Saia, Inc. Reports Fourth Quarter 2010 Results
JOHNS CREEK, GA, Jan 31, 2011 (MARKETWIRE via COMTEX) --
Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload ("LTL") carrier (the "Company"), today reported fourth quarter 2010 results. Earnings per share were $0.04 compared to losses of $0.31 from continuing operations in the prior year quarter. Fourth quarter revenue was $224 million, up 11 percent from the prior year quarter, reflecting enhanced yield and increased tonnage. Operating income was $1.8 million compared to the prior year quarter operating loss of $3.6 million from continuing operations. Fourth quarter 2009 results included $3.9 million in reduced expenses due to a change in vacation policy.
Fourth quarter 2010 highlights include:
-- LTL tonnage per workday increased 6.1% over the prior year quarter
-- LTL yield increased 5.4% over the prior year quarter due to pricing
actions and increased fuel surcharge
-- Operating ratio was 99.2 vs. 101.8 in the prior year quarter, which
included the impact of the favorable vacation adjustment equating to
1.9 operating points
-- Recognition of alternative fuel tax credit of $0.06 per share.
"Our continued focus on measured pricing actions contributed to meaningful improvement in operating results and cash flow compared to the difficult environment of 2009. The combination of tonnage growth, increasing yield and Saia's continued aggressive cost performance resulted in a significant improvement in our fourth quarter operating ratio. While margins remain short of historical levels and targeted returns, I am directionally pleased with the progress and encouraged by identified opportunities and industry fundamentals as we move into 2011," said Rick O'Dell, President and Chief Executive Officer.
Revenue for the full year 2010 was $903 million, an increase of 6 percent from 2009. Operating income for 2010 was $12.1 million, compared with an operating loss of $3.7 million from continuing operations in 2009. Net income was $2.0 million in 2010 compared to a loss of $9.0 million from continuing operations in 2009. Earnings per share were $0.12 in 2010 compared to losses per share of $0.67 from continuing operations in 2009.
2010 highlights are summarized as follows:
-- LTL tonnage per workday increased 2.9% over 2009
-- LTL yield increased 2.9% over 2009 primarily due to the impact of
higher fuel surcharge
-- Operating ratio from continuing operations was 98.7 vs. 100.4 in the
prior year.
"During 2010, we continued to focus on our core strategy of building density, customer satisfaction and cost reduction supported by engineered process improvements. I am pleased that improving market fundamentals and customer recognition of our quality service has permitted us to achieve meaningful pricing improvement, particularly in the second half of 2010. I believe we are in the early stages of this yield recovery and expect continued near-term progress. We feel that Saia's broad coverage, strong service offering, effective marketing, focused pricing discipline and consistent cost execution provide a solid foundation for long-term profitable growth and increased shareholder and customer value as industry dynamics improve," O'Dell said.
Financial Position and Capital Expenditures Total debt was $90.0 million at December 31, 2010. Net of the Company's $29.0 million cash balance at December 31, 2010, net debt to total capital was 22.8 percent. This compares to total debt of $90.0 million and net debt to total capital of 28.6 percent at December 31, 2009.
Net capital expenditures for 2010 were $3 million. This compares to $8 million of capital expenditures in 2009. The Company is planning net capital expenditures in 2011 of approximately $45 million. This level reflects a return to Saia's normal replacement cycle for tractors and continued investment in technology. This capital expenditure outlook may be reevaluated as tonnage improves or for opportunistic purchases.
Conference Call Management will hold a conference call to discuss fourth-quarter results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 1-800-776-9057 or 913-312-9321 referencing conference ID #4878983. 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 through February 7, 2011 at 2:00 p.m. Eastern Time. 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 147 terminals, the carrier employs 7,500 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 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 Comprehensive Safety Analysis 2010, 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)
December 31, December 31,
2010 2009
-------------- --------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 29,045 $ 8,746
Accounts receivable, net 94,569 87,507
Prepaid expenses and other 29,882 38,300
-------------- --------------
Total current assets 153,496 134,553
PROPERTY AND EQUIPMENT:
Cost 610,572 615,803
Less: accumulated depreciation 319,634 292,443
-------------- --------------
Net property and equipment 290,938 323,360
OTHER ASSETS 7,723 8,513
-------------- --------------
Total assets $ 452,157 $ 466,426
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 37,745 $ 46,997
Wages and employees' benefits 19,101 18,793
Other current liabilities 31,777 36,981
Current portion of long-term debt 17,143 -
-------------- --------------
Total current liabilities 105,766 102,771
OTHER LIABILITIES:
Long-term debt, less current portion 72,857 90,000
Deferred income taxes 39,077 41,867
Claims, insurance and other 28,099 29,107
-------------- --------------
Total other liabilities 140,033 160,974
SHAREHOLDERS' EQUITY:
Common stock 16 16
Additional paid-in capital 202,751 201,041
Deferred compensation trust (2,727) (2,737)
Retained earnings 6,318 4,361
-------------- --------------
Total shareholders' equity 206,358 202,681
-------------- --------------
Total liabilities and shareholders'
equity $ 452,157 $ 466,426
============== ==============
Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters and Years Ended December 31, 2010 and 2009
(Amounts in thousands, except per share data)
(Unaudited)
Fourth Quarters Years
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
OPERATING REVENUE $ 224,432 $ 202,400 $ 902,660 $ 849,141
OPERATING EXPENSES:
Salaries, wages and employees'
benefits 119,014 115,106 481,197 486,473
Purchased transportation 19,796 15,358 80,859 64,728
Fuel, operating expenses and
supplies 60,502 51,546 233,771 197,108
Operating taxes and licenses 9,301 8,708 36,981 35,465
Claims and insurance 5,377 5,796 21,870 29,812
Depreciation and amortization 8,686 9,523 36,159 39,342
Operating gains, net (48) (45) (277) (94)
--------- --------- --------- ---------
Total operating expenses 222,628 205,992 890,560 852,834
--------- --------- --------- ---------
OPERATING INCOME (LOSS) 1,804 (3,592) 12,100 (3,693)
NONOPERATING EXPENSES:
Interest expense 2,375 3,786 10,602 12,156
Other, net (88) (47) (435) (208)
--------- --------- --------- ---------
Nonoperating expenses, net 2,287 3,739 10,167 11,948
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME
TAXES (483) (7,331) 1,933 (15,641)
Income tax benefit (1,188) (3,040) (24) (6,605)
--------- --------- --------- ---------
INCOME (LOSS) FROM CONTINUING
OPERATIONS 705 (4,291) 1,957 (9,036)
Income from discontinued
operations, net - 1,161 - 1,161
--------- --------- --------- ---------
NET INCOME (LOSS) $ 705 $ (3,130) $ 1,957 $ (7,875)
========= ========= ========= =========
Average common shares
outstanding - basic 15,730 13,976 15,713 13,423
========= ========= ========= =========
Average common shares
outstanding - diluted 16,135 13,976 16,115 13,423
========= ========= ========= =========
Basic earnings (loss) per share
-- continuing operations $ 0.04 $ (0.31) $ 0.12 $ (0.67)
Basic earnings per share --
discontinued operations - 0.09 - 0.08
--------- --------- --------- ---------
Basic earnings (loss) per share $ 0.04 $ (0.22) $ 0.12 $ (0.59)
========= ========= ========= =========
Diluted earnings (loss) per
share -- continuing operations $ 0.04 $ (0.31) $ 0.12 $ (0.67)
Diluted earnings per share --
discontinued operations - 0.09 - 0.08
--------- --------- --------- ---------
Diluted earnings (loss) per
share $ 0.04 $ (0.22) $ 0.12 $ (0.59)
========= ========= ========= =========
Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Years Ended December 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
Years
--------------------------
2010 2009
------------ ------------
OPERATING ACTIVITIES:
Net cash provided by operating activities $ 23,386 $ 14,088
------------ ------------
Net cash provided by operating activities 23,386 14,088
------------ ------------
INVESTING ACTIVITIES:
Acquisition of property and equipment (3,815) (8,362)
Proceeds from disposal of property and
equipment 560 788
------------ ------------
Net cash used in investing activities (3,255) (7,574)
FINANCING ACTIVITIES:
Repayment of long-term debt - (46,500)
Net proceeds from sale of common stock - 24,868
Proceeds from stock option exercises 168 296
Payment of debt issuance costs - (3,493)
------------ ------------
Net cash provided by (used in) financing
activities 168 (24,829)
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 20,299 (18,315)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 8,746 27,061
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 29,045 $ 8,746
============ ============
Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended December 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
Fourth Quarter
-----------------
Fourth Quarter % Amount/Workday %
---------------- -----------------
2010 2009 Change 2010 2009 Change
------- ------- ------ -------- -------- ------
Workdays 61 62
Operating ratio 99.2% 101.8%
F/S Revenue LTL 207,716 188,756 10.0 3,405.2 3,044.4 11.8
TL 16,715 13,645 22.5 274.0 220.1 24.5
Total 224,432 202,400 10.9 3,679.2 3,264.5 12.7
Revenue excluding LTL 207,426 188,376 10.1 3,400.4 3,038.3 11.9
revenue recognition TL 16,692 13,616 22.6 273.6 219.6 24.6
adjustment Total 224,118 201,992 11.0 3,674.1 3,257.9 12.8
Tonnage LTL 863 827 4.4 14.15 13.33 6.1
TL 166 149 11.4 2.73 2.41 13.2
Total 1,030 976 5.5 16.88 15.74 7.2
Shipments LTL 1,536 1,508 1.8 25.17 24.32 3.5
TL 24 21 10.9 0.39 0.34 12.7
Total 1,559 1,529 2.0 25.56 24.67 3.6
Revenue/cwt. LTL 12.01 11.40 5.4
TL 5.02 4.56 10.0
Total 10.88 10.35 5.2
Revenue/shipment LTL 135.08 124.92 8.1
TL 708.01 640.61 10.5
Total 143.74 132.08 8.8
Pounds/shipment LTL 1,124 1,096 2.6
TL 14,110 14,050 0.4
Total 1,321 1,276 3.5
CONTACT: Saia, Inc. Renee McKenzie Treasurer RMcKenzie@Saia.com 678.542.3910
SOURCE: Saia, Inc.
mailto:RMcKenzie@Saia.com