Saia Reports First Quarter Earnings per Share of $0.85


JOHNS CREEK, Ga., May 01, 2019 (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 first quarter 2019 financial results. Diluted earnings per share in the quarter were $0.85 compared to $0.80 in the first quarter of 2018.

First Quarter 2019 Compared to First Quarter 2018 Results

  • Revenues were $410.6 million, a 4.5% increase
  • Operating income was $28.6 million, a 3.8% increase
  • Operating ratio was flat at 93.0
  • LTL shipments per workday decreased 0.1%
  • LTL tonnage per workday decreased 3.5%
  • LTL revenue per hundredweight increased 10.6%
  • LTL revenue per shipment rose 6.8% to $230.43

“In the first quarter we saw continued success with selling our value proposition to customers and we were able to increase LTL revenue per hundred weight by 10.6% including average contractual renewal rates that rose 9.8% in the quarter.  This increase in LTL yield marked the 35th consecutive quarter of year-over-year improvement, reflecting our improving service reach and record low cargo claims ratio”, said Saia Chief Executive Officer, Rick O’Dell.

“While first quarter 2019 diluted earnings per share were a first quarter record, we are disappointed that we were not able to bring more of our strong yield improvements to the bottom line.  The first quarter is typically the seasonally softest period of the year and we simply incurred too many weather-related volume and cost impacts to reach our profitability goals in the period.  Winter weather throughout the quarter caused parts of our network to be interrupted on an almost weekly basis”, O’Dell continued.

“We opened one additional terminal in the Northeast in the first quarter and have plans to open an additional four or five in that region over the remainder of the year.  Broadening our direct service coverage area is resonating with customers and nearly 70% of our business in and out of the Northeast is coming from customers who were already using Saia in other parts of the country”, concluded O’Dell. 

Financial Position and Capital Expenditures

Total debt was $148.9 million at March 31, 2019 and inclusive of the cash on-hand, net debt to total capital was 17.2%.  This compares to total debt of $142.6 million and net debt to total capital of 19.0% at March 31, 2018.

Net capital expenditures in the first quarter of 2019 were $56.5 million including equipment acquired with capital leases.  This compares to $52.1 million in net capital expenditures in the first quarter 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 10:00 a.m. Eastern Time. To participate in the call, please dial 800-458-4121 or 323-794-2093 referencing conference ID #2680729.  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 May 29, 2019 at 1:00 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 162 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.

Saia, Inc. and Subsidiaries 
Condensed Consolidated Balance Sheets 
(Amounts in thousands) 
(Unaudited) 
      
  March 31,
2019
 December 31,
2018
 
ASSETS     
      
CURRENT ASSETS:     
Cash and cash equivalents $  31  $  2,194  
Accounts receivable, net    202,133     181,612  
Prepaid expenses and other    38,923     29,567  
  Total current assets    241,087     213,373  
      
PROPERTY AND EQUIPMENT:     
Cost    1,553,938     1,521,341  
Less: accumulated depreciation    648,408     628,283  
  Net property and equipment    905,530     893,058  
OPERATING LEASE RIGHT-OF-USE ASSETS    72,460     –  
 OTHER ASSETS    27,780     27,312  
  Total assets $  1,246,857  $  1,133,743  
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
      
CURRENT LIABILITIES:     
Accounts payable $  71,983  $  78,994  
Wages and employees' benefits    38,834     48,116  
Other current liabilities    65,345     64,118  
Current portion of long-term debt    17,914     18,082  
Current portion of operating lease liability    17,390     –  
  Total current liabilities    211,466     209,310  
      
OTHER LIABILITIES:     
Long-term debt, less current portion    130,964     104,777  
Operating lease liability, less current portion    58,035     –  
Deferred income taxes    92,208     86,893  
Claims, insurance and other    36,534     36,899  
  Total other liabilities    317,741     228,569  
      
STOCKHOLDERS' EQUITY:     
Common stock    26     26  
Additional paid-in capital    254,575     254,738  
Deferred compensation trust    (3,691)    (3,381) 
Retained earnings    466,740     444,481  
  Total stockholders' equity    717,650     695,864  
  Total liabilities and stockholders' equity  $  1,246,857  $  1,133,743  
      


Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters Ended March 31, 2019 and 2018
(Amounts in thousands, except per share data)
(Unaudited)
   
  First Quarter
   2019   2018 
OPERATING REVENUE $  410,584  $  392,805 
     
OPERATING EXPENSES:    
Salaries, wages and employees' benefits     220,352   211,124 
Purchased transportation    28,418   29,916 
Fuel, operating expenses and supplies    83,543   78,794 
Operating taxes and licenses     13,202   12,150 
Claims and insurance     9,530   10,191 
Depreciation and amortization    26,782   23,030 
Loss from property disposals, net    126   21 
  Total operating expenses     381,953     365,226 
     
OPERATING INCOME     28,631     27,579 
     
NONOPERATING EXPENSES (INCOME):    
Interest expense    1,383     1,226 
Other, net    (334)    (103)
  Nonoperating expenses, net    1,049     1,123 
     
INCOME BEFORE INCOME TAXES    27,582     26,456 
Income tax expense    5,323     5,331 
NET INCOME  $  22,259  $  21,125 
     
Average common shares outstanding - basic    25,873     25,698 
Average common shares outstanding - diluted    26,322     26,308 
     
Basic earnings per share $  0.86  $  0.82 
Diluted earnings per share $  0.85  $  0.80 
     

 

Saia, Inc. and Subsidiaries 
Condensed Consolidated Statements of Cash Flows 
For the three months ended March 31, 2019 and 2018 
(Amounts in thousands) 
(Unaudited) 
  First Quarter 
   2019   2018  
OPERATING ACTIVITIES:     
Net cash provided by operating activities $  30,400  $  35,502  
  Net cash provided by operating activities    30,400     35,502  
      
INVESTING ACTIVITIES:     
Acquisition of property and equipment    (56,741)    (46,881) 
Proceeds from disposal of property and equipment    275     100  
  Net cash used in investing activities    (56,466)    (46,781) 
      
FINANCING ACTIVITIES:     
Borrowing of revolving credit agreement, net    30,608     7,832  
Proceeds from stock option exercises    1,798     4,018  
Shares withheld for taxes    (3,268)    (1,302) 
Other financing activity    (5,235)    (3,493) 
  Net cash provided by financing activities    23,903     7,055  
      
NET DECREASE IN CASH AND CASH EQUIVALENTS    (2,163)    (4,224) 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD    2,194     4,720  
CASH AND CASH EQUIVALENTS, END OF PERIOD $  31  $  496  
      
NON-CASH ITEMS:     
  Equipment financed with finance leases $  –   $  5,318  
      

 

Saia, Inc. and Subsidiaries 
Financial  Information 
For the Quarters Ended March 31, 2019 and 2018 
(Unaudited) 
              
        First Quarter   
  First Quarter  %  Amount/Workday  %  
   2019   2018  Change 2019 2018 Change 
Workdays      63 64   
Operating ratio 93.0%  93.0%         
LTL tonnage (1) 1,139   1,199    (5.0) 18.07 18.73   (3.5) 
LTL shipments (1) 1,741   1,770    (1.6) 27.63 27.65   (0.1) 
LTL revenue/cwt.$  17.61  $  15.92    10.6        
LTL revenue/shipment$  230.43  $  215.79    6.8        
LTL pounds/shipment 1,308   1,355    (3.5)       
LTL length of haul (2) 831   837    (0.7)       
              
(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. 
 
 
 

CONTACT:  Saia, Inc.
Doug Col
dcol@saia.com
678.542.3910