SOURCE: Saia, Inc.

Saia, Inc.

November 01, 2012 07:30 ET

Saia Reports Third Quarter Earnings per Share of $0.56

Revenues Were $278 Million and Earnings per Share Increased 87%

JOHNS CREEK, GA--(Marketwire - Nov 1, 2012) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering less-than-truckload, non-asset truckload, expedited and logistics services, today reported improved third quarter 2012 results on higher revenue, favorable pricing actions and operational efficiencies.

Third Quarter 2012 Compared to Third Quarter 2011 Results

  • Revenues were $278 million, an increase of 3.6 percent
  • Operating income increased 71 percent to $16.4 million compared to $9.6 million
  • Earnings per share were $0.56 vs. $0.30
  • Operating ratio was 94.1 vs. 96.4
  • Revenue per workday increased by 5.3 percent with one less workday in the third quarter of 2012
  • LTL tonnage per workday decreased by 1.6 percent
  • LTL yield was up 6.6 percent due to effective yield management and fuel surcharge revenue

"Saia's 230 basis point improvement in our operating ratio for the quarter demonstrates continued effective execution across a number of key initiatives. Saia's best-in-class service quality, strong yield results and focus on operational excellence were the primary drivers to our margin improvement. While recovery in the transportation market appears to be moderating, we continue to advance our value proposition through investments in quality and by providing consistent, superior customer service. Simultaneously, we remain committed to receiving fair compensation from all the shippers who value Saia's service quality," said Rick O'Dell, president and chief executive officer.

"Saia's Quality Matters initiative resulted in improvements in every major quality metric. Our dedicated associates again delivered 98 percent on-time service and achieved a 36 percent reduction in cargo claims. Implementation of our industrial engineering projects and improved operating efficiencies have reduced our reliance on purchased transportation, increased fuel efficiency and enhanced customer service. The quarter did include higher costs from wage increases and depreciation due to investments in employees, equipment and technology to meet increasing customer and regulatory requirements," continued O'Dell.

On July 2nd, Saia announced the acquisition of Robart Transportation, Inc. and its subsidiary (the Companies). The Companies, now rebranded as Saia TL Plus, Inc. and Saia Logistics Services, LLC., have provided customers with quality truckload, expedited and full service logistics solutions since 1981. 

"The acquisition supports our strategic goal of diversifying our service portfolio providing further growth opportunities over time," said O'Dell. "Expanded offerings combined with impressive execution on quality, yield management and optimization initiatives provide Saia with a clear course for long term profitable growth."

Year to Date 2012 Compared to Year to Date 2011 Results

  • Revenues were $834 million compared to $777 million in the prior year period, an increase of 7.3 percent
  • Operating income was $48.7 million compared to $22.0 million in the prior year period
  • Net income was $26.6 million compared to $8.9 million in the prior year period
  • Earnings per share were $1.61 compared to $0.55 in the prior year period
  • Operating ratio was 94.2 vs. 97.2 in the prior year period

Financial Position and Capital Expenditures
Total debt was $81.2 million at September 30, 2012. Net of the Company's $0.8 million cash balance at quarter-end, net debt to total capital was 24.5 percent. This compares to total debt of $81.4 million and net debt to total capital of 26.5 percent in the prior year quarter.

Net capital expenditures for the first nine months of 2012 were $79.3 million. This compares to $51.8 million in the prior year period. The Company is planning net capital expenditures in 2012 of approximately $83.0 million. This expenditure level reflects the purchase of 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 11:00 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 1-877-419-6603 or dial 719-325-4790 for international calls and use conference ID #8643130. 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 November 7, 2012 at 2:00 p.m. Eastern Time. 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) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. Saia LTL Freight operates 147 terminals in 34 states. With headquarters in Georgia, Saia employs 8,000 people. For more information on Saia, Inc. visit the Investor Relations section 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 Subsidiaries  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
(Unaudited)  
             
    September 30,     December 31,  
    2012     2011  
ASSETS        
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 804     $ 1,317  
  Accounts receivable, net     124,822       107,436  
  Prepaid expenses and other     31,115       34,063  
    Total current assets     156,741       142,816  
                 
PROPERTY AND EQUIPMENT:                
  Cost     722,128       669,345  
  Less: accumulated depreciation     353,328       344,890  
    Net property and equipment     368,800       324,455  
                 
OTHER ASSETS     16,721       7,615  
    Total assets   $ 542,262     $ 474,886  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 52,442     $ 39,783  
  Wages and employees' benefits     33,838       21,185  
  Other current liabilities     41,201       41,237  
  Current portion of long-term debt     22,143       22,143  
    Total current liabilities     149,624       124,348  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     59,034       50,714  
  Deferred income taxes     52,822       51,289  
  Claims, insurance and other     32,503       29,234  
    Total other liabilities     144,359       131,237  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     16       16  
  Additional paid-in capital     206,159       203,793  
  Deferred compensation trust     (2,229 )     (2,199 )
  Retained earnings     44,333       17,691  
    Total stockholders' equity     248,279       219,301  
    Total liabilities and stockholders' equity   $ 542,262     $ 474,886  
   
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Nine Months Ended September 30, 2012 and 2011  
(Amounts in thousands, except per share data)  
(Unaudited)  
                 
    Third Quarter   Nine Months  
    2012     2011   2012     2011  
                               
OPERATING REVENUE   $ 278,024     $ 268,285   $ 834,252     $ 777,204  
                               
OPERATING EXPENSES:                              
  Salaries, wages and employees' benefits     138,532       133,460     410,471       386,869  
  Purchased transportation     18,810       23,345     59,171       69,064  
  Fuel, operating expenses and supplies     76,461       75,510     233,212       221,637  
  Operating taxes and licenses     9,445       9,830     29,061       28,787  
  Claims and insurance     6,133       6,766     18,409       21,854  
  Depreciation and amortization     12,315       9,723     35,681       27,099  
  Operating (gains) loss, net     (88 )     31     (409 )     (72 )
    Total operating expenses     261,608       258,665     785,596       755,238  
                               
OPERATING INCOME     16,416       9,620     48,656       21,966  
                               
NONOPERATING EXPENSES:                              
  Interest expense     1,941       2,194     6,100       8,147  
  Other, net     (44 )     122     (142 )     12  
    Nonoperating expenses, net     1,897       2,316     5,958       8,159  
                               
                               
INCOME BEFORE INCOME TAXES     14,519       7,304     42,698       13,807  
Income tax expense     5,263       2,475     16,056       4,907  
NET INCOME   $ 9,256     $ 4,829   $ 26,642     $ 8,900  
                               
Average common shares outstanding - basic     15,900       15,800     15,873       15,786  
Average common shares outstanding - diluted     16,575       16,160     16,529       16,145  
                               
Basic earnings per share   $ 0.58     $ 0.31   $ 1.68     $ 0.56  
                               
Diluted earnings per share   $ 0.56     $ 0.30   $ 1.61     $ 0.55  
   
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Nine Months Ended September 30, 2012 and 2011  
(Amounts in thousands)  
(Unaudited)  
   
    Nine Months  
    2012     2011  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 77,425     $ 34,653  
    Net cash provided by operating activities     77,425       34,653  
                 
INVESTING ACTIVITIES:                
  Acquisition of property and equipment     (81,888 )     (52,309 )
  Proceeds from disposal of property and equipment     2,609       555  
  Acquisition of subsidiary, net of cash     (7,616 )     -  
    Net cash used in investing activities     (86,895 )     (51,754 )
                 
FINANCING ACTIVITIES:                
  Repayment of long-term debt     (11,071 )     (8,571 )
  Borrowings of revolving credit agreement, net     19,391       -  
  Proceeds from stock option exercises     637       149  
    Net cash provided by (used in) financing activities     8,957       (8,422 )
                 
NET DECREASE IN CASH AND CASH EQUIVALENTS     (513 )     (25,523 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     1,317       29,045  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 804     $ 3,522  
   
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended September 30, 2012 and 2011  
(Unaudited)  
                                     
                  Third Quarter      
        Third Quarter           Amount/Workday      
        2012     2011     % Change     2012   2011   % Change  
                                         
Workdays                             63   64      
                                         
Operating ratio         94.1 %     96.4 %                    
                                         
                                         
Tonnage (1)   LTL     918       947     (3.1 )   14.57   14.80   (1.6 )
    TL     176       180     (2.2 )   2.79   2.81   (0.6 )
                                         
Shipments (1)   LTL     1,574       1,670     (5.8 )   24.98   26.09   (4.3 )
    TL     25       26     (1.5 )   0.40   0.40   0.1  
                                         
Revenue/cwt. (2)   LTL   $ 14.00     $ 13.14     6.6                
    TL   $ 5.71     $ 5.42     5.3                
                                         
Revenue/shipment (2)   LTL   $ 163.32     $ 149.04     9.6                
    TL   $ 793.48     $ 758.55     4.6                
                                         
Pounds/shipment   LTL     1,167       1,135     2.8                
    TL     13,896       13,992     (0.7 )              
                                         
Length of Haul         727       732     (0.7 )              
                                         
(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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