Saia Reports First Quarter Earnings per Share of $0.44
JOHNS CREEK, GA -- (Marketwired) --
First Quarter 2017 Compared to First Quarter 2016 Results
- Revenues were
$317.0 million , a 9.4% increase - LTL Shipments and Tonnage rose 3.5% and 2.0%, respectively
- LTL Revenue per hundredweight increased 7.7%
- Operating ratio deteriorated by 60 basis points to 94.5%
- Operating income fell by 0.4% to
$17.5 million - Net income, benefitting from a lower effective tax rate, rose 7.7% to
$11.4 million - Diluted earnings per share were
$0.44 compared to$0.42
"We are encouraged by the improved LTL shipment trends we experienced in the first quarter", said Saia President and Chief Executive Officer,
"Also during the quarter, we were pleased to announce our exclusive partnership with TST Overland Express, which will allow us to offer our customers a seamless, cross-border solution for their LTL service needs both to and from
Financial Position and Capital Expenditures
Total debt was
Net capital expenditures in the first quarter of 2017 were
Conference Call
Management will hold a conference call to discuss quarterly results today at
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, uncertainties and assumptions 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
| Saia, Inc. and Subsidiaries | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (Amounts in thousands) | |||||||||
| (Unaudited) | |||||||||
| March 31, 2017 |
December 31, 2016 |
||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 711 | $ | 1,539 | |||||
| Accounts receivable, net | 148,968 | 135,083 | |||||||
| Prepaid expenses and other | 34,969 | 29,857 | |||||||
| Total current assets | 184,648 | 166,479 | |||||||
| PROPERTY AND EQUIPMENT: | |||||||||
| Cost | 1,216,711 | 1,101,946 | |||||||
| Less: accumulated depreciation | 504,324 | 497,827 | |||||||
| Net property and equipment | 712,387 | 604,119 | |||||||
| OTHER ASSETS | 30,161 | 29,772 | |||||||
| Total assets | $ | 927,196 | $ | 800,370 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ | 70,971 | $ | 45,149 | |||||
| Wages and employees' benefits | 33,098 | 31,700 | |||||||
| Other current liabilities | 51,103 | 51,333 | |||||||
| Current portion of long-term debt | 19,183 | 16,762 | |||||||
| Total current liabilities | 174,355 | 144,944 | |||||||
| OTHER LIABILITIES: | |||||||||
| Long-term debt, less current portion | 137,738 | 57,042 | |||||||
| Deferred income taxes | 82,738 | 80,199 | |||||||
| Claims, insurance and other | 36,898 | 35,107 | |||||||
| Total other liabilities | 257,374 | 172,348 | |||||||
| STOCKHOLDERS' EQUITY: | |||||||||
| Common stock | 25 | 25 | |||||||
| Additional paid-in capital | 238,995 | 237,846 | |||||||
| Deferred compensation trust | (3,337 | ) | (3,190 | ) | |||||
| Retained earnings | 259,784 | 248,397 | |||||||
| Total stockholders' equity | 495,467 | 483,078 | |||||||
| Total liabilities and stockholders' equity | $ | 927,196 | $ | 800,370 | |||||
| Saia, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Operations | ||||||||
| For the Quarters Ended March 31, 2017 and 2016 | ||||||||
| (Amounts in thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| First Quarter | ||||||||
| 2017 | 2016 | |||||||
| OPERATING REVENUE | $ | 317,037 | $ | 289,911 | ||||
| OPERATING EXPENSES: | ||||||||
| Salaries, wages and employees' benefits | 180,903 | 170,266 | ||||||
| Purchased transportation | 14,775 | 12,467 | ||||||
| Fuel, operating expenses and supplies | 63,990 | 54,040 | ||||||
| Operating taxes and licenses | 10,582 | 10,040 | ||||||
| Claims and insurance | 9,049 | 8,081 | ||||||
| Depreciation and amortization | 20,087 | 17,243 | ||||||
| Loss from property disposals, net | 132 | 190 | ||||||
| Total operating expenses | 299,518 | 272,327 | ||||||
| OPERATING INCOME | 17,519 | 17,584 | ||||||
| NONOPERATING EXPENSES (INCOME): | ||||||||
| Interest expense | 911 | 963 | ||||||
| Other, net | 98 | (7 | ) | |||||
| Nonoperating expenses, net | 1,009 | 956 | ||||||
| INCOME BEFORE INCOME TAXES | 16,510 | 16,628 | ||||||
| Income tax expense | 5,123 | 6,053 | ||||||
| NET INCOME | $ | 11,387 | $ | 10,575 | ||||
| Average common shares outstanding - basic | 25,225 | 24,998 | ||||||
| Average common shares outstanding - diluted | 25,971 | 25,445 | ||||||
| Basic earnings per share | $ | 0.45 | $ | 0.42 | ||||
| Diluted earnings per share | $ | 0.44 | $ | 0.42 | ||||
| Saia, Inc. and Subsidiaries | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| For the Quarters Ended March 31, 2017 and 2016 | |||||||||
| (Amounts in thousands) | |||||||||
| (Unaudited) | |||||||||
| Quarters | |||||||||
| 2017 | 2016 | ||||||||
| OPERATING ACTIVITIES: | |||||||||
| Net cash provided by operating activities (1) | $ | 24,128 | $ | 16,956 | |||||
| Net cash provided by operating activities | 24,128 | 16,956 | |||||||
| INVESTING ACTIVITIES: | |||||||||
| Acquisition of property and equipment | (88,388 | ) | (53,995 | ) | |||||
| Proceeds from disposal of property and equipment | 607 | 367 | |||||||
| Net cash used in investing activities | (87,781 | ) | (53,628 | ) | |||||
| FINANCING ACTIVITIES: | |||||||||
| Borrowing of revolving credit agreement, net | 65,183 | 38,826 | |||||||
| Proceeds from stock option exercises | 1,288 | - | |||||||
| Shares withheld for taxes (1) | (1,211 | ) | (650 | ) | |||||
| Other financing activity | (2,435 | ) | (1,390 | ) | |||||
| Net cash provided by financing activities | 62,825 | 36,786 | |||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (828 | ) | 114 | ||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,539 | 124 | |||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 711 | $ | 238 | |||||
| NON-CASH ITEMS: | |||||||||
| Equipment financed with capital leases | $ | 20,369 | $ | 10,032 | |||||
| (1) March 31, 2016 balances have been reclassified to conform with the 2017 adoption of the Financial Accounting Standards Board Accounting Standards Update 2016-09, Improvement to Employee Share-Based Payment Accounting. | |||||||||
| Saia, Inc. and Subsidiaries | ||||||||||||||||||
| Financial Information | ||||||||||||||||||
| For the Quarters Ended March 31, 2017 and 2016 | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| First Quarter | ||||||||||||||||||
| First Quarter | % | Amount/Workday | % | |||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||
| Workdays | 64 | 64 | ||||||||||||||||
| Operating ratio | 94.5 | % | 93.9 | % | ||||||||||||||
| Tonnage (1) | LTL | 885 | 868 | 2.0 | 13.83 | 13.56 | 2.0 | |||||||||||
| TL | 183 | 168 | 9.2 | 2.86 | 2.62 | 9.2 | ||||||||||||
| Shipments (1) | LTL | 1,607 | 1,553 | 3.5 | 25.12 | 24.26 | 3.5 | |||||||||||
| TL | 26 | 24 | 6.8 | 0.40 | 0.38 | 6.8 | ||||||||||||
| Revenue/cwt. (2) | LTL | $ | 16.68 | $ | 15.49 | 7.7 | ||||||||||||
| TL | $ | 5.61 | $ | 5.64 | (0.4 | ) | ||||||||||||
| Revenue/shipment (2) | LTL | $ | 183.68 | $ | 173.20 | 6.1 | ||||||||||||
| TL | $ | 800.02 | $ | 786.24 | 1.8 | |||||||||||||
| Pounds/shipment | LTL | 1,101 | 1,118 | (1.5 | ) | |||||||||||||
| TL | 14,249 | 13,942 | 2.2 | |||||||||||||||
| Length of Haul (3) | 797 | 781 | 2.0 | |||||||||||||||
| (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 |
CONTACT:
Doug Col
dcol@saia.com
678.542.3910
Source: