SOURCE: Saia, Inc.

Saia, Inc.

October 28, 2015 07:30 ET

Saia Reports Third Quarter Earnings per Share of $0.46

JOHNS CREEK, GA--(Marketwired - Oct 28, 2015) - 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 2015 results. 

Third Quarter 2015 Compared to Third Quarter 2014 Results

  • Revenues were $317 million, a 4.6% decrease
  • Operating income decreased 27% to $19.8 million
  • Diluted earnings per share were $0.46 compared to $0.64
  • Operating ratio of 93.7 compared to 91.8
  • LTL shipments were down 4.2% and LTL tonnage declined 6.7%
  • LTL revenue per hundredweight increased 2.2% despite the impact of lower year-over-year fuel surcharges

"Our disappointing third quarter results were primarily the result of declining tonnage trends during the quarter, which made it difficult to offset higher investments in driver wages. Additionally, we incurred increased expenses associated with self-insurance claims. In this type of volume environment we will more aggressively manage costs and maintain a constant focus on mix management to ensure that proper compensatory pricing is in place," said Saia President and Chief Executive Officer, Rick O'Dell.

"Despite the negative year-over-year earnings results, we improved pricing and LTL yield for the 21st consecutive quarter. Our level of service remains excellent at 98% on-time and we further improved our cargo claims results in the quarter," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $81.2 million at September 30, 2015 and inclusive of the $4.5 million of cash on-hand, net debt to total capital was 15.6% 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 nine months of the year were $92.1 million including equipment acquired with capital leases and excluding our acquisition of LinkEx in February. This compares to $85.5 million spent in the first nine months 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 888-401-4669 or 719-325-2472 referencing conference ID #6997115. 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, 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 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, general economic conditions including downturns in the business cycle; effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; the creditworthiness of our customers and their ability to pay for services; failure to achieve acquisition synergies; failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; 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 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, Homeland Security, environmental regulations and the Food and Drug Administration; changes in interpretation of accounting principles; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of healthcare reform legislation; social media risks; cyber security 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)  
             
    September 30, 2015     December 31, 2014  
ASSETS                
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 4,540     $ 4,367  
  Accounts receivable, net     139,041       128,367  
  Prepaid expenses and other     42,156       56,902  
    Total current assets     185,737       189,636  
                 
PROPERTY AND EQUIPMENT:                
  Cost     975,874       891,145  
  Less: accumulated depreciation     443,330       407,505  
    Net property and equipment     532,544       483,640  
OTHER ASSETS     32,706       13,169  
    Total assets   $ 750,987     $ 686,445  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 59,504     $ 42,388  
  Wages and employees' benefits     32,463       28,777  
  Other current liabilities     50,495       50,176  
  Current portion of long-term debt     12,031       9,138  
    Total current liabilities     154,493       130,479  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     69,163       73,897  
  Deferred income taxes     77,775       78,406  
  Claims, insurance and other     35,728       36,757  
    Total other liabilities     182,666       189,060  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     25       25  
  Additional paid-in capital     228,015       223,713  
  Deferred compensation trust     (3,198 )     (2,189 )
  Retained earnings     188,986       145,357  
    Total stockholders' equity     413,828       366,906  
    Total liabilities and stockholders' equity   $ 750,987     $ 686,445  
                 
                 
                 
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Nine Months Ended September 30, 2015 and 2014  
(Amounts in thousands, except per share data)  
(Unaudited)  
           
    Third Quarter   Nine Months  
    2015   2014   2015     2014  
OPERATING REVENUE   $ 317,199   $ 332,544   $ 933,701     $ 962,673  
                             
OPERATING EXPENSES:                            
  Salaries, wages and employees' benefits     177,623     166,353     505,817       476,779  
  Purchased transportation     19,314     27,479     57,212       77,396  
  Fuel, operating expenses and supplies     65,122     80,206     201,432       241,441  
  Operating taxes and licenses     9,258     9,033     27,765       27,001  
  Claims and insurance     9,146     6,956     20,344       30,651  
  Depreciation and amortization     16,765     15,336     48,525       44,264  
  Operating loss, net     126     32     247       20  
    Total operating expenses     297,354     305,395     861,342       897,552  
                             
OPERATING INCOME     19,845     27,149     72,359       65,121  
                             
NONOPERATING EXPENSES:                            
  Interest expense     1,033     1,064     3,126       3,557  
  Other, net     46     16     (19 )     (49 )
    Nonoperating expenses, net     1,079     1,080     3,107       3,508  
                             
INCOME BEFORE INCOME TAXES     18,766     26,069     69,252       61,613  
Income tax expense     6,989     9,791     25,623       23,191  
NET INCOME   $ 11,777   $ 16,278   $ 43,629     $ 38,422  
                             
Average common shares outstanding - basic     24,963     24,527     24,901       24,465  
Average common shares outstanding - diluted     25,555     25,505     25,525       25,436  
                             
Basic earnings per share   $ 0.47   $ 0.66   $ 1.75     $ 1.57  
Diluted earnings per share   $ 0.46   $ 0.64   $ 1.71     $ 1.51  
                             
                             
                             
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Nine Months Ended September 30, 2015 and 2014  
(Amounts in thousands)  
(Unaudited)  
    Nine Months  
    2015     2014  
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 114,038     $ 92,017  
    Net cash provided by operating activities     114,038       92,017  
                 
INVESTING ACTIVITIES:                
  Acquisition of business     (22,238 )     -  
  Acquisition of property and equipment     (68,835 )     (79,773 )
  Proceeds from disposal of property and equipment     665       2,590  
    Net cash used in investing activities     (90,408 )     (77,183 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (3,571 )     (3,571 )
  Repayment of revolving credit agreement, net     (20,000 )     (8,317 )
  Proceeds from stock option exercises     2,816       4,159  
  Other financing activities     (2,702 )     (20 )
    Net cash used in financing activities     (23,457 )     (7,749 )
                 
NET INCREASE IN CASH AND CASH EQUIVALENTS     173       7,085  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     4,367       159  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 4,540     $ 7,244  
                 
NON-CASH ITEMS:                
  Acquisition of property and equipment financed with capital leases   $ 23,979     $ 8,328  
                 
                 
                 
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended September 30, 2015 and 2014  
(Unaudited)  
                                     
                          Third Quarter      
        Third Quarter     %     Amount/Workday   %  
        2015     2014     Change     2015   2014   Change  
Workdays                             64   64      
                                         
Operating ratio         93.7 %     91.8 %                    
                                         
Tonnage (1)   LTL     940       1,008     (6.7 )   14.68   15.75   (6.8 )
    TL     188       215     (12.6 )   2.93   3.36   (12.8 )
                                         
Shipments (1)   LTL     1,658       1,730     (4.2 )   25.91   27.03   (4.1 )
    TL     27       31     (12.6 )   0.42   0.48   (12.5 )
                                         
Revenue/cwt. (2)   LTL   $ 15.51     $ 15.17     2.2                
    TL   $ 5.87     $ 5.95     (1.3 )              
                                         
Revenue/shipment (2)   LTL   $ 175.77     $ 176.71     (0.5 )              
    TL   $ 820.00     $ 831.69     (1.4 )              
                                         
Pounds/shipment   LTL     1,134       1,165     (2.7 )              
    TL     13,967       13,978     (0.1 )              
                                         
Length of Haul         773       766     0.9                
 
(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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