Saia Reports Record Fourth Quarter Results
Highlights from the fourth quarter and full year operating results were as follows:
Fourth Quarter 2021 Compared to Fourth Quarter 2020 Results
- Revenue was
$617.1 million , a 29.5% increase - Operating income was
$97.4 million , a 92.3% increase - Operating ratio of 84.2 compared to 89.4
- LTL shipments per workday increased 3.3%
- LTL tonnage per workday increased 11.0%
- LTL revenue per hundredweight increased 19.6%
- LTL revenue per shipment rose 28.4% to
$317
Full Year 2021 Results Compared to Full Year 2020 Results
- Revenue was
$2.3 billion , a 25.6% increase - Operating income was
$335.1 million , a 85.9% increase - Operating ratio of 85.4 compared to 90.1
- LTL shipments per workday rose 5.7%
- LTL tonnage per workday increased 12.4%
- LTL revenue per hundredweight increased 12.8%
- LTL revenue per shipment rose 20.0% to
$289
“Our 2021 results reflect our ongoing efforts to profitably grow our business and expand our footprint to get closer to our customers. In doing so, we add more value to our customers and are closing the gap on the premium pricing enjoyed by some of our closest competitors,” said
“Very similar to 2020, 2021 was filled with numerous challenges for our workforce and to post record results through ongoing Covid-related supply chain disruptions, as well as major storm events, is a testament to thousands of dedicated
“Saia opened 7 new terminals in 2021 and plans are well underway for accelerated expansion of our network footprint in 2022 as we intend to open 10-15 new terminals this year. As we grow the network, we also intend to increase capacity across the existing network and plan to relocate up to 10 existing terminals in 2022 to locations better suited for our expanding volumes,” concluded Holzgrefe.
Financial Position and Capital Expenditures
Total debt was
Net capital expenditures were
Conference Call
Management will hold a conference call to discuss quarterly results today at
Cautionary Note Regarding Forward-Looking Statements
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, except as required by law. 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 or inflationary periods in the business cycle; (2) operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors; (3) industry-wide external factors largely out of our control; (4) cost and availability of qualified drivers, dock workers and other employees, purchased transportation and fuel; (5) claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (6) cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums, assume additional liability under its auto liability policy or be unable to obtain insurance coverage; (7) failure to successfully execute the strategy to expand our service geography; (8) costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks; (9) failure to keep pace with technological developments; (10) labor relations, including the adverse impact should a portion of our workforce become unionized; (11) cost and availability of real property and revenue equipment; (12) capacity and highway infrastructure constraints; (13) risks arising from international business operations and relationships; (14) seasonal factors, harsh weather and disasters caused by climate change; (15) economic declines in the geographic regions or industries in which our customers operate; (16) the creditworthiness of our customers and their ability to pay for services; (17) our need for capital and uncertainty of the credit markets; (18) the possibility of defaults under our debt agreements (including violation of financial covenants); (19) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (20) dependence on key employees; (21) increased costs of healthcare benefits; (22) damage to our reputation from adverse publicity, including from the use of or impact from social media; (23) failure to make future acquisitions or to achieve acquisition synergies; (24) the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future; (25) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (26) the effect of governmental regulations, including hours of service for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of the
As a result of these and other factors, no assurance can be given as to our future results and achievements. Accordingly, 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. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this news release. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
| CONTACT: | |
| Investor Relations | |
| investors@saia.com | |
| 770.232.4088 |
| Condensed Consolidated Balance Sheets | |||||||||
| (Amounts in thousands) | |||||||||
| (Unaudited) | |||||||||
2021 |
2020 |
||||||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ | 106,588 | $ | 25,308 | |||||
| Accounts receivable, net | 276,755 | 216,899 | |||||||
| Prepaid expenses and other | 32,912 | 29,489 | |||||||
| Total current assets | 416,255 | 271,696 | |||||||
| PROPERTY AND EQUIPMENT: | |||||||||
| Cost | 2,144,528 | 1,901,244 | |||||||
| Less: accumulated depreciation | 864,074 | 765,217 | |||||||
| Net property and equipment | 1,280,454 | 1,136,027 | |||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 107,781 | 113,715 | |||||||
| OTHER ASSETS | 40,760 | 27,336 | |||||||
| Total assets | $ | 1,845,250 | $ | 1,548,774 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ | 114,010 | $ | 89,381 | |||||
| Wages and employees' benefits | 73,109 | 55,392 | |||||||
| Other current liabilities | 93,268 | 90,184 | |||||||
| Current portion of long-term debt | 19,396 | 20,588 | |||||||
| Current portion of operating lease liability | 21,565 | 20,209 | |||||||
| Total current liabilities | 321,348 | 275,754 | |||||||
| OTHER LIABILITIES: | |||||||||
| Long-term debt, less current portion | 31,008 | 50,388 | |||||||
| Operating lease liability, less current portion | 88,409 | 95,321 | |||||||
| Deferred income taxes | 124,137 | 119,818 | |||||||
| Claims, insurance and other | 60,015 | 46,205 | |||||||
| Total other liabilities | 303,569 | 311,732 | |||||||
| STOCKHOLDERS' EQUITY: | |||||||||
| Common stock | 26 | 26 | |||||||
| Additional paid-in capital | 274,633 | 267,666 | |||||||
| Deferred compensation trust | (4,101 | ) | (2,944 | ) | |||||
| Retained earnings | 949,775 | 696,540 | |||||||
| Total stockholders' equity | 1,220,333 | 961,288 | |||||||
| Total liabilities and stockholders' equity | $ | 1,845,250 | $ | 1,548,774 | |||||
| Consolidated Statements of Operations | |||||||||||||||||
| For the Quarters and Years Ended |
|||||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Fourth Quarter | Years | ||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| OPERATING REVENUE | $ | 617,081 | $ | 476,482 | $ | 2,288,704 | $ | 1,822,366 | |||||||||
| OPERATING EXPENSES: | |||||||||||||||||
| Salaries, wages and employees' benefits | 273,393 | 248,246 | 1,063,703 | 963,260 | |||||||||||||
| Purchased transportation | 70,005 | 44,851 | 249,710 | 141,369 | |||||||||||||
| Fuel, operating expenses and supplies | 107,505 | 76,327 | 381,904 | 299,234 | |||||||||||||
| Operating taxes and licenses | 15,626 | 14,094 | 59,095 | 56,294 | |||||||||||||
| Claims and insurance | 17,019 | 9,109 | 61,345 | 49,761 | |||||||||||||
| Depreciation and amortization | 35,927 | 34,177 | 141,700 | 134,655 | |||||||||||||
| Loss (gain) from property disposals, net | 221 | (970 | ) | (3,894 | ) | (2,528 | ) | ||||||||||
| Total operating expenses | 519,696 | 425,834 | 1,953,563 | 1,642,045 | |||||||||||||
| OPERATING INCOME | 97,385 | 50,648 | 335,141 | 180,321 | |||||||||||||
| NONOPERATING EXPENSES (INCOME): | |||||||||||||||||
| Interest expense | 749 | 1,007 | 3,212 | 5,177 | |||||||||||||
| Other, net | (297 | ) | (539 | ) | (844 | ) | (1,134 | ) | |||||||||
| Nonoperating expenses, net | 452 | 468 | 2,368 | 4,043 | |||||||||||||
| INCOME BEFORE INCOME TAXES | 96,933 | 50,180 | 332,773 | 176,278 | |||||||||||||
| Income tax expense | 23,172 | 9,944 | 79,538 | 37,938 | |||||||||||||
| NET INCOME | $ | 73,761 | $ | 40,236 | $ | 253,235 | $ | 138,340 | |||||||||
| Average common shares outstanding - basic | 26,336 | 26,203 | 26,322 | 26,140 | |||||||||||||
| Average common shares outstanding - diluted | 26,734 | 26,653 | 26,707 | 26,592 | |||||||||||||
| Basic earnings per share | $ | 2.80 | $ | 1.54 | $ | 9.62 | $ | 5.29 | |||||||||
| Diluted earnings per share | $ | 2.76 | $ | 1.51 | $ | 9.48 | $ | 5.20 | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| For the Quarters and Ended |
|||||||||
| (Amounts in thousands) | |||||||||
| (Unaudited) | |||||||||
| Years | |||||||||
| 2021 | 2020 | ||||||||
| OPERATING ACTIVITIES: | |||||||||
| Net cash provided by operating activities | $ | 382,592 | $ | 309,145 | |||||
| Net cash provided by operating activities | 382,592 | 309,145 | |||||||
| INVESTING ACTIVITIES: | |||||||||
| Acquisition of property and equipment | (285,746 | ) | (231,142 | ) | |||||
| Proceeds from disposal of property and equipment | 8,398 | 12,325 | |||||||
| Other | (500 | ) | – | ||||||
| Net cash used in investing activities | (277,848 | ) | (218,817 | ) | |||||
| FINANCING ACTIVITIES: | |||||||||
| Borrowing (repayment) of revolving credit agreement, net | – | (45,929 | ) | ||||||
| Proceeds from stock option exercises | 3,678 | 3,786 | |||||||
| Shares withheld for taxes | (6,571 | ) | (3,600 | ) | |||||
| Other financing activity | (20,571 | ) | (19,525 | ) | |||||
| Net cash used in financing activities | (23,464 | ) | (65,268 | ) | |||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 81,280 | 25,060 | |||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 25,308 | 248 | |||||||
| CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 106,588 | $ | 25,308 | |||||
| Financial Information | |||||||||||||||||
| For the Quarters Ended |
|||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Fourth Quarter | |||||||||||||||||
| Fourth Quarter | % | Amount/Workday | % | ||||||||||||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||
| Workdays | 61 | 62 | |||||||||||||||
| Operating ratio | 84.2 | % | 89.4 | % | |||||||||||||
| LTL tonnage (1) | 1,346 | 1,233 | 9.2 | 22.07 | 19.89 | 11.0 | |||||||||||
| LTL shipments (1) | 1,888 | 1,859 | 1.6 | 30.96 | 29.98 | 3.3 | |||||||||||
| LTL revenue/cwt. | $ | 22.24 | $ | 18.60 | 19.6 | ||||||||||||
| LTL revenue/cwt., excluding fuel surcharges | $ | 18.89 | $ | 16.57 | 14.0 | ||||||||||||
| LTL revenue/shipment | $ | 317.04 | $ | 246.88 | 28.4 | ||||||||||||
| LTL revenue/shipment, excluding fuel surcharges | $ | 269.30 | $ | 219.94 | 22.4 | ||||||||||||
| LTL pounds/shipment | 1,426 | 1,327 | 7.5 | ||||||||||||||
| LTL length of haul (2) | 924 | 898 | 2.9 | ||||||||||||||
| (1 | ) | In thousands. | |||||||||||||||
| (2 | ) | In miles. | |||||||||||||||
| Note: | LTL operating statistics exclude transportation and logistics services where pricing is generally not determined by weight. The LTL operating statistics also exclude the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy. | ||||||||||||||||
| Financial Information | |||||||||||||||||
| For the Years Ended |
|||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Year Over Year | |||||||||||||||||
| Year Over Year | % | Amount/Workday | % | ||||||||||||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||
| Workdays | 252 | 254 | |||||||||||||||
| Operating ratio | 85.4 | % | 90.1 | % | |||||||||||||
| LTL tonnage (1) | 5,401 | 4,842 | 11.5 | 21.43 | 19.06 | 12.4 | |||||||||||
| LTL shipments (1) | 7,730 | 7,371 | 4.9 | 30.68 | 29.02 | 5.7 | |||||||||||
| LTL revenue/cwt. | $ | 20.68 | $ | 18.33 | 12.8 | ||||||||||||
| LTL revenue/cwt., excluding fuel surcharges | $ | 17.72 | $ | 16.27 | 8.9 | ||||||||||||
| LTL revenue/shipment | $ | 289.00 | $ | 240.86 | 20.0 | ||||||||||||
| LTL revenue/shipment, excluding fuel surcharges | $ | 247.56 | $ | 213.71 | 15.8 | ||||||||||||
| LTL pounds/shipment | 1,397 | 1,314 | 6.3 | ||||||||||||||
| LTL length of haul (2) | 913 | 879 | 3.9 | ||||||||||||||
| (1 | ) | In thousands. | |||||||||||||||
| (2 | ) | In miles. | |||||||||||||||
Source: Saia, Inc.