Financial Release

JOHNS CREEK, Ga., Oct. 31, 2022 (GLOBE NEWSWIRE) -- Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering national less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported third quarter 2022 financial results. Diluted earnings per share in the quarter were $3.67 compared to $2.98 in the third quarter of 2021. Third quarter 2021 adjusted diluted earnings per share¹ were $2.86.

Highlights from the third quarter operating results were as follows:

Third Quarter 2022 Compared to Third Quarter 2021 Results

• Revenue was $729.6 million, a 18.4% increase
• Operating income was $128.4 million, a 21.0% increase
• Operating ratio of 82.4 compared to 82.8 (adjusted operating ratio¹ of 83.5 in 2021)
• LTL shipments per workday decreased 2.5%
• LTL tonnage per workday decreased 0.4%
• LTL revenue per hundredweight increased 17.5%
• LTL revenue per shipment rose 20.1% to $359.04

“Saia’s third quarter operating ratio of 82.4% was 110 basis points better than last year’s adjusted operating ratio and operating income increased by 26% compared to last year’s adjusted operating income, despite a somewhat softer demand environment experienced over the last several weeks of the quarter,” stated Saia President and CEO, Fritz Holzgrefe. “Revenue and LTL revenue per shipment, both excluding fuel surcharge, increased by 9.3% and 10.2% respectively, reflecting a continuation of the constructive LTL pricing environment. Including fuel surcharge, our yield rose 17.5% and LTL revenue per shipment grew by 20.1% in the quarter.”

“We opened five new terminals in the quarter and opened one more in October, bringing our year-to-date total of new openings to 11. We have no other openings planned for this year, but will resume our expansion efforts in the first quarter of 2023 and anticipate another 10-15 openings next year. Customer response to our expanded service capabilities continues to be positive and we believe that the terminal expansion strategy is enabling us to provide differentiated service levels,” concluded Mr. Holzgrefe.

Saia Executive Vice President and Chief Financial Officer, Douglas Col added, “I am pleased with the year-over-year operating ratio improvement and that we were able to achieve that while still being able to provide our employees with a wage increase in July. On the cost side, we have seen a step-up in depreciation expense as new equipment has been delivered into the fleet, but we expect to see a benefit in maintenance expense and also potentially in reduced purchased transportation expense in the coming months as we run more miles with Company equipment and drivers.”

Financial Position and Capital Expenditures

We ended the third quarter of 2022 with $149.8 million of cash on hand and total debt of $34.9 million, which compares to $121.7 million of cash on hand and total debt of $55.2 million at September 30, 2021.

Net capital expenditures were $278.0 million during the first nine months of 2022, compared to $148.4 million in net capital expenditures during the first nine months of 2021. In 2022, we anticipate that net capital expenditures will be approximately $500 million.

Conference Call

Management will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 888-394-8218 or 323-794-2591 referencing conference ID #6820944. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company website at www.saia.com/about-us/investor-relations/financial-releases. A replay of the call will be offered two hours after the completion of the call through November 28, 2022 at 1:00 p.m. Eastern Time. The replay will be available by dialing 888-203-1112.

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services.  With headquarters in Georgia, Saia LTL Freight operates 187 terminals with service across 45 states.  For more information on Saia, Inc. visit the Investor Relations section at www.saia.com/about-us/investor-relations.

Cautionary Note Regarding Forward-Looking Statements

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 may contain 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 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) claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (6) 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; (7) failure to successfully execute the strategy to expand our service geography; (8) 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; (9) failure to keep pace with technological developments; (10) labor relations, including the adverse impact should a portion of our workforce become unionized; (11) cost and availability of real property and revenue equipment; (12) supply chain disruption and delays on new equipment delivery; (13) capacity and highway infrastructure constraints; (14) risks arising from international business operations and relationships; (15) seasonal factors, harsh weather and disasters caused by climate change; (16) economic declines in the geographic regions or industries in which our customers operate; (17) the creditworthiness of our customers and their ability to pay for services; (18) our need for capital and uncertainty of the credit markets; (19) the possibility of defaults under our debt agreements (including violation of financial covenants); (20) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (21) dependence on key employees; (22) employee turnover from changes to compensation and benefits or market factors; (23) increased costs of healthcare benefits; (24) damage to our reputation from adverse publicity, including from the use of or impact from social media; (25) failure to make future acquisitions or to achieve acquisition synergies; (26) 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; (27) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (28) 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 Food and Drug Administration and Homeland Security, and healthcare and environmental regulations; (29) unforeseen costs from new and existing data privacy laws; (30) changes in accounting and financial standards or practices; (31) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions and higher costs that may arise from the COVID-19 pandemic in the future, including governmental regulations requiring that employees be vaccinated or be tested regularly for COVID-19 before reporting to work; (32) increasing investor and customer sensitivity to social and sustainability issues, including climate change; (33) anti-terrorism measures and terrorist events; (34)  provisions in our governing documents and Delaware law that may have anti-takeover effects; (35) issuances of equity that would dilute stock ownership; and (36) 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. 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.

FOOTNOTE

1 Non-GAAP Financial Disclosure and Reconciliation:

From time to time we supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures. These include "adjusted" operating income and "adjusted" diluted earnings per share. The Company's management believes that certain non-GAAP financial measures provide a greater understanding of ongoing operations and enhance compatibility of results with prior periods. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

A gain of $4.3 million from the sale of a terminal was recorded during the third quarter of 2021. This gain resulted in an increase in operating income of $4.3 million, an increase in diluted earnings per share of $0.12 and an improvement of 70 basis points in the operating ratio for the third quarter of 2021. This transaction occurred as the result of management's efforts towards expanding door count by replacing a smaller facility with a larger facility better positioned to successfully support the Company's overall strategy.

Saia, Inc. and Subsidiaries
Reconciliation of Certain GAAP and Non-GAAP Income Statement Items
For the Quarter and Nine Months Ended September 30, 2022 and 2021
(Amounts in thousands, except operating ratio and per share data)
(Unaudited)
		Third Quarter								Nine Months
		2022				2021				2022				2021
Operating Income (GAAP)		$	128,355			$	106,117			$	377,797			$	237,756
Less: Operating Income impact of Gain on Real Estate Disposal			-				(4,267	)			-				(4,267	)
Adjusted operating income (Non-GAAP)		$	128,355			$	101,850			$	377,797			$	233,489
		Third Quarter								Nine Months
		2022				2021				2022				2021
Diluted earnings per share  (GAAP)		$	3.67			$	2.98			$	10.75			$	6.72
Less: Diluted earnings per share impact of Gain on Real Estate Disposal			-				(0.12	)			-				(0.12	)
Adjusted diluted earnings per share  (Non-GAAP)		$	3.67			$	2.86			$	10.75			$	6.60
		Third Quarter								Nine Months
		2022				2021				2022				2021
Operating Ratio			82.4				82.8				82.3				85.8
Less: Operating Ratio impact of Gain on Real Estate Disposal			-				0.7				-				0.2
Adjusted operating ratio			82.4				83.5				82.3				86.0

CONTACT:   Saia, Inc.
Douglas Col
Executive Vice President and Chief Financial Officer
Investors@saia.com

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
		September 30, 2022				December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	149,825			$	106,588
Accounts receivable, net			335,595				276,755
Prepaid expenses and other			65,982				32,912
Total current assets			551,402				416,255
PROPERTY AND EQUIPMENT:
Cost			2,403,702				2,144,528
Less: accumulated depreciation			964,533				864,074
Net property and equipment			1,439,169				1,280,454
OPERATING LEASE RIGHT-OF-USE ASSETS			107,456				107,781
OTHER ASSETS			42,297				40,760
Total assets		$	2,140,324			$	1,845,250
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	114,697			$	114,010
Wages and employees' benefits			79,193				73,109
Other current liabilities			105,915				93,268
Current portion of long-term debt			15,914				19,396
Current portion of operating lease liability			22,750				21,565
Total current liabilities			338,469				321,348
OTHER LIABILITIES:
Long-term debt, less current portion			18,936				31,008
Operating lease liability, less current portion			87,388				88,409
Deferred income taxes			124,960				124,137
Claims, insurance and other			64,089				60,015
Total other liabilities			295,373				303,569
STOCKHOLDERS' EQUITY:
Common stock			26				26
Additional paid-in capital			275,358				274,633
Deferred compensation trust			(5,237	)			(4,101	)
Retained earnings			1,236,335				949,775
Total stockholders' equity			1,506,482				1,220,333
Total liabilities and stockholders' equity		$	2,140,324			$	1,845,250

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Nine Months Ended September 30, 2022 and 2021
(Amounts in thousands, except per share data)
(Unaudited)
		Third Quarter								Nine Months
			2022				2021				2022				2021
OPERATING REVENUE		$	729,561			$	616,216			$	2,136,331			$	1,671,623
OPERATING EXPENSES:
Salaries, wages and employees' benefits			297,247				277,087				881,762				790,310
Purchased transportation			85,452				72,193				255,519				179,705
Fuel, operating expenses and supplies			145,461				98,834				413,762				274,399
Operating taxes and licenses			16,261				14,572				48,813				43,469
Claims and insurance			15,988				15,518				40,940				44,326
Depreciation and amortization			40,682				35,742				117,578				105,773
Loss (gain) from property disposals, net			115				(3,847	)			160				(4,115	)
Total operating expenses			601,206				510,099				1,758,534				1,433,867
OPERATING INCOME			128,355				106,117				377,797				237,756
NONOPERATING EXPENSES (INCOME):
Interest expense			581				777				1,941				2,463
Other, net			68				14				1,072				(547	)
Nonoperating expenses, net			649				791				3,013				1,916
INCOME BEFORE INCOME TAXES			127,706				105,326				374,784				235,840
Income tax expense			29,815				25,617				88,224				56,366
NET INCOME		$	97,891			$	79,709			$	286,560			$	179,474
Average common shares outstanding - basic			26,539				26,334				26,506				26,317
Average common shares outstanding - diluted			26,676				26,713				26,663				26,699
Basic earnings per share		$	3.69			$	3.03			$	10.81			$	6.82
Diluted earnings per share		$	3.67			$	2.98			$	10.75			$	6.72

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2022 and 2021
(Amounts in thousands)
(Unaudited)
		Nine Months
		2022				2021
OPERATING ACTIVITIES:
Net cash provided by operating activities		$	344,074			$	267,686
Net cash provided by operating activities			344,074				267,686
INVESTING ACTIVITIES:
Acquisition of property and equipment			(279,057	)			(154,884	)
Proceeds from disposal of property and equipment			1,061				6,460
Other			–				(500	)
Net cash used in investing activities			(277,996	)			(148,924	)
FINANCING ACTIVITIES:
Borrowing (repayment) of revolving credit agreement, net			–				–
Proceeds from stock option exercises			4,416				3,678
Shares withheld for taxes			(11,703	)			(6,571	)
Other financing activity			(15,554	)			(15,805	)
Net cash used in financing activities			(22,841	)			(18,698	)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (1)			43,237				100,064
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (1)			106,588				25,308
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (1)		$	149,825			$	125,372
(1) Cash, cash equivalents and restricted cash at the end of the period includes $3.7 million of restricted cash included in accounts receivable, net on the Condensed Consolidated Balance Sheet ending September 30, 2021

Saia, Inc. and Subsidiaries
Financial  Information
For the Quarters Ended September 30, 2022 and 2021
(Unaudited)
															Third Quarter
			Third Quarter								%				Amount/Workday								%
			2022				2021				Change				2022				2021				Change
Workdays																64				64
Operating ratio				82.4	%			82.8	%
LTL tonnage (1)				1,397				1,402				(0.4	)			21.83				21.91				(0.4	)
LTL shipments (1)				1,954				2,004				(2.5	)			30.52				31.31				(2.5	)
LTL revenue/cwt.			$	25.10			$	21.36				17.5
LTL revenue/cwt., excluding fuel surcharges			$	19.74			$	18.31				7.8
LTL revenue/shipment			$	359.04			$	299.02				20.1
LTL revenue/shipment, excluding fuel surcharges			$	282.41			$	256.23				10.2
LTL pounds/shipment				1,431				1,400				2.2
LTL length of haul (2)				897				915				(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.