Saia Reports First Quarter Earnings per Share of $0.80
JOHNS CREEK, Ga.,
First Quarter 2018 Compared to First Quarter 2017 Results
- Revenues were
$393 million , a 22% increase - LTL Shipments and Tonnage rose 8.4% and 12.2%, respectively
- LTL Revenue per hundredweight increased 7.7%
- Operating ratio improved by 160 basis points to 93.0%
- Operating income rose 57% to a record
$27.6 million - Net income benefitted from a lower effective income tax rate as well as the aforementioned fuel tax credit, and rose 85% to
$21.1 million
“I am pleased that we were able to translate the strong shipment and tonnage growth in the quarter into improved operating results,” said Saia President and Chief Executive Officer,
“We have now opened a total of eight new terminals in the past year. All but one are in markets where we previously had not offered direct service. Our customers are embracing the better geographic coverage as we continue to extend Saia’s service capabilities,” concluded Mr. O’Dell.
Financial Position and Capital Expenditures
Total debt was
Net capital expenditures in the first quarter of 2018 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, tax law changes, potential changes to the North American Free Trade Agreement and the
CONTACT:
Doug Col
dcol@saia.com
678.542.3910
Saia, Inc. and Subsidiaries | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(Amounts in thousands) | |||||||||
(Unaudited) | |||||||||
March 31, 2018 |
December 31, 2017 |
||||||||
ASSETS | |||||||||
CURRENT ASSETS: | |||||||||
Cash and cash equivalents | $ | 496 | $ | 4,720 | |||||
Accounts receivable, net (1) | 191,437 | 170,278 | |||||||
Prepaid expenses and other | 34,066 | 28,251 | |||||||
Total current assets | 225,999 | 203,249 | |||||||
PROPERTY AND EQUIPMENT: | |||||||||
Cost | 1,334,557 | 1,289,994 | |||||||
Less: accumulated depreciation | 573,699 | 554,214 | |||||||
Net property and equipment | 760,858 | 735,780 | |||||||
OTHER ASSETS | 28,690 | 28,286 | |||||||
Total assets | $ | 1,015,547 | $ | 967,315 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
CURRENT LIABILITIES: | |||||||||
Accounts payable (1) | $ | 65,866 | $ | 57,438 | |||||
Wages and employees' benefits | 38,939 | 39,748 | |||||||
Other current liabilities | 59,082 | 55,657 | |||||||
Current portion of long-term debt | 14,791 | 14,083 | |||||||
Total current liabilities | 178,678 | 166,926 | |||||||
OTHER LIABILITIES: | |||||||||
Long-term debt, less current portion | 127,781 | 118,833 | |||||||
Deferred income taxes | 61,031 | 59,423 | |||||||
Claims, insurance and other | 40,663 | 39,639 | |||||||
Total other liabilities | 229,475 | 217,895 | |||||||
STOCKHOLDERS' EQUITY: | |||||||||
Common stock | 26 | 26 | |||||||
Additional paid-in capital | 250,233 | 246,454 | |||||||
Deferred compensation trust | (3,490 | ) | (3,486 | ) | |||||
Retained earnings (1) | 360,625 | 339,500 | |||||||
Total stockholders' equity | 607,394 | 582,494 | |||||||
Total liabilities and stockholders' equity | $ | 1,015,547 | $ | 967,315 | |||||
(1) - These accounts have been retrospectively adjusted for the January 1, 2018 adoption of the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. | |||||||||
Saia, Inc. and Subsidiaries | ||||||||
Consolidated Statements of Operations | ||||||||
For the Quarters Ended March 31, 2018 and 2017 | ||||||||
(Amounts in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
First Quarter | ||||||||
2018 | 2017 (1) | |||||||
OPERATING REVENUE | $ | 392,805 | $ | 323,090 | ||||
OPERATING EXPENSES: | ||||||||
Salaries, wages and employees' benefits | 211,124 | 180,903 | ||||||
Purchased transportation | 29,916 | 20,820 | ||||||
Fuel, operating expenses and supplies | 78,794 | 63,990 | ||||||
Operating taxes and licenses | 12,150 | 10,582 | ||||||
Claims and insurance | 10,191 | 9,049 | ||||||
Depreciation and amortization | 23,030 | 20,087 | ||||||
Loss from property disposals, net | 21 | 132 | ||||||
Total operating expenses | 365,226 | 305,563 | ||||||
OPERATING INCOME | 27,579 | 17,527 | ||||||
NONOPERATING EXPENSES (INCOME): | ||||||||
Interest expense | 1,226 | 911 | ||||||
Other, net | (103 | ) | 98 | |||||
Nonoperating expenses, net | 1,123 | 1,009 | ||||||
INCOME BEFORE INCOME TAXES | 26,456 | 16,518 | ||||||
Income tax expense | 5,331 | 5,123 | ||||||
NET INCOME | $ | 21,125 | $ | 11,395 | ||||
Average common shares outstanding - basic | 25,698 | 25,225 | ||||||
Average common shares outstanding - diluted | 26,308 | 25,971 | ||||||
Basic earnings per share | $ | 0.82 | $ | 0.45 | ||||
Diluted earnings per share | $ | 0.80 | $ | 0.44 | ||||
(1) - First quarter 2017 amounts have been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers. | ||||||||
Saia, Inc. and Subsidiaries | |||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||
For the Quarters Ended March 31, 2018 and 2017 | |||||||||
(Amounts in thousands) | |||||||||
(Unaudited) | |||||||||
First Quarter | |||||||||
2018 | 2017 | ||||||||
OPERATING ACTIVITIES: | |||||||||
Net cash provided by operating activities | $ | 35,502 | $ | 24,128 | |||||
Net cash provided by operating activities | 35,502 | 24,128 | |||||||
INVESTING ACTIVITIES: | |||||||||
Acquisition of property and equipment | (46,881 | ) | (88,388 | ) | |||||
Proceeds from disposal of property and equipment | 100 | 607 | |||||||
Net cash used in investing activities | (46,781 | ) | (87,781 | ) | |||||
FINANCING ACTIVITIES: | |||||||||
Borrowing of revolving credit agreement, net | 7,832 | 65,183 | |||||||
Proceeds from stock option exercises | 4,018 | 1,288 | |||||||
Shares withheld for taxes | (1,302 | ) | (1,211 | ) | |||||
Other financing activity | (3,493 | ) | (2,435 | ) | |||||
Net cash provided by financing activities | 7,055 | 62,825 | |||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (4,224 | ) | (828 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 4,720 | 1,539 | |||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 496 | $ | 711 | |||||
NON-CASH ITEMS: | |||||||||
Equipment financed with capital leases | $ | 5,318 | $ | 20,369 | |||||
Saia, Inc. and Subsidiaries | ||||||||||||||||||
Financial Information | ||||||||||||||||||
For the Quarters Ended March 31, 2018 and 2017 | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
First Quarter | ||||||||||||||||||
First Quarter | % | Amount/Workday | % | |||||||||||||||
2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||
Workdays | 64 | 64 | ||||||||||||||||
Operating ratio (1) | 93.0 | % | 94.6 | % | ||||||||||||||
LTL tonnage (2) | 1,199 | 1,068 | 12.2 | 18.73 | 16.69 | 12.2 | ||||||||||||
LTL shipments (2) | 1,770 | 1,633 | 8.4 | 27.65 | 25.52 | 8.4 | ||||||||||||
LTL revenue/cwt. | $ | 15.92 | $ | 14.78 | 7.7 | |||||||||||||
LTL revenue/shipment | $ | 215.79 | $ | 193.39 | 11.6 | |||||||||||||
LTL pounds/shipment | 1,355 | 1,308 | 3.6 | |||||||||||||||
LTL length of haul (3) | 837 | 797 | 5.0 | |||||||||||||||
(1 | ) | First quarter 2017 operating ratio has been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers. | ||||||||||||||||
(2 | ) | In thousands. | ||||||||||||||||
(3 | ) | 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. 2017 LTL operating statistics have been restated to reflect this presentation. |
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Source: Saia, Inc.