SOURCE: Saia, Inc.

Saia, Inc.

October 30, 2013 07:30 ET

Saia Reports Third Quarter Earnings per Share of $0.51

Revenues Were $293 Million With Operating Income Increasing 34%

JOHNS CREEK, GA--(Marketwired - Oct 30, 2013) -  Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported improved third quarter 2013 results driven by effective revenue management and operational efficiencies. All prior period share and per share data in this release have been adjusted to reflect the Company's June 2013 three for two stock split.

Third Quarter 2013 Compared to Third Quarter 2012 Results

  • Revenues were $293 million, an increase of 5.4 percent
  • Operating income increased 34 percent to $21.9 million compared to $16.4 million
  • Earnings per share were $0.51 compared to $0.37
  • Operating ratio was 92.5 compared to 94.1
  • LTL tonnage per workday decreased 0.1 percent as LTL shipments per workday were up 0.6 percent with a 0.7 percent decrease in weight per shipment
  • LTL yield was up 3.8 percent

"Saia continues to advance our value proposition in the marketplace through investments in quality and the consistent, superior customer service we provide. These efforts have fueled another quarter of meaningful yield increase which combined with efficiency initiatives led us to a 37% increase in earnings per share," said Saia President and Chief Executive Officer Rick O'Dell.

"The infusion of new equipment into our network and our planned industrial engineering initiatives are continuing to result in cost reductions, particularly in linehaul miles driven and fuel efficiency. The quarter did include increased wage, health care and depreciation expense due to investments in employees, equipment and technology to support customer satisfaction. Saia's dedicated employees provided 98% on-time service for the eighth consecutive quarter and quality initiatives further reduced our cargo claim ratio. I believe the Company's strong balance sheet, effective revenue management and demonstrated operational excellence provide a solid foundation for additional progress as we move forward," O'Dell concluded.

Year to Date 2013 Compared to Year to Date 2012 Results

  • Revenues were $859 million compared to $834 million
  • Operating income was $59.7 million compared to $48.7 million
  • Net income was $35.6 million compared to $26.6 million
  • Earnings per share were $1.41 compared to $1.07
  • Operating ratio was 93.1 compared to 94.2

Financial Position and Capital Expenditures
Total debt was $91.5 million at September 30, 2013. Net of the Company's $4.1 million cash balance at quarter-end, net debt to total capital was 22.9 percent. This compares to total debt of $81.2 million and net debt to total capital of 24.5 percent in the prior year quarter.

Net capital expenditures for the first nine months of 2013 were $97.7 million. This compares to $79.3 million in the prior year period. The Company is now planning net capital expenditures in 2013 of approximately $115 million. This expenditure includes a significant investment in tractors and trailers to reduce the average age of our fleet and the Company's continued investment in technology.

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 888-417-8533 or 719-457-2085 referencing conference ID #6722348. 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 5, 2013 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; 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 Subsidiaries  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
(Unaudited)  
             
    September 30,     December 31,  
    2013     2012  
ASSETS        
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 4,060     $ 321  
  Accounts receivable, net     127,542       106,814  
  Prepaid expenses and other     37,551       37,028  
    Total current assets     169,153       144,163  
                 
PROPERTY AND EQUIPMENT:                
  Cost     787,677       718,527  
  Less: accumulated depreciation     365,798       356,823  
    Net property and equipment     421,879       361,704  
                 
OTHER ASSETS     14,643       13,821  
    Total assets   $ 605,675     $ 519,688  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 48,974     $ 43,706  
  Wages and employees' benefits     35,338       30,842  
  Other current liabilities     44,286       44,609  
  Current portion of long-term debt     14,643       22,143  
    Total current liabilities     143,241       141,300  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     76,863       38,562  
  Deferred income taxes     59,514       55,611  
  Claims, insurance and other     31,215       29,696  
    Total other liabilities     167,592       123,869  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     24       24  
  Additional paid-in capital     211,762       206,969  
  Deferred compensation trust     (2,246 )     (2,213 )
  Retained earnings     85,302       49,739  
  Total stockholders' equity     294,842       254,519  
    Total liabilities and stockholders' equity   $ 605,675     $ 519,688  
                 
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Nine Months Ended September 30, 2013 and 2012  
(Amounts in thousands, except per share data)  
(Unaudited)  
                   
    Third Quarter     Nine Months  
    2013     2012     2013     2012  
                                 
OPERATING REVENUE   $ 293,087     $ 278,024     $ 859,439     $ 834,252  
                                 
OPERATING EXPENSES:                                
  Salaries, wages and employees' benefits     147,305       138,532       428,468       410,471  
  Purchased transportation     18,914       18,810       55,023       59,171  
  Fuel, operating expenses and supplies     75,803       76,461       232,959       233,212  
  Operating taxes and licenses     9,074       9,445       27,983       29,061  
  Claims and insurance     6,607       6,133       18,085       18,409  
  Depreciation and amortization     13,745       12,315       37,765       35,681  
  Operating gains, net     (296 )     (88 )     (570 )     (409 )
    Total operating expenses     271,152       261,608       799,713       785,596  
                                 
OPERATING INCOME     21,935       16,416       59,726       48,656  
                                 
NONOPERATING EXPENSES:                                
  Interest expense     1,760       1,941       4,906       6,100  
  Other, net     (85 )     (44 )     (180 )     (142 )
    Nonoperating expenses, net     1,675       1,897       4,726       5,958  
                                 
                                 
INCOME BEFORE INCOME TAXES     20,260       14,519       55,000       42,698  
Income tax expense     7,352       5,263       19,437       16,056  
NET INCOME   $ 12,908     $ 9,256     $ 35,563     $ 26,642  
                                 
Average common shares outstanding - basic     24,220       23,850       24,123       23,810  
Average common shares outstanding - diluted     25,269       24,863       25,173       24,794  
                                 
Basic earnings per share   $ 0.53     $ 0.39     $ 1.47     $ 1.12  
                                 
Diluted earnings per share   $ 0.51     $ 0.37     $ 1.41     $ 1.07  
                                 
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Nine Months Ended September 30, 2013 and 2012  
(Amounts in thousands)  
(Unaudited)  
    Nine Months  
    2013     2012  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 67,557     $ 77,425  
    Net cash provided by operating activities     67,557       77,425  
                 
INVESTING ACTIVITIES:                
  Acquisition of property and equipment     (100,799 )     (81,888 )
  Proceeds from disposal of property and equipment     3,058       2,609  
  Acquisition, net of cash     -       (7,616 )
    Net cash used in investing activities     (97,741 )     (86,895 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (11,071 )     (11,071 )
  Borrowings of revolving credit agreement, net     41,872       19,391  
  Proceeds from stock option exercises     3,708       637  
  Other financing activities     (586 )     -  
    Net cash provided by financing activities     33,923       8,957  
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     3,739       (513 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     321       1,317  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 4,060     $ 804  
                 
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended September 30, 2013 and 2012  
(Unaudited)  
                               
            Third Quarter      
        Third Quarter   %   Amount/Workday   %  
        2013   2012   Change   2013   2012   Change  
                                   
Workdays                       64   63      
                                   
Operating Ratio (1)         92.5 %   94.1 %                
                                   
                                   
Tonnage (2)   LTL     932     918   1.5   14.56   14.57   (0.1 )
    TL     178     176   1.1   2.78   2.79   (0.4 )
                                   
Shipments (2)   LTL     1,608     1,574   2.2   25.13   24.98   0.6  
    TL     26     25   2.4   0.40   0.40   0.8  
                                   
Revenue/cwt. (3)   LTL   $ 14.54   $ 14.00   3.8              
    TL   $ 5.89   $ 5.71   3.2              
                                   
Revenue/shipment (3)   LTL   $ 168.43   $ 163.32   3.1              
    TL   $ 808.48   $ 793.48   1.9              
                                   
Pounds/shipment   LTL     1,159     1,167   (0.7 )            
    TL     13,719     13,896   (1.3 )            
                                   
Length of Haul         742     727   2.0              
   
(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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