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8-K - 8-K - SAIA INCsaia-8k_20170728.htm

Exhibit 99.1

 

 

Saia Reports Second Quarter Earnings per Share of $0.68

 

JOHNS CREEK, GA. – July 28, 2017 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2017 financial results.

 

Second Quarter 2017 Compared to Second Quarter 2016 Results

 

Revenues were $358.2 million, a 14.8% increase

 

LTL Shipments and Tonnage rose 7.4% and 7.1%, respectively

 

LTL Revenue per hundredweight increased 7.3%

 

Operating ratio improved by 130 basis points to 91.7%

 

Operating income increased by 36.8% to $29.7 million

 

Net income rose 32.6% to $17.6 million

 

Diluted earnings per share were $0.68 compared to $0.52

 

“I am pleased with our execution in the first half of the year and our second quarter results reflect favorably on our team’s ability to manage the growth we are experiencing”, said Saia President and Chief Executive Officer, Rick O’Dell.  “We maintained quality service for our customers and improved our cargo claims ratio for the quarter to 0.67% from 0.75% last year, but to maintain service we did have to add employees and use purchased transportation to a greater extent than what I would have liked”, O’Dell continued.

 

“For the balance of the year, our focus will be on our Northeastern expansion, cost control and mix management.  Given growing volumes, it is particularly important that all freight meet increasing profitability criteria”, concluded Mr. O’Dell.

 

Financial Position and Capital Expenditures

Total debt was $148.4 million at June 30, 2017 and inclusive of the cash on-hand, net debt to total capital was 22.3%.  This compares to total debt of $139.4 million and net debt to total capital of 23.4% at June 30, 2016.

 

Net capital expenditures in the first half of 2017 were $155.1 million, including equipment acquired with capital leases.  This compares to $136.2 million in net capital expenditures in the first half of 2016.  The Company currently plans net capital expenditures in 2017 of approximately $225 million.

 

Conference Call

Management will hold a conference call to discuss quarterly results today at 10:30 a.m. Eastern Time. To participate in the call, please dial 877-545-1403 or 719-325-4747 referencing conference ID #6110114.  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 September 22, 2017 at 1:30 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 152 terminals across 38 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 publicly 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, uncertainties and assumptions include, but are not limited to, (1) general economic conditions including downturns in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to


Saia, Inc. Second Quarter 2017 Results

Page 2

 

match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company’s need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company’s debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; (15) 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, Homeland Security, environmental regulations and the Food and Drug Administration; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company’s workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) cost and availability of insurance coverage; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) cyber security risk; (26) failure to successfully execute the strategy to expand the Company’s service geography into the Northeastern United States; and (27) 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)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2017

 

 

December 31, 2016

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

399

 

 

$

1,539

 

Accounts receivable, net

 

 

167,012

 

 

 

135,083

 

Prepaid expenses and other

 

 

30,219

 

 

 

29,857

 

Total current assets

 

 

197,630

 

 

 

166,479

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,233,906

 

 

 

1,101,946

 

Less: accumulated depreciation

 

 

520,682

 

 

 

497,827

 

Net property and equipment

 

 

713,224

 

 

 

604,119

 

OTHER ASSETS

 

 

29,476

 

 

 

29,772

 

Total assets

 

$

940,330

 

 

$

800,370

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

55,746

 

 

$

45,149

 

Wages and employees' benefits

 

 

40,872

 

 

 

31,700

 

Other current liabilities

 

 

54,414

 

 

 

51,333

 

Current portion of long-term debt

 

 

16,669

 

 

 

16,762

 

Total current liabilities

 

 

167,701

 

 

 

144,944

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

131,699

 

 

 

57,042

 

Deferred income taxes

 

 

87,075

 

 

 

80,199

 

Claims, insurance and other

 

 

38,855

 

 

 

35,107

 

Total other liabilities

 

 

257,629

 

 

 

172,348

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

241,057

 

 

 

237,846

 

Deferred compensation trust

 

 

(3,469

)

 

 

(3,190

)

Retained earnings

 

 

277,387

 

 

 

248,397

 

Total stockholders' equity

 

 

515,000

 

 

 

483,078

 

Total liabilities and stockholders' equity

 

$

940,330

 

 

$

800,370

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Six Months Ended June 30, 2017 and 2016

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

Six Months

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

OPERATING REVENUE

 

$

358,160

 

 

$

311,905

 

 

$

675,197

 

 

$

601,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

196,388

 

 

 

175,924

 

 

 

377,291

 

 

 

346,190

 

Purchased transportation

 

 

22,363

 

 

 

14,315

 

 

 

37,138

 

 

 

26,782

 

Fuel, operating expenses and supplies

 

 

66,092

 

 

 

59,026

 

 

 

130,082

 

 

 

113,066

 

Operating taxes and licenses

 

 

10,875

 

 

 

10,126

 

 

 

21,457

 

 

 

20,166

 

Claims and insurance

 

 

10,426

 

 

 

10,880

 

 

 

19,475

 

 

 

18,961

 

Depreciation and amortization

 

 

22,182

 

 

 

19,740

 

 

 

42,269

 

 

 

36,983

 

Loss from property disposals, net

 

 

116

 

 

 

173

 

 

 

248

 

 

 

363

 

Total operating expenses

 

 

328,442

 

 

 

290,184

 

 

 

627,960

 

 

 

562,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

29,718

 

 

 

21,721

 

 

 

47,237

 

 

 

39,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,538

 

 

 

1,264

 

 

 

2,449

 

 

 

2,227

 

Other, net

 

 

90

 

 

 

(36

)

 

 

188

 

 

 

(43

)

Nonoperating expenses, net

 

 

1,628

 

 

 

1,228

 

 

 

2,637

 

 

 

2,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

28,090

 

 

 

20,493

 

 

 

44,600

 

 

 

37,121

 

Income tax expense

 

 

10,487

 

 

 

7,218

 

 

 

15,610

 

 

 

13,271

 

NET INCOME

 

$

17,603

 

 

$

13,275

 

 

$

28,990

 

 

$

23,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,501

 

 

 

25,030

 

 

 

25,477

 

 

 

25,014

 

Average common shares outstanding - diluted

 

 

26,000

 

 

 

25,583

 

 

 

25,982

 

 

 

25,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.69

 

 

$

0.53

 

 

$

1.14

 

 

$

0.95

 

Diluted earnings per share

 

$

0.68

 

 

$

0.52

 

 

$

1.12

 

 

$

0.93

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Six Months Ended June 30, 2017 and 2016

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Six Months

 

 

 

2017

 

 

2016

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities (1)

 

$

79,317

 

 

$

66,464

 

Net cash provided by operating activities

 

 

79,317

 

 

 

66,464

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(127,330

)

 

 

(102,140

)

Proceeds from disposal of property and equipment

 

 

923

 

 

 

595

 

Net cash used in investing activities

 

 

(126,407

)

 

 

(101,545

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(3,571

)

 

 

(3,572

)

Borrowing of revolving credit agreement, net

 

 

55,014

 

 

 

42,756

 

Proceeds from stock option exercises

 

 

1,288

 

 

 

248

 

Shares withheld for taxes (1)

 

 

(1,211

)

 

 

(650

)

Other financing activity

 

 

(5,570

)

 

 

(3,465

)

Net cash provided by financing activities

 

 

45,950

 

 

 

35,317

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(1,140

)

 

 

236

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

1,539

 

 

 

124

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

399

 

 

$

360

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

28,691

 

 

$

34,683

 

 

 

 

 

 

 

 

 

 

(1)  June 30, 2016 balances have been reclassified to conform with the 2017 adoption of the Financial Accounting Standards Board Accounting Standards Update 2016-09, Improvement to Employee Share-Based Payment Accounting.

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended June 30, 2017 and 2016

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

 

Second Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2017

 

 

2016

 

 

Change

 

 

2017

 

 

2016

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

91.7

%

 

 

93.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

984

 

 

 

919

 

 

 

7.1

 

 

 

15.37

 

 

 

14.36

 

 

 

7.1

 

 

 

TL

 

203

 

 

 

182

 

 

 

11.4

 

 

 

3.17

 

 

 

2.85

 

 

 

11.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,760

 

 

 

1,639

 

 

 

7.4

 

 

 

27.50

 

 

 

25.60

 

 

 

7.4

 

 

 

TL

 

28

 

 

 

26

 

 

 

10.1

 

 

 

0.45

 

 

 

0.40

 

 

 

10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

16.89

 

 

$

15.73

 

 

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.83

 

 

$

5.50

 

 

 

5.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

188.78

 

 

$

176.45

 

 

 

7.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

830.32

 

 

$

775.05

 

 

 

7.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,118

 

 

 

1,121

 

 

 

(0.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,250

 

 

 

14,090

 

 

 

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul (3)

 

 

806

 

 

 

786

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

In miles