Saia Reports Record Fourth Quarter Results
Highlights from the fourth quarter and full year operating results were as follows:
Fourth Quarter 2020 Compared to Fourth Quarter 2019 Results
- Revenue was
$476.5 million , a 7.5% increase - Operating income was
$50.6 million , a 84.6% increase - Operating ratio of 89.4 compared to 93.8
- LTL shipments per workday increased 3.6%
- LTL tonnage per workday increased 6.0%
- LTL revenue per hundredweight increased 1.2%
- LTL revenue per shipment rose 3.5% to
$246.88
Full Year 2020 Results Compared to Full Year 2019 Results
- Revenue was
$1.8 billion , a 2.0% increase - Operating income was
$180.3 million , an 18.2% increase - Operating ratio of 90.1 compared to 91.5
- LTL shipments per workday decreased 0.9%
- LTL tonnage per workday increased by 0.1%
- LTL revenue per hundredweight increased 1.6%
- LTL revenue per shipment rose 2.6% to
$240.86
Fourth quarter effective tax rate of 19.8% was lower than the third quarter and full year tax rate, related to executive and director stock compensation.
“After the most unique year in our history, I am very pleased at the record results achieved by our team,” stated
“Moving into 2021, we continue to focus our efforts on expansion of our network and of course on continuing profitability initiatives,” said Holzgrefe. “We have one planned terminal opening for the first quarter and are reviewing several other opportunities. We continue to see inflationary cost pressures in our business, including our January wage increase and we will work on mix and pricing to cover the cost pressures and strive to improve margins in our business. We are still operating in challenging conditions and the “Covid” operating protocol developed last year, continues. Despite that, we plan to invest in our business and will support our employees as they work and allow our company to provide essential services to our customers,” concluded Holzgrefe.
Financial Position and Capital Expenditures
Total debt was
Net capital investments were
In 2021, we anticipate net capital expenditures will be approximately
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 | $ | 25,308 | $ | 248 | ||||
Accounts receivable, net | 216,899 | 196,119 | ||||||
Prepaid expenses and other | 29,489 | 36,012 | ||||||
Total current assets | 271,696 | 232,379 | ||||||
PROPERTY AND EQUIPMENT: | ||||||||
Cost | 1,901,244 | 1,739,222 | ||||||
Less: accumulated depreciation | 765,217 | 686,623 | ||||||
Net property and equipment | 1,136,027 | 1,052,599 | ||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | 113,715 | 103,890 | ||||||
OTHER ASSETS | 27,336 | 26,825 | ||||||
Total assets | $ | 1,548,774 | $ | 1,415,693 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 89,381 | $ | 83,621 | ||||
Wages and employees' benefits | 55,392 | 49,668 | ||||||
Other current liabilities | 90,184 | 69,532 | ||||||
Current portion of long-term debt | 20,588 | 19,405 | ||||||
Current portion of operating lease liability | 20,209 | 19,020 | ||||||
Total current liabilities | 275,754 | 241,246 | ||||||
OTHER LIABILITIES: | ||||||||
Long-term debt, less current portion | 50,388 | 117,025 | ||||||
Operating lease liability, less current portion | 95,321 | 86,239 | ||||||
Deferred income taxes | 119,818 | 111,555 | ||||||
Claims, insurance and other | 46,205 | 44,402 | ||||||
Total other liabilities | 311,732 | 359,221 | ||||||
STOCKHOLDERS' EQUITY: | ||||||||
Common stock | 26 | 26 | ||||||
Additional paid-in capital | 267,666 | 260,871 | ||||||
Deferred compensation trust | (2,944 | ) | (3,871 | ) | ||||
Retained earnings | 696,540 | 558,200 | ||||||
Total stockholders' equity | 961,288 | 815,226 | ||||||
Total liabilities and stockholders' equity | $ | 1,548,774 | $ | 1,415,693 | ||||
Consolidated Statements of Operations | ||||||||||||||||
For the Quarters and Years Ended |
||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Fourth Quarter | Years | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
OPERATING REVENUE | $ | 476,482 | $ | 443,065 | $ | 1,822,366 | $ | 1,786,735 | ||||||||
OPERATING EXPENSES: | ||||||||||||||||
Salaries, wages and employees' benefits | 248,246 | 239,708 | 963,260 | 947,911 | ||||||||||||
Purchased transportation | 44,851 | 31,565 | 141,369 | 129,980 | ||||||||||||
Fuel, operating expenses and supplies | 76,327 | 86,926 | 299,234 | 340,056 | ||||||||||||
Operating taxes and licenses | 14,094 | 14,032 | 56,294 | 54,397 | ||||||||||||
Claims and insurance | 9,109 | 12,537 | 49,761 | 43,073 | ||||||||||||
Depreciation and amortization | 34,177 | 31,877 | 134,655 | 119,135 | ||||||||||||
Gain from property disposals, net | (970 | ) | (1,010 | ) | (2,528 | ) | (403 | ) | ||||||||
Total operating expenses | 425,834 | 415,635 | 1,642,045 | 1,634,149 | ||||||||||||
OPERATING INCOME | 50,648 | 27,430 | 180,321 | 152,586 | ||||||||||||
NONOPERATING EXPENSES (INCOME): | ||||||||||||||||
Interest expense | 1,007 | 1,534 | 5,177 | 6,688 | ||||||||||||
Other, net | (539 | ) | (260 | ) | (1,134 | ) | (754 | ) | ||||||||
Nonoperating expenses, net | 468 | 1,274 | 4,043 | 5,934 | ||||||||||||
INCOME BEFORE INCOME TAXES | 50,180 | 26,156 | 176,278 | 146,652 | ||||||||||||
Income tax expense | 9,944 | 4,737 | 37,938 | 32,933 | ||||||||||||
NET INCOME | $ | 40,236 | $ | 21,419 | $ | 138,340 | $ | 113,719 | ||||||||
Average common shares outstanding - basic | 26,203 | 26,000 | 26,140 | 25,952 | ||||||||||||
Average common shares outstanding - diluted | 26,653 | 26,498 | 26,592 | 26,435 | ||||||||||||
Basic earnings per share | $ | 1.54 | $ | 0.82 | $ | 5.29 | $ | 4.38 | ||||||||
Diluted earnings per share | $ | 1.51 | $ | 0.81 | $ | 5.20 | $ | 4.30 | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
For the twelve months ended |
||||||||
(Amounts in thousands) | ||||||||
(Unaudited) | ||||||||
Years | ||||||||
2020 | 2019 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net cash provided by operating activities | $ | 309,145 | $ | 272,876 | ||||
Net cash provided by operating activities | 309,145 | 272,876 | ||||||
INVESTING ACTIVITIES: | ||||||||
Acquisition of property and equipment | (231,142 | ) | (287,655 | ) | ||||
Proceeds from disposal of property and equipment | 12,325 | 6,624 | ||||||
Net cash used in investing activities | (218,817 | ) | (281,031 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Borrowing (repayment) of revolving credit agreement, net | (45,929 | ) | 25,929 | |||||
Proceeds from stock option exercises | 3,786 | 2,927 | ||||||
Shares withheld for taxes | (3,600 | ) | (3,471 | ) | ||||
Other financing activity | (19,525 | ) | (19,176 | ) | ||||
Net cash provided by (used in) financing activities | (65,268 | ) | 6,209 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 25,060 | (1,946 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 248 | 2,194 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 25,308 | $ | 248 | ||||
NON-CASH ITEMS: | ||||||||
Equipment financed with finance leases | $ | – | $ | 6,169 | ||||
Financial Information | |||||||||||||||
For the Quarters Ended |
|||||||||||||||
(Unaudited) | |||||||||||||||
Fourth Quarter | |||||||||||||||
Fourth Quarter | % | Amount/Workday | % | ||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||
Workdays | 62 | 62 | |||||||||||||
Operating ratio | 89.4% | 93.8% | |||||||||||||
LTL tonnage (1) | 1,233 | 1,164 | 5.9 | 19.89 | 18.77 | 6.0 | |||||||||
LTL shipments (1) | 1,859 | 1,794 | 3.6 | 29.98 | 28.94 | 3.6 | |||||||||
LTL revenue/cwt. | $ | 18.60 | $ | 18.38 | 1.2 | ||||||||||
LTL revenue/shipment | $ | 246.88 | $ | 238.45 | 3.5 | ||||||||||
LTL pounds/shipment | 1,327 | 1,297 | 2.3 | ||||||||||||
LTL length of haul (2) | 898 | 846 | 6.1 | ||||||||||||
(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. |
Financial Information | ||||||||||||||||
For the Years Ended |
||||||||||||||||
(Unaudited) | ||||||||||||||||
Year Over Year | ||||||||||||||||
Year Over Year | % | Amount/Workday | % | |||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||
Workdays | 254 | 253 | ||||||||||||||
Operating ratio | 90.1% | 91.5% | ||||||||||||||
LTL tonnage (1) | 4,842 | 4,820 | 0.5 | 19.06 | 19.05 | 0.1 | ||||||||||
LTL shipments (1) | 7,371 | 7,409 | (0.5 | ) | 29.02 | 29.28 | (0.9 | ) | ||||||||
LTL revenue/cwt. | $ | 18.33 | $ | 18.05 | 1.6 | |||||||||||
LTL revenue/shipment | $ | 240.86 | $ | 234.81 | 2.6 | |||||||||||
LTL pounds/shipment | 1,314 | 1,301 | 1.0 | |||||||||||||
LTL length of haul (2) | 879 | 840 | 4.6 | |||||||||||||
(1) | In thousands. | |||||||||||||||
(2) | In miles. |
Source: Saia, Inc.