SOURCE: Saia, Inc.

Saia, Inc.

February 05, 2016 07:30 ET

Saia Reports Fourth Quarter Earnings per Share of $0.45

JOHNS CREEK, GA--(Marketwired - Feb 5, 2016) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported fourth quarter and full year 2015 results. Diluted earnings per share were $0.45 for the fourth quarter and include a $0.04 per share positive impact from tax credits for the full year 2015, enacted in the fourth quarter. The Company earned $0.53 per diluted share in the fourth quarter 2014.

Fourth Quarter 2015 Compared to Fourth Quarter 2014 Results

  • Revenues were $288 million, a 7% decrease
  • Operating income decreased 14% to $17.6 million
  • Net income fell 16% to $11.4 million
  • Diluted earnings per share were $0.45 compared to $0.53
  • Operating ratio of 93.9 compared to 93.4
  • LTL shipments were down 6.2% and LTL tonnage declined 8.9%
  • LTL revenue per hundredweight increased 2.1% despite the impact of lower year-over-year fuel surcharges

"Consistent with our strategy over the past several years, we continued to focus on yield improvement in the fourth quarter. With effective mix management, we realized improvements in both our yield and revenue per shipment, despite weak industrial freight volumes. We are closely managing costs across our organization and working to refine our processes to optimize all of our Company assets," said Saia President and Chief Executive Officer, Rick O'Dell.

"While it is somewhat satisfying to report our fourth consecutive year of record earnings per share, we enter 2016 with some uncertainty with regarding the health of the industrial economy. At Saia, we will continue to focus on the elements of the business we can control and stay the course towards delivering a strong value proposition to our customers," O'Dell added.

2015 Results Compared to 2014 Results

  • Revenues were $1.2 billion, a 4% decrease
  • Operating income increased 5% to $90.0 million
  • Net income of $55.0 million rose 5.8%
  • Diluted earnings per share were $2.16 versus the $2.04 earned in 2014. Both years included a positive $0.04 per share impact from tax credits
  • Operating ratio improved 70 basis points to 92.6% from 93.3%
  • LTL revenue per hundredweight increased 3.2% on 4.0% fewer LTL shipments

Financial Position and Capital Expenditures
Total debt was $69.0 million at December 31, 2015 and inclusive of the cash on-hand, net debt to total capital was 13.9% at year end. This compares to total debt of $83.0 million and net debt to total capital of 17.7% at December 31, 2014.

Net capital expenditures in 2015 were $113 million including equipment acquired with capital leases and excluding our acquisition of LinkEx in February. This compares to $112 million in capital expenditures in 2014. The Company currently plans net capital expenditures in 2016 of approximately $130 million.

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 888-481-2877 or 719-325-2393 referencing conference ID #561452. 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 April 1, 2016 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 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, general economic conditions including downturns in the business cycle; effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; the creditworthiness of our customers and their ability to pay for services; failure to achieve acquisition synergies; failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; competitive initiatives and pricing pressures, including in connection with fuel surcharge; loss of significant customers; the Company's need for capital and uncertainty of the 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, Homeland Security, environmental regulations and the Food and Drug Administration; changes in interpretation of accounting principles; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; terrorism risks; self-insurance claims and other expense volatility; increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; social media risks; cyber security risk; 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,
2015
    December 31,
2014
 
ASSETS                
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 124     $ 4,367  
  Accounts receivable, net     124,222       128,367  
  Prepaid expenses and other (1)     34,642       37,442  
    Total current assets     158,988       170,176  
                 
PROPERTY AND EQUIPMENT:                
  Cost     995,514       891,145  
  Less: accumulated depreciation     456,335       407,505  
    Net property and equipment     539,179       483,640  
OTHER ASSETS     31,026       13,169  
    Total assets   $ 729,193     $ 666,985  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 54,754     $ 42,388  
  Wages and employees' benefits     27,834       28,777  
  Other current liabilities     46,360       50,176  
  Current portion of long-term debt     12,432       9,138  
    Total current liabilities     141,380       130,479  
                   
OTHER LIABILITIES:                
  Long-term debt, less current portion     56,540       73,897  
  Deferred income taxes (1)     67,417       58,946  
  Claims, insurance and other     35,967       36,757  
    Total other liabilities     159,924       169,600  
                   
STOCKHOLDERS' EQUITY:                
  Common stock     25       25  
  Additional paid-in capital     230,593       223,713  
  Deferred compensation trust     (3,102 )     (2,189 )
  Retained earnings     200,373       145,357  
    Total stockholders' equity     427,889       366,906  
    Total liabilities and stockholders' equity   $ 729,193     $ 666,985  
                 
(1) - December 31, 2014 balances have been reclassified to conform with the December 31, 2015 adoption of the Financial Accounting Standards Board Accounting Standards Update 2015-17 regarding Balance Sheet Classification of Deferred Taxes.  
   
   
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Years Ended December 31, 2015 and 2014  
(Amounts in thousands, except per share data)  
(Unaudited)  
             
    Fourth Quarters     Years  
    2015     2014     2015     2014  
OPERATING REVENUE   $ 287,610     $ 309,648     $ 1,221,311     $ 1,272,321  
                                 
OPERATING EXPENSES:                                
  Salaries, wages and employees' benefits     164,356       162,854       670,173       639,633  
  Purchased transportation     13,399       22,214       70,611       99,610  
  Fuel, operating expenses and supplies     59,955       73,347       261,387       314,788  
  Operating taxes and licenses     9,238       9,027       37,003       36,028  
  Claims and insurance     6,488       6,912       26,832       37,563  
  Depreciation and amortization     16,495       14,758       65,020       59,022  
  Operating loss (gain), net     63       (36 )     310       (16 )
    Total operating expenses     269,994       289,076       1,131,336       1,186,628  
                                 
OPERATING INCOME     17,616       20,572       89,975       85,693  
                                 
NONOPERATING EXPENSES:                                
  Interest expense     981       1,007       4,107       4,564  
  Other, net     (76 )     (50 )     (95 )     (99 )
    Nonoperating expenses, net     905       957       4,012       4,465  
                                 
INCOME BEFORE INCOME TAXES     16,711       19,615       85,963       81,228  
Income tax expense     5,324       6,046       30,947       29,237  
NET INCOME   $ 11,387     $ 13,569     $ 55,016     $ 51,991  
                                 
Average common shares outstanding - basic     24,972       24,624       24,919       24,505  
Average common shares outstanding - diluted     25,483       25,565       25,471       25,463  
                                 
Basic earnings per share   $ 0.46     $ 0.55     $ 2.21     $ 2.12  
Diluted earnings per share   $ 0.45     $ 0.53     $ 2.16     $ 2.04  
                                 
                                 
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Years Ended December 31, 2015 and 2014  
(Amounts in thousands)  
(Unaudited)  
  Years  
  2015   2014  
OPERATING ACTIVITIES:            
Net cash provided by operating activities $ 142,714   $ 102,170  
    Net cash provided by operating activities   142,714     102,170  
               
INVESTING ACTIVITIES:            
  Acquisition of business   (22,238 )   -  
  Acquisition of property and equipment   (86,499 )   (97,750 )
  Proceeds from disposal of property and equipment   818     2,905  
    Net cash used in investing activities   (107,919 )   (94,845 )
               
FINANCING ACTIVITIES:            
  Repayment of long-term debt   (7,143 )   (7,143 )
  Repayment of revolving credit agreement, net   (30,466 )   (3,317 )
  Proceeds from stock option exercises   2,533     7,623  
  Other financing activities   (3,962 )   (280 )
    Net cash used in financing activities   (39,038 )   (3,117 )
             
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (4,243 )   4,208  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   4,367     159  
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 124   $ 4,367  
             
NON-CASH ITEMS:            
  Acquisition of property and equipment financed with capital leases $ 27,054   $ 16,886  
             
             
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended December 31, 2015 and 2014  
(Unaudited)  
                                     
                          Fourth Quarters      
        Fourth Quarters     %     Amount/Workday   %  
        2015     2014     Change     2015   2014   Change  
Workdays                             62   62      
                                         
Operating ratio         93.9 %     93.4 %                    
                                         
Tonnage (1)   LTL     844       926     (8.9 )   13.61   14.94   (8.9 )
    TL     165       195     (15.1 )   2.67   3.14   (15.1 )
                                         
Shipments (1)   LTL     1,499       1,597     (6.2 )   24.18   25.77   (6.2 )
    TL     24       28     (15.3 )   0.38   0.45   (15.3 )
                                         
Revenue/cwt. (2)   LTL   $ 15.66     $ 15.33     2.1                
    TL   $ 5.84     $ 6.16     (5.3 )              
                                         
Revenue/shipment (2)   LTL   $ 176.23     $ 177.72     (0.8 )              
    TL   $ 815.23     $ 858.96     (5.1 )              
                                         
Pounds/shipment   LTL     1,125       1,159     (2.9 )              
    TL     13,969       13,940     0.2                
                                         
Length of Haul         775       773     0.3                
                                         
(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.
     
     
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Years Ended December 31, 2015 and 2014  
(Unaudited)  
                                     
                          Year Over Year      
        Year Over Year     %     Amount/Workday   %  
        2015     2014     Change     2015   2014   Change  
Workdays                             253   253      
                                         
Operating ratio         92.6 %     93.3 %                    
                                         
Tonnage (1)   LTL     3,628       3,902     (7.0 )   14.34   15.42   (7.0 )
    TL     741       853     (13.2 )   2.93   3.37   (13.2 )
                                         
Shipments (1)   LTL     6,381       6,646     (4.0 )   25.22   26.27   (4.0 )
    TL     106       122     (13.3 )   0.42   0.48   (13.3 )
                                         
Revenue/cwt. (2)   LTL   $ 15.44     $ 14.96     3.2                
    TL   $ 5.88     $ 5.87     0.2                
                                         
Revenue/shipment (2)   LTL   $ 175.55     $ 175.71     (0.1 )              
    TL   $ 823.86     $ 821.46     0.3                
                                         
Pounds/shipment   LTL     1,137       1,174     (3.2 )              
    TL     14,003       13,993     0.1                
                                         
Length of Haul         775       763     1.6                
                                         
                                         
(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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