Saia Reports Second Quarter Results
Highlights from the second quarter operating results were as follows:
Second Quarter 2023 Compared to Second Quarter 2022 Results
- Revenue was
$694.6 million , a 6.8% decrease - Operating income was
$120.3 million , a 17.6% decrease - Operating ratio of 82.7% compared to 80.4%
- LTL shipments per workday decreased 3.8%
- LTL tonnage per workday decreased 1.7%
- LTL revenue per hundredweight, excluding fuel surcharge revenue increased 2.7%
- LTL revenue per shipment, excluding fuel surcharge revenue increased 4.8%
“Saia released solid second quarter results despite the softer economic environment we faced compared to last year,” stated
“We have opened five new terminals so far this year, enhancing our market position and in doing so we are making it easier for customers to choose
Financial Position and Capital Expenditures
We ended the second quarter of 2023 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, mechanics and other employees, purchased transportation and fuel; (5) inflationary increases in operating expenses and corresponding reductions of profitability; (6) cost and availability of diesel fuel and fuel surcharges; (7) cost and availability of insurance coverage and claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (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) inaccuracies and changes to estimates and assumptions used in preparing our financial statements; (22) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (23) dependence on key employees; (24) employee turnover from changes to compensation and benefits or market factors; (25) increased costs of healthcare benefits; (26) damage to our reputation from adverse publicity, including from the use of or impact from social media; (27) failure to make future acquisitions or to achieve acquisition synergies; (28) 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; (29) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (30) 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 | $ | 234,997 | $ | 187,390 | ||||
| Accounts receivable, net | 299,551 | 290,306 | ||||||
| Prepaid expenses and other | 44,321 | 53,190 | ||||||
| Total current assets | 578,869 | 530,886 | ||||||
| Property and Equipment: | ||||||||
| Cost | 2,683,192 | 2,478,824 | ||||||
| Less: accumulated depreciation | 1,075,639 | 996,204 | ||||||
| Net property and equipment | 1,607,553 | 1,482,620 | ||||||
| Operating Lease Right-of-Use Assets | 110,428 | 120,455 | ||||||
| Other Assets | 40,261 | 40,749 | ||||||
| Total assets | $ | 2,337,111 | $ | 2,174,710 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 98,249 | $ | 99,792 | ||||
| Wages, vacation and employees' benefits | 63,153 | 66,684 | ||||||
| Other current liabilities | 68,818 | 68,165 | ||||||
| Current portion of long-term debt | 11,681 | 14,519 | ||||||
| Current portion of operating lease liability | 25,393 | 24,925 | ||||||
| Total current liabilities | 267,294 | 274,085 | ||||||
| Other Liabilities: | ||||||||
| Long-term debt, less current portion | 9,677 | 16,489 | ||||||
| Operating lease liability, less current portion | 88,506 | 98,581 | ||||||
| Deferred income taxes | 158,543 | 145,771 | ||||||
| Claims, insurance and other | 66,869 | 60,443 | ||||||
| Total other liabilities | 323,595 | 321,284 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock | 27 | 26 | ||||||
| Additional paid-in capital | 277,208 | 277,366 | ||||||
| Deferred compensation trust | (5,626 | ) | (5,248 | ) | ||||
| Retained earnings | 1,474,613 | 1,307,197 | ||||||
| Total stockholders' equity | 1,746,222 | 1,579,341 | ||||||
| Total liabilities and stockholders' equity | $ | 2,337,111 | $ | 2,174,710 | ||||
| Consolidated Statements of Operations | ||||||||||||||||
| For the Quarters and Six Months Ended |
||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Second Quarter | Six Months | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating Revenue | $ | 694,622 | $ | 745,554 | $ | 1,355,157 | $ | 1,406,770 | ||||||||
| Operating Expenses: | ||||||||||||||||
| Salaries, wages and employees' benefits | 311,888 | 295,052 | 610,844 | 584,515 | ||||||||||||
| Purchased transportation | 49,771 | 91,819 | 96,498 | 170,067 | ||||||||||||
| Fuel, operating expenses and supplies | 133,490 | 145,530 | 275,115 | 268,301 | ||||||||||||
| Operating taxes and licenses | 17,457 | 15,979 | 34,522 | 32,552 | ||||||||||||
| Claims and insurance | 16,956 | 14,216 | 31,015 | 24,952 | ||||||||||||
| Depreciation and amortization | 44,658 | 36,944 | 87,538 | 76,896 | ||||||||||||
| Other operating, net | 147 | 21 | 227 | 45 | ||||||||||||
| Total operating expenses | 574,367 | 599,561 | 1,135,759 | 1,157,328 | ||||||||||||
| Operating Income | 120,255 | 145,993 | 219,398 | 249,442 | ||||||||||||
| Nonoperating (Income) Expenses: | ||||||||||||||||
| Interest expense | 458 | 668 | 1,146 | 1,360 | ||||||||||||
| Interest income | (487 | ) | (55 | ) | (627 | ) | (62 | ) | ||||||||
| Other, net | (990 | ) | 824 | (1,493 | ) | 1,066 | ||||||||||
| Nonoperating (income) expenses, net | (1,019 | ) | 1,437 | (974 | ) | 2,364 | ||||||||||
| Income Before Income Taxes | 121,274 | 144,556 | 220,372 | 247,078 | ||||||||||||
| Income tax expense | 29,955 | 35,311 | 52,956 | 58,409 | ||||||||||||
| Net Income | $ | 91,319 | $ | 109,245 | $ | 167,416 | $ | 188,669 | ||||||||
| Weighted average common shares outstanding - basic | 26,634 | 26,507 | 26,617 | 26,489 | ||||||||||||
| Weighted average common shares outstanding - diluted | 26,736 | 26,665 | 26,722 | 26,662 | ||||||||||||
| Basic earnings per share | $ | 3.43 | $ | 4.12 | $ | 6.29 | $ | 7.12 | ||||||||
| Diluted earnings per share | $ | 3.42 | $ | 4.10 | $ | 6.27 | $ | 7.08 | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| For the six months ended |
||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| Six Months | ||||||||
| 2023 | 2022 | |||||||
| Operating Activities: | ||||||||
| Net cash provided by operating activities | $ | 291,405 | $ | 207,905 | ||||
| Net cash provided by operating activities | 291,405 | 207,905 | ||||||
| Investing Activities: | ||||||||
| Acquisition of property and equipment | (227,022 | ) | (156,351 | ) | ||||
| Proceeds from disposal of property and equipment | 529 | 1,060 | ||||||
| Net cash used in investing activities | (226,493 | ) | (155,291 | ) | ||||
| Financing Activities: | ||||||||
| Borrowing (repayment) of revolving credit agreement, net | – | – | ||||||
| Proceeds from stock option exercises | 2,250 | 1,008 | ||||||
| Shares withheld for taxes | (8,928 | ) | (11,230 | ) | ||||
| Other financing activity | (10,627 | ) | (11,109 | ) | ||||
| Net cash used in financing activities | (17,305 | ) | (21,331 | ) | ||||
| Net Increase in Cash and Cash Equivalents | 47,607 | 31,283 | ||||||
| Cash and Cash Equivalents, beginning of period | 187,390 | 106,588 | ||||||
| Cash and Cash Equivalents, end of period | $ | 234,997 | $ | 137,871 | ||||
| Financial Information | |||||||||||||||||||
| For the Quarters Ended |
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| (Unaudited) | |||||||||||||||||||
| Second Quarter | |||||||||||||||||||
| Second Quarter | % | Amount/Workday | % | ||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||
| Workdays | 64 | 64 | |||||||||||||||||
| Operating ratio | 82.7 | % | 80.4 | % | |||||||||||||||
| LTL tonnage (1) | 1,421 | 1,446 | (1.7 | ) | 22.20 | 22.60 | (1.7 | ) | |||||||||||
| LTL shipments (1) | 1,970 | 2,048 | (3.8 | ) | 30.78 | 32.00 | (3.8 | ) | |||||||||||
| LTL revenue/cwt. | $ | 23.85 | $ | 25.05 | (4.8 | ) | |||||||||||||
| LTL revenue/cwt., excluding fuel surcharges | $ | 19.96 | $ | 19.44 | 2.7 | ||||||||||||||
| LTL revenue/shipment | $ | 344.08 | $ | 353.74 | (2.7 | ) | |||||||||||||
| LTL revenue/shipment, excluding fuel surcharges | $ | 287.90 | $ | 274.60 | 4.8 | ||||||||||||||
| LTL pounds/shipment | 1,443 | 1,412 | 2.2 | ||||||||||||||||
| LTL length of haul (2) | 892 | 910 | (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.