Saia Reports Third Quarter Earnings per Share of $0.46
JOHNS CREEK, GA -- (Marketwired) -- 10/28/15 -- Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported third quarter 2015 results.
Third Quarter 2015 Compared to Third Quarter 2014 Results
- Revenues were $317 million, a 4.6% decrease
- Operating income decreased 27% to $19.8 million
- Diluted earnings per share were $0.46 compared to $0.64
- Operating ratio of 93.7 compared to 91.8
- LTL shipments were down 4.2% and LTL tonnage declined 6.7%
- LTL revenue per hundredweight increased 2.2% despite the impact of lower year-over-year fuel surcharges
"Our disappointing third quarter results were primarily the result of declining tonnage trends during the quarter, which made it difficult to offset higher investments in driver wages. Additionally, we incurred increased expenses associated with self-insurance claims. In this type of volume environment we will more aggressively manage costs and maintain a constant focus on mix management to ensure that proper compensatory pricing is in place," said Saia President and Chief Executive Officer, Rick O'Dell.
"Despite the negative year-over-year earnings results, we improved pricing and LTL yield for the 21st consecutive quarter. Our level of service remains excellent at 98% on-time and we further improved our cargo claims results in the quarter," O'Dell added.
Financial Position and Capital Expenditures Total debt was $81.2 million at September 30, 2015 and inclusive of the $4.5 million of cash on-hand, net debt to total capital was 15.6% at quarter end. This compares to total debt of $83.0 million and net debt to total capital of 17.7% at December 31, 2014.
Net capital expenditures in the first nine months of the year were $92.1 million including equipment acquired with capital leases and excluding our acquisition of LinkEx in February. This compares to $85.5 million spent in the first nine months 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 888-401-4669 or 719-325-2472 referencing conference ID #6997115. 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 November 3, 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 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, assumptions and uncertainties include, but are not limited to, general economic conditions including downturns in the business cycle; effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; the creditworthiness of our customers and their ability to pay for services; failure to achieve acquisition synergies; failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; 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 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, Homeland Security, environmental regulations and the Food and Drug Administration; changes in interpretation of accounting principles; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of healthcare reform legislation; social media risks; cyber security 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)
September 30, December 31,
2015 2014
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 4,540 $ 4,367
Accounts receivable, net 139,041 128,367
Prepaid expenses and other 42,156 56,902
------------- -------------
Total current assets 185,737 189,636
PROPERTY AND EQUIPMENT:
Cost 975,874 891,145
Less: accumulated depreciation 443,330 407,505
------------- -------------
Net property and equipment 532,544 483,640
OTHER ASSETS 32,706 13,169
------------- -------------
Total assets $ 750,987 $ 686,445
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 59,504 $ 42,388
Wages and employees' benefits 32,463 28,777
Other current liabilities 50,495 50,176
Current portion of long-term debt 12,031 9,138
------------- -------------
Total current liabilities 154,493 130,479
OTHER LIABILITIES:
Long-term debt, less current portion 69,163 73,897
Deferred income taxes 77,775 78,406
Claims, insurance and other 35,728 36,757
------------- -------------
Total other liabilities 182,666 189,060
STOCKHOLDERS' EQUITY:
Common stock 25 25
Additional paid-in capital 228,015 223,713
Deferred compensation trust (3,198) (2,189)
Retained earnings 188,986 145,357
------------- -------------
Total stockholders' equity 413,828 366,906
------------- -------------
Total liabilities and stockholders' equity $ 750,987 $ 686,445
============= =============
Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Nine Months Ended September 30, 2015 and 2014
(Amounts in thousands, except per share data)
(Unaudited)
Third Quarter Nine Months
------------------- ------------------
2015 2014 2015 2014
--------- --------- -------- --------
OPERATING REVENUE $ 317,199 $ 332,544 $933,701 $962,673
OPERATING EXPENSES:
Salaries, wages and employees'
benefits 177,623 166,353 505,817 476,779
Purchased transportation 19,314 27,479 57,212 77,396
Fuel, operating expenses and
supplies 65,122 80,206 201,432 241,441
Operating taxes and licenses 9,258 9,033 27,765 27,001
Claims and insurance 9,146 6,956 20,344 30,651
Depreciation and amortization 16,765 15,336 48,525 44,264
Operating loss, net 126 32 247 20
--------- --------- -------- --------
Total operating expenses 297,354 305,395 861,342 897,552
--------- --------- -------- --------
OPERATING INCOME 19,845 27,149 72,359 65,121
NONOPERATING EXPENSES:
Interest expense 1,033 1,064 3,126 3,557
Other, net 46 16 (19) (49)
--------- --------- -------- --------
Nonoperating expenses, net 1,079 1,080 3,107 3,508
--------- --------- -------- --------
INCOME BEFORE INCOME TAXES 18,766 26,069 69,252 61,613
Income tax expense 6,989 9,791 25,623 23,191
--------- --------- -------- --------
NET INCOME $ 11,777 $ 16,278 $ 43,629 $ 38,422
========= ========= ======== ========
Average common shares outstanding -
basic 24,963 24,527 24,901 24,465
========= ========= ======== ========
Average common shares outstanding -
diluted 25,555 25,505 25,525 25,436
========= ========= ======== ========
Basic earnings per share $ 0.47 $ 0.66 $ 1.75 $ 1.57
========= ========= ======== ========
Diluted earnings per share $ 0.46 $ 0.64 $ 1.71 $ 1.51
========= ========= ======== ========
Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2015 and 2014
(Amounts in thousands)
(Unaudited)
Nine Months
------------------
2015 2014
-------- --------
OPERATING ACTIVITIES:
Net cash provided by operating activities $114,038 $ 92,017
-------- --------
Net cash provided by operating activities 114,038 92,017
-------- --------
INVESTING ACTIVITIES:
Acquisition of business (22,238) -
Acquisition of property and equipment (68,835) (79,773)
Proceeds from disposal of property and equipment 665 2,590
-------- --------
Net cash used in investing activities (90,408) (77,183)
-------- --------
FINANCING ACTIVITIES:
Repayment of long-term debt (3,571) (3,571)
Repayment of revolving credit agreement, net (20,000) (8,317)
Proceeds from stock option exercises 2,816 4,159
Other financing activities (2,702) (20)
-------- --------
Net cash used in financing activities (23,457) (7,749)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS 173 7,085
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,367 159
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,540 $ 7,244
======== ========
NON-CASH ITEMS:
Acquisition of property and equipment financed with
capital leases $ 23,979 $ 8,328
======== ========
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended September 30, 2015 and 2014
(Unaudited)
Third Quarter
---------------
Third Quarter Amount/Workday
---------------- % --------------- %
2015 2014 Change 2015 2014 Change
------- ------- ------ ------- ------- ------
Workdays 64 64
Operating ratio 93.7% 91.8%
Tonnage (1) LTL 940 1,008 (6.7) 14.68 15.75 (6.8)
TL 188 215 (12.6) 2.93 3.36 (12.8)
Shipments (1) LTL 1,658 1,730 (4.2) 25.91 27.03 (4.1)
TL 27 31 (12.6) 0.42 0.48 (12.5)
Revenue/cwt. (2) LTL $ 15.51 $ 15.17 2.2
TL $ 5.87 $ 5.95 (1.3)
Revenue/shipment (2) LTL $175.77 $176.71 (0.5)
TL $820.00 $831.69 (1.4)
Pounds/shipment LTL 1,134 1,165 (2.7)
TL 13,967 13,978 (0.1)
Length of Haul 773 766 0.9
(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.