SOURCE: Saia, Inc.

Saia, Inc.

April 25, 2014 07:30 ET

Saia Reports First Quarter Earnings per Share of $0.34

Revenues Rose 9.5% on 5.7% LTL Tonnage Growth

JOHNS CREEK, GA--(Marketwired - Apr 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.

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 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

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. and Subsidiaries  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
  March 31,     December 31,  
  2014     2013  
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  
  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  
  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  
  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)  
  First Quarter  
  2014     2013  
OPERATING REVENUE $ 299,730     $ 273,795  
  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  
  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)  
  2014     2013  
Net cash provided by operating activities $ 4,119     $ 7,018  
    Net cash provided by operating activities   4,119       7,018  
  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 )
  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 )
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended March 31, 2014 and 2013
                  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.

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