Saia Reports Third Quarter Earnings Per Share Of $0.55

JOHNS CREEK, Ga., Oct. 27, 2017 (GLOBE NEWSWIRE) -- Saia, Inc. (NASDAQ:SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported third quarter 2017 financial results.

Third Quarter 2017 Compared to Third Quarter 2016 Results
  • Revenues were $350 million, a 10.6% increase
  • LTL Shipments and LTL Tonnage per workday rose 3.1% and 3.6%, respectively
  • LTL Revenue per hundredweight increased 8.0%
  • Operating ratio rose by 20 basis points to 93.0%
  • Operating income increased by 8.6% to $24.6 million
  • Net income rose 4.2% to $14.4 million
  • Diluted earnings per share were $0.55 compared to $0.54

"Third quarter operations were disrupted for a number of days by hurricanes Harvey and Irma.  We estimate that third quarter shipments and tonnage per workday growth would have been approximately 1% higher had the storms not occurred," said Saia President and Chief Executive Officer, Rick O'Dell.  "Saia also experienced higher than normal operating costs for routing freight around weather impacted areas," O'Dell continued.

"We were very fortunate that our employees and their families were safe during the storms and the Company had minimal damage to facilities and equipment.  With the dedicated effort of employees, we were able to get terminals in the impacted areas open within a few days.  The impact of the storms notwithstanding, we continue to see strong demand and stable pricing in our business," said O'Dell.

"I am also pleased that we opened our 5 th new terminal of the year on October 16 th.  The terminal is located in Laurel, Md. and will help us to serve customers in and around the markets of Baltimore, Md. and Washington, D.C.  We are planning to open a terminal in Allentown, Pa. in December and have two additional Northeast expansion properties identified.  The early results from our Northeast expansion have modestly exceeded our expectations," concluded Mr. O'Dell.                                                                                                                  Financial Position and Capital Expenditures

Total debt was $127.2 million at September 30, 2017 and inclusive of the cash on-hand, net debt to total capital was 19.3%.  This compares to total debt of $94.2 million and net debt to total capital of 16.6% at September 30, 2016.

Net capital expenditures in the year-to-date period through September were $183.9 million including equipment acquired with capital leases.  This compares to $142.5 million in net capital expenditures in the first nine months of 2016.  For the full year 2017, net capital expenditures are planned to be approximately $230 million.

Conference CallManagement will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 800-239-9838 or 323-794-2551 referencing conference ID #9666253.  Callers should dial in five to ten minutes in advance of the conference call.  This call will be webcast live via the Company web site at www.saiacorp.com.  A replay of the call will be offered two hours after the completion of the call through December 22, 2017 at 1:00 p.m. Eastern Time.  The replay will be available by dialing 888-203-1112 or 719-457-0820.

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 153 terminals across 39 states.  For more information on Saia, Inc. visit the Investor Relations section at www.saiacorp.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 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) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company's need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company's debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; (15) 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, Homeland Security, environmental regulations and the Food and Drug Administration; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company's workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) cost and availability of insurance coverage; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) cyber security risk;  (26) failure to successfully execute the strategy to expand the Company's service geography into the Northeastern United States; and (27) 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 Subsidiaries  
Condensed Consolidated Balance Sheets  
(Amounts in thousands)  
(Unaudited)  
           
    September 30, 2017   December 31, 2016  
ASSETS          
           
CURRENT ASSETS:          
Cash and cash equivalents   $ 81     $ 1,539    
Accounts receivable, net     172,119       135,083    
Prepaid expenses and other     28,399       29,857    
Total current assets     200,599       166,479    
           
PROPERTY AND EQUIPMENT:          
Cost     1,260,856       1,101,946    
Less: accumulated depreciation     538,065       497,827    
Net property and equipment     722,791       604,119    
OTHER ASSETS     29,329       29,772    
Total assets   $ 952,719     $ 800,370    
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
CURRENT LIABILITIES:          
Accounts payable   $ 63,742     $ 45,149    
Wages and employees' benefits     44,140       31,700    
Other current liabilities     58,545       51,333    
Current portion of long-term debt     17,072       16,762    
Total current liabilities     183,499       144,944    
           
OTHER LIABILITIES:          
Long-term debt, less current portion     110,161       57,042    
Deferred income taxes     90,064       80,199    
Claims, insurance and other     37,242       35,107    
Total other liabilities     237,467       172,348    
           
STOCKHOLDERS' EQUITY:          
Common stock     25       25    
Additional paid-in capital     243,382       237,846    
Deferred compensation trust     (3,448 )     (3,190 )  
Retained earnings     291,794       248,397    
Total stockholders' equity     531,753       483,078    
Total liabilities and stockholders' equity   $ 952,719     $ 800,370    
           

 
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Nine Months Ended September 30, 2017 and 2016  
(Amounts in thousands, except per share data)  
(Unaudited)  
           
    Third Quarter   Nine Months  
    2017   2016   2017   2016  
OPERATING REVENUE   $ 350,062     $ 316,442     $ 1,025,259     $ 918,258    
                   
OPERATING EXPENSES:                  
Salaries, wages and employees' benefits     194,920       178,687       572,211       524,877    
Purchased transportation     23,074       15,657       60,212       42,439    
Fuel, operating expenses and supplies     66,679       59,345       196,761       172,411    
Operating taxes and licenses     10,631       10,061       32,088       30,227    
Claims and insurance     8,535       9,988       28,010       28,949    
Depreciation and amortization     22,338       19,927       64,607       56,910    
Loss (gain) from property disposals, net     (717 )     133       (469 )     496    
Total operating expenses     325,460       293,798       953,420       856,309    
                   
OPERATING INCOME     24,602       22,644       71,839       61,949    
                   
NONOPERATING EXPENSES (INCOME):                  
Interest expense     1,313       1,183       3,762       3,410    
Other, net     (131 )     (104 )     57       (147 )  
Nonoperating expenses, net     1,182       1,079       3,819       3,263    
                   
INCOME BEFORE INCOME TAXES     23,420       21,565       68,020       58,686    
Income tax expense     9,013       7,739       24,623       21,010    
NET INCOME   $ 14,407     $ 13,826     $ 43,397     $ 37,676    
                   
Average common shares outstanding - basic     25,527       25,038       25,494       25,022    
Average common shares outstanding - diluted     26,113       25,658       26,050       25,625    
                   
Basic earnings per share   $ 0.56     $ 0.55     $ 1.70     $ 1.51    
Diluted earnings per share   $ 0.55     $ 0.54     $ 1.67     $ 1.47    
                   

 
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Nine Months Ended September 30, 2017 and 2016  
(Amounts in thousands)  
(Unaudited)  
    Nine Months  
    2017   2016  
OPERATING ACTIVITIES:          
Net cash provided by operating activities (1)   $ 127,737     $ 118,309    
Net cash provided by operating activities     127,737       118,309    
           
INVESTING ACTIVITIES:          
Acquisition of property and equipment     (155,676 )     (108,871 )  
Proceeds from disposal of property and equipment     3,090       1,046    
Net cash used in investing activities     (152,586 )     (107,825 )  
           
FINANCING ACTIVITIES:          
Repayment of long-term debt     (3,571 )     (3,571 )  
Borrowing (repayment) of revolving credit agreement, net     34,499       (35 )  
Proceeds from stock option exercises     2,531       248    
Shares withheld for taxes (1)     (1,249 )     (650 )  
Other financing activity     (8,819 )     (5,811 )  
Net cash provided by (used in) financing activities     23,391       (9,819 )  
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     (1,458 )     665    
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     1,539       124    
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 81     $ 789    
           
NON-CASH ITEMS:          
Equipment financed with capital leases   $ 31,320     $ 34,683    
           
(1)  September 30, 2016 balances have been reclassified to conform with the 2017 adoption of the Financial Accounting Standards Board Accounting Standards Update 2016-09, Improvement to Employee Share-Based Payment Accounting.  
 

 
Saia, Inc. and Subsidiaries  
Financial   Information  
For the Quarters Ended September 30, 2017 and 2016  
(Unaudited)  
                             
                  Third Quarter      
      Third Quarter   %   Amount/Workday   %  
      2017   2016   Change   2017   2016   Change  
Workdays               63   64      
                             
Operating ratio     93.0 %     92.8 %                  
                             
Tonnage (1) LTL   931       913     2.0     14.77   14.26   3.6  
    TL   195       182     7.0     3.09   2.85   8.7  
                             
Shipments (1) LTL   1,662       1,638     1.5     26.39   25.59   3.1  
    TL   27       26     7.2     0.44   0.40   8.9  
                             
Revenue/cwt. (2) LTL $ 17.36     $ 16.08     8.0                
    TL $ 5.92     $ 5.51     7.4                
                             
Revenue/shipment (2) LTL $ 194.36     $ 179.17     8.5                
    TL $ 840.17     $ 783.61     7.2                
                             
Pounds/shipment LTL   1,120       1,114     0.5                
    TL   14,201       14,229     (0.2 )              
                             
Length of Haul (3)     813       789     3.0                
                             
                             
(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.  
                             
(3) In miles                          

 

CONTACT:  Saia, Inc.Doug Coldcol@saia.com678.542.3910

Primary Logo

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX