×

Saia Reports Second Quarter Earnings per Share of $0.68

JOHNS CREEK, Ga., July 28, 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 second quarter 2017 financial results.

Second Quarter 2017 Compared to Second Quarter 2016 Results

  • Revenues were $358.2 million, a 14.8% increase
  • LTL Shipments and Tonnage rose 7.4% and 7.1%, respectively
  • LTL Revenue per hundredweight increased 7.3%
  • Operating ratio improved by 130 basis points to 91.7%
  • Operating income increased by 36.8% to $29.7 million
  • Net income rose 32.6% to $17.6 million
  • Diluted earnings per share were $0.68 compared to $0.52

“I am pleased with our execution in the first half of the year and our second quarter results reflect favorably on our team’s ability to manage the growth we are experiencing,” said Saia President and Chief Executive Officer, Rick O’Dell. “We maintained quality service for our customers and improved our cargo claims ratio for the quarter to 0.67% from 0.75% last year, but to maintain service we did have to add employees and use purchased transportation to a greater extent than what I would have liked,” O’Dell continued.

“For the balance of the year, our focus will be on our Northeastern expansion, cost control and mix management. Given growing volumes, it is particularly important that all freight meet increasing profitability criteria,” concluded Mr. O’Dell.

Financial Position and Capital Expenditures

Total debt was $148.4 million at June 30, 2017 and inclusive of the cash on-hand, net debt to total capital was 22.3%. This compares to total debt of $139.4 million and net debt to total capital of 23.4% at June 30, 2016.

Net capital expenditures in the first half of 2017 were $155.1 million including equipment acquired with capital leases. This compares to $136.2 million in net capital expenditures in the first half of 2016. The Company currently plans net capital expenditures in 2017 of approximately $225 million.

Conference Call
Management will hold a conference call to discuss quarterly results today at 10:30 a.m. Eastern Time. To participate in the call, please dial 877-545-1403 or 719-325-4747 referencing conference ID #6110114. 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 September 22, 2017 at 1:30 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 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 152 terminals across 38 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)
June 30, 2017 December 31,
2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 399 $ 1,539
Accounts receivable, net 167,012 135,083
Prepaid expenses and other 30,219 29,857
Total current assets 197,630 166,479
PROPERTY AND EQUIPMENT:
Cost 1,233,906 1,101,946
Less: accumulated depreciation 520,682 497,827
Net property and equipment 713,224 604,119
OTHER ASSETS 29,476 29,772
Total assets $ 940,330 $ 800,370
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 55,746 $ 45,149
Wages and employees' benefits 40,872 31,700
Other current liabilities 54,414 51,333
Current portion of long-term debt 16,669 16,762
Total current liabilities 167,701 144,944
OTHER LIABILITIES:
Long-term debt, less current portion 131,699 57,042
Deferred income taxes 87,075 80,199
Claims, insurance and other 38,855 35,107
Total other liabilities 257,629 172,348
STOCKHOLDERS' EQUITY:
Common stock 25 25
Additional paid-in capital 241,057 237,846
Deferred compensation trust (3,469) (3,190)
Retained earnings 277,387 248,397
Total stockholders' equity 515,000 483,078
Total liabilities and stockholders' equity $ 940,330 $ 800,370


Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2017 and 2016
(Amounts in thousands, except per share data)
(Unaudited)
Second Quarter Six Months
2017 2016 2017 2016
OPERATING REVENUE $ 358,160 $ 311,905 $ 675,197 $ 601,816
OPERATING EXPENSES:
Salaries, wages and employees' benefits 196,388 175,924 377,291 346,190
Purchased transportation 22,363 14,315 37,138 26,782
Fuel, operating expenses and supplies 66,092 59,026 130,082 113,066
Operating taxes and licenses 10,875 10,126 21,457 20,166
Claims and insurance 10,426 10,880 19,475 18,961
Depreciation and amortization 22,182 19,740 42,269 36,983
Loss from property disposals, net 116 173 248 363
Total operating expenses 328,442 290,184 627,960 562,511
OPERATING INCOME 29,718 21,721 47,237 39,305
NONOPERATING EXPENSES (INCOME):
Interest expense 1,538 1,264 2,449 2,227
Other, net 90 (36) 188 (43)
Nonoperating expenses, net 1,628 1,228 2,637 2,184
INCOME BEFORE INCOME TAXES 28,090 20,493 44,600 37,121
Income tax expense 10,487 7,218 15,610 13,271
NET INCOME $ 17,603 $ 13,275 $ 28,990 $ 23,850
Average common shares outstanding - basic 25,501 25,030 25,477 25,014
Average common shares outstanding - diluted 26,000 25,583 25,982 25,560
Basic earnings per share $ 0.69 $ 0.53 $ 1.14 $ 0.95
Diluted earnings per share $ 0.68 $ 0.52 $ 1.12 $ 0.93


Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2017 and 2016
(Amounts in thousands)
(Unaudited)
Six Months
2017 2016
OPERATING ACTIVITIES:
Net cash provided by operating activities (1) $ 79,317 $ 66,464
Net cash provided by operating activities 79,317 66,464
INVESTING ACTIVITIES:
Acquisition of property and equipment (127,330) (102,140)
Proceeds from disposal of property and equipment 923 595
Net cash used in investing activities (126,407) (101,545)
FINANCING ACTIVITIES:
Repayment of long-term debt (3,571) (3,572)
Borrowing of revolving credit agreement, net 55,014 42,756
Proceeds from stock option exercises 1,288 248
Shares withheld for taxes (1) (1,211) (650)
Other financing activity (5,570) (3,465)
Net cash provided by financing activities 45,950 35,317
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,140) 236
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,539 124
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 399 $ 360
NON-CASH ITEMS:
Equipment financed with capital leases $ 28,691 $ 34,683
(1) June 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 June 30, 2017 and 2016
(Unaudited)
Second Quarter
Second Quarter % Amount/Workday %
2017 2016 Change 2017 2016 Change
Workdays 64 64
Operating ratio 91.7% 93.0%
Tonnage (1)LTL 984 919 7.1 15.37 14.36 7.1
TL 203 182 11.4 3.17 2.85 11.4
Shipments (1)LTL 1,760 1,639 7.4 27.50 25.60 7.4
TL 28 26 10.1 0.45 0.40 10.1
Revenue/cwt. (2)LTL$ 16.89 $ 15.73 7.3
TL$ 5.83 $ 5.50 5.9
Revenue/shipment (2)LTL$ 188.78 $ 176.45 7.0
TL$ 830.32 $ 775.05 7.1
Pounds/shipmentLTL 1,118 1,121 (0.3)
TL 14,250 14,090 1.1
Length of Haul (3) 806 786 2.5
(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 Col dcol@saia.com 678.542.3910

Source:Saia, Inc.