Saia, Inc. Reports First Quarter 2012 Results
JOHNS CREEK, GA, Apr 27, 2012 (MARKETWIRE via COMTEX) --Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported improved first quarter 2012 results on stronger revenue, improving pricing and solid cost execution.
First Quarter 2012 Compared to First Quarter 2011 Results
-- Revenues were $269 million, an increase of 11 percent from the prior
year period
-- Operating income increased to $11.0 million from $4.1 million in the
prior year period
-- Earnings per share were $0.34 compared to $0.04 in the prior year
period
-- Operating ratio was 95.9 compared to 98.3 in the prior year period
-- LTL tonnage increased by 2.6 percent as LTL shipments per workday were
down slightly with a 3.3 percent increase in LTL weight per shipment
-- LTL yield was up 7.9 percent due to the impact of favorable pricing
actions and higher fuel surcharges
"Saia's excellent service quality and continued progress with yield in an improving environment provided the foundation of our margin improvement in the quarter. This higher yield combined with continued cost optimization initiatives throughout our network were the primary drivers of the 240 basis point improvement in our operating ratio. Meaningful margin improvement was achieved in the quarter in spite of some expected higher wage and benefit costs necessary to support our workforce and customer requirements. On the other hand, we benefited from the mild winter weather this year. I am pleased with our progress on many fronts that contributed to materially improved margins for the quarter," said Rick O'Dell, President and Chief Executive Officer.
"Saia's service was 98 percent on-time and we saw improvements in essentially every quality metric we measure. I believe that our fundamental execution on quality, yield management and efficiency initiatives has never been better and the stage is set for further progress. Saia's balance sheet is strong and we are making major investments in technology and equipment that are also contributing to the enhancement of our company image while building on our operational efficiencies. I believe that Saia's targeted marketing, strong service offering, focused pricing discipline and consistent cost execution provide a solid foundation for long-term profitable growth and increased shareholder and customer value," O'Dell said.
Financial Position and Capital Expenditures Total debt was $86.5 million at March 31, 2012 resulting in net debt to total capital of 27.7 percent. This compares to total debt of $90.0 million and net debt to total capital of 24.6 percent at March 31, 2011.
Net capital expenditures for the first three months of 2012 were $39 million. This compares to $6 million of capital expenditures over the same period in 2011. The Company is planning net capital expenditures in 2012 of approximately $80 million. This expenditure level reflects replacement tractors and trailers and the Company's continued investment in technology.
Conference Call Management will hold a conference call to discuss first-quarter results today at 10:30 a.m. Eastern Time. To participate in the call, please dial 1-800-548-7911 or 719-325-4907 referencing conference ID #4755613. 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.saia.com. A replay of the call will be offered two hours after the completion of the call. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.
The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).
Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Georgia and a network of 148 terminals, the carrier employs 8,000 people. For more information, please visit the Investor Relations section of the website at www.saia.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, general economic conditions including downturns in the business cycle; the creditworthiness of our customers and their ability to pay for services; competitive initiatives and pricing pressures, including in connection with fuel surcharge; the Company's need for capital and uncertainty of the current credit markets; the possibility of defaults under the Company's debt agreements (including violation of financial covenants); possible issuance of equity which would dilute stock ownership; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; the effect of litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; 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, changes in interpretation of accounting principles and Homeland Security; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; effectiveness of Company-specific performance improvement initiatives; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of recently enacted healthcare reform legislation 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 Subsidiary
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
March 31, December 31,
2012 2011
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 60 $ 1,317
Accounts receivable, net 120,743 107,436
Prepaid expenses and other 29,215 34,063
------------ ------------
Total current assets 150,018 142,816
PROPERTY AND EQUIPMENT:
Cost 700,132 669,345
Less: accumulated depreciation 342,987 344,890
------------ ------------
Net property and equipment 357,145 324,455
OTHER ASSETS 7,761 7,615
------------ ------------
Total assets $ 514,924 $ 474,886
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 54,307 $ 39,783
Wages and employees' benefits 25,512 21,185
Other current liabilities 41,834 41,237
Current portion of long-term debt 22,143 22,143
------------ ------------
Total current liabilities 143,796 124,348
OTHER LIABILITIES:
Long-term debt, less current portion 64,309 50,714
Deferred income taxes 51,289 51,289
Claims, insurance and other 29,954 29,234
------------ ------------
Total other liabilities 145,552 131,237
STOCKHOLDERS' EQUITY:
Common stock 16 16
Additional paid-in capital 204,555 203,793
Deferred compensation trust (2,221) (2,199)
Retained earnings 23,226 17,691
------------ ------------
Total stockholders' equity 225,576 219,301
------------ ------------
Total liabilities and stockholders' equity $ 514,924 $ 474,886
============ ============
Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters Ended March 31, 2012 and 2011
(Amounts in thousands, except per share data)
(Unaudited)
First Quarter
------------------------
2012 2011
----------- -----------
OPERATING REVENUE $ 268,690 $ 243,018
OPERATING EXPENSES:
Salaries, wages and employees' benefits 131,700 122,740
Purchased transportation 19,309 21,066
Fuel, operating expenses and supplies 79,397 69,941
Operating taxes and licenses 9,866 9,357
Claims and insurance 6,174 7,252
Depreciation and amortization 11,415 8,573
Operating gains loss, net (219) (1)
----------- -----------
Total operating expenses 257,642 238,928
----------- -----------
OPERATING INCOME 11,048 4,090
NONOPERATING EXPENSES:
Interest expense 1,964 2,998
Other, net (95) (91)
----------- -----------
Nonoperating expenses, net 1,869 2,907
----------- -----------
INCOME BEFORE INCOME TAXES 9,179 1,183
Income tax expense 3,644 470
----------- -----------
NET INCOME $ 5,535 $ 713
=========== ===========
Average common shares outstanding - basic 15,833 15,768
=========== ===========
Average common shares outstanding - diluted 16,358 16,119
=========== ===========
Basic earnings per share $ 0.35 $ 0.05
=========== ===========
Diluted earnings per share $ 0.34 $ 0.04
=========== ===========
Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Quarters Ended March 31, 2012 and 2011
(Amounts in thousands)
(Unaudited)
First Quarter
------------------------
2012 2011
----------- -----------
OPERATING ACTIVITIES:
Net cash provided by operating activities $ 24,049 $ (999)
----------- -----------
Net cash provided by (used in) operating
activities 24,049 (999)
----------- -----------
INVESTING ACTIVITIES:
Acquisition of property and equipment (40,595) (6,106)
Proceeds from disposal of property and equipment 1,358 61
----------- -----------
Net cash used in investing activities (39,237) (6,045)
----------- -----------
FINANCING ACTIVITIES:
Borrowings of revolving credit agreement, net 13,595 -
Proceeds from stock option exercises 336 -
----------- -----------
Net cash provided by financing activities 13,931 -
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (1,257) (7,044)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,317 29,045
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 60 $ 22,001
=========== ===========
Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended March 31, 2012 and 2011
(Amounts in thousands)
(Unaudited)
First Quarter
---------------
First Quarter % Amount/Workday %
---------------- ---------------
2012 2011 Change 2012 2011 Change
------- ------- ------ ------- ------- ------
Workdays 64 64
Operating ratio 95.9% 98.3%
F/S Revenue LTL 248,840 225,043 10.6 3,888.1 3,516.3 10.6
TL 19,850 17,975 10.4 310.2 280.9 10.4
Total 268,690 243,018 10.6 4,198.3 3,797.2 10.6
Revenue excluding LTL 250,098 225,765 10.8 3,907.8 3,527.6 10.8
revenue recognition TL 19,951 18,032 10.6 311.7 281.8 10.6
adjustment Total 270,048 243,797 10.8 4,219.5 3,809.3 10.8
Tonnage LTL 929 906 2.6 14.52 14.15 2.6
TL 178 175 1.6 2.79 2.74 1.6
Total 1,108 1,081 2.5 17.31 16.89 2.5
Shipments LTL 1,599 1,609 (0.6) 24.99 25.15 (0.6)
TL 25 25 1.8 0.40 0.39 1.8
Total 1,625 1,634 (0.6) 25.38 25.54 (0.6)
Revenue/cwt. LTL 13.45 12.47 7.9
TL 5.60 5.14 8.9
Total 12.19 11.28 8.1
Revenue/shipment LTL 156.39 140.28 11.5
TL 785.98 723.05 8.7
Total 166.23 149.18 11.4
Pounds/shipment LTL 1,162 1,125 3.3
TL 14,047 14,073 (0.2)
Total 1,364 1,323 3.1
CONTACT: Saia, Inc. Renee McKenzie Treasurer RMcKenzie@Saia.com 678.542.3910
SOURCE: Saia, Inc.
mailto:RMcKenzie@Saia.com