SOURCE: Saia, Inc.

Saia, Inc.

January 31, 2014 07:30 ET

Saia Reports Fourth Quarter Earnings per Share of $0.32

Revenues Were $280 Million With Operating Income Increasing 46%

JOHNS CREEK, GA--(Marketwired - Jan 31, 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 fourth quarter 2013 results driven by effective revenue management and operational efficiencies. 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.

Fourth Quarter 2013 Compared to Fourth Quarter 2012 Results

  • Revenues were $280 million, an increase of 5.8%
  • Operating income increased 46% to $14.7 million compared to $10.1 million
  • Diluted earnings per share were $0.32 compared to $0.22
  • Operating ratio was 94.7 compared to 96.2
  • LTL tonnage per workday increased 2.9% as LTL shipments per workday were up 1.7% with a 1.2% increase in weight per shipment
  • LTL yield was up 2.3%

"Saia's Quality Matters initiative continues to be the guiding force in advancing our value proposition in the marketplace. Saia employees across our organization are focused on providing consistent, superior customer service. These efforts have fueled another quarter of meaningful yield increase which combined with efficiency and technology initiatives led us to a 45% increase in earnings per share compared to the fourth quarter last year," said Saia President and Chief Executive Officer Rick O'Dell.

"Investments in technology, equipment and continuous on-going employee training have allowed Saia to post its ninth consecutive quarter of 98% on-time service. The combination of strong service and our committed pricing effort enabled Saia to improve its operating ratio by 150 basis points versus fourth quarter last year. With our recently expanded sales force, Saia ended the year with improving tonnage trends and we believe we are well positioned to grow our market share going forward," O'Dell said.

2013 Results Compared to 2012 Results

  • Revenues were $1,139 million compared to $1,099 million
  • Operating income was $74.4 million compared to $58.7 million
  • Net income was $43.6 million compared to $32.0 million
  • Diluted earnings per share were $1.73 compared to $1.29
  • Operating ratio was 93.5 compared to 94.7

Financial Position and Capital Expenditures
Total debt was $76.9 million at December 31, 2013. Net of the Company's $0.2 million cash balance at quarter end, debt to total capital was 20.1%. This compares to total debt of $60.7 million and net debt to total capital of 19.2% in the prior year quarter.

Net capital expenditures in 2013 were $122 million. This compares to $83 million in the prior year. The Company currently plans net capital expenditures in 2014 of approximately $85 million. This expenditure level reflects primarily 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 888-500-6950 or 719-457-2697 referencing conference ID #7135869. 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 February 6, 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 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 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; 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 "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 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 Subsidiaries  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
(Unaudited)  
             
    December 31,     December 31,  
    2013     2012  
ASSETS        
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 159     $ 321  
  Accounts receivable, net     117,937       106,814  
  Prepaid expenses and other     52,157       37,028  
    Total current assets     170,253       144,163  
                 
PROPERTY AND EQUIPMENT:                
  Cost     797,527       718,527  
  Less: accumulated depreciation     365,301       356,823  
    Net property and equipment     432,226       361,704  
                 
OTHER ASSETS     14,322       13,821  
    Total assets   $ 616,801     $ 519,688  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 50,799     $ 43,706  
  Wages and employees' benefits     35,248       30,842  
  Other current liabilities     47,667       44,609  
  Current portion of long-term debt     7,143       22,143  
    Total current liabilities     140,857       141,300  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     69,740       38,562  
  Deferred income taxes     69,916       55,611  
  Claims, insurance and other     31,496       29,696  
    Total other liabilities     171,152       123,869  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     24       24  
  Additional paid-in capital     213,648       206,969  
  Deferred compensation trust     (2,246 )     (2,213 )
  Retained earnings     93,366       49,739  
    Total stockholders' equity     304,792       254,519  
    Total liabilities and stockholders' equity   $ 616,801     $ 519,688  
                 
                 
                 
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Years Ended December 31, 2013 and 2012  
(Amounts in thousands, except per share data)  
(Unaudited)  
                   
    Fourth Quarter     Years  
    2013     2012     2013     2012  
                                 
OPERATING REVENUE   $ 279,655     $ 264,427     $ 1,139,094     $ 1,098,679  
                                 
OPERATING EXPENSES:                                
  Salaries, wages and employees' benefits     144,019       136,284       572,487       546,755  
  Purchased transportation     17,952       15,350       72,975       74,521  
  Fuel, operating expenses and supplies     73,405       74,964       306,364       308,176  
  Operating taxes and licenses     8,530       9,222       36,513       38,283  
  Claims and insurance     7,409       6,303       25,494       24,712  
  Depreciation and amortization     13,799       12,304       51,564       47,985  
  Operating gains, net     (151 )     (78 )     (721 )     (487 )
    Total operating expenses     264,963       254,349       1,064,676       1,039,945  
                                 
OPERATING INCOME     14,692       10,078       74,418       58,734  
                                 
NONOPERATING EXPENSES:                                
  Interest expense     1,584       1,707       6,490       7,807  
  Other, net     (37 )     (70 )     (217 )     (212 )
    Nonoperating expenses, net     1,547       1,637       6,273       7,595  
                                 
                                 
INCOME BEFORE INCOME TAXES     13,145       8,441       68,145       51,139  
Income tax expense     5,081       3,035       24,518       19,091  
NET INCOME   $ 8,064     $ 5,406     $ 43,627     $ 32,048  
                                 
Average common shares outstanding - basic     24,246       23,862       24,154       23,823  
Average common shares outstanding - diluted     25,289       24,879       25,205       24,815  
                                 
Basic earnings per share   $ 0.33     $ 0.23     $ 1.81     $ 1.35  
                                 
Diluted earnings per share   $ 0.32     $ 0.22     $ 1.73     $ 1.29  
                                 
                                 
                                 
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Years Ended December 31, 2013 and 2012  
(Amounts in thousands)  
(Unaudited)  
    Years  
    2013     2012  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 101,312     $ 100,675  
    Net cash provided by operating activities     101,312       100,675  
                 
INVESTING ACTIVITIES:                
  Acquisition of property and equipment     (126,358 )     (86,120 )
  Proceeds from disposal of property and equipment     4,338       3,305  
  Acquisition of subsidiary, net of cash     -       (7,616 )
    Net cash used in investing activities     (122,020 )     (90,431 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (22,143 )     (22,143 )
  Borrowings of revolving credit agreement, net     38,327       9,990  
  Proceeds from stock option exercises     4,948       913  
  Other financing activities     (586 )     -  
    Net cash used in financing activities     20,546       (11,240 )
                 
NET DECREASE IN CASH AND CASH EQUIVALENTS     (162 )     (996 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     321       1,317  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 159     $ 321  
                 
                 
                 
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended December 31, 2013 and 2012
(Unaudited)
                                   
                  Fourth Quarter    
        Fourth Quarter     %     Amount/Workday   %
        2013     2012     Change     2013   2012   Change
                                       
Workdays                             62   62    
                                       
Operating ratio         94.7 %     96.2 %                  
                                       
                                       
Tonnage (1)   LTL     888       863     2.9     14.32   13.91   2.9
    TL     187       157     19.2     3.02   2.53   19.2
                                       
Shipments (1)   LTL     1,490       1,466     1.7     24.04   23.64   1.7
    TL     27       23     18.0     0.43   0.37   18.0
                                       
Revenue/cwt. (2)   LTL   $ 14.46     $ 14.13     2.3              
    TL   $ 5.73     $ 5.90     (2.7 )            
                                       
Revenue/shipment (2)   LTL   $ 172.22     $ 166.36     3.5              
    TL   $ 802.35     $ 816.62     (1.7 )            
                                       
Pounds/shipment   LTL     1,191       1,177     1.2              
    TL     13,992       13,851     1.0              
                                       
Length of Haul         746       728     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.

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