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Exhibit 99.1

 

Saia Reports Record Second Quarter Results

 

JOHNS CREEK, GA – July 29, 2021 – Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering national less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2021 financial results.  Diluted earnings per share in the quarter were $2.34 compared to $1.07 in the second quarter of 2020.

 

Highlights from the second quarter operating results were as follows:

 

Second Quarter 2021 Compared to Second Quarter 2020 Results

 

 

Revenue was $571.3 million, a 36.6% increase

 

Operating income was $82.9 million, a 132.4% increase

 

Operating ratio of 85.5 compared to 91.5

 

LTL shipments per workday increased 15.3%

 

LTL tonnage per workday increased 23.1%

 

LTL revenue per hundredweight increased 10.5%

 

LTL revenue per shipment rose 17.9% to $277

 

“It is great to report record second quarter results only about a year removed from the onset of the COVID-19 pandemic,” stated Saia President and CEO, Fritz Holzgrefe.  “Our operating ratio of 85.5% in the quarter is the best OR  for any quarter in our history.  We had a very good quarter in terms of service and our cargo claims ratio of 0.54% is also a record,” added Holzgrefe.  “Shipper demand remains strong early in the third quarter and we continue to hire drivers and dockworkers across all areas of our service map,” said Holzgrefe.

 

“We were pleased to announce the opening of our Hagerstown, Maryland terminal in June and we expect to open additional terminals during the second half of the year.  We continue to maintain and operate one of the cleanest diesel fleets in the industry.  During the quarter, we commenced pilot programs using alternative fuel tractors by adding two all-electric tractors and five compressed natural gas (CNG) tractors,” concluded Holzgrefe.

 

Saia Executive Vice President and Chief Financial Officer, Douglas Col added, “Total shipments in  the second quarter were an all-time quarterly high and we are working hard to accommodate our customers’ needs in an environment where we are experiencing a very tight labor market.”  “With rising operational costs, we focused more than ever on the profitability of the added volumes and our 10.5% increase in yield pushed our revenue per shipment to a record $277, up nearly 18% over last year,” said Col.


Saia, Inc. Second Quarter 2021 Results

Page 2

 

 

Financial Position and Capital Expenditures

 

Total debt was $61.0 million at June 30, 2021 and inclusive of the cash on-hand, net debt to total capital was 0.8%.  This compares to total debt of $160.8 million and net debt to total capital of 13.1% at June 30, 2020.

 

Net capital investments were $100.0 million in the first half of 2021.  This compares to $142.7 million in net capital investments during the first half of 2020.  In 2021, we anticipate net capital expenditures will be approximately $275 million.

 

Conference Call

 

Management will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 877-886-2341 or 334-777-6979 referencing conference ID #9556386. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company website at https://www.saia.com/about-us/investor-relations/financial-releases. A replay of the call will be offered two hours after the completion of the call through August 26, 2021 at 1:00 p.m. Eastern Time. The replay will be available by dialing 888-203-1112.

 

Saia, Inc. (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 171 terminals with service across 44 states.  For more information on Saia, Inc. visit the Investor Relations section at www.saia.com/about-us/investor-relations.

 

Cautionary Note Regarding Forward-Looking Statements

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 may contain 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 or inflationary periods in the business cycle; (2) operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors; (3) industry-wide external factors largely out of our control; (4) cost and availability of qualified drivers, purchased transportation and fuel; (5) claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (6) cost and availability of insurance coverage, including the possibility the Company


Saia, Inc. Second Quarter 2021 Results

Page 3

 

may be required to pay additional premiums, assume additional liability under its auto liability policy or be unable to obtain insurance coverage; (7) failure to successfully execute the strategy to expand our service geography; (8) costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks; (9) failure to keep pace with technological developments; (10) labor relations, including the adverse impact should a portion of our workforce become unionized; (11) cost and availability of real property and revenue equipment; (12) capacity and highway infrastructure constraints; (13) risks arising from international business operations and relationships; (14) seasonal factors, harsh weather and disasters caused by climate change; (15) economic declines in the geographic regions or industries in which our customers operate; (16) the creditworthiness of our customers and their ability to pay for services; (17) our need for capital and uncertainty of the credit markets; (18) the possibility of defaults under our debt agreements (including violation of financial covenants); (19) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (20) dependence on key employees; (21) increased costs of healthcare benefits; (22) damage to our reputation from adverse publicity, including from the use of or impact from social media; (23) failure to make future acquisitions or to achieve acquisition synergies; (24) the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future; (25) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (26) the effect of governmental regulations, including hours of service for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of the Food and Drug Administration and Homeland Security, and healthcare and environmental regulations; (27) unforeseen costs from new and existing data privacy laws; (28) changes in accounting and financial standards or practices; (29) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (30) increasing investor and customer sensitivity to social and sustainability issues, including climate change; (31) anti-terrorism measures and terrorist events; (32)  provisions in our governing documents and Delaware law that may have anti-takeover effects; (33) issuances of equity that would dilute stock ownership; and (34) 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. Accordingly, 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. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this news release. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

 

# # #

 

 


Saia, Inc. Second Quarter 2021 Results

Page 4

 

 

CONTACT:Saia, Inc.

Investor Relations

investors@saia.com

770.232.4088

 


 


 

 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

 

December 31, 2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

52,860

 

 

$

25,308

 

Accounts receivable, net

 

 

261,113

 

 

 

216,899

 

Prepaid expenses and other

 

 

39,908

 

 

 

29,489

 

Total current assets

 

 

353,881

 

 

 

271,696

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,983,923

 

 

 

1,901,244

 

Less: accumulated depreciation

 

 

826,983

 

 

 

765,217

 

Net property and equipment

 

 

1,156,940

 

 

 

1,136,027

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

 

105,965

 

 

 

113,715

 

OTHER ASSETS

 

 

30,609

 

 

 

27,336

 

Total assets

 

$

1,647,395

 

 

$

1,548,774

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

100,499

 

 

$

89,381

 

Wages and employees' benefits

 

 

65,187

 

 

 

55,392

 

Other current liabilities

 

 

77,797

 

 

 

90,184

 

Current portion of long-term debt

 

 

21,648

 

 

 

20,588

 

Current portion of operating lease liability

 

 

19,764

 

 

 

20,209

 

Total current liabilities

 

 

284,895

 

 

 

275,754

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

39,378

 

 

 

50,388

 

Operating lease liability, less current portion

 

 

88,208

 

 

 

95,321

 

Deferred income taxes

 

 

123,000

 

 

 

119,818

 

Claims, insurance and other

 

 

48,756

 

 

 

46,205

 

Total other liabilities

 

 

299,342

 

 

 

311,732

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

26

 

 

 

26

 

Additional paid-in capital

 

 

270,608

 

 

 

267,666

 

Deferred compensation trust

 

 

(3,781

)

 

 

(2,944

)

Retained earnings

 

 

796,305

 

 

 

696,540

 

Total stockholders' equity

 

 

1,063,158

 

 

 

961,288

 

Total liabilities and stockholders' equity

 

$

1,647,395

 

 

$

1,548,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Six Months Ended June 30, 2021 and 2020

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

Six Months

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

OPERATING REVENUE

 

$

571,333

 

 

$

418,114

 

 

$

1,055,407

 

 

$

864,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

268,786

 

 

 

224,277

 

 

 

513,223

 

 

 

462,922

 

Purchased transportation

 

 

62,481

 

 

 

26,406

 

 

 

107,512

 

 

 

56,465

 

Fuel, operating expenses and supplies

 

 

90,664

 

 

 

65,902

 

 

 

175,565

 

 

 

148,801

 

Operating taxes and licenses

 

 

14,559

 

 

 

13,743

 

 

 

28,897

 

 

 

28,139

 

Claims and insurance

 

 

17,328

 

 

 

18,293

 

 

 

28,808

 

 

 

28,714

 

Depreciation and amortization

 

 

34,659

 

 

 

33,664

 

 

 

70,031

 

 

 

66,254

 

Loss (gain) from property disposals, net

 

 

(69

)

 

 

148

 

 

 

(268

)

 

 

(1,242

)

Total operating expenses

 

 

488,408

 

 

 

382,433

 

 

 

923,768

 

 

 

790,053

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

82,925

 

 

 

35,681

 

 

 

131,639

 

 

 

74,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

834

 

 

 

1,594

 

 

 

1,686

 

 

 

2,996

 

Other, net

 

 

(430

)

 

 

(751

)

 

 

(561

)

 

 

(204

)

Nonoperating expenses, net

 

 

404

 

 

 

843

 

 

 

1,125

 

 

 

2,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

82,521

 

 

 

34,838

 

 

 

130,514

 

 

 

71,665

 

Income tax expense

 

 

20,047

 

 

 

6,384

 

 

 

30,749

 

 

 

15,100

 

NET INCOME

 

$

62,474

 

 

$

28,454

 

 

$

99,765

 

 

$

56,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

26,332

 

 

 

26,134

 

 

 

26,309

 

 

 

26,102

 

Average common shares outstanding - diluted

 

 

26,704

 

 

 

26,569

 

 

 

26,687

 

 

 

26,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

2.37

 

 

$

1.09

 

 

$

3.79

 

 

$

2.17

 

Diluted earnings per share

 

$

2.34

 

 

$

1.07

 

 

$

3.74

 

 

$

2.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the six months ended June 30, 2021 and 2020

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Six Months

 

 

 

2021

 

 

2020

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

140,140

 

 

$

148,233

 

Net cash provided by operating activities

 

 

140,140

 

 

 

148,233

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(100,202

)

 

 

(148,865

)

Proceeds from disposal of property and equipment

 

 

236

 

 

 

6,143

 

Net cash used in investing activities

 

 

(99,966

)

 

 

(142,722

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowing (repayment) of revolving credit agreement, net

 

 

 

 

 

34,071

 

Proceeds from stock option exercises

 

 

3,678

 

 

 

2,591

 

Shares withheld for taxes

 

 

(6,350

)

 

 

(3,479

)

Other financing activity

 

 

(9,950

)

 

 

(9,662

)

Net cash (used in) provided by financing activities

 

 

(12,622

)

 

 

23,521

 

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

27,552

 

 

 

29,032

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

25,308

 

 

 

248

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

52,860

 

 

$

29,280

 

 

 

 


 

 

 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended June 30, 2021 and 2020

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

Second Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

2021

 

 

2020

 

 

Change

 

 

2021

 

 

2020

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

Operating ratio

 

85.5

%

 

 

91.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL tonnage (1)

 

1,406

 

 

 

1,142

 

 

 

23.1

 

 

 

21.97

 

 

 

17.85

 

 

 

23.1

 

LTL shipments (1)

 

2,012

 

 

 

1,745

 

 

 

15.3

 

 

 

31.44

 

 

 

27.26

 

 

 

15.3

 

LTL revenue/cwt.

$

19.84

 

 

$

17.95

 

 

 

10.5

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/cwt., excluding fuel surcharges

$

16.92

 

 

$

16.01

 

 

 

5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment

$

277.24

 

 

$

235.08

 

 

 

17.9

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment, excluding fuel surcharges

$

236.43

 

 

$

209.66

 

 

 

12.8

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL pounds/shipment

 

1,397

 

 

 

1,309

 

 

 

6.7

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL length of haul (2)

 

911

 

 

 

876

 

 

 

4.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

In thousands.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

In miles.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note:

LTL operating statistics exclude transportation and logistics services where pricing is generally not determined by weight.  The LTL operating statistics also exclude the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy.