SOURCE: Saia, Inc.

Saia, Inc.

October 28, 2014 07:30 ET

Saia Reports Record Third Quarter Earnings per Share of $0.64

Revenues Increased 13.5% and Operating Income Increased 23.8%

JOHNS CREEK, GA--(Marketwired - Oct 28, 2014) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported third quarter 2014 results. 

Third Quarter 2014 Compared to Third Quarter 2013 Results

  • Revenues were $332.5 million, an increase of 13.5%
  • LTL tonnage increased 8.2% as LTL shipments were up 7.6% with a 0.5% increase in weight per shipment
  • Operating income increased to $27.1 million compared to $21.9 million
  • Operating ratio was 91.8 compared to 92.5
  • Diluted earnings per share were 25.5% higher at $0.64 compared to $0.51 

"Strong tonnage growth and improved pricing provided a solid foundation for third quarter results. Customers have responded favorably to our consistent and reliable service offering which was the catalyst for our 4.3% improvement in LTL yield for the quarter," said Saia President and Chief Executive Officer, Rick O'Dell.

"While I am pleased to report the year-over-year improvement in our operating ratio, I still believe there is upside that will allow for improved performance as we optimize our network to handle the increased volumes in a capacity-constrained environment. The investment in sales resources we made late last year has helped us build momentum on the top-line and our operations group has responded well to the increased volumes, providing 98% on time service in the third quarter. In July, we were pleased to be able to increase wages for the fourth year in a row for our dedicated non-union workforce," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $73.3 million at September 30, 2014. Net of the Company's $7.2 million in cash on hand at quarter-end, net debt to total capital was 15.9%. This compares to total debt of $91.5 million and net debt to total capital of 22.9% at the end of last year's third quarter.

Net capital expenditures year-to-date through September were $85.5 million inclusive of equipment acquired with capital leases. This compares to $97.7 million spent through the first nine months of 2013. The Company projects net capital expenditures for the full year of approximately $118 million. In the third quarter, Saia put in service nearly half of the 800 additional linehaul trailers that will be put in service by year end.

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 888-505-4375 or 719-325-2376 referencing conference ID #5750398. 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 November 3, 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; 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 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)  
             
    September 30,     December 31,  
    2014     2013  
ASSETS        
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 7,244     $ 159  
  Accounts receivable, net     146,597       117,937  
  Prepaid expenses and other     39,619       52,157  
    Total current assets     193,460       170,253  
                 
PROPERTY AND EQUIPMENT:                
  Cost     869,573       797,527  
  Less: accumulated depreciation     397,458       365,301  
    Net property and equipment     472,115       432,226  
                 
OTHER ASSETS     13,919       14,322  
    Total assets   $ 679,494     $ 616,801  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 57,460     $ 50,799  
  Wages and employees' benefits     39,764       35,248  
  Other current liabilities     47,937       47,667  
  Current portion of long-term debt     8,120       7,143  
    Total current liabilities     153,281       140,857  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     65,188       69,740  
  Deferred income taxes     69,422       69,916  
  Claims, insurance and other     42,500       31,496  
    Total other liabilities     177,110       171,152  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     25       24  
  Additional paid-in capital     219,512       213,648  
  Deferred compensation trust     (2,222 )     (2,246 )
  Retained earnings     131,788       93,366  
    Total stockholders' equity     349,103       304,792  
    Total liabilities and stockholders' equity   $ 679,494     $ 616,801  
                     
   
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Nine Months Ended September 30, 2014 and 2013  
(Amounts in thousands, except per share data)  
(Unaudited)  
                   
    Third Quarter     Nine Months  
    2014   2013     2014     2013  
                       
OPERATING REVENUE   $ 332,544   $ 293,087     $ 962,673     $ 859,439  
                               
OPERATING EXPENSES:                              
  Salaries, wages and employees' benefits     166,353     147,305       476,779       428,468  
  Purchased transportation     27,479     18,914       77,396       55,023  
  Fuel, operating expenses and supplies     80,206     75,803       241,441       232,959  
  Operating taxes and licenses     9,033     9,074       27,001       27,983  
  Claims and insurance     6,956     6,607       30,651       18,085  
  Depreciation and amortization     15,336     13,745       44,264       37,765  
  Operating (gain) loss, net     32     (296 )     20       (570 )
    Total operating expenses     305,395     271,152       897,552       799,713  
                               
OPERATING INCOME     27,149     21,935       65,121       59,726  
                               
NONOPERATING EXPENSES:                              
  Interest expense     1,064     1,760       3,557       4,906  
  Other, net     16     (85 )     (49 )     (180 )
    Nonoperating expenses, net     1,080     1,675       3,508       4,726  
                               
                               
INCOME BEFORE INCOME TAXES     26,069     20,260       61,613       55,000  
Income tax expense     9,791     7,352       23,191       19,437  
NET INCOME   $ 16,278   $ 12,908     $ 38,422     $ 35,563  
                               
Average common shares outstanding - basic     24,527     24,220       24,465       24,123  
Average common shares outstanding - diluted     25,505     25,269       25,436       25,173  
                               
Basic earnings per share   $ 0.66   $ 0.53     $ 1.57     $ 1.47  
                               
Diluted earnings per share   $ 0.64   $ 0.51     $ 1.51     $ 1.41  
                               
   
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Nine Months Ended September 30, 2014 and 2013  
(Amounts in thousands)  
(Unaudited)  
    Nine Months  
    2014     2013  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 92,017     $ 67,557  
    Net cash provided by operating activities     92,017       67,557  
                 
INVESTING ACTIVITIES:                
  Acquisition of property and equipment     (79,773 )     (100,799 )
  Proceeds from disposal of property and equipment     2,590       3,058  
    Net cash used in investing activities     (77,183 )     (97,741 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (3,571 )     (11,071 )
  Borrowings (repayment) of revolving credit agreement, net     (8,317 )     41,872  
  Proceeds from stock option exercises     4,159       3,708  
  Other financing activities     (20 )     (586 )
    Net cash provided by (used in) financing activities     (7,749 )     33,923  
                 
NET INCREASE IN CASH AND CASH EQUIVALENTS     7,085       3,739  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     159       321  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 7,244     $ 4,060  
                 
NON-CASH ITEMS:                
  Acquisition of property and equipment financed with capital leases   $ 8,328     $ -  
                   
 
 
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended September 30, 2014 and 2013
(Unaudited)
                               
                Third Quarter    
      Third Quarter     %   Amount/Workday   %
      2014     2013     Change   2014   2013   Change
                                   
Workdays                         64   64    
                                   
Operating Ratio (1)       91.8 %     92.5 %                
                                   
                                   
Tonnage (2)   LTL   1,008       932     8.2   15.75   14.56   8.2
    TL   215       178     20.9   3.36   2.78   20.9
                                   
Shipments (2)   LTL   1,730       1,608     7.6   27.03   25.13   7.6
    TL   31       26     18.7   0.48   0.40   18.7
                                   
Revenue/cwt. (3)   LTL $ 15.17     $ 14.54     4.3            
    TL $ 5.95     $ 5.89     1.0            
                                   
Revenue/shipment (3)   LTL $ 176.71     $ 168.43     4.9            
    TL $ 831.69     $ 808.48     2.9            
                                   
Pounds/shipment   LTL   1,165       1,159     0.5            
    TL   13,978       13,719     1.9            
                                   
Length of Haul       766       742     3.2            
                                   
(1) The operating ratio is the calculation of operating expenses divided by operating revenue.
   
(2) In thousands
   
(3) 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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