Financial Release

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Saia Reports Second Quarter Earnings per Share of $0.52

JOHNS CREEK, GA -- (Marketwired) -- 07/29/16 -- Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported second quarter 2016 financial results.

Second Quarter 2016 Compared to Second Quarter 2015 Results

  • Revenues were $312 million, a decline of 3.6%
  • LTL shipments per workday fell by 2.6% and LTL tonnage per workday declined 4.3%
  • LTL yield increased 2%, in spite of lower fuel surcharge
  • Operating income declined 30.6% from last year's record second quarter
  • Net income was $13.3 million compared to $19.2 million
  • Diluted earnings per share were $0.52 compared to $0.75
  • Operating ratio of 93.0 compared to 90.3

"Despite the challenging freight environment, we continued to deliver a high level of service and quality to our customers. We achieved 98% on-time service in the quarter and a cargo claims ratio of 0.77%. The perceived value in those measures, by our customers, enabled us to improve our yield in the quarter. Core operations continued to reach productivity and cost savings goals, but were negatively impacted by accident expense volatility and health care self-insurance during the quarter" said Saia President and Chief Executive Officer, Rick O'Dell.

"Our continued emphasis on service and quality resulted in contractual rate renewals remaining positive, up 5.4% in the quarter," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $139.4 million at June 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 23.4% compared to 20.7% at June 30, 2015. Net capital expenditures, including equipment financed with capital leases, in the first half of the year were $136.2 million compared to $73.3 million spent in the first half of 2015.

The Company currently plans net capital expenditures in 2016 of approximately $140 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 888-438-5491 or 719-325-2354 referencing conference ID #9438415. 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 September 23, 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)
June 30, 2016 December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 360 $ 124
Accounts receivable, net 142,331 124,222
Prepaid expenses and other 29,450 34,643
Total current assets 172,141 158,989
PROPERTY AND EQUIPMENT:
Cost 1,107,001 995,514
Less: accumulated depreciation 481,088 456,335
Net property and equipment 625,913 539,179
OTHER ASSETS 30,853 31,025
Total assets $ 828,907 $ 729,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 49,679 $ 54,754
Wages and employees' benefits 33,619 27,834
Other current liabilities 45,014 46,360
Current portion of long-term debt 16,627 12,432
Total current liabilities 144,939 141,380
OTHER LIABILITIES:
Long-term debt, less current portion 122,747 56,540
Deferred income taxes 71,673 67,417
Claims, insurance and other 35,352 35,967
Total other liabilities 229,772 159,924
STOCKHOLDERS' EQUITY:
Common stock 25 25
Additional paid-in capital 233,200 230,593
Deferred compensation trust (3,252 ) (3,102 )
Retained earnings 224,223 200,373
Total stockholders' equity 454,196 427,889
Total liabilities and stockholders' equity $ 828,907 $ 729,193
Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2016 and 2015
(Amounts in thousands, except per share data)
(Unaudited)
Second Quarter Six Months
2016 2015 2016 2015
OPERATING REVENUE $ 311,905 $ 323,480 $ 601,816 $ 616,502
OPERATING EXPENSES:
Salaries, wages and employees' benefits 175,924 170,465 346,190 328,194
Purchased transportation 14,315 20,184 26,782 37,898
Fuel, operating expenses and supplies 59,026 69,165 113,066 136,310
Operating taxes and licenses 10,126 9,411 20,166 18,507
Claims and insurance 10,880 6,361 18,961 11,198
Depreciation and amortization 19,740 16,561 36,983 31,760
Operating loss, net 173 52 363 121
Total operating expenses 290,184 292,199 562,511 563,988
OPERATING INCOME 21,721 31,281 39,305 52,514
NONOPERATING EXPENSES (INCOME):
Interest expense 1,264 1,074 2,227 2,093
Other, net (36 ) (14 ) (43 ) (65 )
Nonoperating expenses, net 1,228 1,060 2,184 2,028
INCOME BEFORE INCOME TAXES 20,493 30,221 37,121 50,486
Income tax expense 7,218 10,974 13,271 18,634
NET INCOME $ 13,275 $ 19,247 $ 23,850 $ 31,852
Average common shares outstanding - basic 25,030 24,936 25,014 24,870
Average common shares outstanding - diluted 25,583 25,561 25,560 25,526
Basic earnings per share $ 0.53 $ 0.77 $ 0.95 $ 1.28
Diluted earnings per share $ 0.52 $ 0.75 $ 0.93 $ 1.25
Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2016 and 2015
(Amounts in thousands)
(Unaudited)
Six Months
2016 2015
OPERATING ACTIVITIES:
Net cash provided by operating activities $ 65,814 $ 67,045
Net cash provided by operating activities 65,814 67,045
INVESTING ACTIVITIES:
Acquisition of business, net of cash received - (22,238 )
Acquisition of property and equipment (102,140 ) (56,466 )
Proceeds from disposal of property and equipment 595 517
Net cash used in investing activities (101,545 ) (78,187 )
FINANCING ACTIVITIES:
Repayment of long-term debt (3,572 ) (3,571 )
Borrowing of revolving credit agreement, net 42,756 13,000
Proceeds from stock option exercises 248 2,629
Other financing activity (3,465 ) (1,620 )
Net cash provided by financing activities 35,967 10,438
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 236 (704 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 124 4,367
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 360 $ 3,663
NON-CASH ITEMS:
Acquisition of property and equipment financed with capital leases $ 34,683 $ 17,336
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2016 and 2015
(Unaudited)
Second Quarter
Second Quarter % Amount/Workday %
2016 2015 Change 2016 2015 Change
Workdays 64 64
Operating ratio 93.0 % 90.3 %
Tonnage (1) LTL 919 960 (4.3 ) 14.36 15.00 (4.3 )
TL 182 200 (8.8 ) 2.85 3.12 (8.8 )
Shipments (1) LTL 1,639 1,683 (2.6 ) 25.60 26.29 (2.6 )
TL 26 29 (9.3 ) 0.40 0.45 (9.3 )
Revenue/cwt. (2) LTL $ 15.73 $ 15.42 2.0
TL $ 5.50 $ 5.93 (7.2 )
Revenue/shipment (2) LTL $ 176.45 $ 176.02 0.2
TL $ 775.05 $ 830.27 (6.7 )
Pounds/shipment LTL 1,121 1,141 (1.7 )
TL 14,090 14,012 0.6
Length of Haul 786 778 1.0
(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.

CONTACT:
Saia, Inc.
Doug Col
dcol@saia.com
678.542.3910

Source: Saia, Inc.