SOURCE: Saia, Inc.

Saia, Inc.

July 27, 2012 07:30 ET

Saia Reports Second Quarter Earnings per Share of $0.72

Revenues Were $288 Million, an Increase of 8 Percent From Prior Year Quarter

JOHNS CREEK, GA--(Marketwire - Jul 27, 2012) - Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported improved second quarter 2012 results on stronger revenue, improved pricing fundamentals and operational efficiencies.

Second Quarter 2012 Compared to Second Quarter 2011 Results

  • Revenues were $288 million, an increase of 8.1 percent
  • Operating income increased 157 percent to $21.2 million compared to $8.3 million
  • Earnings per share were $0.72 vs. $0.21
  • Operating ratio was 92.6 vs. 96.9
  • LTL tonnage increased by 1.1 percent as LTL shipments per workday were down 2.1 percent with a 3.3 percent increase in weight per shipment
  • LTL yield was up 7.1 percent due to the favorable impact of pricing actions

"I am pleased with the contributions on many fronts that resulted in a 430 basis point improvement in our operating ratio for the quarter. Saia's excellent service quality, continued progress with yield and focus on operational excellence were key contributors to our margin improvement. Supported by the recovery in the transportation market, we continue to advance our value proposition with investments in quality and refinements in pricing," said Rick O'Dell, president and chief executive officer.

"Saia again consistently delivered 98 percent on-time service and we saw progress in essentially every quality metric we measure. Safety and cargo claim reduction programs also produced positive results and contributed to favorable quarterly comparisons. Our industrial engineering initiatives and operational efficiencies have reduced our reliance on purchased transportation, enhanced fuel efficiency and reduced our self insurance costs. The quarter included higher costs from wage and benefits increases necessary to support our workforce as well as higher depreciation expense from investments in our fleet and technology to meet increasing customer and regulatory requirements," continued O'Dell.

"Saia's balance sheet is strong and our investments in technology and equipment continue to support operational efficiencies and enhance our company image. I believe that our fundamental execution on quality, yield management and optimization initiatives has never been better and provides Saia with a sound foundation for further progress," O'Dell said.

Year to Date 2012 Compared to Year to Date 2011 Results

  • Revenues were $556 million compared to $509 million in the prior year period, an increase of 9.3 percent
  • Operating income was $32.2 million compared to $12.3 million in the prior year period
  • Net income was $17.4 million compared to $4.1 million in the prior year period
  • Earnings per share were $1.06 compared to $0.25 in the prior year period
  • Operating ratio was 94.2 vs. 97.6 in the prior year period

Financial Position and Capital Expenditures
Total debt was $90.7 million at June 30, 2012. Net of the Company's $0.8 million cash balance at quarter-end, net debt to total capital was 27.4 percent. This compares to total debt of $81.4 million and net debt to total capital of 25.1 percent in the prior year quarter.

Net capital expenditures for the first six months of 2012 were $69.3 million. This compares to $20.6 million in the prior year period. The Company is planning net capital expenditures in 2012 of approximately $80.0 million. This expenditure level reflects replacement tractors and trailers and the Company's continued investment in technology.

Conference Call
The Company will hold a conference call to discuss these results today at 10:00 a.m. Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-888-523-1245 or dial 719-325-2394 for international calls and use conference ID #4471158. Callers should dial in five minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through August 5, 2012. The replay is available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

Saia, Inc. (NASDAQ: SAIA) is a leading, less-than-truckload ("LTL") provider of regional, interregional and guaranteed services covering 34 states with truckload brokerage and value-added logistics services. Headquartered in Georgia, the carrier employs 8,200 people. For more information, please visit the Investor Relations section of the website at www.saia.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; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; 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 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 Subsidiary  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
(Unaudited)  
             
    June 30,     December 31,  
    2012     2011  
ASSETS        
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 826     $ 1,317  
  Accounts receivable, net     123,697       107,436  
  Prepaid expenses and other     27,169       34,063  
    Total current assets     151,692       142,816  
                 
PROPERTY AND EQUIPMENT:                
  Cost     718,956       669,345  
  Less: accumulated depreciation     346,762       344,890  
    Net property and equipment     372,194       324,455  
                 
OTHER ASSETS     7,978       7,615  
    Total assets   $ 531,864     $ 474,886  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 49,033     $ 39,783  
  Wages and employees' benefits     31,345       21,185  
  Other current liabilities     39,359       41,237  
  Current portion of long-term debt     22,143       22,143  
    Total current liabilities     141,880       124,348  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     68,588       50,714  
  Deferred income taxes     53,158       51,289  
  Claims, insurance and other     30,042       29,234  
    Total other liabilities     151,788       131,237  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     16       16  
  Additional paid-in capital     205,368       203,793  
  Deferred compensation trust     (2,265 )     (2,199 )
  Retained earnings     35,077       17,691  
    Total stockholders' equity     238,196       219,301  
    Total liabilities and stockholders' equity   $ 531,864     $ 474,886  
                     
                     
   
Saia, Inc. and Subsidiary  
Consolidated Statements of Operations  
For the Quarters and Six Months Ended June 30, 2012 and 2011  
(Amounts in thousands, except per share data)  
(Unaudited)  
                   
    Second Quarter     Six Months  
    2012     2011     2012     2011  
                                 
OPERATING REVENUE   $ 287,538     $ 265,901     $ 556,228     $ 508,919  
                                 
OPERATING EXPENSES:                                
  Salaries, wages and employees' benefits     140,239       130,669       271,939       253,409  
  Purchased transportation     21,052       24,653       40,361       45,719  
  Fuel, operating expenses and supplies     77,354       76,186       156,751       146,127  
  Operating taxes and licenses     9,750       9,600       19,616       18,957  
  Claims and insurance     6,102       7,836       12,276       15,088  
  Depreciation and amortization     11,951       8,803       23,366       17,376  
  Operating gains, net     (102 )     (102 )     (321 )     (103 )
    Total operating expenses     266,346       257,645       523,988       496,573  
                                 
OPERATING INCOME     21,192       8,256       32,240       12,346  
                                 
NONOPERATING EXPENSES:                                
  Interest expense     2,195       2,955       4,159       5,953  
  Other, net     (3 )     (19 )     (98 )     (110 )
    Nonoperating expenses, net     2,192       2,936       4,061       5,843  
                                 
                                 
INCOME BEFORE INCOME TAXES     19,000       5,320       28,179       6,503  
Income tax expense     7,149       1,962       10,793       2,432  
NET INCOME   $ 11,851     $ 3,358     $ 17,386     $ 4,071  
                                 
Average common shares outstanding - basic     15,885       15,791       15,859       15,780  
Average common shares outstanding - diluted     16,514       16,188       16,472       16,167  
                                 
Basic earnings per share   $ 0.75     $ 0.21     $ 1.10     $ 0.26  
                                 
Diluted earnings per share   $ 0.72     $ 0.21     $ 1.06     $ 0.25  
                                 
                                 
   
Saia, Inc. and Subsidiary  
Condensed Consolidated Statements of Cash Flows  
For the Six Months Ended June 30, 2012 and 2011  
(Amounts in thousands)  
(Unaudited)  
    Six Months  
    2012     2011  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 50,326     $ 10,711  
    Net cash provided by operating activities     50,326       10,711  
                 
INVESTING ACTIVITIES:                
  Acquisition of property and equipment     (71,442 )     (20,893 )
  Proceeds from disposal of property and equipment     2,138       275  
    Net cash used in investing activities     (69,304 )     (20,618 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (11,071 )     (8,571 )
  Borrowings of revolving credit agreement, net     28,945       -  
  Proceeds from stock option exercises     613       149  
    Net cash provided by (used in) financing activities     18,487       (8,422 )
                 
NET DECREASE IN CASH AND CASH EQUIVALENTS     (491 )     (18,329 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     1,317       29,045  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 826     $ 10,716  
                 
                 
   
Saia, Inc. and Subsidiary  
Financial Information  
For the Quarters Ended June 30, 2012 and 2011  
(Amounts in thousands)  
(Unaudited)  
                                     
                  SecondQuarter      
        Second Quarter     %     Amount/Workday   %  
        2012     2011     Change     2012   2011   Change  
                                     
Workdays                         64   64      
                                     
Operating ratio       92.6 %   96.9 %                    
                                     
F/S Revenue   LTL   266,144     245,530     8.4     4,158.5   3,836.4   8.4  
    TL   21,394     20,371     5.0     334.3   318.3   5.0  
    Total   287,538     265,901     8.1     4,492.8   4,154.7   8.1  
                                     
Revenue excluding   LTL   265,974     245,601     8.3     4,155.8   3,837.5   8.3  
revenue recognition   TL   21,379     20,377     4.9     334.1   318.4   4.9  
adjustment   Total   287,353     265,978     8.0     4,489.9   4,155.9   8.0  
                                     
Tonnage   LTL   970     959     1.1     15.16   14.99   1.1  
    TL   193     189     2.4     3.02   2.95   2.4  
    Total   1,163     1,148     1.3     18.18   17.94   1.3  
                                     
Shipments   LTL   1,656     1,691     (2.1 )   25.87   26.42   (2.1 )
    TL   28     27     2.8     0.43   0.42   2.8  
    Total   1,684     1,718     (2.0 )   26.31   26.84   (2.0 )
                                     
Revenue/cwt.   LTL   13.71     12.80     7.1                
    TL   5.53     5.39     2.5                
    Total   12.35     11.58     6.6                
                                     
Revenue/shipment   LTL   160.62     145.24     10.6                
    TL   771.04     755.80     2.0                
    Total   170.68     154.82     10.2                
                                     
Pounds/shipment   LTL   1,172     1,134     3.3                
    TL   13,946     14,013     (0.5 )              
    Total   1,382     1,337     3.4                
                                     
                                     

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