Saia Reports Fourth Quarter Earnings per Share of $0.15
JOHNS CREEK, GA, Jan 31, 2012 (MARKETWIRE via COMTEX) --Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported improved fourth quarter 2011 results on stronger revenue and improving pricing fundamentals.
Fourth Quarter 2011 Compared to Fourth Quarter 2010 Results
-- Revenues were $253 million, an increase of 13 percent from the prior
year period
-- Operating income increased more than three fold to $6.2 million
compared to $1.8 million in the prior year period
-- Earnings per share were $0.15 compared to $0.04 in the prior year
period
-- Operating ratio was 97.6 compared to 99.2 in the prior year period
-- LTL tonnage increased by 1.5 percent as LTL shipments per workday were
down 1.2 percent with a 2.8 percent increase in weight per shipment
-- LTL yield was up 11.0 percent due to the impact of favorable pricing
actions and higher fuel surcharges
-- Claims expense was $4.8 million over the prior year due primarily to
accident severity
"We continue to leverage our excellent service in the improved industry environment which has allowed us to again advance pricing initiatives across our customer base. We attained solid increases in contract renewals during the quarter from customers who value Saia's service quality. Our focus remains on yield improvement and I believe these steady increases will continue," said Rick O'Dell, president and chief executive officer.
"Our fourth quarter results were impacted by higher costs from health care and maintenance. Quarterly results were further unfavorably affected by higher accident severity and workers' compensation expense including an adjustment for claim development," continued O'Dell.
"In spite of cost challenges, we continue to improve financial and operational results. Saia's dedicated employees provided 98% on-time service during the quarter delivering a strong value proposition in the marketplace. Our balance sheet is strong and we are making significant investments in our business to provide a solid foundation for additional progress in 2012," O'Dell said.
2011 Results Compared to 2010 Results
-- Revenues were $1.0 billion compared to $903 million in the prior year,
an increase of 14 percent
-- Operating income was $28.1 million compared to $12.1 million in the
prior year
-- Net income was $11.4 million compared to $2.0 million in the prior
year
-- Earnings per share were $0.70 compared to earnings per share of $0.12
in the prior year
-- Operating ratio was 97.3 compared to 98.7 in the prior year
Financial Position and Capital Expenditures Total debt was $72.9 million at December 31, 2011. This compares to total debt of $90.0 million at December 31, 2010. Net of the Company's $1.3 million cash balance at quarter-end, net debt to total capital was 24.6 percent.
Net capital expenditures in 2011 were $68 million. This compares to $3 million in the prior year period. 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 The Company will hold a conference call to discuss these results today at 11:00 am Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-800-533-7954 or dial 785-830-1294 for international calls and use conference ID 4744631. Callers should dial in five to 10 minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through February 6, 2012. The replay is available by dialing 1-888-203-1112 or 719-457-0820.
The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.
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, Saia employs 7,900 people. For more information, visit the Investor Relations section 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 "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)
December 31, December 31,
2011 2010
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,317 $ 29,045
Accounts receivable, net 107,436 94,569
Prepaid expenses and other 34,063 29,882
------------- -------------
Total current assets 142,816 153,496
PROPERTY AND EQUIPMENT:
Cost 669,345 610,572
Less: accumulated depreciation 344,890 319,634
------------- -------------
Net property and equipment 324,455 290,938
OTHER ASSETS 7,615 7,723
------------- -------------
Total assets $ 474,886 $ 452,157
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 39,783 $ 37,745
Wages and employees' benefits 21,185 19,101
Other current liabilities 41,237 31,777
Current portion of long-term debt 22,143 17,143
------------- -------------
Total current liabilities 124,348 105,766
OTHER LIABILITIES:
Long-term debt, less current portion 50,714 72,857
Deferred income taxes 51,289 39,077
Claims, insurance and other 29,234 28,099
------------- -------------
Total other liabilities 131,237 140,033
STOCKHOLDERS' EQUITY:
Common stock 16 16
Additional paid-in capital 203,793 202,751
Deferred compensation trust (2,199) (2,727)
Retained earnings 17,691 6,318
------------- -------------
Total stockholders' equity 219,301 206,358
------------- -------------
Total liabilities and stockholders' equity $ 474,886 $ 452,157
============= =============
Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters and Years Ended December 31, 2011 and 2010
(Amounts in thousands, except per share data)
(Unaudited)
Fourth Quarters Years
---------------------- ----------------------
2011 2010 2011 2010
---------- ---------- ---------- ----------
OPERATING REVENUE $ 253,020 $ 224,432 $1,030,224 $ 902,660
OPERATING EXPENSES:
Salaries, wages and
employees' benefits 127,108 119,014 513,977 481,197
Purchased transportation 18,095 19,796 87,159 80,859
Fuel, operating expenses
and supplies 71,897 60,502 293,534 233,771
Operating taxes and
licenses 9,441 9,301 38,228 36,981
Claims and insurance 10,213 5,377 32,067 21,870
Depreciation and
amortization 10,179 8,686 37,278 36,159
Operating gains, net (93) (48) (165) (277)
---------- ---------- ---------- ----------
Total operating expenses 246,840 222,628 1,002,078 890,560
---------- ---------- ---------- ----------
OPERATING INCOME 6,180 1,804 28,146 12,100
NONOPERATING EXPENSES:
Interest expense 2,321 2,375 10,468 10,602
Other, net (64) (88) (52) (435)
---------- ---------- ---------- ----------
Nonoperating expenses,
net 2,257 2,287 10,416 10,167
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE INCOME
TAXES 3,923 (483) 17,730 1,933
Income tax expense (benefit) 1,450 (1,188) 6,357 (24)
---------- ---------- ---------- ----------
NET INCOME $ 2,473 $ 705 $ 11,373 $ 1,957
========== ========== ========== ==========
Average common shares
outstanding - basic 15,798 15,730 15,789 15,713
========== ========== ========== ==========
Average common shares
outstanding - diluted 16,143 16,135 16,136 16,115
========== ========== ========== ==========
Basic earnings per share $ 0.16 $ 0.04 $ 0.72 $ 0.12
========== ========== ========== ==========
Diluted earnings per share $ 0.15 $ 0.04 $ 0.70 $ 0.12
========== ========== ========== ==========
Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Years Ended December 31, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Years
------------------------
2011 2010
----------- -----------
OPERATING ACTIVITIES:
Net cash provided by operating activities $ 58,211 $ 23,386
----------- -----------
Net cash provided by operating activities 58,211 23,386
----------- -----------
INVESTING ACTIVITIES:
Acquisition of property and equipment (70,862) (3,815)
Proceeds from disposal of property and equipment 2,963 560
----------- -----------
Net cash used in investing activities (67,899) (3,255)
----------- -----------
FINANCING ACTIVITIES:
Repayment of long-term debt (17,143) -
Payment of debt issuance costs (1,046) -
Proceeds from stock option exercises 149 168
----------- -----------
Net cash (used in) provided by financing
activities (18,040) 168
----------- -----------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (27,728) 20,299
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 29,045 8,746
----------- -----------
CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,317 $ 29,045
=========== ===========
Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended December 31, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Fourth Quarter
---------------
Fourth Quarter % Amount/Workday %
---------------- ---------------
2011 2010 Change 2011 2010 Change
------- ------- ------ ------- ------- ------
Workdays 61 61
Operating ratio 97.6% 99.2%
F/S Revenue LTL 234,818 207,716 13.0 3,849.5 3,405.2 13.0
TL 18,202 16,715 8.9 298.4 274.0 8.9
Total 253,020 224,432 12.7 4,147.9 3,679.2 12.7
Revenue excluding LTL 233,723 207,426 12.7 3,831.5 3,400.4 12.7
revenue recognition TL 18,119 16,692 8.5 297.0 273.6 8.5
adjustment Total 251,843 224,118 12.4 4,128.6 3,674.1 12.4
Tonnage LTL 877 863 1.5 14.37 14.15 1.5
TL 164 166 (1.2) 2.69 2.73 (1.2)
Total 1,041 1,030 1.1 17.06 16.88 1.1
Shipments LTL 1,517 1,536 (1.2) 24.86 25.17 (1.2)
TL 23 24 (0.8) 0.38 0.39 (0.8)
Total 1,540 1,559 (1.2) 25.25 25.56 (1.2)
Revenue/cwt. LTL 13.33 12.01 11.0
TL 5.51 5.02 9.9
Total 12.10 10.88 11.1
Revenue/shipment LTL 154.10 135.08 14.1
TL 775.09 708.00 9.5
Total 163.52 143.74 13.8
Pounds/shipment LTL 1,156 1,124 2.8
TL 14,060 14,110 (0.4)
Total 1,352 1,321 2.3
CONTACT: Saia, Inc. Renee McKenzie Treasurer RMcKenzie@Saia.com 678.542.3910
SOURCE: Saia, Inc.
mailto:RMcKenzie@Saia.com