Saia Reports Fourth Quarter and Full Year Results
JOHNS CREEK, Ga.,
Highlights from the fourth quarter and full year operating results were as follows:
Fourth Quarter 2019 Compared to Fourth Quarter 2018 Results
- Revenue was
$443.1 million , an 8.9% increase - Operating income was
$27.4 million , a 17.7% decrease - Operating ratio of 93.8 compared to 91.8
- LTL shipments per workday rose 6.3%
- LTL tonnage per workday increased by 4.3%
- LTL revenue per hundredweight increased 3.7%
- LTL revenue per shipment rose 1.8% to
$238.45
Full Year 2019 Results Compared to Full Year 2018 Results
- Revenue was
$1.8 billion , an 8.0% increase - Operating income was
$152.6 million , an 8.1% increase - Operating ratio of 91.5 compared to 91.5
- LTL shipments per workday rose 4.3%
- LTL tonnage per workday increased by 0.4%
- LTL revenue per hundredweight increased 7.4%
- LTL revenue per shipment rose 3.4% to
$234.81
The increase in fourth quarter revenue was offset by the investment in Northeast expansion, wage increase and continued inflationary healthcare costs. The Company also experienced a spike in claims and insurance expense in the fourth quarter, primarily related to increased accident severity. Finally, depreciation and amortization expense increased 17% year-over-year as a result of the Company’s continued investments in revenue equipment, properties and technology.
“While the fourth quarter results did not meet our expectations, 2019 revenue of
Saia’s President and Chief Operating Officer,
“After a year of aggressive expansion and investment in our business in 2019, our plan for 2020 includes a very light terminal opening schedule. Instead, our focus shifts to service execution across all of the new terminals and margin improvement through cost leverage,” Holzgrefe said.
Financial Position and Capital Expenditures
Total debt was
Net capital expenditures in 2019 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) 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; (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, technology and other assets; (15) 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
| Saia, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| December 31, 2019 |
December 31, 2018 |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 248 | $ | 2,194 | ||||
| Accounts receivable, net | 196,119 | 181,612 | ||||||
| Prepaid expenses and other | 36,012 | 29,567 | ||||||
| Total current assets | 232,379 | 213,373 | ||||||
| PROPERTY AND EQUIPMENT: | ||||||||
| Cost | 1,739,222 | 1,521,341 | ||||||
| Less: accumulated depreciation | 686,623 | 628,283 | ||||||
| Net property and equipment | 1,052,599 | 893,058 | ||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 101,666 | – | ||||||
| OTHER ASSETS | 29,049 | 27,312 | ||||||
| Total assets | $ | 1,415,693 | $ | 1,133,743 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 83,621 | $ | 78,994 | ||||
| Wages and employees' benefits | 49,668 | 48,116 | ||||||
| Other current liabilities | 69,532 | 64,118 | ||||||
| Current portion of long-term debt | 19,405 | 18,082 | ||||||
| Current portion of operating lease liability | 19,020 | – | ||||||
| Total current liabilities | 241,246 | 209,310 | ||||||
| OTHER LIABILITIES: | ||||||||
| Long-term debt, less current portion | 117,025 | 104,777 | ||||||
| Operating lease liability, less current portion | 86,239 | – | ||||||
| Deferred income taxes | 111,555 | 86,893 | ||||||
| Claims, insurance and other | 44,402 | 36,899 | ||||||
| Total other liabilities | 359,221 | 228,569 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock | 26 | 26 | ||||||
| Additional paid-in capital | 260,871 | 254,738 | ||||||
| Deferred compensation trust | (3,871 | ) | (3,381 | ) | ||||
| Retained earnings | 558,200 | 444,481 | ||||||
| Total stockholders' equity | 815,226 | 695,864 | ||||||
| Total liabilities and stockholders' equity | $ | 1,415,693 | $ | 1,133,743 | ||||
| Saia, Inc. and Subsidiaries | |||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||
| For the Quarters and Years Ended December 31, 2019 and 2018 | |||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Fourth Quarter | Years | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| OPERATING REVENUE | $ | 443,065 | $ | 406,750 | $ | 1,786,735 | $ | 1,653,849 | |||||||
| OPERATING EXPENSES: | |||||||||||||||
| Salaries, wages and employees' benefits | 239,708 | 216,557 | 947,911 | 872,722 | |||||||||||
| Purchased transportation | 31,565 | 28,659 | 129,980 | 123,904 | |||||||||||
| Fuel, operating expenses and supplies | 86,926 | 79,818 | 340,056 | 325,000 | |||||||||||
| Operating taxes and licenses | 14,032 | 12,779 | 54,397 | 50,089 | |||||||||||
| Claims and insurance | 12,537 | 8,339 | 43,073 | 38,425 | |||||||||||
| Depreciation and amortization | 31,877 | 27,188 | 119,135 | 102,153 | |||||||||||
| Loss (gain) from property disposals, net | (1,010 | ) | 74 | (403 | ) | 379 | |||||||||
| Total operating expenses | 415,635 | 373,414 | 1,634,149 | 1,512,672 | |||||||||||
| OPERATING INCOME | 27,430 | 33,336 | 152,586 | 141,177 | |||||||||||
| NONOPERATING EXPENSES (INCOME): | |||||||||||||||
| Interest expense | 1,534 | 1,328 | 6,688 | 5,418 | |||||||||||
| Other, net | (260 | ) | 310 | (754 | ) | (74 | ) | ||||||||
| Nonoperating expenses, net | 1,274 | 1,638 | 5,934 | 5,344 | |||||||||||
| INCOME BEFORE INCOME TAXES | 26,156 | 31,698 | 146,652 | 135,833 | |||||||||||
| Income tax expense | 4,737 | 6,318 | 32,933 | 30,852 | |||||||||||
| NET INCOME | $ | 21,419 | $ | 25,380 | $ | 113,719 | $ | 104,981 | |||||||
| Average common shares outstanding - basic | 26,000 | 25,791 | 25,952 | 25,762 | |||||||||||
| Average common shares outstanding - diluted | 26,498 | 26,289 | 26,435 | 26,291 | |||||||||||
| Basic earnings per share | $ | 0.82 | $ | 0.98 | $ | 4.38 | $ | 4.08 | |||||||
| Diluted earnings per share | $ | 0.81 | $ | 0.97 | $ | 4.30 | $ | 3.99 | |||||||
| Saia, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| For the twelve months ended December 31, 2019 and 2018 | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| Years | ||||||||
| 2019 | 2018 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net cash provided by operating activities | $ | 272,876 | $ | 256,436 | ||||
| Net cash provided by operating activities | 272,876 | 256,436 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (287,655 | ) | (223,672 | ) | ||||
| Proceeds from disposal of property and equipment | 6,624 | 1,088 | ||||||
| Net cash used in investing activities | (281,031 | ) | (222,584 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Borrowing (repayment) of revolving credit agreement, net | 25,929 | (23,000 | ) | |||||
| Proceeds from stock option exercises | 2,927 | 4,165 | ||||||
| Shares withheld for taxes | (3,471 | ) | (1,396 | ) | ||||
| Other financing activity | (19,176 | ) | (16,147 | ) | ||||
| Net cash provided by (used in) financing activities | 6,209 | (36,378 | ) | |||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,946 | ) | (2,526 | ) | ||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 2,194 | 4,720 | ||||||
| CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 248 | $ | 2,194 | ||||
| NON-CASH ITEMS: | ||||||||
| Equipment financed with finance leases | $ | 6,169 | $ | 29,090 | ||||
| Saia, Inc. and Subsidiaries | ||||||||||||||||||
| Financial Information | ||||||||||||||||||
| For the Quarters Ended December 31, 2019 and 2018 | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Fourth Quarter | ||||||||||||||||||
| Fourth Quarter | % | Amount/Workday | % | |||||||||||||||
| 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||
| Workdays | 62 | 62 | ||||||||||||||||
| Operating ratio | 93.8 | % | 91.8 | % | ||||||||||||||
| LTL tonnage (1) | 1,164 | 1,115 | 4.3 | 18.77 | 17.99 | 4.3 | ||||||||||||
| LTL shipments (1) | 1,794 | 1,687 | 6.3 | 28.94 | 27.22 | 6.3 | ||||||||||||
| LTL revenue/cwt. | $ | 18.38 | $ | 17.72 | 3.7 | |||||||||||||
| LTL revenue/shipment | $ | 238.45 | $ | 234.33 | 1.8 | |||||||||||||
| LTL pounds/shipment | 1,297 | 1,322 | (1.9 | ) | ||||||||||||||
| LTL length of haul (2) | 846 | 837 | 1.1 | |||||||||||||||
| (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. | |||||||||||||||||
| Saia, Inc. and Subsidiaries | ||||||||||||||||||
| Financial Information | ||||||||||||||||||
| For the Years Ended December 31, 2019 and 2018 | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Year Over Year | ||||||||||||||||||
| Year Over Year | % | Amount/Workday | % | |||||||||||||||
| 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||
| Workdays | 253 | 253 | ||||||||||||||||
| Operating ratio | 91.5 | % | 91.5 | % | ||||||||||||||
| LTL tonnage (1) | 4,820 | 4,801 | 0.4 | 19.05 | 18.97 | 0.4 | ||||||||||||
| LTL shipments (1) | 7,409 | 7,103 | 4.3 | 29.28 | 28.08 | 4.3 | ||||||||||||
| LTL revenue/cwt. | $ | 18.05 | $ | 16.80 | 7.4 | |||||||||||||
| LTL revenue/shipment | $ | 234.81 | $ | 227.08 | 3.4 | |||||||||||||
| LTL pounds/shipment | 1,301 | 1,352 | (3.8 | ) | ||||||||||||||
| LTL length of haul (2) | 840 | 837 | 0.4 | |||||||||||||||
| (1 | ) | In thousands. | ||||||||||||||||
| (2 | ) | In miles. | ||||||||||||||||
Source: Saia, Inc.