Saia Reports First Quarter Results
Highlights from the first quarter operating results were as follows:
First Quarter 2020 Compared to First Quarter 2019 Results
- Revenue was
$446.4 million , an 8.7% increase - Operating income was
$38.8 million , a 35.4% increase - Operating ratio of 91.3 compared to 93.0
- LTL shipments per workday rose 2.3%
- LTL tonnage per workday increased by 4.0%
- LTL revenue per hundredweight increased 3.1%
- LTL revenue per shipment rose 4.9% to
$241.61
“First quarter results were marked by shipment volatility over the first couple of months and then after a strong start in March, we experienced a quick and meaningful downturn in business volumes across our network, as a result of the COVID-19 pandemic. We were able to quickly make some cost adjustments, enabling us to produce improved financial results. We achieved a record low first quarter operating ratio which we believe validates our ability to execute on the growth strategy initiated several years ago”, said
“Our operating ratio improved 170 basis points year-over-year as we saw improved productivity across our operations and as a result of our continued focus on pricing and mix management. Our shipments were up 2.3% from the prior year and combined with a 3.4% increase in yield, we increased our revenue per shipment by over 5%. The first quarter marked our 39th consecutive quarter of year over year yield improvement”, Holzgrefe continued.
“The COVID-19 pandemic has created unprecedented disruption to our business and to that of our customers. I am proud of the way our entire team has responded and that we have been able to do our part to provide essential goods all across the country. Our priority as a company is 100% focused on the health and safety of our employees, customers, vendors and all those in the communities we serve, while still honoring our commitment to deliver freight and meet our customers needs,” concluded Holzgrefe.
Saia Vice President and Chief Financial Officer,
Financial Position and Capital Expenditures
Total debt was
Net capital expenditures in the first quarter of 2020 were
Conference Call
Management will hold a conference call to discuss quarterly results today at
Cautionary Note Regarding Forward-Looking Statements
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) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (5) failure to achieve acquisition synergies; (6) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses; (7) economic declines in the geographic regions or industries in which our customers operate; (8) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (9) loss of significant customers; (10) the Company’s need for capital and uncertainty of the credit markets; (11) the possibility of defaults under the Company’s debt agreements (including violation of financial covenants); (12) possible issuance of equity which would dilute stock ownership; (13) integration risks; (14) the effect of litigation including class action lawsuits; (15) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment, technology and other assets; (16) the effect of governmental regulations, including but not limited to Hours of Service, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, the
As a result of these and other factors, no assurance can be given as to our future results and achievements. Accordingly, 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. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this press release. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT:
Investor Relations
investors@saia.com
770.232.4088
| Condensed Consolidated Balance Sheets | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 46,909 | $ | 248 | ||||
| Accounts receivable, net | 210,894 | 196,119 | ||||||
| Prepaid expenses and other | 48,105 | 36,012 | ||||||
| Total current assets | 305,908 | 232,379 | ||||||
| PROPERTY AND EQUIPMENT: | ||||||||
| Cost | 1,834,768 | 1,739,222 | ||||||
| Less: accumulated depreciation | 712,882 | 686,623 | ||||||
| Net property and equipment | 1,121,886 | 1,052,599 | ||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 122,652 | 103,890 | ||||||
| OTHER ASSETS | 26,813 | 26,825 | ||||||
| Total assets | $ | 1,577,259 | $ | 1,415,693 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 91,395 | $ | 83,621 | ||||
| Wages and employees' benefits | 46,678 | 49,668 | ||||||
| Other current liabilities | 72,720 | 69,532 | ||||||
| Current portion of long-term debt | 19,565 | 19,405 | ||||||
| Current portion of operating lease liability | 18,689 | 19,020 | ||||||
| Total current liabilities | 249,047 | 241,246 | ||||||
| OTHER LIABILITIES: | ||||||||
| Long-term debt, less current portion | 216,202 | 117,025 | ||||||
| Operating lease liability, less current portion | 105,282 | 86,239 | ||||||
| Deferred income taxes | 118,624 | 111,555 | ||||||
| Claims, insurance and other | 44,717 | 44,402 | ||||||
| Total other liabilities | 484,825 | 359,221 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock | 26 | 26 | ||||||
| Additional paid-in capital | 262,008 | 260,871 | ||||||
| Deferred compensation trust | (4,958 | ) | (3,871 | ) | ||||
| Retained earnings | 586,311 | 558,200 | ||||||
| Total stockholders' equity | 843,387 | 815,226 | ||||||
| Total liabilities and stockholders' equity | $ | 1,577,259 | $ | 1,415,693 | ||||
| Consolidated Statements of Operations | ||||||||
| For the Quarters Ended |
||||||||
| (Amounts in thousands, except per share data) | ||||||||
| (Unaudited) | ||||||||
| First Quarter | ||||||||
| 2020 | 2019 | |||||||
| OPERATING REVENUE | $ | 446,396 | $ | 410,584 | ||||
| OPERATING EXPENSES: | ||||||||
| Salaries, wages and employees' benefits | 238,645 | 220,352 | ||||||
| Purchased transportation | 30,059 | 28,418 | ||||||
| Fuel, operating expenses and supplies | 82,899 | 83,543 | ||||||
| Operating taxes and licenses | 14,396 | 13,202 | ||||||
| Claims and insurance | 10,421 | 9,530 | ||||||
| Depreciation and amortization | 32,590 | 26,782 | ||||||
| Loss (gain) from property disposals, net | (1,390 | ) | 126 | |||||
| Total operating expenses | 407,620 | 381,953 | ||||||
| OPERATING INCOME | 38,776 | 28,631 | ||||||
| NONOPERATING EXPENSES (INCOME): | ||||||||
| Interest expense | 1,402 | 1,383 | ||||||
| Other, net | 547 | (334 | ) | |||||
| Nonoperating expenses, net | 1,949 | 1,049 | ||||||
| INCOME BEFORE INCOME TAXES | 36,827 | 27,582 | ||||||
| Income tax expense | 8,716 | 5,323 | ||||||
| NET INCOME | $ | 28,111 | $ | 22,259 | ||||
| Average common shares outstanding - basic | 26,070 | 25,873 | ||||||
| Average common shares outstanding - diluted | 26,492 | 26,322 | ||||||
| Basic earnings per share | $ | 1.08 | $ | 0.86 | ||||
| Diluted earnings per share | $ | 1.06 | $ | 0.85 | ||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| For the three months ended |
||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| First Quarter | ||||||||
| 2020 | 2019 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net cash provided by operating activities | $ | 51,267 | $ | 30,400 | ||||
| Net cash provided by operating activities | 51,267 | 30,400 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (107,591 | ) | (56,741 | ) | ||||
| Proceeds from disposal of property and equipment | 4,915 | 275 | ||||||
| Net cash used in investing activities | (102,676 | ) | (56,466 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Borrowing of revolving credit agreement, net | 104,140 | 30,608 | ||||||
| Proceeds from stock option exercises | 2,137 | 1,798 | ||||||
| Shares withheld for taxes | (3,404 | ) | (3,268 | ) | ||||
| Other financing activity | (4,803 | ) | (5,235 | ) | ||||
| Net cash provided by financing activities | 98,070 | 23,903 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 46,661 | (2,163 | ) | |||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 248 | 2,194 | ||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 46,909 | $ | 31 | ||||
| Financial Information | |||||||||||||||||
| For the Quarters Ended |
|||||||||||||||||
| (Unaudited) | |||||||||||||||||
| First Quarter | |||||||||||||||||
| First Quarter | % | Amount/Workday | % | ||||||||||||||
| 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||
| Workdays | 64 | 63 | |||||||||||||||
| Operating ratio | 91.3 | % | 93.0 | % | |||||||||||||
| LTL tonnage (1) | 1,203 | 1,139 | 5.7 | 18.80 | 18.07 | 4.0 | |||||||||||
| LTL shipments (1) | 1,809 | 1,741 | 3.9 | 28.26 | 27.63 | 2.3 | |||||||||||
| LTL revenue/cwt. | $ | 18.16 | $ | 17.61 | 3.1 | ||||||||||||
| LTL revenue/shipment | $ | 241.61 | $ | 230.43 | 4.9 | ||||||||||||
| LTL pounds/shipment | 1,331 | 1,308 | 1.7 | ||||||||||||||
| LTL length of haul (2) | 848 | 831 | 2.0 | ||||||||||||||
| (1 | ) | In thousands. | |||||||||||||||
| (2 | ) | 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. | ||||||||||||||||
Source: Saia, Inc.