Saia Reports Record First Quarter Earnings per Share of $0.49
JOHNS CREEK, GA -- (Marketwired) -- 04/29/15 -- Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported first quarter 2015 results.
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, Rick O'Dell.
"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'Dell added.
Financial Position and Capital Expenditures Total debt was $107.6 million at March 31, 2015 and net debt to total capital was 22.1%. This compares to total debt of $79.7 million and net debt to total capital of 20.0% at March 31, 2014.
Net capital expenditures in the first quarter were $33.2 million including equipment acquired with capital leases. This compares to $8.2 million spent in the first quarter of 2014. The Company currently plans net capital expenditures in 2015 of approximately $125 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 888-510-1786 or 719-325-2315 referencing conference ID #3672683. 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 May 5, 2015 at 2:00 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 147 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 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 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)
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
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Total current assets 196,018 189,636
PROPERTY AND EQUIPMENT:
Cost 924,466 891,145
Less: accumulated depreciation 417,271 407,505
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Net property and equipment 507,195 483,640
OTHER ASSETS 36,310 13,169
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Total assets $ 739,523 $ 686,445
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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
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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
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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
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Total liabilities and stockholders' equity $ 739,523 $ 686,445
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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
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OPERATING INCOME 21,233 15,231
NONOPERATING EXPENSES:
Interest expense 1,019 1,316
Other, net (51) (30)
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Nonoperating expenses, net 968 1,286
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INCOME BEFORE INCOME TAXES 20,265 13,945
Income tax expense 7,660 5,369
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NET INCOME $ 12,605 $ 8,576
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Average common shares outstanding - basic 24,803 24,382
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Average common shares outstanding - diluted 25,513 25,361
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Basic earnings per share $ 0.51 $ 0.35
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Diluted earnings per share $ 0.49 $ 0.34
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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
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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
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NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (4,171) 683
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,367 159
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 196 $ 842
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NON-CASH ITEMS:
Acquisition of property and equipment
financed with capital leases $ 3,471 $ -
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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: Saia, Inc. Doug Col [email protected] 678.542.3910
Source: Saia, Inc.