EX-99.1 2 saia-ex991_6.htm EX-99.1 saia-ex991_6.htm

Exhibit 99.1

 

 

Saia Reports Record Second Quarter Earnings per Share of $0.75

 

JOHNS CREEK, GA. – July 29, 2015 – Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported second quarter 2015 results.  

 

Second Quarter 2015 Compared to Second Quarter 2014 Results

·

Revenues were $323 million, a 2.1% decrease

·

Operating income increased 38% to $31.3 million

·

Diluted earnings per share were $0.75 compared to $0.53

·

Operating ratio improved to 90.3 compared to 93.1

·

LTL shipments were down 2.9% as LTL tonnage decreased 6.0%

·

LTL revenue per hundredweight increased by 3.9% despite the impact of lower year-over-year fuel surcharges

 

“I am very pleased to report our fourth consecutive quarter of record earnings and would note that the results were achieved with improvements across our organization.  We are especially pleased with the improved safety and cargo claims results in the quarter.  Network optimization efforts continue to be successful and our purchased transportation costs were down nearly 28% in the quarter, ” said Saia President and Chief Executive Officer, Rick O’Dell.  

 

“Strong yield improvements continued in the quarter and though we will continue to face difficult tonnage comparisons for the rest of the year, our network is balanced and our sales force is focused on finding customers that find our value proposition to be compelling,” O’Dell added.

 

Financial Position and Capital Expenditures

Total debt was $108.6 million at June 30, 2015 and inclusive of the $3.7 million of cash on hand, net debt to total capital was 20.8% 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 half of the year were $73.3 million including equipment acquired with capital leases.  This compares to $66.7 million spent in the first half 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 888-438-5519 or 719-325-2464 referencing conference ID #2753051.  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 August 4, 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.

 



Saia, Inc. Second Quarter 2015 Results

Page 2

 

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.

# # #

 

 

 

 

CONTACT:

 

Saia, Inc.

 

 

Doug Col

 

 

dcol@saia.com

 

 

678.542.3910

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 

 

December 31, 2014

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,663

 

 

$

4,367

 

Accounts receivable, net

 

 

146,202

 

 

 

128,367

 

Prepaid expenses and other

 

 

44,132

 

 

 

56,902

 

Total current assets

 

 

193,997

 

 

 

189,636

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

957,345

 

 

 

891,145

 

Less: accumulated depreciation

 

 

429,698

 

 

 

407,505

 

Net property and equipment

 

 

527,647

 

 

 

483,640

 

OTHER ASSETS

 

 

34,695

 

 

 

13,169

 

Total assets

 

$

756,339

 

 

$

686,445

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

49,939

 

 

$

42,388

 

Wages and employees' benefits

 

 

38,844

 

 

 

28,777

 

Other current liabilities

 

 

49,017

 

 

 

50,176

 

Current portion of long-term debt

 

 

11,215

 

 

 

9,138

 

Total current liabilities

 

 

149,015

 

 

 

130,479

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

97,419

 

 

 

73,897

 

Deferred income taxes

 

 

74,224

 

 

 

78,406

 

Claims, insurance and other

 

 

34,689

 

 

 

36,757

 

Total other liabilities

 

 

206,332

 

 

 

189,060

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

226,891

 

 

 

223,713

 

Deferred compensation trust

 

 

(3,133

)

 

 

(2,189

)

Retained earnings

 

 

177,209

 

 

 

145,357

 

Total stockholders' equity

 

 

400,992

 

 

 

366,906

 

Total liabilities and stockholders' equity

 

$

756,339

 

 

$

686,445

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Six Months Ended June 30, 2015 and 2014

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

Six Months

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

OPERATING REVENUE

 

$

323,480

 

 

$

330,399

 

 

$

616,502

 

 

$

630,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

170,465

 

 

 

160,204

 

 

 

328,194

 

 

 

310,426

 

Purchased transportation

 

 

20,184

 

 

 

27,926

 

 

 

37,898

 

 

 

49,917

 

Fuel, operating expenses and supplies

 

 

69,165

 

 

 

81,276

 

 

 

136,310

 

 

 

161,235

 

Operating taxes and licenses

 

 

9,411

 

 

 

8,993

 

 

 

18,507

 

 

 

17,968

 

Claims and insurance

 

 

6,361

 

 

 

14,177

 

 

 

11,198

 

 

 

23,695

 

Depreciation and amortization

 

 

16,561

 

 

 

15,087

 

 

 

31,760

 

 

 

28,928

 

Operating loss (gains), net

 

 

52

 

 

 

(5

)

 

 

121

 

 

 

(12

)

Total operating expenses

 

 

292,199

 

 

 

307,658

 

 

 

563,988

 

 

 

592,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

31,281

 

 

 

22,741

 

 

 

52,514

 

 

 

37,972

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,074

 

 

 

1,177

 

 

 

2,093

 

 

 

2,493

 

Other, net

 

 

(14

)

 

 

(35

)

 

 

(65

)

 

 

(65

)

Nonoperating expenses, net

 

 

1,060

 

 

 

1,142

 

 

 

2,028

 

 

 

2,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

30,221

 

 

 

21,599

 

 

 

50,486

 

 

 

35,544

 

Income tax expense

 

 

10,974

 

 

 

8,031

 

 

 

18,634

 

 

 

13,400

 

NET INCOME

 

$

19,247

 

 

$

13,568

 

 

$

31,852

 

 

$

22,144

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

24,936

 

 

 

24,484

 

 

 

24,870

 

 

 

24,434

 

Average common shares outstanding - diluted

 

 

25,561

 

 

 

25,447

 

 

 

25,526

 

 

 

25,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.77

 

 

$

0.55

 

 

$

1.28

 

 

$

0.91

 

Diluted earnings per share

 

$

0.75

 

 

$

0.53

 

 

$

1.25

 

 

$

0.87

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Six Months Ended June 30, 2015 and 2014

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Six Months

 

 

 

2015

 

 

2014

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

67,045

 

 

$

46,875

 

Net cash provided by operating activities

 

 

67,045

 

 

 

46,875

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of business

 

 

(22,238

)

 

 

 

Acquisition of property and equipment

 

 

(56,466

)

 

 

(67,077

)

Proceeds from disposal of property and equipment

 

 

517

 

 

 

421

 

Net cash used in investing activities

 

 

(78,187

)

 

 

(66,656

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(3,571

)

 

 

(3,571

)

Borrowings of revolving credit agreement, net

 

 

13,000

 

 

 

22,422

 

Proceeds from stock option exercises

 

 

2,629

 

 

 

2,559

 

Other financing activities

 

 

(1,620

)

 

 

 

Net cash provided by financing activities

 

 

10,438

 

 

 

21,410

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(704

)

 

 

1,629

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

4,367

 

 

 

159

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

3,663

 

 

$

1,788

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Acquisition of property and equipment financed with capital leases

 

$

17,336

 

 

$

-

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended June 30, 2015 and 2014

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

 

 

Second Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2015

 

 

2014

 

 

Change

 

 

2015

 

 

2014

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

90.3

%

 

 

93.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

960

 

 

 

1,021

 

 

 

(6.0

)

 

 

15.00

 

 

 

15.96

 

 

 

(6.0

)

 

 

TL

 

200

 

 

 

228

 

 

 

(12.4

)

 

 

3.12

 

 

 

3.56

 

 

 

(12.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,683

 

 

 

1,732

 

 

 

(2.9

)

 

 

26.29

 

 

 

27.07

 

 

 

(2.9

)

 

 

TL

 

29

 

 

 

33

 

 

 

(12.4

)

 

 

0.45

 

 

 

0.51

 

 

 

(11.8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

15.42

 

 

$

14.85

 

 

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.93

 

 

$

5.70

 

 

 

3.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

176.02

 

 

$

175.09

 

 

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

830.27

 

 

$

798.13

 

 

 

4.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,141

 

 

 

1,179

 

 

 

(3.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,012

 

 

 

14,000

 

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul

 

 

778

 

 

 

759

 

 

 

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.