Saia Reports Record First Quarter Earnings per Share of $0.49
JOHNS CREEK, GA -- (
First Quarter 2015 Compared to First Quarter 2014 Results
- Revenues were
$293 million , a 2.2% decrease - Operating income increased 39% to
$21.2 million compared to$15.2 million - Diluted earnings per share were
$0.49 compared to$0.34 - Operating ratio improved to 92.8 compared to 94.9
- LTL tonnage decreased 6.6% as LTL shipments were down 2.8%
- LTL revenue per hundredweight increased by 4.6% even with materially lower fuel surcharges
"Despite a first quarter that was more sluggish than typical, I am pleased to report that our focus on pricing, safety, network optimization and service enabled us to post significantly improved financial results. Difficult year over year shipment and tonnage comparisons were further challenged by winter weather, softness in the oil patch and our continued optimization of pricing programs," said Saia President and Chief Executive Officer,
"Our value proposition led to strong yield improvements and a better customer mix which were key to our achieving a record low first quarter operating ratio. Amidst seasonally improving demand trends and positive operational momentum, we look forward to the remainder of the year," O'
Financial Position and Capital Expenditures
Total debt was
Net capital expenditures in the first quarter were
Conference Call
Management will hold a conference call to discuss quarterly results today at
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; failure to achieve acquisition synergies; competitive initiatives and pricing pressures, including in connection with fuel surcharge; loss of significant customers; 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; integration risks; 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; cyber security risks; 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; social media risk; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's
| Saia, Inc. and Subsidiaries | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (Amounts in thousands) | ||||||||||
| (Unaudited) | ||||||||||
| March 31, | December 31, | |||||||||
| 2015 | 2014 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 196 | $ | 4,367 | ||||||
| Accounts receivable, net | 140,330 | 128,367 | ||||||||
| Prepaid expenses and other | 55,492 | 56,902 | ||||||||
| Total current assets | 196,018 | 189,636 | ||||||||
| PROPERTY AND EQUIPMENT: | ||||||||||
| Cost | 924,466 | 891,145 | ||||||||
| Less: accumulated depreciation | 417,271 | 407,505 | ||||||||
| Net property and equipment | 507,195 | 483,640 | ||||||||
| OTHER ASSETS | 36,310 | 13,169 | ||||||||
| Total assets | $ | 739,523 | $ | 686,445 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ | 57,346 | $ | 42,388 | ||||||
| Wages and employees' benefits | 33,187 | 28,777 | ||||||||
| Other current liabilities | 46,948 | 50,176 | ||||||||
| Current portion of long-term debt | 9,560 | 9,138 | ||||||||
| Total current liabilities | 147,041 | 130,479 | ||||||||
| OTHER LIABILITIES: | ||||||||||
| Long-term debt, less current portion | 98,076 | 73,897 | ||||||||
| Deferred income taxes | 76,853 | 78,406 | ||||||||
| Claims, insurance and other | 38,300 | 36,757 | ||||||||
| Total other liabilities | 213,229 | 189,060 | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||||
| Common stock | 25 | 25 | ||||||||
| Additional paid-in capital | 223,846 | 223,713 | ||||||||
| Deferred compensation trust | (2,580 | ) | (2,189 | ) | ||||||
| Retained earnings | 157,962 | 145,357 | ||||||||
| Total stockholders' equity | 379,253 | 366,906 | ||||||||
| Total liabilities and stockholders' equity | $ | 739,523 | $ | 686,445 | ||||||
| Saia, Inc. and Subsidiaries | ||||||||||
| Consolidated Statements of Operations | ||||||||||
| For the Quarters Ended March 31, 2015 and 2014 | ||||||||||
| (Amounts in thousands, except per share data) | ||||||||||
| (Unaudited) | ||||||||||
| First Quarter | ||||||||||
| 2015 | 2014 | |||||||||
| OPERATING REVENUE | $ | 293,022 | $ | 299,730 | ||||||
| OPERATING EXPENSES: | ||||||||||
| Salaries, wages and employees' benefits | 157,729 | 150,222 | ||||||||
| Purchased transportation | 17,714 | 21,991 | ||||||||
| Fuel, operating expenses and supplies | 67,145 | 79,959 | ||||||||
| Operating taxes and licenses | 9,096 | 8,975 | ||||||||
| Claims and insurance | 4,837 | 9,518 | ||||||||
| Depreciation and amortization | 15,199 | 13,841 | ||||||||
| Operating loss (gains), net | 69 | (7 | ) | |||||||
| Total operating expenses | 271,789 | 284,499 | ||||||||
| OPERATING INCOME | 21,233 | 15,231 | ||||||||
| NONOPERATING EXPENSES: | ||||||||||
| Interest expense | 1,019 | 1,316 | ||||||||
| Other, net | (51 | ) | (30 | ) | ||||||
| Nonoperating expenses, net | 968 | 1,286 | ||||||||
| INCOME BEFORE INCOME TAXES | 20,265 | 13,945 | ||||||||
| Income tax expense | 7,660 | 5,369 | ||||||||
| NET INCOME | $ | 12,605 | $ | 8,576 | ||||||
| Average common shares outstanding - basic | 24,803 | 24,382 | ||||||||
| Average common shares outstanding - diluted | 25,513 | 25,361 | ||||||||
| Basic earnings per share | $ | 0.51 | $ | 0.35 | ||||||
| Diluted earnings per share | $ | 0.49 | $ | 0.34 | ||||||
| Saia, Inc. and Subsidiaries | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| For the Quarters Ended March 31, 2015 and 2014 | ||||||||||
| (Amounts in thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Quarters | ||||||||||
| 2015 | 2014 | |||||||||
| OPERATING ACTIVITIES: | ||||||||||
| Net cash provided by operating activities | $ | 26,160 | $ | 4,119 | ||||||
| Net cash provided by operating activities | 26,160 | 4,119 | ||||||||
| INVESTING ACTIVITIES: | ||||||||||
| Acquisition of business | (23,080 | ) | - | |||||||
| Acquisition of property and equipment | (30,064 | ) | (8,379 | ) | ||||||
| Proceeds from disposal of property and equipment | 294 | 156 | ||||||||
| Net cash used in investing activities | (52,850 | ) | (8,223 | ) | ||||||
| FINANCING ACTIVITIES: | ||||||||||
| Borrowings of revolving credit agreement, net | 21,577 | 2,831 | ||||||||
| Proceeds from stock option exercises | 1,842 | 1,956 | ||||||||
| Other financing activities | (900 | ) | - | |||||||
| Net cash provided by financing activities | 22,519 | 4,787 | ||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (4,171 | ) | 683 | |||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 4,367 | 159 | ||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 196 | $ | 842 | ||||||
| NON-CASH ITEMS: | ||||||||||
| Acquisition of property and equipment financed with capital leases | $ | 3,471 | $ | - | ||||||
| Saia, Inc. and Subsidiaries | ||||||||||||||||||||
| Financial Information | ||||||||||||||||||||
| For the Quarters Ended March 31, 2015 and 2014 | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| First Quarter | ||||||||||||||||||||
| First Quarter | % | Amount/Workday | % | |||||||||||||||||
| 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||
| Workdays | 63 | 63 | ||||||||||||||||||
| Operating ratio | 92.8 | % | 94.9 | % | ||||||||||||||||
| Tonnage (1) | LTL | 884 | 947 | (6.6 | ) | 14.04 | 15.04 | (6.6 | ) | |||||||||||
| TL | 188 | 216 | (13.0 | ) | 2.98 | 3.42 | (13.0 | ) | ||||||||||||
| Shipments (1) | LTL | 1,542 | 1,586 | (2.8 | ) | 24.47 | 25.18 | (2.8 | ) | |||||||||||
| TL | 27 | 31 | (13.0 | ) | 0.42 | 0.49 | (13.0 | ) | ||||||||||||
| Revenue/cwt. (2) | LTL | $ | 15.17 | $ | 14.51 | 4.6 | ||||||||||||||
| TL | $ | 5.89 | $ | 5.71 | 3.3 | |||||||||||||||
| Revenue/shipment (2) | LTL | $ | 174.12 | $ | 173.28 | 0.5 | ||||||||||||||
| TL | $ | 828.54 | $ | 801.82 | 3.3 | |||||||||||||||
| Pounds/shipment | LTL | 1,147 | 1,195 | (3.9 | ) | |||||||||||||||
| TL | 14,061 | 14,051 | 0.1 | |||||||||||||||||
| Length of Haul | 773 | 753 | 2.7 | |||||||||||||||||
| (1) | In thousands | |
| (2) | Revenue does not include the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy and other revenue. | |
CONTACT:
Doug Col
dcol@saia.com
678.542.3910
Source: