SOURCE: Saia, Inc.

Saia, Inc.

January 31, 2011 07:00 ET

Saia, Inc. Reports Fourth Quarter 2010 Results

Revenues Were $224 Million, an Increase of 11% From Prior Year Quarter

JOHNS CREEK, GA--(Marketwire - January 31, 2011) - Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload ("LTL") carrier (the "Company"), today reported fourth quarter 2010 results. Earnings per share were $0.04 compared to losses of $0.31 from continuing operations in the prior year quarter. Fourth quarter revenue was $224 million, up 11 percent from the prior year quarter, reflecting enhanced yield and increased tonnage. Operating income was $1.8 million compared to the prior year quarter operating loss of $3.6 million from continuing operations. Fourth quarter 2009 results included $3.9 million in reduced expenses due to a change in vacation policy.

Fourth quarter 2010 highlights include:

  • LTL tonnage per workday increased 6.1% over the prior year quarter
  • LTL yield increased 5.4% over the prior year quarter due to pricing actions and increased fuel surcharge
  • Operating ratio was 99.2 vs. 101.8 in the prior year quarter, which included the impact of the favorable vacation adjustment equating to 1.9 operating points
  • Recognition of alternative fuel tax credit of $0.06 per share.

"Our continued focus on measured pricing actions contributed to meaningful improvement in operating results and cash flow compared to the difficult environment of 2009. The combination of tonnage growth, increasing yield and Saia's continued aggressive cost performance resulted in a significant improvement in our fourth quarter operating ratio. While margins remain short of historical levels and targeted returns, I am directionally pleased with the progress and encouraged by identified opportunities and industry fundamentals as we move into 2011," said Rick O'Dell, President and Chief Executive Officer.

Revenue for the full year 2010 was $903 million, an increase of 6 percent from 2009. Operating income for 2010 was $12.1 million, compared with an operating loss of $3.7 million from continuing operations in 2009. Net income was $2.0 million in 2010 compared to a loss of $9.0 million from continuing operations in 2009. Earnings per share were $0.12 in 2010 compared to losses per share of $0.67 from continuing operations in 2009. 

2010 highlights are summarized as follows:

  • LTL tonnage per workday increased 2.9% over 2009
  • LTL yield increased 2.9% over 2009 primarily due to the impact of higher fuel surcharge
  • Operating ratio from continuing operations was 98.7 vs. 100.4 in the prior year.

"During 2010, we continued to focus on our core strategy of building density, customer satisfaction and cost reduction supported by engineered process improvements. I am pleased that improving market fundamentals and customer recognition of our quality service has permitted us to achieve meaningful pricing improvement, particularly in the second half of 2010. I believe we are in the early stages of this yield recovery and expect continued near-term progress. We feel that Saia's broad coverage, strong service offering, effective marketing, focused pricing discipline and consistent cost execution provide a solid foundation for long-term profitable growth and increased shareholder and customer value as industry dynamics improve," O'Dell said.

Financial Position and Capital Expenditures
Total debt was $90.0 million at December 31, 2010. Net of the Company's $29.0 million cash balance at December 31, 2010, net debt to total capital was 22.8 percent. This compares to total debt of $90.0 million and net debt to total capital of 28.6 percent at December 31, 2009.

Net capital expenditures for 2010 were $3 million. This compares to $8 million of capital expenditures in 2009. The Company is planning net capital expenditures in 2011 of approximately $45 million. This level reflects a return to Saia's normal replacement cycle for tractors and continued investment in technology. This capital expenditure outlook may be reevaluated as tonnage improves or for opportunistic purchases.

Conference Call
Management will hold a conference call to discuss fourth-quarter results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 1-800-776-9057 or 913-312-9321 referencing conference ID #4878983. 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.saia.com. A replay of the call will be offered two hours after the completion of the call through February 7, 2011 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Georgia and a network of 147 terminals, the carrier employs 7,500 people. For more information, please visit the Investor Relations section of the website at www.saia.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; 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 Comprehensive Safety Analysis 2010, 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 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.

   
   
   
Saia, Inc. and Subsidiary  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
(Unaudited)  
           
  December 31,     December 31,  
  2010     2009  
ASSETS      
               
CURRENT ASSETS:              
  Cash and cash equivalents $ 29,045     $ 8,746  
  Accounts receivable, net   94,569       87,507  
  Prepaid expenses and other   29,882       38,300  
    Total current assets   153,496       134,553  
               
PROPERTY AND EQUIPMENT:              
  Cost   610,572       615,803  
  Less: accumulated depreciation   319,634       292,443  
    Net property and equipment   290,938       323,360  
               
OTHER ASSETS   7,723       8,513  
    Total assets $ 452,157     $ 466,426  
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES:              
  Accounts payable $ 37,745     $ 46,997  
  Wages and employees' benefits   19,101       18,793  
  Other current liabilities   31,777       36,981  
  Current portion of long-term debt   17,143        
    Total current liabilities   105,766       102,771  
               
OTHER LIABILITIES:              
  Long-term debt, less current portion   72,857       90,000  
  Deferred income taxes   39,077       41,867  
  Claims, insurance and other   28,099       29,107  
    Total other liabilities   140,033       160,974  
               
SHAREHOLDERS' EQUITY:              
  Common stock   16       16  
  Additional paid-in capital   202,751       201,041  
  Deferred compensation trust   (2,727 )     (2,737 )
  Retained earnings   6,318       4,361  
    Total shareholders' equity   206,358       202,681  
    Total liabilities and shareholders' equity $ 452,157     $ 466,426  
   
   
   
   
Saia, Inc. and Subsidiary  
Consolidated Statements of Operations  
For the Quarters and Years Ended December 31, 2010 and 2009  
(Amounts in thousands, except per share data)  
(Unaudited)  
                   
    Fourth Quarters     Years  
    2010     2009     2010     2009  
                                 
OPERATING REVENUE   $ 224,432     $ 202,400     $ 902,660     $ 849,141  
                                 
OPERATING EXPENSES:                                
  Salaries, wages and employees' benefits     119,014       115,106       481,197       486,473  
  Purchased transportation     19,796       15,358       80,859       64,728  
  Fuel, operating expenses and supplies     60,502       51,546       233,771       197,108  
  Operating taxes and licenses     9,301       8,708       36,981       35,465  
  Claims and insurance     5,377       5,796       21,870       29,812  
  Depreciation and amortization     8,686       9,523       36,159       39,342  
  Operating gains, net     (48 )     (45 )     (277 )     (94 )
    Total operating expenses     222,628       205,992       890,560       852,834  
                                 
OPERATING INCOME (LOSS)     1,804       (3,592 )     12,100       (3,693 )
                                 
NONOPERATING EXPENSES:                                
  Interest expense     2,375       3,786       10,602       12,156  
  Other, net     (88 )     (47 )     (435 )     (208 )
    Nonoperating expenses, net     2,287       3,739       10,167       11,948  
                                 
                                 
INCOME (LOSS) BEFORE INCOME TAXES     (483 )     (7,331 )     1,933       (15,641 )
Income tax benefit     (1,188 )     (3,040 )     (24 )     (6,605 )
INCOME (LOSS) FROM CONTINUING OPERATIONS     705       (4,291 )     1,957       (9,036 )
Income from discontinued operations, net           1,161             1,161  
NET INCOME (LOSS)   $ 705     $ (3,130 )   $ 1,957     $ (7,875 )
                                 
Average common shares outstanding - basic     15,730       13,976       15,713       13,423  
Average common shares outstanding - diluted     16,135       13,976       16,115       13,423  
                                 
Basic earnings (loss) per share -- continuing operations   $ 0.04     $ (0.31 )   $ 0.12     $ (0.67 )
Basic earnings per share -- discontinued operations           0.09             0.08  
Basic earnings (loss) per share   $ 0.04     $ (0.22 )   $ 0.12     $ (0.59 )
                                 
Diluted earnings (loss) per share -- continuing operations   $ 0.04     $ (0.31 )   $ 0.12     $ (0.67 )
Diluted earnings per share -- discontinued operations           0.09             0.08  
Diluted earnings (loss) per share   $ 0.04     $ (0.22 )   $ 0.12     $ (0.59 )
   
   
   
   
Saia, Inc. and Subsidiary  
Condensed Consolidated Statements of Cash Flows  
For the Years Ended December 31, 2010 and 2009  
(Amounts in thousands)  
(Unaudited)  
  Years  
  2010     2009  
               
OPERATING ACTIVITIES:              
Net cash provided by operating activities $ 23,386     $ 14,088  
    Net cash provided by operating activities   23,386       14,088  
               
INVESTING ACTIVITIES:              
  Acquisition of property and equipment   (3,815 )     (8,362 )
  Proceeds from disposal of property and equipment   560       788  
    Net cash used in investing activities   (3,255 )     (7,574 )
               
FINANCING ACTIVITIES:              
  Repayment of long-term debt         (46,500 )
  Net proceeds from sale of common stock         24,868  
  Proceeds from stock option exercises   168       296  
  Payment of debt issuance costs         (3,493 )
    Net cash provided by (used in) financing activities   168       (24,829 )
               
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   20,299       (18,315 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   8,746       27,061  
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 29,045     $ 8,746  
 
 
 
 
Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended December 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
                               
                Fourth Quarter    
      Fourth Quarter     %   Amount/Workday   %
      2010     2009     Change   2010   2009   Change
                               
Workdays                     61   62    
                               
Operating ratio     99.2 %   101.8 %                
                               
F/S Revenue LTL   207,716     188,756     10.0   3,405.2   3,044.4   11.8
  TL   16,715     13,645     22.5   274.0   220.1   24.5
  Total   224,432     202,400     10.9   3,679.2   3,264.5   12.7
                               
Revenue excluding LTL   207,426     188,376     10.1   3,400.4   3,038.3   11.9
revenue recognition TL   16,692     13,616     22.6   273.6   219.6   24.6
adjustment Total   224,118     201,992     11.0   3,674.1   3,257.9   12.8
                               
Tonnage LTL   863     827     4.4   14.15   13.33   6.1
  TL   166     149     11.4   2.73   2.41   13.2
  Total   1,030     976     5.5   16.88   15.74   7.2
                               
Shipments LTL   1,536     1,508     1.8   25.17   24.32   3.5
  TL   24     21     10.9   0.39   0.34   12.7
  Total   1,559     1,529     2.0   25.56   24.67   3.6
                               
Revenue/cwt. LTL   12.01     11.40     5.4            
  TL   5.02     4.56     10.0            
  Total   10.88     10.35     5.2            
                               
Revenue/shipment LTL   135.08     124.92     8.1            
  TL   708.01     640.61     10.5            
  Total   143.74     132.08     8.8            
                               
Pounds/shipment LTL   1,124     1,096     2.6            
  TL   14,110     14,050     0.4            
  Total   1,321     1,276     3.5            

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