SOURCE: Saia, Inc.

Saia, Inc.

October 26, 2016 07:30 ET

Saia Reports Third Quarter Earnings per Share of $0.54

JOHNS CREEK, GA--(Marketwired - Oct 26, 2016) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported third quarter 2016 financial results.

Third Quarter 2016 Compared to Third Quarter 2015 Results

  • Revenue declined by 0.2% to $316 million
  • LTL shipments per workday declined by 1.2%
  • LTL tonnage per workday fell by 2.9%
  • LTL yield increased 3.7%
  • Operating ratio of 92.8 compared to 93.7
  • Operating income increased 14.1% to $22.6 million
  • Net income increased 17.4% to $13.8 million
  • Diluted earnings per share were $0.54 compared to $0.46

"Third quarter operating results reflect our continued pricing discipline and our company-wide efforts aimed at achieving operating efficiencies across all areas of our network. In the quarter we saw year-over-year improvements in dock, city and linehaul productivity," said Saia President and Chief Executive Officer, Rick O'Dell. "The combination of improved productivity with continued positive pricing actions enabled us to post a 90 basis point improvement in our operating ratio in the third quarter compared to third quarter last year. Rates increased an average of 5.7% on contractual renewals in the quarter and in early October we implemented a general rate increase of 4.9%," O'Dell added.

"Though the economic environment continues to offer only tepid growth, I was encouraged to see our LTL shipment trend turn positive in September for the first time since February," O'Dell concluded.

Financial Position and Capital Expenditures
Total debt was $94.2 million at September 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 16.6% compared to 15.6% at September 30, 2015. Net capital expenditures, including equipment financed with capital leases, in the year-to-date period through September were $142.5 million compared to $114.4 million in the first nine months of 2015.

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 800-499-4035 or 416-204-9269 referencing conference ID #3198861. 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 December 21, 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)  
             
    September 30, 2016     December 31, 2015  
ASSETS                
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 789     $ 124  
  Accounts receivable, net     143,461       124,222  
  Prepaid expenses and other     22,152       34,643  
    Total current assets     166,402       158,989  
                 
PROPERTY AND EQUIPMENT:                
  Cost     1,104,495       995,514  
  Less: accumulated depreciation     492,577       456,335  
  Net property and equipment     611,918       539,179  
OTHER ASSETS     30,292       31,025  
    Total assets   $ 808,612     $ 729,193  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 48,129     $ 54,754  
  Wages and employees' benefits     38,277       27,834  
  Other current liabilities     50,300       46,360  
  Current portion of long-term debt     16,695       12,432  
    Total current liabilities     153,401       141,380  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     77,543       56,540  
  Deferred income taxes     74,091       67,417  
  Claims, insurance and other     34,687       35,967  
    Total other liabilities     186,321       159,924  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     25       25  
  Additional paid-in capital     234,045       230,593  
  Deferred compensation trust     (3,229 )     (3,102 )
  Retained earnings     238,049       200,373  
    Total stockholders' equity     468,890       427,889  
    Total liabilities and stockholders' equity   $ 808,612     $ 729,193  
                 
                 
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Nine Months Ended September 30, 2016 and 2015  
(Amounts in thousands, except per share data)  
(Unaudited)  
           
    Third Quarter   Nine Months  
    2016     2015   2016     2015  
OPERATING REVENUE   $ 316,442     $ 317,199   $ 918,258     $ 933,701  
                               
OPERATING EXPENSES:                              
  Salaries, wages and employees' benefits     178,687       177,623     524,877       505,817  
  Purchased transportation     15,657       19,314     42,439       57,212  
  Fuel, operating expenses and supplies     59,345       65,122     172,411       201,432  
  Operating taxes and licenses     10,061       9,258     30,227       27,765  
  Claims and insurance     9,988       9,146     28,949       20,344  
  Depreciation and amortization     19,927       16,765     56,910       48,525  
  Operating loss, net     133       126     496       247  
    Total operating expenses     293,798       297,354     856,309       861,342  
                               
OPERATING INCOME     22,644       19,845     61,949       72,359  
                               
NONOPERATING EXPENSES (INCOME):                              
  Interest expense     1,183       1,033     3,410       3,126  
  Other, net     (104 )     46     (147 )     (19 )
    Nonoperating expenses, net     1,079       1,079     3,263       3,107  
                               
INCOME BEFORE INCOME TAXES     21,565       18,766     58,686       69,252  
Income tax expense     7,739       6,989     21,010       25,623  
NET INCOME   $ 13,826     $ 11,777   $ 37,676     $ 43,629  
                               
Average common shares outstanding - basic     25,038       24,963     25,022       24,901  
Average common shares outstanding - diluted     25,658       25,555     25,625       25,525  
                               
Basic earnings per share   $ 0.55     $ 0.47   $ 1.51     $ 1.75  
Diluted earnings per share   $ 0.54     $ 0.46   $ 1.47     $ 1.71  
                               
                               
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Nine Months Ended September 30, 2016 and 2015  
(Amounts in thousands)  
(Unaudited)  
    Nine Months  
    2016     2015  
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 117,659     $ 114,038  
    Net cash provided by operating activities     117,659       114,038  
                 
INVESTING ACTIVITIES:                
  Acquisition of business, net of cash received     -       (22,238 )
  Acquisition of property and equipment     (108,871 )     (68,835 )
  Proceeds from disposal of property and equipment     1,046       665  
    Net cash used in investing activities     (107,825 )     (90,408 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (3,571 )     (3,571 )
  Borrowing of revolving credit agreement, net     (35 )     (20,000 )
  Proceeds from stock option exercises     248       2,816  
  Other financing activity     (5,811 )     (2,702 )
    Net cash used in financing activities     (9,169 )     (23,457 )
                 
NET INCREASE IN CASH AND CASH EQUIVALENTS     665       173  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     124       4,367  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 789     $ 4,540  
                 
NON-CASH ITEMS:                
  Equipment financed with capital leases   $ 34,683     $ 23,979  
                 
                 
                 
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended September 30, 2016 and 2015  
(Unaudited)  
                                     
                          Third Quarter      
        Third Quarter     %     Amount/Workday   %  
        2016     2015     Change     2016   2015   Change  
Workdays                             64   64      
                                         
Operating ratio         92.8 %     93.7 %                    
                                         
Tonnage (1)   LTL     913       940     (2.9 )   14.26   14.68   (2.9 )
    TL     182       188     (2.9 )   2.85   2.93   (2.9 )
                                         
Shipments (1)   LTL     1,638       1,658     (1.2 )   25.59   25.91   (1.2 )
    TL     26       27     (4.7 )   0.40   0.42   (4.7 )
                                         
Revenue/cwt. (2)   LTL   $ 16.08     $ 15.51     3.7                
    TL   $ 5.51     $ 5.87     (6.2 )              
                                         
Revenue/shipment (2)   LTL   $ 179.17     $ 175.77     1.9                
    TL   $ 783.61     $ 820.00     (4.4 )              
                                         
Pounds/shipment   LTL     1,114       1,134     (1.7 )              
    TL     14,229       13,967     1.9                
                                         
Length of Haul (3)         789       773     2.1                
                                         
     
(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.
     
(3)   In miles

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