year’s first quarter.


Saia, Inc. First Quarter 2014 Results

Page 2

 

Net capital expenditures in the first quarter were $8.2 million. The Company currently projects net capital expenditures in 2014 of approximately $110 million, an increase of $25 million over our January forecast. This increased level of investment primarily allows for expansion of the linehaul trailer fleet in addition to the already planned 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 888-364-3108 or 719-457-2727 referencing conference ID #8928397. 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 May 1, 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; 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 healthcare reform legislation and other financial,


Saia, Inc. First Quarter 2014 Results

Page 3

 

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)

 

     March 31,     December 31,  
     2014     2013  

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 842      $ 159   

Accounts receivable, net

     141,917        117,937   

Prepaid expenses and other

     43,609        52,157   
  

 

 

   

 

 

 

Total current assets

     186,368        170,253   

PROPERTY AND EQUIPMENT:

    

Cost

     820,386        797,527   

Less: accumulated depreciation

     377,108        365,301   
  

 

 

   

 

 

 

Net property and equipment

     443,278        432,226   

OTHER ASSETS

     14,199        14,322   
  

 

 

   

 

 

 

Total assets

   $ 643,845      $ 616,801   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 66,098      $ 50,799   

Wages and employees’ benefits

     29,816        35,248   

Other current liabilities

     52,812        47,667   

Current portion of long-term debt

     7,143        7,143   
  

 

 

   

 

 

 

Total current liabilities

     155,869        140,857   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     72,576        69,740   

Deferred income taxes

     68,612        69,916   

Claims, insurance and other

     32,054        31,496   
  

 

 

   

 

 

 

Total other liabilities

     173,242        171,152   

STOCKHOLDERS’ EQUITY:

    

Common stock

     25        24   

Additional paid-in capital

     215,002        213,648   

Deferred compensation trust

     (2,235     (2,246

Retained earnings

     101,942        93,366   
  

 

 

   

 

 

 

Total stockholders’ equity

     314,734        304,792   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 643,845      $ 616,801   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters Ended March 31, 2014 and 2013

(Amounts in thousands, except per share data)

(Unaudited)

 

     First Quarter  
     2014     2013  

OPERATING REVENUE

   $ 299,730      $ 273,795   

OPERATING EXPENSES:

    

Salaries, wages and employees’ benefits

     150,222        136,854   

Purchased transportation

     21,991        16,771   

Fuel, operating expenses and supplies

     79,959        79,002   

Operating taxes and licenses

     8,975        9,579   

Claims and insurance

     9,518        5,595   

Depreciation and amortization

     13,841        11,634   

Operating gains, net

     (7     (172
  

 

 

   

 

 

 

Total operating expenses

     284,499        259,263   
  

 

 

   

 

 

 

OPERATING INCOME

     15,231        14,532   

NONOPERATING EXPENSES:

    

Interest expense

     1,316        1,528   

Other, net

     (30     (66
  

 

 

   

 

 

 

Nonoperating expenses, net

     1,286        1,462   
  

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     13,945        13,070   

Income tax expense

     5,369        3,915   
  

 

 

   

 

 

 

NET INCOME

   $ 8,576      $ 9,155   
  

 

 

   

 

 

 

Average common shares outstanding - basic

     24,382        23,985   
  

 

 

   

 

 

 

Average common shares outstanding - diluted

     25,361        24,948   
  

 

 

   

 

 

 

Basic earnings per share

   $ 0.35      $ 0.38   
  

 

 

   

 

 

 

Diluted earnings per share

   $ 0.34      $ 0.37   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Quarters Ended March 31, 2014 and 2013

(Amounts in thousands)

(Unaudited)

 

     Quarters  
     2014     2013  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 4,119      $ 7,018   
  

 

 

   

 

 

 

Net cash provided by operating activities

     4,119        7,018   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (8,379     (6,725

Proceeds from disposal of property and equipment

     156        710   
  

 

 

   

 

 

 

Net cash used in investing activities

     (8,223     (6,015
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Borrowings (payment) of revolving credit agreement, net

     2,831        (1,945

Proceeds from stock option exercises

     1,956        1,058   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     4,787        (887
  

 

 

   

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

     683        116   

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     159        321   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 842      $ 437   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended March 31, 2014 and 2013

(Unaudited)

 

                              First Quarter         
            First Quarter     %     Amount/Workday      %  
            2014     2013     Change     2014      2013      Change  

Workdays

              63         63      

Operating Ratio (1)

        94.9     94.7          

Tonnage (2)

     LTL         947        896        5.7        15.04         14.22         5.7   
     TL         216        165        30.8        3.42         2.62         30.8   

Shipments (2)

     LTL         1,586        1,520        4.4        25.18         24.12         4.4   
     TL         31        24        28.5        0.49         0.38         28.5   

Revenue/cwt. (3)

     LTL       $ 14.51      $ 14.18        2.3           
     TL       $ 5.71      $ 5.90        (3.3        

Revenue/shipment (3)

     LTL       $ 173.28      $ 167.25        3.6           
     TL       $ 801.82      $ 814.57        (1.6        

Pounds/shipment

     LTL         1,195        1,179        1.3           
     TL         14,051        13,804        1.8           

Length of Haul

        753        734        2.6           

 

(1) The operating ratio is the calculation of operating expenses divided by operating revenue.
(2) In thousands
(3) Revenue does not include the adjustment required for financial statement purposes in accordance with the Company’s revenue recognition policy and other revenue.