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Form 8-K SAIA INC For: Apr 28

April 28, 2017 9:01 AM EDT

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 28, 2017

 

 

SAIA, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Delaware

 

0-49983

 

48-1229851

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

 

 

 

11465 Johns Creek Parkway, Suite 400

Johns Creek, GA

 

 

 

30097

(Address of principal executive offices)

 

 

(Zip Code)

Registrant’s telephone number, including area code (770) 232-5067

No Changes.

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 


 


Item 2.02

Results of Operations and Financial Condition

On April 28, 2017 Saia, Inc. issued a press release announcing its first quarter 2017 results. A copy of the press release is attached as Exhibit 99.1 to this Report on Form 8-K.

The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, of the Exchange Act, except as otherwise expressly stated in any such filing.

 

Item 9.01

Financial Statements and Exhibits

 

99.1

Press release of Saia, Inc. dated April 28, 2017 announcing results of operations.


 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

 

 

SAIA, INC.

 

 

 

 

 

Date: April 28, 2017

 

/s/ Stephanie R. Maschmeier

 

 

 

 

Stephanie R. Maschmeier

 

 

 

 

Controller and Principal Accounting Officer

 

 

 

Exhibit 99.1

 

 

Saia Reports First Quarter Earnings per Share of $0.44

 

JOHNS CREEK, GA. – April 28, 2017 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported first quarter 2017 financial results.

 

First Quarter 2017 Compared to First Quarter 2016 Results

 

Revenues were $317.0 million, a 9.4% increase

 

LTL Shipments and Tonnage rose 3.5% and 2.0%, respectively

 

LTL Revenue per hundredweight increased 7.7%

 

Operating ratio deteriorated by 60 basis points to 94.5%

 

Operating income fell by 0.4% to $17.5 million

 

Net income, benefitting from a lower effective tax rate, rose 7.7% to $11.4 million

 

Diluted earnings per share were $0.44 compared to $0.42

 

“We are encouraged by the improved LTL shipment trends we experienced in the first quarter”, said Saia President and Chief Executive Officer, Rick O’Dell.  “Our first quarter was a very busy time for all of us at Saia, as our plan for expansion into Pennsylvania and New Jersey kicked into high gear.  We have secured the necessary terminals and completed the necessary hiring to commence operations in four new locations on May 1st.   These are the first steps in our multi-year strategy of becoming a 48-state LTL service provider,” O’Dell continued.

 

“Also during the quarter, we were pleased to announce our exclusive partnership with TST Overland Express, which will allow us to offer our customers a seamless, cross-border solution for their LTL service needs both to and from Canada.  The partnership is scheduled to become effective on May 22nd”, concluded Mr. O’Dell.

 

Financial Position and Capital Expenditures

Total debt was $156.9 million at March 31, 2017 and inclusive of the cash on-hand, net debt to total capital was 24.0%.  This compares to total debt of $116.4 million and net debt to total capital of 20.9% at March 31, 2016.

 

Net capital expenditures in the first quarter of 2017 were $108.2 million including equipment acquired with capital leases.  This compares to $63.7 million in net capital expenditures in the first quarter of 2016.  The Company currently plans net capital expenditures in 2017 of approximately $220 million.

 

Conference Call

Management will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 888-778-9069 or 913-312-1480 referencing conference ID #5365991.  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 Friday, June 23, 2017 at 1:00 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 148 terminals in 34 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.

 


Saia, Inc. First Quarter 2017 Results

Page 2

 

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.

# # #

 

 

 

 

CONTACT:

 

Saia, Inc.

 

 

Doug Col

 

 

[email protected]

 

 

678.542.3910

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2017

 

 

December 31, 2016

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

711

 

 

$

1,539

 

Accounts receivable, net

 

 

148,968

 

 

 

135,083

 

Prepaid expenses and other

 

 

34,969

 

 

 

29,857

 

Total current assets

 

 

184,648

 

 

 

166,479

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,216,711

 

 

 

1,101,946

 

Less: accumulated depreciation

 

 

504,324

 

 

 

497,827

 

Net property and equipment

 

 

712,387

 

 

 

604,119

 

OTHER ASSETS

 

 

30,161

 

 

 

29,772

 

Total assets

 

$

927,196

 

 

$

800,370

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

70,971

 

 

$

45,149

 

Wages and employees' benefits

 

 

33,098

 

 

 

31,700

 

Other current liabilities

 

 

51,103

 

 

 

51,333

 

Current portion of long-term debt

 

 

19,183

 

 

 

16,762

 

Total current liabilities

 

 

174,355

 

 

 

144,944

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

137,738

 

 

 

57,042

 

Deferred income taxes

 

 

82,738

 

 

 

80,199

 

Claims, insurance and other

 

 

36,898

 

 

 

35,107

 

Total other liabilities

 

 

257,374

 

 

 

172,348

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

238,995

 

 

 

237,846

 

Deferred compensation trust

 

 

(3,337

)

 

 

(3,190

)

Retained earnings

 

 

259,784

 

 

 

248,397

 

Total stockholders' equity

 

 

495,467

 

 

 

483,078

 

Total liabilities and stockholders' equity

 

$

927,196

 

 

$

800,370

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters Ended March 31, 2017 and 2016

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

First Quarter

 

 

 

2017

 

 

2016

 

OPERATING REVENUE

 

$

317,037

 

 

$

289,911

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

180,903

 

 

 

170,266

 

Purchased transportation

 

 

14,775

 

 

 

12,467

 

Fuel, operating expenses and supplies

 

 

63,990

 

 

 

54,040

 

Operating taxes and licenses

 

 

10,582

 

 

 

10,040

 

Claims and insurance

 

 

9,049

 

 

 

8,081

 

Depreciation and amortization

 

 

20,087

 

 

 

17,243

 

Loss from property disposals, net

 

 

132

 

 

 

190

 

Total operating expenses

 

 

299,518

 

 

 

272,327

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

17,519

 

 

 

17,584

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

Interest expense

 

 

911

 

 

 

963

 

Other, net

 

 

98

 

 

 

(7

)

Nonoperating expenses, net

 

 

1,009

 

 

 

956

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

16,510

 

 

 

16,628

 

Income tax expense

 

 

5,123

 

 

 

6,053

 

NET INCOME

 

$

11,387

 

 

$

10,575

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,225

 

 

 

24,998

 

Average common shares outstanding - diluted

 

 

25,971

 

 

 

25,445

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.45

 

 

$

0.42

 

Diluted earnings per share

 

$

0.44

 

 

$

0.42

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Quarters Ended March 31, 2017 and 2016

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Quarters

 

 

 

2017

 

 

2016

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities (1)

 

$

24,128

 

 

$

16,956

 

Net cash provided by operating activities

 

 

24,128

 

 

 

16,956

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(88,388

)

 

 

(53,995

)

Proceeds from disposal of property and equipment

 

 

607

 

 

 

367

 

Net cash used in investing activities

 

 

(87,781

)

 

 

(53,628

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowing of revolving credit agreement, net

 

 

65,183

 

 

 

38,826

 

Proceeds from stock option exercises

 

 

1,288

 

 

 

 

Shares withheld for taxes (1)

 

 

(1,211

)

 

 

(650

)

Other financing activity

 

 

(2,435

)

 

 

(1,390

)

Net cash provided by financing activities

 

 

62,825

 

 

 

36,786

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(828

)

 

 

114

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

1,539

 

 

 

124

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

711

 

 

$

238

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

20,369

 

 

$

10,032

 

 

 

 

 

 

 

 

 

 

(1)  March 31, 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 March 31, 2017 and 2016

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

 

 

 

 

 

 

First Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2017

 

 

2016

 

 

Change

 

 

2017

 

 

2016

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

94.5

%

 

 

93.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

885

 

 

 

868

 

 

 

2.0

 

 

 

13.83

 

 

 

13.56

 

 

 

2.0

 

 

 

TL

 

183

 

 

 

168

 

 

 

9.2

 

 

 

2.86

 

 

 

2.62

 

 

 

9.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,607

 

 

 

1,553

 

 

 

3.5

 

 

 

25.12

 

 

 

24.26

 

 

 

3.5

 

 

 

TL

 

26

 

 

 

24

 

 

 

6.8

 

 

 

0.40

 

 

 

0.38

 

 

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

16.68

 

 

$

15.49

 

 

 

7.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.61

 

 

$

5.64

 

 

 

(0.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

183.68

 

 

$

173.20

 

 

 

6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

800.02

 

 

$

786.24

 

 

 

1.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,101

 

 

 

1,118

 

 

 

(1.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,249

 

 

 

13,942

 

 

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul (3)

 

 

797

 

 

 

781

 

 

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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