SOURCE: Saia, Inc.

Saia, Inc.

January 30, 2015 07:30 ET

Saia Reports Fourth Quarter Earnings per Share of $0.53

JOHNS CREEK, GA--(Marketwired - Jan 30, 2015) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported record fourth quarter and full year 2014 results. Diluted earnings per share were $0.53 for the fourth quarter and include a $0.04 per share positive impact from tax credits for the full year 2014, enacted in the fourth quarter. The Company earned $0.32 per diluted share in the fourth quarter of 2013.

Fourth Quarter 2014 Compared to Fourth Quarter 2013 Results

  • Revenues were $310 million, an increase of 10.7%
  • Operating income increased 40% to $20.6 million compared to $14.7 million
  • Diluted earnings per share were $0.53 including $0.04 in tax credits enacted in the fourth quarter compared to $0.32
  • Operating ratio was 93.4 compared to 94.7
  • LTL tonnage increased 4.3% as LTL shipments were up 7.2% and average weight per LTL shipment fell by 2.7%
  • LTL revenue per hundredweight increased by 6.0%

"Demand in the quarter was consistent with seasonal expectations and I am pleased with the work of our team to deliver 98% on-time service in the quarter. Our significant year-over-year increase in earnings per share was achieved through our balanced approach towards adding tonnage at a reasonable price," said Saia President and Chief Executive Officer Rick O'Dell. 

"We are proud of Saia's 90 year operating history celebrated in 2014 and it is gratifying to close that year with record revenue and earnings," O'Dell added.

2014 Results Compared to 2013 Results

  • LTL tonnage increased 6.3%, while yield improved 4.4%
  • Revenues were $1.3 billion compared to $1.1 billion
  • Operating income was $85.7 million compared to $74.4 million
  • Net income was $52.0 million compared to $43.6 million
  • Diluted earnings per share were $2.04 compared to $1.73, which included $0.04 in tax credits enacted in 2013 retroactive to 2012
  • Operating ratio was 93.3 compared to 93.5

Financial Position and Capital Expenditures
Total debt was $83.0 million at December 31, 2014. Net of the Company's $4.4 million cash balance at quarter end, net debt to total capital was 17.7%. This compares to total debt of $76.9 million and net debt to total capital of 20.1% at December 31, 2013.

Net capital expenditures in 2014 were $112 million inclusive of equipment acquired with capital leases. This compares to $122 million in the prior year. The Company currently plans net capital expenditures in 2015 of approximately $125 million. This expenditure level reflects primarily replacement of revenue equipment, and investments in real estate projects and technology.

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 888-359-3624 or 719-325-2495 referencing conference ID #5368032. 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 5, 2015 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; loss of significant customers; 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; cyber security risks; 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,  
  2014     2013  
ASSETS      
               
CURRENT ASSETS:              
  Cash and cash equivalents $ 4,367     $ 159  
  Accounts receivable, net   128,367       117,937  
  Prepaid expenses and other   56,902       52,157  
    Total current assets   189,636       170,253  
               
PROPERTY AND EQUIPMENT:              
  Cost   891,145       797,527  
  Less: accumulated depreciation   407,505       365,301  
    Net property and equipment   483,640       432,226  
               
OTHER ASSETS   13,169       14,322  
    Total assets $ 686,445     $ 616,801  
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
               
CURRENT LIABILITIES:              
  Accounts payable $ 42,388     $ 50,799  
  Wages and employees' benefits   28,777       35,248  
  Other current liabilities   50,176       47,667  
  Current portion of long-term debt   9,138       7,143  
    Total current liabilities   130,479       140,857  
               
OTHER LIABILITIES:              
  Long-term debt, less current portion   73,897       69,740  
  Deferred income taxes   78,406       69,916  
  Claims, insurance and other   36,757       31,496  
    Total other liabilities   189,060       171,152  
               
STOCKHOLDERS' EQUITY:              
  Common stock   25       24  
  Additional paid-in capital   223,713       213,648  
  Deferred compensation trust   (2,189 )     (2,246 )
  Retained earnings   145,357       93,366  
    Total stockholders' equity   366,906       304,792  
    Total liabilities and stockholders' equity $ 686,445     $ 616,801  
   
   
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Years Ended December 31, 2014 and 2013  
(Amounts in thousands, except per share data)  
(Unaudited)  
                 
  Fourth Quarter     Years  
  2014     2013     2014     2013  
                               
OPERATING REVENUE $ 309,648     $ 279,655     $ 1,272,321     $ 1,139,094  
                               
OPERATING EXPENSES:                              
  Salaries, wages and employees' benefits   162,854       144,019       639,633       572,487  
  Purchased transportation   22,214       17,952       99,610       72,975  
  Fuel, operating expenses and supplies   73,347       73,405       314,788       306,364  
  Operating taxes and licenses   9,027       8,530       36,028       36,513  
  Claims and insurance   6,912       7,409       37,563       25,494  
  Depreciation and amortization   14,758       13,799       59,022       51,564  
  Operating gains, net   (36 )     (151 )     (16 )     (721 )
    Total operating expenses   289,076       264,963       1,186,628       1,064,676  
                               
OPERATING INCOME   20,572       14,692       85,693       74,418  
                               
NONOPERATING EXPENSES:                              
  Interest expense   1,007       1,584       4,564       6,490  
  Other, net   (50 )     (37 )     (99 )     (217 )
    Nonoperating expenses, net   957       1,547       4,465       6,273  
                               
                               
INCOME BEFORE INCOME TAXES   19,615       13,145       81,228       68,145  
Income tax expense   6,046       5,081       29,237       24,518  
NET INCOME $ 13,569     $ 8,064     $ 51,991     $ 43,627  
                               
Average common shares outstanding - basic   24,624       24,246       24,505       24,154  
Average common shares outstanding - diluted   25,565       25,289       25,463       25,205  
                               
Basic earnings per share $ 0.55     $ 0.33     $ 2.12     $ 1.81  
                               
Diluted earnings per share $ 0.53     $ 0.32     $ 2.04     $ 1.73  
   
   
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Years Ended December 31, 2014 and 2013  
(Amounts in thousands)  
(Unaudited)  
  Years  
  2014     2013  
               
OPERATING ACTIVITIES:              
Net cash provided by operating activities $ 102,170     $ 101,312  
  Net cash provided by operating activities   102,170       101,312  
               
INVESTING ACTIVITIES:              
Acquisition of property and equipment   (97,750 )     (126,358 )
Proceeds from disposal of property and equipment   2,905       4,338  
  Net cash used in investing activities   (94,845 )     (122,020 )
               
FINANCING ACTIVITIES:              
  Repayment of long-term debt   (7,143 )     (22,143 )
  Borrowings (repayment) of revolving credit agreement, net   (3,317 )     38,327  
  Proceeds from stock option exercises   7,623       4,948  
  Other financing activities   (280 )     (586 )
    Net cash provided by (used in) financing activities   (3,117 )     20,546  
               
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   4,208       (162 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   159       321  
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,367     $ 159  
               
NON-CASH ITEMS:              
  Acquisition of property and equipment financed with capital leases $ 16,886     $ -  
 
 
 
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended December 31, 2014 and 2013
(Unaudited)
                           
              Fourth Quarter    
    Fourth Quarter   %     Amount/Workday   %
    2014   2013   Change     2014   2013   Change
                               
Workdays                     62   62    
                               
Operating ratio     93.4%     94.7%                  
                               
                               
Tonnage (1) LTL   926     888   4.3     14.94   14.32   4.3
  TL   195     187   4.1     3.14   3.02   4.1
                               
Shipments (1) LTL   1,597     1,490   7.2     25.77   24.04   7.2
  TL   28     27   4.5     0.45   0.43   4.5
                               
Revenue/cwt. (2) LTL $ 15.33   $ 14.46   6.0              
  TL $ 6.16   $ 5.73   7.5              
                               
Revenue/shipment (2) LTL $ 177.72   $ 172.22   3.2              
  TL $ 858.96   $ 802.35   7.1              
                               
Pounds/shipment LTL   1,159     1,191   (2.7 )            
  TL   13,940     13,992   (0.4 )            
                               
Length of Haul     773     746   3.7              
                               
(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, 2014 and 2013
(Unaudited)
                         
            Year Over Year    
    Year Over Year   %   Amount/Workday   %
    2014   2013   Change   2014   2013   Change
                             
Workdays                   253   253    
                             
Operating ratio     93.3%     93.5%                
                             
                             
Tonnage (1) LTL   3,902     3,670   6.3   15.42   14.51   6.3
  TL   853     708   20.6   3.37   2.80   20.6
                             
Shipments (1) LTL   6,646     6,260   6.2   26.27   24.74   6.2
  TL   122     102   19.1   0.48   0.40   19.1
                             
Revenue/cwt. (2) LTL $ 14.96   $ 14.33   4.4            
  TL $ 5.87   $ 5.84   0.5            
                             
Revenue/shipment (2) LTL $ 175.71   $ 168.06   4.5            
  TL $ 821.46   $ 807.21   1.8            
                             
Pounds/shipment LTL   1,174     1,173   0.1            
  TL   13,993     13,821   1.2            
                             
Length of Haul     763     741   3.0            
                             
(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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