SOURCE: Saia, Inc.

Saia, Inc.

January 30, 2013 07:30 ET

Saia Reports Fourth Quarter Earnings per Share of $0.33

Revenues Were $264 Million With a 63 Percent Increase in Operating Income

JOHNS CREEK, GA--(Marketwire - Jan 30, 2013) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics, today reported improved fourth quarter 2012 results on stronger revenue, favorable pricing actions and operational efficiencies.

Fourth Quarter 2012 Compared to Fourth Quarter 2011 Results

  • Revenues were $264 million, an increase of 4.5 percent from the prior year period
  • Revenue per workday increased by 2.8 percent with one more workday in the fourth quarter of 2012
  • Operating income increased 63 percent to $10.1 million compared to $6.2 million in the prior year period
  • Earnings per share were $0.33 compared to $0.15 in the prior year period
  • Operating ratio was 96.2 compared to 97.6 in the prior year period
  • LTL tonnage per workday decreased by 3.2 percent
  • LTL yield was up 6 percent due to effective yield management and fuel surcharge revenue

"Saia's best-in-class service quality, demonstrated yield results and emphasis on operational excellence were again the primary drivers behind our margin improvement. We continue to advance our value proposition through investments in quality and by providing consistent, superior customer service. Additionally, we remain focused on yield improvement and advancing our operational efficiency goals. I believe the positive contribution from further advancing and institutionalizing practices in these key areas will continue to favorably impact our results going forward," said Rick O'Dell, president and chief executive officer.

"In spite of a lack-luster economic environment, Saia again produced significant earnings gains. The continued implementation of industrial engineering initiatives has improved operating efficiencies, reduced our reliance on purchased transportation, increased fuel efficiency, reduced cargo claims expense and enhanced customer service. The quarter did include increased healthcare and workers' compensation expense which virtually offset more normal accident severity, in addition to the higher costs from wage increases and depreciation due to our investments in employees, equipment and technology to meet increasing customer demands. Saia's dedicated employees provided 98% on-time service and solid customer satisfaction. Our balance sheet is strong and we are making significant investments in our business to provide a solid foundation for additional progress in 2013," O'Dell said.

2012 Results Compared to 2011 Results

  • Revenues were $1.1 billion, an increase of 7 percent from the prior year period
  • Operating income was $58.7 million compared to $28.1 million in the prior year
  • Net income was $32.0 million compared to $11.4 million in the prior year
  • Earnings per share were $1.94 compared to earnings per share of $0.70 in the prior year
  • Operating ratio was 94.7 compared to 97.3 in the prior year

Financial Position and Capital Expenditures
Total debt was $60.7 million at December 31, 2012. This compares to total debt of $72.9 million at December 31, 2011. Net of the Company's $0.3 million cash balance at quarter-end, net debt to total capital was 19.2 percent. 

Net capital expenditures in 2012 were $83 million. This compares to $68 million in the prior year. The Company currently plans net capital expenditures in 2013 of approximately $90 million. This expenditure level reflects replacement tractors and trailers and the Company's continued investment in technology.

Conference Call
The Company will hold a conference call to discuss these results today at 11:00 am Eastern Time. This call will be webcast live via the Company web site at www.saiacorp.com. To participate in the call, please dial 1-888-364-3109 or dial 719-325-2308 for international calls and use conference ID 3815447. Callers should dial in five to 10 minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through February 5, 2013. The replay is available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. Saia LTL Freight operates 147 terminals in 34 states. With headquarters in Georgia, Saia employs 7,900 people. 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; 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,  
    2012     2011  
ASSETS        
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 321     $ 1,317  
  Accounts receivable, net     106,814       107,436  
  Prepaid expenses and other     37,028       34,063  
    Total current assets     144,163       142,816  
                 
PROPERTY AND EQUIPMENT:                
  Cost     718,527       669,345  
  Less: accumulated depreciation     356,823       344,890  
    Net property and equipment     361,704       324,455  
                 
OTHER ASSETS     13,821       7,615  
    Total assets   $ 519,688     $ 474,886  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 43,706     $ 39,783  
  Wages and employees' benefits     30,842       21,185  
  Other current liabilities     44,609       41,237  
  Current portion of long-term debt     22,143       22,143  
    Total current liabilities     141,300       124,348  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     38,562       50,714  
  Deferred income taxes     55,611       51,289  
  Claims, insurance and other     29,696       29,234  
    Total other liabilities     123,869       131,237  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     16       16  
  Additional paid-in capital     206,977       203,793  
  Deferred compensation trust     (2,213 )     (2,199 )
  Retained earnings     49,739       17,691  
    Total stockholders' equity     254,519       219,301  
    Total liabilities and stockholders' equity   $ 519,688     $ 474,886  
                 
   
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Years Ended December 31, 2012 and 2011  
(Amounts in thousands, except per share data)  
(Unaudited)  
                   
    Fourth Quarter     Years  
    2012     2011     2012     2011  
                                 
OPERATING REVENUE   $ 264,427     $ 253,020     $ 1,098,679     $ 1,030,224  
                                 
OPERATING EXPENSES:                                
  Salaries, wages and employees' benefits     136,284       127,108       546,755       513,977  
  Purchased transportation     15,350       18,095       74,521       87,159  
  Fuel, operating expenses and supplies     74,964       71,897       308,176       293,534  
  Operating taxes and licenses     9,222       9,441       38,283       38,228  
  Claims and insurance     6,303       10,213       24,712       32,067  
  Depreciation and amortization     12,304       10,179       47,985       37,278  
  Operating gains, net     (78 )     (93 )     (487 )     (165 )
    Total operating expenses     254,349       246,840       1,039,945       1,002,078  
                                 
OPERATING INCOME     10,078       6,180       58,734       28,146  
                                 
NONOPERATING EXPENSES:                                
  Interest expense     1,707       2,321       7,807       10,468  
  Other, net     (70 )     (64 )     (212 )     (52 )
    Nonoperating expenses, net     1,637       2,257       7,595       10,416  
                                 
                                 
INCOME BEFORE INCOME TAXES     8,441       3,923       51,139       17,730  
Income tax expense     3,035       1,450       19,091       6,357  
NET INCOME   $ 5,406     $ 2,473     $ 32,048     $ 11,373  
                                 
Average common shares outstanding - basic     15,908       15,798       15,882       15,789  
Average common shares outstanding - diluted     16,586       16,143       16,543       16,136  
                                 
Basic earnings per share   $ 0.34     $ 0.16     $ 2.02     $ 0.72  
                                 
Diluted earnings per share   $ 0.33     $ 0.15     $ 1.94     $ 0.70  
                                 
   
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Years Ended December 31, 2012 and 2011  
(Amounts in thousands)  
(Unaudited)  
   
    Years  
    2012     2011  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 100,675     $ 58,211  
    Net cash provided by operating activities     100,675       58,211  
                 
INVESTING ACTIVITIES:                
  Acquisition of property and equipment     (86,120 )     (70,862 )
  Proceeds from disposal of property and equipment     3,305       2,963  
  Acquisition of subsidiary, net of cash     (7,616 )     -  
    Net cash used in investing activities     (90,431 )     (67,899 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (22,143 )     (17,143 )
  Borrowings of revolving credit agreement, net     9,990       -  
  Payment of debt issuance costs     -       (1,046 )
  Proceeds from stock option exercises     913       149  
    Net cash used in financing activities     (11,240 )     (18,040 )
                 
NET DECREASE IN CASH AND CASH EQUIVALENTS     (996 )     (27,728 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     1,317       29,045  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 321     $ 1,317  
                 
   
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended December 31, 2012 and 2011  
(Unaudited)  
                                     
                  Fourth Quarter      
        Fourth Quarter     %     Amount/Workday   %  
        2012     2011     Change     2012   2011   Change  
                                         
Workdays                             62   61      
                                         
Operating ratio         96.2 %     97.6 %                    
                                         
                                         
Tonnage (1)   LTL     863       877     (1.6 )   13.91   14.37   (3.2 )
    TL     157       164     (4.5 )   2.53   2.69   (6.0 )
                                         
Shipments (1)   LTL     1,466       1,517     (3.4 )   23.64   24.86   (4.9 )
    TL     23       23     (3.0 )   0.37   0.38   (4.6 )
                                         
Revenue/cwt. (2)   LTL   $ 14.13     $ 13.33     6.0                
    TL   $ 5.90     $ 5.51     6.9                
                                         
Revenue/shipment (2)   LTL   $ 166.36     $ 154.10     8.0                
    TL   $ 816.62     $ 775.09     5.4                
                                         
Pounds/shipment   LTL     1,177       1,156     1.8                
    TL     13,851       14,060     (1.5 )              
                                         
Length of Haul         728       728     -                
                                         
(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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