SOURCE: Saia, Inc.

Saia, Inc.

July 29, 2016 07:30 ET

Saia Reports Second Quarter Earnings per Share of $0.52

JOHNS CREEK, GA--(Marketwired - Jul 29, 2016) - 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 2016 financial results.

Second Quarter 2016 Compared to Second Quarter 2015 Results

  • Revenues were $312 million, a decline of 3.6%
  • LTL shipments per workday fell by 2.6% and LTL tonnage per workday declined 4.3%
  • LTL yield increased 2%, in spite of lower fuel surcharge
  • Operating income declined 30.6% from last year's record second quarter
  • Net income was $13.3 million compared to $19.2 million
  • Diluted earnings per share were $0.52 compared to $0.75
  • Operating ratio of 93.0 compared to 90.3

"Despite the challenging freight environment, we continued to deliver a high level of service and quality to our customers. We achieved 98% on-time service in the quarter and a cargo claims ratio of 0.77%. The perceived value in those measures, by our customers, enabled us to improve our yield in the quarter. Core operations continued to reach productivity and cost savings goals, but were negatively impacted by accident expense volatility and health care self-insurance during the quarter" said Saia President and Chief Executive Officer, Rick O'Dell.

"Our continued emphasis on service and quality resulted in contractual rate renewals remaining positive, up 5.4% in the quarter," O'Dell added. 

Financial Position and Capital Expenditures
Total debt was $139.4 million at June 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 23.4% compared to 20.7% at June 30, 2015. Net capital expenditures, including equipment financed with capital leases, in the first half of the year were $136.2 million compared to $73.3 million spent in the first half of 2015.

The Company currently plans net capital expenditures in 2016 of approximately $140 million.

Conference Call
Management will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 888-438-5491 or 719-325-2354 referencing conference ID #9438415. 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 September 23, 2016 at 1:00 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 148 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, (1) general economic conditions including downturns in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company's need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company's debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; (15) 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; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company's workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) cost and availability of insurance coverage; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) cyber security risk; (26) 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, 2016     December 31, 2015  
ASSETS              
               
CURRENT ASSETS:              
  Cash and cash equivalents $ 360     $ 124  
  Accounts receivable, net   142,331       124,222  
  Prepaid expenses and other   29,450       34,643  
    Total current assets   172,141       158,989  
               
PROPERTY AND EQUIPMENT:              
  Cost   1,107,001       995,514  
  Less: accumulated depreciation   481,088       456,335  
    Net property and equipment   625,913       539,179  
OTHER ASSETS   30,853       31,025  
    Total assets $ 828,907     $ 729,193  
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
               
CURRENT LIABILITIES:              
  Accounts payable $ 49,679     $ 54,754  
  Wages and employees' benefits   33,619       27,834  
  Other current liabilities   45,014       46,360  
  Current portion of long-term debt   16,627       12,432  
    Total current liabilities   144,939       141,380  
               
OTHER LIABILITIES:              
  Long-term debt, less current portion   122,747       56,540  
  Deferred income taxes   71,673       67,417  
  Claims, insurance and other   35,352       35,967  
    Total other liabilities   229,772       159,924  
               
STOCKHOLDERS' EQUITY:              
  Common stock   25       25  
  Additional paid-in capital   233,200       230,593  
  Deferred compensation trust   (3,252 )     (3,102 )
  Retained earnings   224,223       200,373  
    Total stockholders' equity   454,196       427,889  
    Total liabilities and stockholders' equity $ 828,907     $ 729,193  
               
               
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Six Months Ended June 30, 2016 and 2015  
(Amounts in thousands, except per share data)  
(Unaudited)  
         
  Second Quarter   Six Months  
  2016   2015   2016   2015  
OPERATING REVENUE $ 311,905   $ 323,480   $ 601,816   $ 616,502  
                         
OPERATING EXPENSES:                        
  Salaries, wages and employees' benefits   175,924     170,465     346,190     328,194  
  Purchased transportation   14,315     20,184     26,782     37,898  
  Fuel, operating expenses and supplies   59,026     69,165     113,066     136,310  
  Operating taxes and licenses   10,126     9,411     20,166     18,507  
  Claims and insurance   10,880     6,361     18,961     11,198  
  Depreciation and amortization   19,740     16,561     36,983     31,760  
  Operating loss, net   173     52     363     121  
    Total operating expenses   290,184     292,199     562,511     563,988  
                         
OPERATING INCOME   21,721     31,281     39,305     52,514  
                         
NONOPERATING EXPENSES (INCOME):                        
  Interest expense   1,264     1,074     2,227     2,093  
  Other, net   (36 )   (14 )   (43 )   (65 )
    Nonoperating expenses, net   1,228     1,060     2,184     2,028  
                         
INCOME BEFORE INCOME TAXES   20,493     30,221     37,121     50,486  
Income tax expense   7,218     10,974     13,271     18,634  
NET INCOME $ 13,275   $ 19,247   $ 23,850   $ 31,852  
                         
Average common shares outstanding - basic   25,030     24,936     25,014     24,870  
Average common shares outstanding - diluted   25,583     25,561     25,560     25,526  
                         
Basic earnings per share $ 0.53   $ 0.77   $ 0.95   $ 1.28  
Diluted earnings per share $ 0.52   $ 0.75   $ 0.93   $ 1.25  
                         
                         
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Six Months Ended June 30, 2016 and 2015  
(Amounts in thousands)  
(Unaudited)  
    Six Months  
    2016     2015  
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 65,814     $ 67,045  
    Net cash provided by operating activities     65,814       67,045  
                 
INVESTING ACTIVITIES:                
  Acquisition of business, net of cash received     -       (22,238 )
  Acquisition of property and equipment     (102,140 )     (56,466 )
  Proceeds from disposal of property and equipment     595       517  
    Net cash used in investing activities     (101,545 )     (78,187 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (3,572 )     (3,571 )
  Borrowing of revolving credit agreement, net     42,756       13,000  
  Proceeds from stock option exercises     248       2,629  
  Other financing activity     (3,465 )     (1,620 )
    Net cash provided by financing activities     35,967       10,438  
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     236       (704 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     124       4,367  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 360     $ 3,663  
                 
NON-CASH ITEMS:                
  Acquisition of property and equipment financed with capital leases   $ 34,683     $ 17,336  
                 
                 
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended June 30, 2016 and 2015  
(Unaudited)  
                           
                    Second Quarter    
        Second Quarter   %   Amount/Workday %  
        2016   2015   Change   2016 2015 Change  
Workdays                     64 64    
                               
Operating ratio       93.0 %   90.3 %            
                               
Tonnage (1) LTL     919     960   (4.3 ) 14.36 15.00 (4.3 )
    TL     182     200   (8.8 ) 2.85 3.12 (8.8 )
                               
Shipments (1) LTL     1,639     1,683   (2.6 ) 25.60 26.29 (2.6 )
    TL     26     29   (9.3 ) 0.40 0.45 (9.3 )
                               
Revenue/cwt. (2) LTL   $ 15.73   $ 15.42   2.0          
    TL   $ 5.50   $ 5.93   (7.2 )        
                               
Revenue/shipment (2) LTL   $ 176.45   $ 176.02   0.2          
    TL   $ 775.05   $ 830.27   (6.7 )        
                               
Pounds/shipment LTL     1,121     1,141   (1.7 )        
    TL     14,090     14,012   0.6          
                               
Length of Haul       786     778   1.0          
                               
                               
(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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