Saia Reports Fourth Quarter Results
Highlights from the fourth quarter and full year operating results were as follows:
Fourth Quarter 2022 Compared to Fourth Quarter 2021 Results
- Revenue was
$655.7 million , a 6.3% increase - Operating income was
$92.7 million , a 4.8% decrease - Operating ratio of 85.9% compared to 84.2%
- LTL shipments per workday decreased 8.2%
- LTL tonnage per workday decreased 7.7%
- LTL revenue per hundredweight increased 14.3%
- LTL revenue per shipment rose 15.0% to
$364.44
Full Year 2022 Results Compared to Full Year 2021 Results
- Revenue was
$2.8 billion , a 22.0% increase - Operating income was
$470.5 million , a 40.4% increase - Operating ratio of 83.1% compared to 85.4%
- LTL shipments per workday decreased 0.8%
- LTL tonnage per workday increased 0.9%
- LTL revenue per hundredweight increased 19.4%
- LTL revenue per shipment rose 21.5% to
$351.27
“Fourth quarter results were impacted by slowing volumes throughout the quarter and December tonnage per day was down 13.2%. Despite this softer freight environment, revenue grew by 6.3% and was a fourth quarter record. Revenue per shipment grew by 15% in the quarter, benefitting from solid pricing activity as well as increased fuel surcharge revenue versus the prior year,” stated
“Stepping back and looking at full-year results, it was another successful year for our company as we grew revenue by 22% and operating income by more than 40%. We opened 11 additional terminals this past year and have developed a robust pipeline of more than 30 properties to support additional openings in the years to come,” continued Holzgrefe. “Our expansion efforts are at the core of our strategy to enhance customer service and extend our high quality service offering into more communities where our customers do business and where we can offer quality LTL service to new customers. We are taking a measured approach to expansion in 2023 with five terminal openings scheduled for the first half and will be opportunistic with openings beyond those,” concluded Holzgrefe.
invest in our fleet, technology, properties and our people in 2023.”
Financial Position and Capital Expenditures
We ended the fourth quarter of 2022 with
Net capital expenditures 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, except as required by law. 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 or inflationary periods in the business cycle; (2) operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors; (3) industry-wide external factors largely out of our control; (4) cost and availability of qualified drivers, dock workers and other employees, purchased transportation and fuel; (5) inflationary increases in operating expenses and corresponding reductions of profitability; (6) claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (7) cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums, assume additional liability under its auto liability policies or be unable to obtain insurance coverage; (8) failure to successfully execute the strategy to expand our service geography; (9) costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks; (10) failure to keep pace with technological developments; (11) labor relations, including the adverse impact should a portion of our workforce become unionized; (12) cost, availability and resale value of real property and revenue equipment; (13) supply chain disruption and delays on new equipment delivery; (14) capacity and highway infrastructure constraints; (15) risks arising from international business operations and relationships; (16) seasonal factors, harsh weather and disasters caused by climate change; (17) economic declines in the geographic regions or industries in which our customers operate; (18) the creditworthiness of our customers and their ability to pay for services; (19) our need for capital and uncertainty of the credit markets; (20) the possibility of defaults under our debt agreements, including violation of financial covenants; (21) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (22) dependence on key employees; (23) employee turnover from changes to compensation and benefits or market factors; (24) increased costs of healthcare benefits; (25) damage to our reputation from adverse publicity, including from the use of or impact from social media; (26) failure to make future acquisitions or to achieve acquisition synergies; (27) the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future; (28) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (29) the effect of governmental regulations, including hours of service and licensing compliance for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of 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 news 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, except as otherwise required by law.
CONTACT: | Executive Vice President and Chief Financial Officer Investors@saia.com |
Condensed Consolidated Balance Sheets | ||||
(Amounts in thousands) | ||||
(Unaudited) | ||||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | ||||
Accounts receivable, net | 290,306 | 276,755 | ||
Prepaid expenses and other | 53,190 | 32,912 | ||
Total current assets | 530,886 | 416,255 | ||
PROPERTY AND EQUIPMENT: | ||||
Cost | 2,478,824 | 2,144,528 | ||
Less: accumulated depreciation | 996,204 | 864,074 | ||
Net property and equipment | 1,482,620 | 1,280,454 | ||
OPERATING LEASE RIGHT-OF-USE ASSETS | 120,455 | 107,781 | ||
OTHER ASSETS | 40,749 | 40,760 | ||
Total assets | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Accounts payable | ||||
Wages and employees' benefits | 66,684 | 73,109 | ||
Other current liabilities | 68,165 | 93,268 | ||
Current portion of long-term debt | 14,519 | 19,396 | ||
Current portion of operating lease liability | 24,925 | 21,565 | ||
Total current liabilities | 274,085 | 321,348 | ||
OTHER LIABILITIES: | ||||
Long-term debt, less current portion | 16,489 | 31,008 | ||
Operating lease liability, less current portion | 98,581 | 88,409 | ||
Deferred income taxes | 145,771 | 124,137 | ||
Claims, insurance and other | 60,443 | 60,015 | ||
Total other liabilities | 321,284 | 303,569 | ||
STOCKHOLDERS' EQUITY: | ||||
Common stock | 26 | 26 | ||
Additional paid-in capital | 277,366 | 274,633 | ||
Deferred compensation trust | (5,248) | (4,101) | ||
Retained earnings | 1,307,197 | 949,775 | ||
Total stockholders' equity | 1,579,341 | 1,220,333 | ||
Total liabilities and stockholders' equity |
Consolidated Statements of Operations | ||||||||
For the Quarters and Years Ended |
||||||||
(Amounts in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Fourth Quarter | Years | |||||||
2022 | 2021 | 2022 | 2021 | |||||
OPERATING REVENUE | ||||||||
OPERATING EXPENSES: | ||||||||
Salaries, wages and employees' benefits | 287,777 | 273,393 | 1,169,539 | 1,063,703 | ||||
Purchased transportation | 60,377 | 70,005 | 315,896 | 249,710 | ||||
Fuel, operating expenses and supplies | 144,694 | 107,505 | 558,456 | 381,904 | ||||
Operating taxes and licenses | 15,011 | 15,626 | 63,824 | 59,095 | ||||
Claims and insurance | 15,661 | 17,019 | 56,601 | 61,345 | ||||
Depreciation and amortization | 39,625 | 35,927 | 157,203 | 141,700 | ||||
Operating (gains) losses, net | (110) | 221 | 50 | (3,894) | ||||
Total operating expenses | 563,035 | 519,696 | 2,321,569 | 1,953,563 | ||||
OPERATING INCOME | 92,691 | 97,385 | 470,488 | 335,141 | ||||
NONOPERATING EXPENSES (INCOME): | ||||||||
Interest expense | 670 | 749 | 2,611 | 3,212 | ||||
Other, net | (1,243) | (297) | (171) | (844) | ||||
Nonoperating expenses, net | (573) | 452 | 2,440 | 2,368 | ||||
INCOME BEFORE INCOME TAXES | 93,264 | 96,933 | 468,048 | 332,773 | ||||
Income tax expense | 22,402 | 23,172 | 110,626 | 79,538 | ||||
NET INCOME | ||||||||
Average common shares outstanding - basic | 26,561 | 26,336 | 26,520 | 26,322 | ||||
Average common shares outstanding - diluted | 26,691 | 26,734 | 26,674 | 26,707 | ||||
Basic earnings per share | ||||||||
Diluted earnings per share |
Condensed Consolidated Statements of Cash Flows | ||||
For the twelve months ended |
||||
(Amounts in thousands) | ||||
(Unaudited) | ||||
Years | ||||
2022 | 2021 | |||
OPERATING ACTIVITIES: | ||||
Net cash provided by operating activities | ||||
Net cash provided by operating activities | 473,026 | 382,592 | ||
INVESTING ACTIVITIES: | ||||
Acquisition of property and equipment | (367,429) | (285,746) | ||
Proceeds from disposal of property and equipment | 1,917 | 8,398 | ||
Other | – | (500) | ||
Net cash used in investing activities | (365,512) | (277,848) | ||
FINANCING ACTIVITIES: | ||||
Borrowing (repayment) of revolving credit agreement, net | – | – | ||
Proceeds from stock option exercises | 4,511 | 3,678 | ||
Shares withheld for taxes | (11,752) | (6,571) | ||
Other financing activity | (19,471) | (20,571) | ||
Net cash used in financing activities | (26,712) | (23,464) | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 80,802 | 81,280 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 106,588 | 25,308 | ||
CASH AND CASH EQUIVALENTS, END OF YEAR |
Financial Information | |||||||||||
For the Quarters Ended |
|||||||||||
(Unaudited) | |||||||||||
Fourth Quarter | |||||||||||
Fourth Quarter | % | Amount/Workday | % | ||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||
Workdays | 61 | 61 | |||||||||
Operating ratio | 85.9% | 84.2% | |||||||||
LTL tonnage (1) | 1,243 | 1,346 | (7.7) | 20.37 | 22.07 | (7.7) | |||||
LTL shipments (1) | 1,734 | 1,888 | (8.2) | 28.43 | 30.96 | (8.2) | |||||
LTL revenue/cwt. | 14.3 | ||||||||||
LTL revenue/cwt., excluding fuel surcharges | 6.5 | ||||||||||
LTL revenue/shipment | 15.0 | ||||||||||
LTL revenue/shipment, excluding fuel surcharges | 7.1 | ||||||||||
LTL pounds/shipment | 1,433 | 1,426 | 0.5 | ||||||||
LTL length of haul (2) | 892 | 924 | (3.5) | ||||||||
(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. |
Financial Information | |||||||||||
For the Years Ended |
|||||||||||
(Unaudited) | |||||||||||
Year Over Year | |||||||||||
Year Over Year | % | Amount/Workday | % | ||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||
Workdays | 253 | 252 | |||||||||
Operating ratio | 83.1% | 85.4% | |||||||||
LTL tonnage (1) | 5,473 | 5,401 | 1.3 | 21.63 | 21.43 | 0.9 | |||||
LTL shipments (1) | 7,697 | 7,730 | (0.4) | 30.42 | 30.68 | (0.8) | |||||
LTL revenue/cwt. | 19.4 | ||||||||||
LTL revenue/cwt., excluding fuel surcharges | 10.8 | ||||||||||
LTL revenue/shipment | 21.5 | ||||||||||
LTL revenue/shipment, excluding fuel surcharges | 12.8 | ||||||||||
LTL pounds/shipment | 1,422 | 1,397 | 1.8 | ||||||||
LTL length of haul (2) | 904 | 913 | (1.0) | ||||||||
(1) In thousands. | |||||||||||
(2) In miles. |
Source: Saia, Inc.