SOURCE: Saia, Inc.

Saia, Inc.

July 29, 2015 07:30 ET

Saia Reports Record Second Quarter Earnings per Share of $0.75

JOHNS CREEK, GA--(Marketwired - Jul 29, 2015) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported second quarter 2015 results. 

Second Quarter 2015 Compared to Second Quarter 2014 Results

  • Revenues were $323 million, a 2.1% decrease
  • Operating income increased 38% to $31.3 million
  • Diluted earnings per share were $0.75 compared to $0.53
  • Operating ratio improved to 90.3 compared to 93.1
  • LTL shipments were down 2.9% as LTL tonnage decreased 6.0%
  • LTL revenue per hundredweight increased by 3.9% despite the impact of lower year-over-year fuel surcharges

"I am very pleased to report our fourth consecutive quarter of record earnings and would note that the results were achieved with improvements across our organization. We are especially pleased with the improved safety and cargo claims results in the quarter. Network optimization efforts continue to be successful and our purchased transportation costs were down nearly 28% in the quarter, " said Saia President and Chief Executive Officer, Rick O'Dell. 

"Strong yield improvements continued in the quarter and though we will continue to face difficult tonnage comparisons for the rest of the year, our network is balanced and our sales force is focused on finding customers that find our value proposition to be compelling," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $108.6 million at June 30, 2015 and inclusive of the $3.7 million of cash on hand, net debt to total capital was 20.8% at quarter 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 the first half of the year were $73.3 million including equipment acquired with capital leases. This compares to $66.7 million spent in the first half of 2014. The Company currently plans net capital expenditures in 2015 of approximately $125 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 888-438-5519 or 719-325-2464 referencing conference ID #2753051. 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 August 4, 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; failure to achieve acquisition synergies; 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; social media 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)  
             
    June 30, 2015     December 31, 2014  
ASSETS                
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 3,663     $ 4,367  
  Accounts receivable, net     146,202       128,367  
  Prepaid expenses and other     44,132       56,902  
    Total current assets     193,997       189,636  
                 
PROPERTY AND EQUIPMENT:                
  Cost     957,345       891,145  
  Less: accumulated depreciation     429,698       407,505  
    Net property and equipment     527,647       483,640  
OTHER ASSETS     34,695       13,169  
    Total assets   $ 756,339     $ 686,445  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 49,939     $ 42,388  
  Wages and employees' benefits     38,844       28,777  
  Other current liabilities     49,017       50,176  
  Current portion of long-term debt     11,215       9,138  
    Total current liabilities     149,015       130,479  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     97,419       73,897  
  Deferred income taxes     74,224       78,406  
  Claims, insurance and other     34,689       36,757  
    Total other liabilities     206,332       189,060  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     25       25  
  Additional paid-in capital     226,891       223,713  
  Deferred compensation trust     (3,133 )     (2,189 )
  Retained earnings     177,209       145,357  
    Total stockholders' equity     400,992       366,906  
    Total liabilities and stockholders' equity   $ 756,339     $ 686,445  
                 
                 
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Six Months Ended June 30, 2015 and 2014  
(Amounts in thousands, except per share data)  
(Unaudited)  
             
    Second Quarter     Six Months  
    2015     2014     2015     2014  
                                 
OPERATING REVENUE   $ 323,480     $ 330,399     $ 616,502     $ 630,129  
                                 
OPERATING EXPENSES:                                
  Salaries, wages and employees' benefits     170,465       160,204       328,194       310,426  
  Purchased transportation     20,184       27,926       37,898       49,917  
  Fuel, operating expenses and supplies     69,165       81,276       136,310       161,235  
  Operating taxes and licenses     9,411       8,993       18,507       17,968  
  Claims and insurance     6,361       14,177       11,198       23,695  
  Depreciation and amortization     16,561       15,087       31,760       28,928  
  Operating loss (gains), net     52       (5 )     121       (12 )
    Total operating expenses     292,199       307,658       563,988       592,157  
                                 
OPERATING INCOME     31,281       22,741       52,514       37,972  
                                 
NONOPERATING EXPENSES:                                
  Interest expense     1,074       1,177       2,093       2,493  
  Other, net     (14 )     (35 )     (65 )     (65 )
    Nonoperating expenses, net     1,060       1,142       2,028       2,428  
                                 
INCOME BEFORE INCOME TAXES     30,221       21,599       50,486       35,544  
Income tax expense     10,974       8,031       18,634       13,400  
NET INCOME   $ 19,247     $ 13,568     $ 31,852     $ 22,144  
                                 
Average common shares outstanding - basic     24,936       24,484       24,870       24,434  
Average common shares outstanding - diluted     25,561       25,447       25,526       25,396  
                                 
Basic earnings per share   $ 0.77     $ 0.55     $ 1.28     $ 0.91  
Diluted earnings per share   $ 0.75     $ 0.53     $ 1.25     $ 0.87  
                                 
                                 
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Six Months Ended June 30, 2015 and 2014  
(Amounts in thousands)  
(Unaudited)  
    Six Months  
    2015     2014  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 67,045     $ 46,875  
    Net cash provided by operating activities     67,045       46,875  
                 
INVESTING ACTIVITIES:                
  Acquisition of business     (22,238 )     -  
  Acquisition of property and equipment     (56,466 )     (67,077 )
  Proceeds from disposal of property and equipment     517       421  
    Net cash used in investing activities     (78,187 )     (66,656 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (3,571 )     (3,571 )
  Borrowings of revolving credit agreement, net     13,000       22,422  
  Proceeds from stock option exercises     2,629       2,559  
  Other financing activities     (1,620 )     -  
    Net cash provided by financing activities     10,438       21,410  
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     (704 )     1,629  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     4,367       159  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 3,663     $ 1,788  
                 
NON-CASH ITEMS:                
  Acquisition of property and equipment financed with capital leases   $ 17,336     $ -  
                 
                 
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended June 30, 2015 and 2014  
(Unaudited)  
                                     
                          Second Quarter      
        Second Quarter     %     Amount/Workday   %  
        2015     2014     Change     2015   2014   Change  
                                         
Workdays                             64   64      
                                         
Operating ratio         90.3 %     93.1 %                    
                                         
Tonnage (1)   LTL     960       1,021     (6.0 )   15.00   15.96   (6.0 )
    TL     200       228     (12.4 )   3.12   3.56   (12.4 )
                                         
Shipments (1)   LTL     1,683       1,732     (2.9 )   26.29   27.07   (2.9 )
    TL     29       33     (12.4 )   0.45   0.51   (11.8 )
                                         
Revenue/cwt. (2)   LTL   $ 15.42     $ 14.85     3.9                
    TL   $ 5.93     $ 5.70     3.9                
                                         
Revenue/shipment (2)   LTL   $ 176.02     $ 175.09     0.5                
    TL   $ 830.27     $ 798.13     4.0                
                                         
Pounds/shipment   LTL     1,141       1,179     (3.2 )              
    TL     14,012       14,000     0.1                
                                         
Length of Haul         778       759     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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