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

Exhibit 99.1

 

 

Saia Reports Third Quarter Earnings per Share of $0.55

 

JOHNS CREEK, GA. – October 27, 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 third quarter 2017 financial results.

 

Third Quarter 2017 Compared to Third Quarter 2016 Results

 

Revenues were $350 million, a 10.6% increase

 

LTL Shipments and LTL Tonnage per workday rose 3.1% and 3.6%, respectively

 

LTL Revenue per hundredweight increased 8.0%

 

Operating ratio rose by 20 basis points to 93.0%

 

Operating income increased by 8.6% to $24.6 million

 

Net income rose 4.2% to $14.4 million

 

Diluted earnings per share were $0.55 compared to $0.54

 

“Third quarter operations were disrupted for a number of days by hurricanes Harvey and Irma.  We estimate that third quarter shipments and tonnage per workday growth would have been approximately 1% higher had the storms not occurred”, said Saia President and Chief Executive Officer, Rick O’Dell.  “Saia also experienced higher than normal operating costs for routing freight around weather impacted areas”, O’Dell continued.

 

“We were very fortunate that our employees and their families were safe during the storms and the Company had minimal damage to facilities and equipment.  With the dedicated effort of employees, we were able to get terminals in the impacted areas open within a few days.  The impact of the storms notwithstanding, we continue to see strong demand and stable pricing in our business”, said O’Dell.

 

“I am also pleased that we opened our 5th new terminal of the year on October 16th.  The terminal is located in Laurel, Md. and will help us to serve customers in and around the markets of Baltimore, Md. and Washington, D.C.  We are planning to open a terminal in Allentown, Pa. in December and have two additional Northeast expansion properties identified.  The early results from our Northeast expansion have modestly exceeded our expectations”, concluded Mr. O’Dell.

 

Financial Position and Capital Expenditures

Total debt was $127.2 million at September 30, 2017 and inclusive of the cash on-hand, net debt to total capital was 19.3%.  This compares to total debt of $94.2 million and net debt to total capital of 16.6% at September 30, 2016.

 

Net capital expenditures in the year-to-date period through September were $183.9 million including equipment acquired with capital leases.  This compares to $142.5 million in net capital expenditures in the first nine months of 2016.  For the full year 2017, net capital expenditures are planned to be approximately $230 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 800-239-9838 or 323-794-2551 referencing conference ID #9666253.  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 December 22, 2017 at 1:00 p.m. Eastern Time.  The replay will be available by dialing 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 153 terminals across 39 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. Third Quarter 2017 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 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, 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

 

 

dcol@saia.com

 

 

678.542.3910

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2017

 

 

December 31, 2016

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

81

 

 

$

1,539

 

Accounts receivable, net

 

 

172,119

 

 

 

135,083

 

Prepaid expenses and other

 

 

28,399

 

 

 

29,857

 

Total current assets

 

 

200,599

 

 

 

166,479

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,260,856

 

 

 

1,101,946

 

Less: accumulated depreciation

 

 

538,065

 

 

 

497,827

 

Net property and equipment

 

 

722,791

 

 

 

604,119

 

OTHER ASSETS

 

 

29,329

 

 

 

29,772

 

Total assets

 

$

952,719

 

 

$

800,370

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

63,742

 

 

$

45,149

 

Wages and employees' benefits

 

 

44,140

 

 

 

31,700

 

Other current liabilities

 

 

58,545

 

 

 

51,333

 

Current portion of long-term debt

 

 

17,072

 

 

 

16,762

 

Total current liabilities

 

 

183,499

 

 

 

144,944

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

110,161

 

 

 

57,042

 

Deferred income taxes

 

 

90,064

 

 

 

80,199

 

Claims, insurance and other

 

 

37,242

 

 

 

35,107

 

Total other liabilities

 

 

237,467

 

 

 

172,348

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

25

 

 

 

25

 

Additional paid-in capital

 

 

243,382

 

 

 

237,846

 

Deferred compensation trust

 

 

(3,448

)

 

 

(3,190

)

Retained earnings

 

 

291,794

 

 

 

248,397

 

Total stockholders' equity

 

 

531,753

 

 

 

483,078

 

Total liabilities and stockholders' equity

 

$

952,719

 

 

$

800,370

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Nine Months Ended September 30, 2017 and 2016

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

Nine Months

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

OPERATING REVENUE

 

$

350,062

 

 

$

316,442

 

 

$

1,025,259

 

 

$

918,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

194,920

 

 

 

178,687

 

 

 

572,211

 

 

 

524,877

 

Purchased transportation

 

 

23,074

 

 

 

15,657

 

 

 

60,212

 

 

 

42,439

 

Fuel, operating expenses and supplies

 

 

66,679

 

 

 

59,345

 

 

 

196,761

 

 

 

172,411

 

Operating taxes and licenses

 

 

10,631

 

 

 

10,061

 

 

 

32,088

 

 

 

30,227

 

Claims and insurance

 

 

8,535

 

 

 

9,988

 

 

 

28,010

 

 

 

28,949

 

Depreciation and amortization

 

 

22,338

 

 

 

19,927

 

 

 

64,607

 

 

 

56,910

 

Loss (gain) from property disposals, net

 

 

(717

)

 

 

133

 

 

 

(469

)

 

 

496

 

Total operating expenses

 

 

325,460

 

 

 

293,798

 

 

 

953,420

 

 

 

856,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

24,602

 

 

 

22,644

 

 

 

71,839

 

 

 

61,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,313

 

 

 

1,183

 

 

 

3,762

 

 

 

3,410

 

Other, net

 

 

(131

)

 

 

(104

)

 

 

57

 

 

 

(147

)

Nonoperating expenses, net

 

 

1,182

 

 

 

1,079

 

 

 

3,819

 

 

 

3,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

23,420

 

 

 

21,565

 

 

 

68,020

 

 

 

58,686

 

Income tax expense

 

 

9,013

 

 

 

7,739

 

 

 

24,623

 

 

 

21,010

 

NET INCOME

 

$

14,407

 

 

$

13,826

 

 

$

43,397

 

 

$

37,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,527

 

 

 

25,038

 

 

 

25,494

 

 

 

25,022

 

Average common shares outstanding - diluted

 

 

26,113

 

 

 

25,658

 

 

 

26,050

 

 

 

25,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.56

 

 

$

0.55

 

 

$

1.70

 

 

$

1.51

 

Diluted earnings per share

 

$

0.55

 

 

$

0.54

 

 

$

1.67

 

 

$

1.47

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Nine Months Ended September 30, 2017 and 2016

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Nine Months

 

 

 

2017

 

 

2016

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities (1)

 

$

127,737

 

 

$

118,309

 

Net cash provided by operating activities

 

 

127,737

 

 

 

118,309

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(155,676

)

 

 

(108,871

)

Proceeds from disposal of property and equipment

 

 

3,090

 

 

 

1,046

 

Net cash used in investing activities

 

 

(152,586

)

 

 

(107,825

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(3,571

)

 

 

(3,571

)

Borrowing (repayment) of revolving credit agreement, net

 

 

34,499

 

 

 

(35

)

Proceeds from stock option exercises

 

 

2,531

 

 

 

248

 

Shares withheld for taxes (1)

 

 

(1,249

)

 

 

(650

)

Other financing activity

 

 

(8,819

)

 

 

(5,811

)

Net cash provided by (used in) financing activities

 

 

23,391

 

 

 

(9,819

)

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

(1,458

)

 

 

665

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

1,539

 

 

 

124

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

81

 

 

$

789

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

31,320

 

 

$

34,683

 

 

 

 

 

 

 

 

 

 

(1)  September 30, 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 September 30, 2017 and 2016

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

 

 

 

 

 

 

Third Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

 

2017

 

 

2016

 

 

Change

 

 

2017

 

 

2016

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating ratio

 

 

93.0

%

 

 

92.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage (1)

LTL

 

931

 

 

 

913

 

 

 

2.0

 

 

 

14.77

 

 

 

14.26

 

 

 

3.6

 

 

 

TL

 

195

 

 

 

182

 

 

 

7.0

 

 

 

3.09

 

 

 

2.85

 

 

 

8.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipments (1)

LTL

 

1,662

 

 

 

1,638

 

 

 

1.5

 

 

 

26.39

 

 

 

25.59

 

 

 

3.1

 

 

 

TL

 

27

 

 

 

26

 

 

 

7.2

 

 

 

0.44

 

 

 

0.40

 

 

 

8.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/cwt. (2)

LTL

$

17.36

 

 

$

16.08

 

 

 

8.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

5.92

 

 

$

5.51

 

 

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue/shipment (2)

LTL

$

194.36

 

 

$

179.17

 

 

 

8.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

$

840.17

 

 

$

783.61

 

 

 

7.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pounds/shipment

LTL

 

1,120

 

 

 

1,114

 

 

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TL

 

14,201

 

 

 

14,229

 

 

 

(0.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Length of Haul (3)

 

 

813

 

 

 

789

 

 

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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