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8-K - 8-K - SAIA INCd812392d8k.htm

Exhibit 99.1

 

LOGO

Saia Reports Record Third Quarter Earnings Per Share of $0.64

Revenues increased 13.5% and operating income increased 23.8%

JOHNS CREEK, GA. – October 28, 2014 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported third quarter 2014 results.

Third Quarter 2014 Compared to Third Quarter 2013 Results

 

    Revenues were $332.5 million, an increase of 13.5%

 

    LTL tonnage increased 8.2% as LTL shipments were up 7.6% with a 0.5% increase in weight per shipment

 

    Operating income increased to $27.1 million compared to $21.9 million

 

    Operating ratio was 91.8 compared to 92.5

 

    Diluted earnings per share were 25.5% higher at $0.64 compared to $0.51

“Strong tonnage growth and improved pricing provided a solid foundation for third quarter results. Customers have responded favorably to our consistent and reliable service offering which was the catalyst for our 4.3% improvement in LTL yield for the quarter,” said Saia President and Chief Executive Officer, Rick O’Dell.

“While I am pleased to report the year-over-year improvement in our operating ratio, I still believe there is upside that will allow for improved performance as we optimize our network to handle the increased volumes in a capacity-constrained environment. The investment in sales resources we made late last year has helped us build momentum on the top-line and our operations group has responded well to the increased volumes, providing 98% on time service in the third quarter. In July, we were pleased to be able to increase wages for the fourth year in a row for our dedicated non-union workforce,” O’Dell added.

Financial Position and Capital Expenditures

Total debt was $73.3 million at September 30, 2014. Net of the Company’s $7.2 million in cash on hand at quarter-end, net debt to total capital was 15.9%. This compares to total debt of $91.5 million and net debt to total capital of 22.9% at the end of last year’s third quarter.

Net capital expenditures year-to-date through September were $85.5 million inclusive of equipment acquired with capital leases. This compares to $97.7 million spent through the first nine months of 2013. The Company projects net capital expenditures for the full year of approximately $118 million. In the third quarter, Saia put in service nearly half of the 800 additional linehaul trailers that will be put in service by year end.


Saia, Inc. Third Quarter 2014 Results

Page 2

 

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 888-505-4375 or 719-325-2376 referencing conference ID #5750398. 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 November 3, 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, 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.

# # #


Saia, Inc. Third Quarter 2014 Results

Page 3

 

CONTACT:    Saia, Inc.
   Doug Col
   dcol@saia.com
   678.542.3910


Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

     September 30,
2014
    December 31,
2013
 

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 7,244      $ 159   

Accounts receivable, net

     146,597        117,937   

Prepaid expenses and other

     39,619        52,157   
  

 

 

   

 

 

 

Total current assets

     193,460        170,253   

PROPERTY AND EQUIPMENT:

    

Cost

     869,573        797,527   

Less: accumulated depreciation

     397,458        365,301   
  

 

 

   

 

 

 

Net property and equipment

     472,115        432,226   

OTHER ASSETS

     13,919        14,322   
  

 

 

   

 

 

 

Total assets

   $ 679,494      $ 616,801   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 57,460      $ 50,799   

Wages and employees’ benefits

     39,764        35,248   

Other current liabilities

     47,937        47,667   

Current portion of long-term debt

     8,120        7,143   
  

 

 

   

 

 

 

Total current liabilities

     153,281        140,857   

OTHER LIABILITIES:

    

Long-term debt, less current portion

     65,188        69,740   

Deferred income taxes

     69,422        69,916   

Claims, insurance and other

     42,500        31,496   
  

 

 

   

 

 

 

Total other liabilities

     177,110        171,152   

STOCKHOLDERS’ EQUITY:

    

Common stock

     25        24   

Additional paid-in capital

     219,512        213,648   

Deferred compensation trust

     (2,222     (2,246

Retained earnings

     131,788        93,366   
  

 

 

   

 

 

 

Total stockholders’ equity

     349,103        304,792   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 679,494      $ 616,801   
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Nine Months Ended September 30, 2014 and 2013

(Amounts in thousands, except per share data)

(Unaudited)

 

     Third Quarter     Nine Months  
     2014      2013     2014     2013  

OPERATING REVENUE

   $ 332,544       $ 293,087      $ 962,673      $ 859,439   

OPERATING EXPENSES:

         

Salaries, wages and employees’ benefits

     166,353         147,305        476,779        428,468   

Purchased transportation

     27,479         18,914        77,396        55,023   

Fuel, operating expenses and supplies

     80,206         75,803        241,441        232,959   

Operating taxes and licenses

     9,033         9,074        27,001        27,983   

Claims and insurance

     6,956         6,607        30,651        18,085   

Depreciation and amortization

     15,336         13,745        44,264        37,765   

Operating (gain) loss, net

     32         (296     20        (570
  

 

 

    

 

 

   

 

 

   

 

 

 

Total operating expenses

     305,395         271,152        897,552        799,713   
  

 

 

    

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     27,149         21,935        65,121        59,726   

NONOPERATING EXPENSES:

         

Interest expense

     1,064         1,760        3,557        4,906   

Other, net

     16         (85     (49     (180
  

 

 

    

 

 

   

 

 

   

 

 

 

Nonoperating expenses, net

     1,080         1,675        3,508        4,726   
  

 

 

    

 

 

   

 

 

   

 

 

 

INCOME BEFORE INCOME TAXES

     26,069         20,260        61,613        55,000   

Income tax expense

     9,791         7,352        23,191        19,437   
  

 

 

    

 

 

   

 

 

   

 

 

 

NET INCOME

   $ 16,278       $ 12,908      $ 38,422      $ 35,563   
  

 

 

    

 

 

   

 

 

   

 

 

 

Average common shares outstanding - basic

     24,527         24,220        24,465        24,123   
  

 

 

    

 

 

   

 

 

   

 

 

 

Average common shares outstanding - diluted

     25,505         25,269        25,436        25,173   
  

 

 

    

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.66       $ 0.53      $ 1.57      $ 1.47   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted earnings per share

   $ 0.64       $ 0.51      $ 1.51      $ 1.41   
  

 

 

    

 

 

   

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2014 and 2013

(Amounts in thousands)

(Unaudited)

 

     Nine Months  
     2014     2013  

OPERATING ACTIVITIES:

    

Net cash provided by operating activities

   $ 92,017      $ 67,557   
  

 

 

   

 

 

 

Net cash provided by operating activities

     92,017        67,557   
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Acquisition of property and equipment

     (79,773     (100,799

Proceeds from disposal of property and equipment

     2,590        3,058   
  

 

 

   

 

 

 

Net cash used in investing activities

     (77,183     (97,741
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Repayment of long-term debt

     (3,571     (11,071

Borrowings (repayment) of revolving credit agreement, net

     (8,317     41,872   

Proceeds from stock option exercises

     4,159        3,708   

Other financing activities

     (20     (586
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (7,749     33,923   
  

 

 

   

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

     7,085        3,739   

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

     159        321   
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 7,244      $ 4,060   
  

 

 

   

 

 

 

NON-CASH ITEMS:

    

Acquisition of property and equipment financed with capital leases

   $ 8,328      $ —     
  

 

 

   

 

 

 


Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended September 30, 2014 and 2013

(Unaudited)

 

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

Workdays

               64         64      

Operating Ratio (1)

        91.8     92.5           

Tonnage (2)

   LTL      1,008        932        8.2         15.75         14.56         8.2   
   TL      215        178        20.9         3.36         2.78         20.9   

Shipments (2)

   LTL      1,730        1,608        7.6         27.03         25.13         7.6   
   TL      31        26        18.7         0.48         0.40         18.7   

Revenue/cwt. (3)

   LTL    $ 15.17      $ 14.54        4.3            
   TL    $ 5.95      $ 5.89        1.0            

Revenue/shipment (3)

   LTL    $ 176.71      $ 168.43        4.9            
   TL    $ 831.69      $ 808.48        2.9            

Pounds/shipment

   LTL      1,165        1,159        0.5            
   TL      13,978        13,719        1.9            

Length of Haul

        766        742        3.2            

 

(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.