Saia Reports Second Quarter Earnings per Share of $0.52
JOHNS CREEK, GA -- (Marketwired) --
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,
"Our continued emphasis on service and quality resulted in contractual rate renewals remaining positive, up 5.4% in the quarter," O'
Financial Position and Capital Expenditures
Total debt was
The Company currently plans net capital expenditures in 2016 of approximately
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, 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
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:
Doug Col
dcol@saia.com
678.542.3910
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