Financial Release

JOHNS CREEK, Ga., July 29, 2021 (GLOBE NEWSWIRE) -- Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering national less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2021 financial results. Diluted earnings per share in the quarter were $2.34 compared to $1.07 in the second quarter of 2020.

Highlights from the second quarter operating results were as follows:

Second Quarter 2021 Compared to Second Quarter 2020 Results

• Revenue was $571.3 million, a 36.6% increase
• Operating income was $82.9 million, a 132.4% increase
• Operating ratio of 85.5 compared to 91.5
• LTL shipments per workday increased 15.3%
• LTL tonnage per workday increased 23.1%
• LTL revenue per hundredweight increased 10.5%
• LTL revenue per shipment rose 17.9% to $277
  

“It is great to report record second quarter results only about a year removed from the onset of the COVID-19 pandemic,” stated Saia President and CEO, Fritz Holzgrefe. “Our operating ratio of 85.5% in the quarter is the best OR for any quarter in our history. We had a very good quarter in terms of service and our cargo claims ratio of 0.54% is also a record,” added Holzgrefe. “Shipper demand remains strong early in the third quarter and we continue to hire drivers and dockworkers across all areas of our service map,” said Holzgrefe.

“We were pleased to announce the opening of our Hagerstown, Maryland terminal in June and we expect to open additional terminals during the second half of the year. We continue to maintain and operate one of the cleanest diesel fleets in the industry. During the quarter, we commenced pilot programs using alternative fuel tractors by adding two all-electric tractors and five compressed natural gas (CNG) tractors,” concluded Holzgrefe.

Saia Executive Vice President and Chief Financial Officer, Douglas Col added, “Total shipments in the second quarter were an all-time quarterly high and we are working hard to accommodate our customers’ needs in an environment where we are experiencing a very tight labor market.” “With rising operational costs, we focused more than ever on the profitability of the added volumes and our 10.5% increase in yield pushed our revenue per shipment to a record $277, up nearly 18% over last year,” said Col.

Financial Position and Capital Expenditures

Total debt was $61.0 million at June 30, 2021 and inclusive of the cash on-hand, net debt to total capital was 0.8%. This compares to total debt of $160.8 million and net debt to total capital of 13.1% at June 30, 2020.

Net capital investments were $100.0 million in the first half of 2021. This compares to $142.7 million in net capital investments during the first half of 2020. In 2021, we anticipate net capital expenditures will be approximately $275 million.

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 877-886-2341 or 334-777-6979 referencing conference ID #9556386. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company website at https://www.saia.com/about-us/investor-relations/financial-releases. A replay of the call will be offered two hours after the completion of the call through August 26, 2021 at 1:00 p.m. Eastern Time. The replay will be available by dialing 888-203-1112.

Saia, Inc. (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 171 terminals with service across 44 states. For more information on Saia, Inc. visit the Investor Relations section at www.saia.com/about-us/investor-relations.

Cautionary Note Regarding Forward-Looking Statements

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 may contain 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, 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, 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 Food and Drug Administration and Homeland Security, and healthcare and environmental regulations; (27) unforeseen costs from new and existing data privacy laws; (28) changes in accounting and financial standards or practices; (29) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (30) increasing investor and customer sensitivity to social and sustainability issues, including climate change; (31) anti-terrorism measures and terrorist events; (32)  provisions in our governing documents and Delaware law that may have anti-takeover effects; (33) issuances of equity that would dilute stock ownership; and (34) 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. 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:    Saia, Inc.
       Investor Relations
       investors@saia.com
       770.232.4088

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
		June 30, 2021				December 31, 2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	52,860			$	25,308
Accounts receivable, net			261,113				216,899
Prepaid expenses and other			39,908				29,489
Total current assets			353,881				271,696
PROPERTY AND EQUIPMENT:
Cost			1,983,923				1,901,244
Less: accumulated depreciation			826,983				765,217
Net property and equipment			1,156,940				1,136,027
OPERATING LEASE RIGHT-OF-USE ASSETS			105,965				113,715
OTHER ASSETS			30,609				27,336
Total assets		$	1,647,395			$	1,548,774
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	100,499			$	89,381
Wages and employees' benefits			65,187				55,392
Other current liabilities			77,797				90,184
Current portion of long-term debt			21,648				20,588
Current portion of operating lease liability			19,764				20,209
Total current liabilities			284,895				275,754
OTHER LIABILITIES:
Long-term debt, less current portion			39,378				50,388
Operating lease liability, less current portion			88,208				95,321
Deferred income taxes			123,000				119,818
Claims, insurance and other			48,756				46,205
Total other liabilities			299,342				311,732
STOCKHOLDERS' EQUITY:
Common stock			26				26
Additional paid-in capital			270,608				267,666
Deferred compensation trust			(3,781	)			(2,944	)
Retained earnings			796,305				696,540
Total stockholders' equity			1,063,158				961,288
Total liabilities and stockholders' equity		$	1,647,395			$	1,548,774

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2021 and 2020
(Amounts in thousands, except per share data)
(Unaudited)
		Second Quarter								Six Months
			2021				2020				2021				2020
OPERATING REVENUE		$	571,333			$	418,114			$	1,055,407			$	864,510
OPERATING EXPENSES:
Salaries, wages and employees' benefits			268,786				224,277				513,223				462,922
Purchased transportation			62,481				26,406				107,512				56,465
Fuel, operating expenses and supplies			90,664				65,902				175,565				148,801
Operating taxes and licenses			14,559				13,743				28,897				28,139
Claims and insurance			17,328				18,293				28,808				28,714
Depreciation and amortization			34,659				33,664				70,031				66,254
Loss (gain) from property disposals, net			(69	)			148				(268	)			(1,242	)
Total operating expenses			488,408				382,433				923,768				790,053
OPERATING INCOME			82,925				35,681				131,639				74,457
NONOPERATING EXPENSES (INCOME):
Interest expense			834				1,594				1,686				2,996
Other, net			(430	)			(751	)			(561	)			(204	)
Nonoperating expenses, net			404				843				1,125				2,792
INCOME BEFORE INCOME TAXES			82,521				34,838				130,514				71,665
Income tax expense			20,047				6,384				30,749				15,100
NET INCOME		$	62,474			$	28,454			$	99,765			$	56,565
Average common shares outstanding - basic			26,332				26,134				26,309				26,102
Average common shares outstanding - diluted			26,704				26,569				26,687				26,543
Basic earnings per share		$	2.37			$	1.09			$	3.79			$	2.17
Diluted earnings per share		$	2.34			$	1.07			$	3.74			$	2.13

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2021 and 2020
(Amounts in thousands)
(Unaudited)
		Six Months
			2021				2020
OPERATING ACTIVITIES:
Net cash provided by operating activities		$	140,140			$	148,233
Net cash provided by operating activities			140,140				148,233
INVESTING ACTIVITIES:
Acquisition of property and equipment			(100,202	)			(148,865	)
Proceeds from disposal of property and equipment			236				6,143
Net cash used in investing activities			(99,966	)			(142,722	)
FINANCING ACTIVITIES:
Borrowing (repayment) of revolving credit agreement, net			–				34,071
Proceeds from stock option exercises			3,678				2,591
Shares withheld for taxes			(6,350	)			(3,479	)
Other financing activity			(9,950	)			(9,662	)
Net cash (used in) provided by financing activities			(12,622	)			23,521
NET INCREASE IN CASH AND CASH EQUIVALENTS			27,552				29,032
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			25,308				248
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	52,860			$	29,280

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2021 and 2020
(Unaudited)
													Second Quarter
			Second Quarter								%		Amount/Workday				%
				2021				2020			Change		2021		2020		Change
Workdays													64		64
Operating ratio				85.5	%			91.5	%
LTL tonnage (1)				1,406				1,142			23.1		21.97		17.85		23.1
LTL shipments (1)				2,012				1,745			15.3		31.44		27.26		15.3
LTL revenue/cwt.			$	19.84			$	17.95			10.5
LTL revenue/cwt., excluding fuel surcharges			$	16.92			$	16.01			5.7
LTL revenue/shipment			$	277.24			$	235.08			17.9
LTL revenue/shipment, excluding fuel surcharges			$	236.43			$	209.66			12.8
LTL pounds/shipment				1,397				1,309			6.7
LTL length of haul (2)				911				876			4.0
(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.

Source: Saia, Inc.