Saia Reports Record Second Quarter Earnings per Share of $1.40
July 31 2019 - 7:30AM
Saia, Inc. (Nasdaq: SAIA), a leading transportation provider
offering multi-regional less-than-truckload (LTL), non-asset
truckload, expedited and logistics services, today reported second
quarter 2019 financial results. Diluted earnings per share in the
quarter were $1.40 compared to $1.15 in the second quarter of 2018.
Second Quarter 2019 Compared to Second Quarter 2018
Results
- Revenues were $464.2 million, an 8.3% increase
- Operating income was $51.2 million, a 23.1% increase
- Operating ratio improved to 89.0 from 90.3
- LTL shipments per workday increased 3.6%
- LTL tonnage per workday decreased 1.9%
- LTL revenue per hundredweight increased 9.8%
- LTL revenue per shipment rose 4.0% to $234.33
“Our second quarter operating ratio of 89.0 is a record for any
quarter for Saia as a public company and highlights the long-term
opportunity for Saia. The solid quarter included low-single digit
shipment growth, continued strong pricing and strong operational
execution,” said Saia Chief Executive Officer, Rick O’Dell. “The
pricing backdrop in our industry continues to be constructive for
carriers who can offer consistent high-quality service. Our LTL
yield increased by 9.8% in the quarter, marking our
36th consecutive quarter of year-over-year improvement,”
continued O’Dell.
“Our expansion into the Northeast continued in the second
quarter with two additional terminal openings, bringing the
year-to-date new opening count to three. Since our Northeast
expansion began in May 2017, we have opened 13 new terminals in the
region. We continue to see growth with existing customers as we
extend our reach and offer direct service to more locations and we
expect to open six additional terminals over the remainder of the
year,” O’Dell concluded.
Financial Position and Capital Expenditures
Total debt was $179.9 million at June 30, 2019 and inclusive of
the cash on-hand, net debt to total capital was 19.1%. This
compares to total debt of $155.0 million and net debt to total
capital of 19.4% at June 30, 2018.
Net capital expenditures in the first half of 2019 were $171.1
million including equipment acquired with capital leases. This
compares to $140.6 million in net capital expenditures in the first
half of 2018. In 2019, we anticipate net capital expenditures of
$275-$300 million.
Conference Call
Management will hold a conference call to discuss quarterly
results today at 11:00 a.m. Eastern Time. To participate in the
call, please dial 888-204-4368 or 323-794-2423 referencing
conference ID #1063727. 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. A replay of the call will
be offered two hours after the completion of the call through
August 28, 2019 at 2:00 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 163 terminals across 42 states. For more
information on Saia, Inc. visit the Investor Relations section at
www.saia.com.
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. 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; (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, technology and other assets; (15) the effect of
governmental regulations, including but not limited to Hours of
Service, engine emissions, the Compliance, Safety, Accountability
(CSA) initiative, the Food and Drug Administration, compliance with
legislation requiring companies to evaluate their internal control
over financial reporting, Homeland Security, environmental
regulations, tax law changes and potential changes to the North
American Free Trade Agreement and to certain international tariffs;
(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) risks
arising from international business operations and relationships;
(23) cost and availability of insurance coverage, including the
possibility the Company may be required to pay additional premiums
under its auto liability policy; (24) increased costs of healthcare
and prescription drugs, including as a result of healthcare reform
legislation; (25) social media risks; (26) disruption in or failure
of the Company’s technology or equipment, including services
essential to operations of the Company and/or cyber security risk;
(27) failure to successfully execute the strategy to expand the
Company’s service geography into the Northeastern United States;
and (28) 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 press 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.
CONTACT: Saia, Inc.
Doug Col
dcol@saia.com
678.542.3910
|
Saia, Inc. and Subsidiaries |
Condensed Consolidated Balance Sheets |
(Amounts in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
June 30,2019 |
|
December 31,2018 |
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
|
$ |
503 |
|
|
$ |
2,194 |
|
Accounts receivable, net |
|
|
227,046 |
|
|
|
181,612 |
|
Prepaid expenses and other |
|
|
33,840 |
|
|
|
29,567 |
|
Total current assets |
|
|
261,389 |
|
|
|
213,373 |
|
|
|
|
|
|
PROPERTY AND EQUIPMENT: |
|
|
|
|
Cost |
|
|
1,665,557 |
|
|
|
1,521,341 |
|
Less: accumulated depreciation |
|
|
674,220 |
|
|
|
628,283 |
|
Net property and equipment |
|
|
991,337 |
|
|
|
893,058 |
|
OPERATING LEASE RIGHT-OF-USE
ASSETS |
|
|
71,765 |
|
|
|
– |
|
OTHER ASSETS |
|
|
27,629 |
|
|
|
27,312 |
|
Total assets |
|
$ |
1,352,120 |
|
|
$ |
1,133,743 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Accounts payable |
|
$ |
77,521 |
|
|
$ |
78,994 |
|
Wages and employees' benefits |
|
|
47,095 |
|
|
|
48,116 |
|
Other current liabilities |
|
|
76,694 |
|
|
|
64,118 |
|
Current portion of long-term debt |
|
|
18,959 |
|
|
|
18,082 |
|
Current portion of operating lease liability |
|
|
16,921 |
|
|
|
– |
|
Total current liabilities |
|
|
237,190 |
|
|
|
209,310 |
|
|
|
|
|
|
OTHER LIABILITIES: |
|
|
|
|
Long-term debt, less current portion |
|
|
160,920 |
|
|
|
104,777 |
|
Operating lease liability, less current portion |
|
|
55,960 |
|
|
|
– |
|
Deferred income taxes |
|
|
100,244 |
|
|
|
86,893 |
|
Claims, insurance and other |
|
|
40,304 |
|
|
|
36,899 |
|
Total other liabilities |
|
|
357,428 |
|
|
|
228,569 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
Common stock |
|
|
26 |
|
|
|
26 |
|
Additional paid-in capital |
|
|
257,583 |
|
|
|
254,738 |
|
Deferred compensation trust |
|
|
(3,920 |
) |
|
|
(3,381 |
) |
Retained earnings |
|
|
503,813 |
|
|
|
444,481 |
|
Total stockholders' equity |
|
|
757,502 |
|
|
|
695,864 |
|
Total liabilities and stockholders' equity |
|
$ |
1,352,120 |
|
|
$ |
1,133,743 |
|
Saia, Inc. and Subsidiaries |
Consolidated Statements of Operations |
For the Quarters and Six Months Ended June 30, 2019 and
2018 |
(Amounts in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
Second Quarter |
|
Six Months |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
OPERATING REVENUE |
|
$ |
464,195 |
|
|
$ |
428,732 |
|
|
$ |
874,779 |
|
|
$ |
821,537 |
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Salaries, wages and employees' benefits |
|
|
237,689 |
|
|
|
220,406 |
|
|
|
458,041 |
|
|
|
431,530 |
|
Purchased transportation |
|
|
34,154 |
|
|
|
34,113 |
|
|
|
62,572 |
|
|
|
64,029 |
|
Fuel, operating expenses and supplies |
|
|
85,328 |
|
|
|
84,745 |
|
|
|
168,871 |
|
|
|
163,539 |
|
Operating taxes and licenses |
|
|
13,529 |
|
|
|
12,794 |
|
|
|
26,731 |
|
|
|
24,944 |
|
Claims and insurance |
|
|
13,156 |
|
|
|
9,910 |
|
|
|
22,686 |
|
|
|
20,101 |
|
Depreciation and amortization |
|
|
29,143 |
|
|
|
25,241 |
|
|
|
55,925 |
|
|
|
48,271 |
|
Loss (gain) from property disposals, net |
|
|
30 |
|
|
|
(42 |
) |
|
|
156 |
|
|
|
(21 |
) |
Total operating expenses |
|
|
413,029 |
|
|
|
387,167 |
|
|
|
794,982 |
|
|
|
752,393 |
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME |
|
|
51,166 |
|
|
|
41,565 |
|
|
|
79,797 |
|
|
|
69,144 |
|
|
|
|
|
|
|
|
|
|
NONOPERATING EXPENSES
(INCOME): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
1,903 |
|
|
|
1,454 |
|
|
|
3,286 |
|
|
|
2,680 |
|
Other, net |
|
|
(140 |
) |
|
|
(142 |
) |
|
|
(474 |
) |
|
|
(245 |
) |
Nonoperating expenses, net |
|
|
1,763 |
|
|
|
1,312 |
|
|
|
2,812 |
|
|
|
2,435 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
|
|
49,403 |
|
|
|
40,253 |
|
|
|
76,985 |
|
|
|
66,709 |
|
Income tax expense |
|
|
12,330 |
|
|
|
9,972 |
|
|
|
17,653 |
|
|
|
15,303 |
|
NET INCOME |
|
$ |
37,073 |
|
|
$ |
30,281 |
|
|
$ |
59,332 |
|
|
$ |
51,406 |
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic |
|
|
25,958 |
|
|
|
25,766 |
|
|
|
25,915 |
|
|
|
25,732 |
|
Average common shares
outstanding - diluted |
|
|
26,406 |
|
|
|
26,354 |
|
|
|
26,373 |
|
|
|
26,326 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
|
$ |
1.43 |
|
|
$ |
1.18 |
|
|
$ |
2.29 |
|
|
$ |
2.00 |
|
Diluted earnings per
share |
|
$ |
1.40 |
|
|
$ |
1.15 |
|
|
$ |
2.25 |
|
|
$ |
1.95 |
|
Saia, Inc. and Subsidiaries |
Condensed Consolidated Statements of Cash
Flows |
For the six months ended June 30, 2019 and
2018 |
(Amounts in thousands) |
(Unaudited) |
|
|
|
Six Months |
|
|
|
2019 |
|
|
|
2018 |
|
OPERATING ACTIVITIES: |
|
|
|
|
Net cash provided by operating activities |
|
$ |
113,574 |
|
|
$ |
112,118 |
|
Net cash provided by operating activities |
|
|
113,574 |
|
|
|
112,118 |
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
Acquisition of property and equipment |
|
|
(166,434 |
) |
|
|
(118,573 |
) |
Proceeds from disposal of property and equipment |
|
|
380 |
|
|
|
418 |
|
Net cash used in investing activities |
|
|
(166,054 |
) |
|
|
(118,155 |
) |
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
Borrowing of revolving credit agreement, net |
|
|
60,998 |
|
|
|
7,000 |
|
Proceeds from stock option exercises |
|
|
2,154 |
|
|
|
4,165 |
|
Shares withheld for taxes |
|
|
(3,304 |
) |
|
|
(1,321 |
) |
Other financing activity |
|
|
(9,059 |
) |
|
|
(7,338 |
) |
Net cash provided by financing activities |
|
|
50,789 |
|
|
|
2,506 |
|
|
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
|
(1,691 |
) |
|
|
(3,531 |
) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
2,194 |
|
|
|
4,720 |
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
503 |
|
|
$ |
1,189 |
|
|
|
|
|
|
NON-CASH ITEMS: |
|
|
|
|
Equipment financed with finance leases |
|
$ |
5,058 |
|
|
$ |
22,422 |
|
Saia, Inc. and Subsidiaries |
Financial Information |
For the Quarters Ended June 30, 2019 and 2018 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
|
|
|
Second Quarter |
|
% |
|
Amount/Workday |
|
% |
|
|
|
2019 |
|
|
|
2018 |
|
|
Change |
|
|
2019 |
|
|
|
2018 |
|
|
Change |
Workdays |
|
|
|
|
|
|
|
|
64 |
|
|
|
64 |
|
|
|
Operating ratio |
|
|
89.0% |
|
|
|
90.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL tonnage (1) |
|
|
1,254 |
|
|
|
1,278 |
|
|
|
(1.9 |
) |
|
|
19.60 |
|
|
|
19.97 |
|
|
|
(1.9 |
) |
LTL shipments (1) |
|
|
1,933 |
|
|
|
1,866 |
|
|
|
3.6 |
|
|
|
30.20 |
|
|
|
29.15 |
|
|
|
3.6 |
|
LTL revenue/cwt. |
|
$ |
18.05 |
|
|
$ |
16.44 |
|
|
|
9.8 |
|
|
|
|
|
|
|
|
|
|
|
LTL revenue/shipment |
|
$ |
234.33 |
|
|
$ |
225.24 |
|
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
LTL pounds/shipment |
|
|
1,298 |
|
|
|
1,370 |
|
|
|
(5.3 |
) |
|
|
|
|
|
|
|
|
|
|
LTL length of haul (2) |
|
|
841 |
|
|
|
837 |
|
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
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