SOURCE: Saia, Inc.

Saia, Inc.

April 27, 2016 07:30 ET

Saia Reports First Quarter Earnings per Share of $0.42

JOHNS CREEK, GA--(Marketwired - Apr 27, 2016) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported first quarter 2016 financial results.

First Quarter 2016 Compared to First Quarter 2015 Results

  • Revenues were $290 million, a decline of 1.1%
  • Operating income decreased by 17% to $17.6 million
  • Net income fell 16% to $10.6 million
  • Diluted earnings per share were $0.42 compared to $0.49
  • Operating ratio of 93.9 compared to 92.8
  • LTL shipments per workday fell by 0.8% and LTL tonnage per workday declined 3.4%
  • LTL revenue per hundredweight increased 2.1%

"While we were not able to match last year's record first quarter earnings results, I am pleased with the trajectory of our productivity and expense control initiatives. We continue to see benefits in the areas of dock productivity and maintenance expenditures, while maintaining service and advancing quality initiatives. We also reduced purchased transportation expense, which represented 4.3% of revenue compared to 6.0% of revenue in the first quarter last year," said Saia President and Chief Executive Officer, Rick O'Dell.

"Despite no noticeable improvement in the level of general economic activity, we secured average rate increases of 5.3% on contractual renewals in the period," O'Dell added. 

Financial Position and Capital Expenditures
Total debt was $116.4 million at March 31, 2016 and inclusive of the cash on-hand, net debt to total capital was 20.9%. Due primarily to the timing of capital expenditures and seasonality factors, this represents an increase to the total debt of $69.0 million and net debt to total capital of 13.9% at December 31, 2015. 

Net capital expenditures in the first quarter of 2016 were $63.7 million including equipment acquired with capital leases. This compares to $33.2 million of net capital expenditures in the first quarter of 2015. The Company currently plans net capital expenditures in 2016 of approximately $140 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 888-876-9177 or 785-424-1666 referencing conference ID #8234961. 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 June 22, 2016 at 1:00 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 148 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 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, assumptions and uncertainties 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 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; (25) 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)  
(Unaudited)  
           
  March 31,
2016
    December 31,
2015
 
ASSETS              
               
CURRENT ASSETS:              
  Cash and cash equivalents $ 238     $ 124  
  Accounts receivable, net   137,607       124,222  
  Prepaid expenses and other   37,590       34,643  
    Total current assets   175,435       158,989  
               
PROPERTY AND EQUIPMENT:              
  Cost   1,056,435       995,514  
  Less: accumulated depreciation   467,212       456,335  
    Net property and equipment   589,223       539,179  
OTHER ASSETS   31,047       31,025  
    Total assets $ 795,705     $ 729,193  
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
               
CURRENT LIABILITIES:              
  Accounts payable $ 59,723     $ 54,754  
  Wages and employees' benefits   30,423       27,834  
  Other current liabilities   46,700       46,360  
  Current portion of long-term debt   13,659       12,432  
    Total current liabilities   150,505       141,380  
               
OTHER LIABILITIES:              
  Long-term debt, less current portion   102,780       56,540  
  Deferred income taxes   69,078       67,417  
  Claims, insurance and other   34,574       35,967  
    Total other liabilities   206,432       159,924  
               
STOCKHOLDERS' EQUITY:              
  Common stock   25       25  
  Additional paid-in capital   231,114       230,593  
  Deferred compensation trust   (3,319 )     (3,102 )
  Retained earnings   210,948       200,373  
    Total stockholders' equity   438,768       427,889  
    Total liabilities and stockholders' equity $ 795,705     $ 729,193  
               
               
               
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters Ended March 31, 2016 and 2015  
(Amounts in thousands, except per share data)  
(Unaudited)  
     
  First Quarters  
  2016     2015  
OPERATING REVENUE $ 289,911     $ 293,022  
               
OPERATING EXPENSES:              
  Salaries, wages and employees' benefits   170,266       157,729  
  Purchased transportation   12,467       17,714  
  Fuel, operating expenses and supplies   54,040       67,145  
  Operating taxes and licenses   10,040       9,096  
  Claims and insurance   8,081       4,837  
  Depreciation and amortization   17,243       15,199  
  Operating loss, net   190       69  
    Total operating expenses   272,327       271,789  
               
OPERATING INCOME   17,584       21,233  
               
NONOPERATING EXPENSES (INCOME):              
  Interest expense   963       1,019  
  Other, net   (7 )     (51 )
    Nonoperating expenses, net   956       968  
               
INCOME BEFORE INCOME TAXES   16,628       20,265  
Income tax expense   6,053       7,660  
NET INCOME $ 10,575     $ 12,605  
               
Average common shares outstanding - basic   24,998       24,803  
Average common shares outstanding - diluted   25,445       25,513  
               
Basic earnings per share $ 0.42     $ 0.51  
Diluted earnings per share $ 0.42     $ 0.49  
   
   
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Quarters Ended March 31, 2016 and 2015  
(Amounts in thousands)  
(Unaudited)  
  Quarters  
  2016     2015  
OPERATING ACTIVITIES:              
Net cash provided by operating activities $ 16,306     $ 26,160  
    Net cash provided by operating activities   16,306       26,160  
               
INVESTING ACTIVITIES:              
  Acquisition of business, net of cash received   -       (23,080 )
  Acquisition of property and equipment   (53,995 )     (30,064 )
  Proceeds from disposal of property and equipment   367       294  
    Net cash used in investing activities   (53,628 )     (52,850 )
               
FINANCING ACTIVITIES:              
  Borrowing of revolving credit agreement, net   38,826       21,577  
  Proceeds from stock option exercises   -       1,842  
  Other financing activity   (1,390 )     (900 )
    Net cash provided by financing activities   37,436       22,519  
               
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   114       (4,171 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   124       4,367  
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 238     $ 196  
               
NON-CASH ITEMS:              
  Acquisition of property and equipment financed with capital leases $ 10,032     $ 3,471  
               
               
               
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended March 31, 2016 and 2015  
(Unaudited)  
                                 
                      First Quarters      
    First Quarters     %     Amount/Workday   %  
    2016     2015     Change     2016   2015   Change  
Workdays                         64   63      
                                     
Operating ratio     93.9 %     92.8 %                    
                                     
Tonnage (1) LTL   868       884     (1.8 )   13.56   14.04   (3.4 )
  TL   168       188     (10.6 )   2.62   2.98   (12.0 )
                                     
Shipments (1) LTL   1,553       1,542     0.7     24.26   24.47   (0.8 )
  TL   24       27     (9.9 )   0.38   0.42   (11.3 )
                                     
Revenue/cwt. (2) LTL $ 15.49     $ 15.17     2.1                
  TL $ 5.64     $ 5.89     (4.3 )              
                                     
Revenue/shipment (2) LTL $ 173.20     $ 174.12     (0.5 )              
  TL $ 786.24     $ 828.54     (5.1 )              
                                     
Pounds/shipment LTL   1,118       1,147     (2.6 )              
  TL   13,942       14,061     (0.8 )              
                                     
Length of Haul     781       773     1.0                
                                     
   
(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.
   

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