SOURCE: Saia, Inc.

Saia, Inc.

July 30, 2014 07:30 ET

Saia Reports Second Quarter Earnings per Share of $0.53

Revenues Rose 12.9% on 6.9% LTL Tonnage Growth

JOHNS CREEK, GA--(Marketwired - Jul 30, 2014) - 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 2014 results. Despite favorable tonnage trends and improving yield, the operating results were negatively impacted by adverse claims and insurance experience.

Second Quarter 2014 Compared to Second Quarter 2013 Results

  • Revenues were $330 million, an increase of 12.9%
  • LTL tonnage increased 6.9% as LTL shipments were up 5.5% with a 1.4% increase in weight per shipment
  • Operating income decreased to $22.7 million compared to $23.3 million
  • Operating ratio was 93.1 compared to 92.0
  • Diluted earnings per share were $0.53 compared to $0.54
  • Claims and insurance expense was $8.3 million higher than the second quarter last year due primarily to accident severity.

"The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved. LTL yield improved 4.9%, reflective of our customers' recognition of the value proposition Saia provides," said Saia President and Chief Executive Officer, Rick O'Dell.

"The 12.9% second quarter revenue increase was the highest that we have achieved at Saia in seven years. The top line growth driven by last year's investment in sales and marketing resources coupled with effective yield management provided the opportunity to overcome a capacity constrained environment which significantly increased costs for driver recruiting, training and purchased transportation. This revenue momentum combined with our focus on service and operational excellence positions Saia well to capitalize on the unique market dynamics we are currently experiencing to improve customer and shareholder value in the future," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $95.7 million at June 30, 2014 resulting in net debt to total capital of 22.1%. This compares to total debt of $99.0 million and net debt to total capital of 25.5% at the end of last year's second quarter.

Net capital expenditures in the first half of 2014 were $67 million compared to $71 million in the first half of 2013. The Company currently projects net capital expenditures for the full year of approximately $110 million. In July, Saia began taking delivery of some of the 800 additional linehaul trailers that will be put in service this year and provide additional capacity.

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 888-427-9376 or 719-457-2085 referencing conference ID #6869513. 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 5, 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)  
           
  June 30,     December 31,  
  2014     2013  
ASSETS      
               
CURRENT ASSETS:              
  Cash and cash equivalents $ 1,788     $ 159  
  Accounts receivable, net   148,850       117,937  
  Prepaid expenses and other   43,877       52,157  
    Total current assets   194,515       170,253  
               
PROPERTY AND EQUIPMENT:              
  Cost   863,193       797,527  
  Less: accumulated depreciation   389,041       365,301  
    Net property and equipment   474,152       432,226  
               
OTHER ASSETS   14,024       14,322  
    Total assets $ 682,691     $ 616,801  
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
               
CURRENT LIABILITIES:              
  Accounts payable $ 62,885     $ 50,799  
  Wages and employees' benefits   34,502       35,248  
  Other current liabilities   48,922       47,667  
  Current portion of long-term debt   7,143       7,143  
    Total current liabilities   153,452       140,857  
               
OTHER LIABILITIES:              
  Long-term debt, less current portion   88,597       69,740  
  Deferred income taxes   68,472       69,916  
  Claims, insurance and other   41,932       31,496  
    Total other liabilities   199,001       171,152  
               
STOCKHOLDERS' EQUITY:              
  Common stock   25       24  
  Additional paid-in capital   216,926       213,648  
  Deferred compensation trust   (2,223 )     (2,246 )
  Retained earnings   115,510       93,366  
    Total stockholders' equity   330,238       304,792  
    Total liabilities and stockholders' equity $ 682,691     $ 616,801  
                   
                   
                   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Six Months Ended June 30, 2014 and 2013  
(Amounts in thousands, except per share data)  
(Unaudited)  
                 
  Second Quarter     Six Months  
  2014     2013     2014     2013  
                               
OPERATING REVENUE $ 330,399     $ 292,557     $ 630,129     $ 566,352  
                               
OPERATING EXPENSES:                              
  Salaries, wages and employees' benefits   160,204       144,309       310,426       281,163  
  Purchased transportation   27,926       19,338       49,917       36,109  
  Fuel, operating expenses and supplies   81,276       78,154       161,235       157,156  
  Operating taxes and licenses   8,993       9,330       17,968       18,909  
  Claims and insurance   14,177       5,883       23,695       11,478  
  Depreciation and amortization   15,087       12,386       28,928       24,020  
  Operating gains, net   (5 )     (102 )     (12 )     (274 )
    Total operating expenses   307,658       269,298       592,157       528,561  
                               
OPERATING INCOME   22,741       23,259       37,972       37,791  
                               
NONOPERATING EXPENSES:                              
  Interest expense   1,177       1,618       2,493       3,146  
  Other, net   (35 )     (29 )     (65 )     (95 )
    Nonoperating expenses, net   1,142       1,589       2,428       3,051  
                               
                               
INCOME BEFORE INCOME TAXES   21,599       21,670       35,544       34,740  
Income tax expense   8,031       8,170       13,400       12,085  
NET INCOME $ 13,568     $ 13,500     $ 22,144     $ 22,655  
                               
Average common shares outstanding - basic   24,484       24,163       24,434       24,073  
Average common shares outstanding - diluted   25,447       25,218       25,396       25,123  
                               
Basic earnings per share $ 0.55     $ 0.56     $ 0.91     $ 0.94  
                               
Diluted earnings per share $ 0.53     $ 0.54     $ 0.87     $ 0.90  
                               
                               
                               
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Six Months Ended June 30, 2014 and 2013  
(Amounts in thousands)  
(Unaudited)  
  Six Months  
  2014     2013  
               
OPERATING ACTIVITIES:              
Net cash provided by operating activities $ 46,875     $ 31,982  
    Net cash provided by operating activities   46,875       31,982  
               
INVESTING ACTIVITIES:              
  Acquisition of property and equipment   (67,077 )     (72,092 )
  Proceeds from disposal of property and equipment   421       1,273  
    Net cash used in investing activities   (66,656 )     (70,819 )
               
FINANCING ACTIVITIES:              
  Repayment of long-term debt   (3,571 )     (11,071 )
  Borrowings of revolving credit agreement, net   22,422       49,386  
  Proceeds from stock option exercises   2,559       3,659  
  Other financing activities   -       (586 )
    Net cash provided by financing activities   21,410       41,388  
               
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   1,629       2,551  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   159       321  
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,788     $ 2,872  
               
               
               
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2014 and 2013
(Unaudited)
                                 
                  Second Quarter    
      Second Quarter     %     Amount/Workday   %
      2014     2013     Change     2014   2013   Change
                                     
Workdays                           64   64    
                                     
Operating Ratio (1)       93.1 %     92.0 %                  
                                     
                                     
Tonnage (2)   LTL   1,021       955     6.9     15.96   14.92   6.9
    TL   228       178     28.1     3.56   2.78   28.1
                                     
Shipments (2)   LTL   1,732       1,642     5.5     27.07   25.65   5.5
    TL   33       26     25.9     0.51   0.40   25.9
                                     
Revenue/cwt. (3)   LTL $ 14.85     $ 14.16     4.9              
    TL $ 5.70     $ 5.84     (2.4 )            
                                     
Revenue/shipment (3)   LTL $ 175.09     $ 164.68     6.3              
    TL $ 798.13     $ 804.16     (0.7 )            
                                     
Pounds/shipment   LTL   1,179       1,163     1.4              
    TL   14,000       13,763     1.7              
                                     
Length of Haul       759       743     2.2              
   
(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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