Saia Reports Third Quarter Earnings per Share of $0.30
JOHNS CREEK, GA, Oct 26, 2011 (MARKETWIRE via COMTEX) --
Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported improved third quarter 2011 results on stronger revenue and improving pricing fundamentals.
Third Quarter 2011 Compared to Third Quarter 2010 Results
-- Revenues were $268 million, an increase of 14 percent from the prior
year period
-- Operating income increased 47 percent to $9.6 million compared to $6.5
million in the prior year period
-- Earnings per share were $0.30 compared to $0.16 in the prior year
period
-- Operating ratio was 96.4 compared to 97.2 in the prior year period
-- LTL tonnage increased by 2.6 percent as LTL shipments per workday were
flat with a 2.6 percent increase in weight per shipment
-- LTL yield was up 11.6 percent due to the impact of higher fuel
surcharge and favorable pricing actions
"We continue to capitalize on an improved industry environment by taking prudent pricing actions across our customer base. Again this quarter, we achieved meaningful increases in contract renewals from customers who value Saia's service quality. In addition, our annual general rate increase (GRI) of 6.9% was effective on August 22nd. We continue to see upside with yield improvement and business mix management and believe that steady increases will continue," said Rick O'Dell, president and chief executive officer.
"Our third quarter results were impacted by higher costs from health care, purchased transportation and maintenance," continued O'Dell. "These cost challenges held back margin improvement in the quarter and further validate the need for continued pricing progress."
"I am gratified that we continue to see improvements in our results. Saia's dedicated employees are providing best in class customer service delivering a strong value proposition in the marketplace. Cash flow is solid, our balance sheet is strong and we are again investing in the business," O'Dell said.
Year to Date 2011 Compared to Year to Date 2010 Results
-- Revenues were $777 million compared to $678 million in the prior year
period, an increase of 15 percent
-- Operating income was $22.0 million compared to $10.3 million in the
prior year period
-- Net income was $8.9 million compared to $1.3 million in the prior year
period
-- Earnings per share were $0.55 compared to losses per share of $0.08 in
the prior year period
-- Operating ratio was 97.2 compared to 98.5 in the prior year period
Financial Position and Capital Expenditures Total debt was $81.4 million at September 30, 2011. Net of the Company's $3.5 million cash balance at quarter-end, net debt to total capital was 26.5 percent. This compares to total debt of $90.0 million in the prior year quarter.
Net capital expenditures year to date in 2011 were $51.8 million. This compares to $1.2 million in the prior year period. The Company is planning net capital expenditures in 2011 of approximately $65.0 million. This expenditure level reflects replacement and growth units of tractors and the Company's continued investment in technology.
Conference Call The Company will hold a conference call to discuss these results today at 12:00 noon Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-800-723-6498 or dial 785-830-7989 for international calls and use conference ID #4878983. 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 November 4, 2011. 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 8,000 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)
September 30, December 31,
2011 2010
----------------- -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,522 $ 29,045
Accounts receivable, net 115,166 94,569
Prepaid expenses and other 29,311 29,882
----------------- -----------------
Total current assets 147,999 153,496
PROPERTY AND EQUIPMENT:
Cost 659,406 610,572
Less: accumulated depreciation 340,583 319,634
----------------- -----------------
Net property and equipment 318,823 290,938
OTHER ASSETS 7,178 7,723
----------------- -----------------
Total assets $ 474,000 $ 452,157
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 38,231 $ 37,745
Wages and employees' benefits 24,952 19,101
Other current liabilities 37,816 31,777
Current portion of long-term debt 19,643 17,143
----------------- -----------------
Total current liabilities 120,642 105,766
OTHER LIABILITIES:
Long-term debt, less current portion 61,786 72,857
Deferred income taxes 46,181 39,077
Claims, insurance and other 28,852 28,099
----------------- -----------------
Total other liabilities 136,819 140,033
STOCKHOLDERS' EQUITY:
Common stock 16 16
Additional paid-in capital 203,547 202,751
Deferred compensation trust (2,242) (2,727)
Retained earnings 15,218 6,318
----------------- -----------------
Total stockholders' equity 216,539 206,358
----------------- -----------------
Total liabilities and stockholders'
equity $ 474,000 $ 452,157
================= =================
Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarter and Nine Months Ended September 30, 2011 and 2010
(Amounts in thousands, except per share data)
(Unaudited)
Third Quarter Nine Months
------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
OPERATING REVENUE $ 268,285 $ 234,662 $ 777,204 $ 678,228
OPERATING EXPENSES:
Salaries, wages and employees'
benefits 133,460 123,298 386,869 362,183
Purchased transportation 23,345 21,617 69,064 61,063
Fuel, operating expenses and
supplies 75,510 58,987 221,637 173,269
Operating taxes and licenses 9,830 9,293 28,787 27,680
Claims and insurance 6,766 5,997 21,854 16,493
Depreciation and amortization 9,723 8,946 27,099 27,473
Operating (gains) loss, net 31 (23) (72) (229)
--------- --------- --------- ---------
Total operating expenses 258,665 228,115 755,238 667,932
--------- --------- --------- ---------
OPERATING INCOME 9,620 6,547 21,966 10,296
NONOPERATING EXPENSES:
Interest expense 2,194 2,469 8,147 8,227
Other, net 122 (95) 12 (347)
--------- --------- --------- ---------
Nonoperating expenses, net 2,316 2,374 8,159 7,880
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 7,304 4,173 13,807 2,416
Income tax expense 2,475 1,678 4,907 1,164
--------- --------- --------- ---------
NET INCOME $ 4,829 $ 2,495 $ 8,900 $ 1,252
========= ========= ========= =========
Average common shares outstanding
- basic 15,800 15,719 15,786 15,707
========= ========= ========= =========
Average common shares outstanding
- diluted 16,160 16,094 16,145 16,082
========= ========= ========= =========
Basic earnings per share $ 0.31 $ 0.16 $ 0.56 $ 0.08
========= ========= ========= =========
Diluted earnings per share $ 0.30 $ 0.16 $ 0.55 $ 0.08
========= ========= ========= =========
Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Nine Months
----------------------
2011 2010
---------- ----------
OPERATING ACTIVITIES:
Net cash provided by operating activities $ 34,653 $ 19,527
---------- ----------
Net cash provided by operating activities 34,653 19,527
---------- ----------
INVESTING ACTIVITIES:
Acquisition of property and equipment (52,309) (1,575)
Proceeds from disposal of property and equipment 555 401
---------- ----------
Net cash used in investing activities (51,754) (1,174)
---------- ----------
FINANCING ACTIVITIES:
Repayment of long-term debt (8,571) --
Proceeds from stock option exercises 149 109
---------- ----------
Net cash (used in) provided by financing
activities (8,422) 109
---------- ----------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (25,523) 18,462
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 29,045 8,746
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,522 $ 27,208
========== ==========
Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended September 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
Third Quarter
---------------
Third Quarter Amount/Workday
---------------- ---------------
% %
2011 2010 Change 2011 2010 Change
---------------- ------ --------------- ------
Workdays 64 64
Operating ratio 96.4% 97.2%
F/S Revenue LTL 248,818 217,327 14.5 3,887.8 3,395.7 14.5
TL 19,468 17,336 12.3 304.2 270.9 12.3
Total 268,285 234,662 14.3 4,192.0 3,666.6 14.3
Revenue excluding LTL 248,855 217,358 14.5 3,888.4 3,396.2 14.5
revenue recognition TL 19,470 17,338 12.3 304.2 270.9 12.3
adjustment Total 268,325 234,696 14.3 4,192.6 3,667.1 14.3
Tonnage LTL 947 924 2.6 14.80 14.43 2.6
TL 180 179 0.4 2.81 2.80 0.4
Total 1,127 1,102 2.2 17.61 17.23 2.2
Shipments LTL 1,670 1,670 (0.0) 26.09 26.09 (0.0)
TL 26 25 1.5 0.40 0.40 1.5
Total 1,695 1,695 0.0 26.49 26.49 0.0
Revenue/cwt. LTL 13.14 11.77 11.6
TL 5.42 4.84 11.9
Total 11.91 10.64 11.9
Revenue/shipment LTL 149.04 130.17 14.5
TL 758.55 685.28 10.7
Total 158.27 138.45 14.3
Pounds/shipment LTL 1,135 1,106 2.6
TL 13,992 14,144 (1.1)
Total 1,329 1,301 2.2
CONTACT: Saia, Inc. Renee McKenzie Treasurer RMcKenzie@Saia.com 678.542.3910
SOURCE: Saia, Inc.
mailto:RMcKenzie@Saia.com