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

Exhibit 99.1

 

Saia Reports Record Third Quarter Earnings per Share of $1.07

 

JOHNS CREEK, GA. – October 31, 2018 – 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 2018 financial results. Diluted earnings per share were $1.07 for the third quarter compared to $0.55 per diluted share in the third quarter of 2017.

 

Third Quarter 2018 Compared to Third Quarter 2017 Results

 

Record quarterly revenue of $425.6 million, an 19% increase

 

LTL Shipments and Tonnage rose 5.4% and 7.3%, respectively

 

LTL Revenue per hundredweight increased 11.9%

 

Revenue per shipment rose 13.9% to $233.38

 

Operating ratio improved by 220 basis points to 90.9%

 

Operating income rose 57% to a record $38.7 million

 

Net income rose 96% to $28.2 million

 

“Our record third quarter revenue and earnings reflect a continuation of the positive trends that have fueled our growth so far this year.  A solid freight environment has enabled us to manage our freight mix and achieve higher levels of profitability,” said Saia President and Chief Executive Officer, Rick O’Dell.  “We continue our efforts to manage our mix of business by seeking rate increases where necessary and shedding unprofitable freight, which I thought we did very well in the quarter as evidenced by our 11.9% increase in yield.  Contractual renewals were up 10.2% in the quarter, setting the tone for what we expect to be continued positive pricing over the next 12 months,” O’Dell continued.

 

“We intend to open two terminals in December, which will then enable us to offer direct service to customers in Massachusetts.  These two new terminals will bring our total openings count in the Northeast to 10 since our expansion began in May 2017,” concluded Mr. O’Dell.

 

Financial Position and Capital Expenditures

Total debt was $121.3 million at September 30, 2018 and inclusive of the cash on-hand, net debt to total capital was 15.3%.  This compares to total debt of $127.2 million and net debt to total capital of 19.3% at September 30, 2017.

 

Net capital expenditures in the year-to-date period through September were $182.5 million including equipment acquired with capital leases.  This compares to $183.9 million in net capital expenditures through the first nine months of 2017.  The Company currently plans net capital expenditures in 2018 of approximately $265 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 877-260-1479 or 334-323-0522 referencing conference ID #1391258.  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 28, 2018 at 1:00 p.m. Eastern Time.  The replay will be available by dialing 1-888-203-1112 or 719-457-0820 referencing conference ID #1391258.

 

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 158 terminals in 40 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 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, 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, 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, regulations of 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  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) cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums under its auto  liability policy; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) disruption in or failure of the Company’s technology including services essential to operations of the Company and/or 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, 2018

 

 

December 31, 2017

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

529

 

 

$

4,720

 

Accounts receivable, net (1)

 

 

197,973

 

 

 

170,278

 

Prepaid expenses and other

 

 

26,155

 

 

 

28,251

 

Total current assets

 

 

224,657

 

 

 

203,249

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,445,049

 

 

 

1,289,994

 

Less: accumulated depreciation

 

 

609,324

 

 

 

554,214

 

Net property and equipment

 

 

835,725

 

 

 

735,780

 

OTHER ASSETS

 

 

27,710

 

 

 

28,286

 

Total assets

 

$

1,088,092

 

 

$

967,315

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable (1)

 

$

62,025

 

 

$

57,438

 

Wages and employees' benefits

 

 

53,175

 

 

 

39,748

 

Other current liabilities

 

 

76,929

 

 

 

55,657

 

Current portion of long-term debt

 

 

17,622

 

 

 

14,083

 

Total current liabilities

 

 

209,751

 

 

 

166,926

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

103,715

 

 

 

118,833

 

Deferred income taxes

 

 

65,895

 

 

 

59,423

 

Claims, insurance and other

 

 

39,440

 

 

 

39,639

 

Total other liabilities

 

 

209,050

 

 

 

217,895

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

26

 

 

 

26

 

Additional paid-in capital

 

 

253,366

 

 

 

246,454

 

Deferred compensation trust

 

 

(3,202

)

 

 

(3,486

)

Retained earnings (1)

 

 

419,101

 

 

 

339,500

 

Total stockholders' equity

 

 

669,291

 

 

 

582,494

 

Total liabilities and stockholders' equity

 

$

1,088,092

 

 

$

967,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) - These accounts have been retrospectively adjusted for the January 1, 2018 adoption of the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers.

 

(1) - These accounts have been retrospectively adjusted for the January 1, 2018 adoption of the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers.

 

(1) - These accounts have been retrospectively adjusted for the January 1, 2018 adoption of the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers.

 

 

 


 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters and Nine Months Ended September 30, 2018 and 2017

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

Nine Months

 

 

 

2018

 

 

2017 (1)

 

 

2018

 

 

2017 (1)

 

OPERATING REVENUE

 

$

425,562

 

 

$

357,010

 

 

$

1,247,099

 

 

$

1,044,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

224,635

 

 

 

194,920

 

 

 

656,165

 

 

 

572,211

 

Purchased transportation

 

 

31,216

 

 

 

30,056

 

 

 

95,245

 

 

 

79,516

 

Fuel, operating expenses and supplies

 

 

81,643

 

 

 

66,679

 

 

 

245,182

 

 

 

196,761

 

Operating taxes and licenses

 

 

12,366

 

 

 

10,631

 

 

 

37,310

 

 

 

32,088

 

Claims and insurance

 

 

9,985

 

 

 

8,535

 

 

 

30,086

 

 

 

28,010

 

Depreciation and amortization

 

 

26,694

 

 

 

22,338

 

 

 

74,965

 

 

 

64,607

 

Loss (gain) from property disposals, net

 

 

326

 

 

 

(717

)

 

 

305

 

 

 

(469

)

Total operating expenses

 

 

386,865

 

 

 

332,442

 

 

 

1,139,258

 

 

 

972,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

38,697

 

 

 

24,568

 

 

 

107,841

 

 

 

71,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,410

 

 

 

1,313

 

 

 

4,090

 

 

 

3,762

 

Other, net

 

 

(139

)

 

 

(131

)

 

 

(384

)

 

 

57

 

Nonoperating expenses, net

 

 

1,271

 

 

 

1,182

 

 

 

3,706

 

 

 

3,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

37,426

 

 

 

23,386

 

 

 

104,135

 

 

 

67,962

 

Income tax expense

 

 

9,231

 

 

 

9,013

 

 

 

24,534

 

 

 

24,623

 

NET INCOME

 

$

28,195

 

 

$

14,373

 

 

$

79,601

 

 

$

43,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

25,792

 

 

 

25,527

 

 

 

25,752

 

 

 

25,494

 

Average common shares outstanding - diluted

 

 

26,354

 

 

 

26,113

 

 

 

26,328

 

 

 

26,050

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.09

 

 

$

0.56

 

 

$

3.09

 

 

$

1.70

 

Diluted earnings per share

 

$

1.07

 

 

$

0.55

 

 

$

3.02

 

 

$

1.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) - Third quarter and nine months 2017 amounts have been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers.

 

(1) - Third quarter and nine months 2017 amounts have been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers.

 

(1) - Third quarter and nine months 2017 amounts have been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers.

 

 


 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the Nine Months Ended September 30, 2018 and 2017

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Nine Months

 

 

 

2018

 

 

2017

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

187,110

 

 

$

127,737

 

Net cash provided by operating activities

 

 

187,110

 

 

 

127,737

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(155,217

)

 

 

(155,676

)

Proceeds from disposal of property and equipment

 

 

778

 

 

 

3,090

 

Net cash used in investing activities

 

 

(154,439

)

 

 

(152,586

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

 

 

 

(3,571

)

Borrowing (repayment) of revolving credit agreement, net

 

 

(28,000

)

 

 

34,499

 

Proceeds from stock option exercises

 

 

4,165

 

 

 

2,531

 

Shares withheld for taxes

 

 

(1,396

)

 

 

(1,249

)

Other financing activity

 

 

(11,631

)

 

 

(8,819

)

Net cash provided by (used in) financing activities

 

 

(36,862

)

 

 

23,391

 

 

 

 

 

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(4,191

)

 

 

(1,458

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

4,720

 

 

 

1,539

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

529

 

 

$

81

 

 

 

 

 

 

 

 

 

 

NON-CASH ITEMS:

 

 

 

 

 

 

 

 

Equipment financed with capital leases

 

$

28,052

 

 

$

31,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended September 30, 2018 and 2017

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

 

 

 

 

 

Third Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

2018

 

 

2017

 

 

Change

 

 

2018

 

 

2017

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

63

 

 

 

 

 

Operating ratio (1)

 

90.9

%

 

 

93.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL tonnage (2)

 

1,208

 

 

 

1,126

 

 

 

7.3

 

 

 

19.17

 

 

 

17.87

 

 

 

7.3

 

LTL shipments (2)

 

1,780

 

 

 

1,690

 

 

 

5.4

 

 

 

28.26

 

 

 

26.82

 

 

 

5.4

 

LTL revenue/cwt.

$

17.20

 

 

$

15.38

 

 

 

11.9

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment

$

233.38

 

 

$

204.85

 

 

 

13.9

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL pounds/shipment

 

1,357

 

 

 

1,332

 

 

 

1.8

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL length of haul (3)

 

835

 

 

 

813

 

 

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Third quarter 2017 operating ratio has been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers.

 

(1)

Third quarter 2017 operating ratio has been retrospectively adjusted for the January 1, 2018 adoption of the FASB ASU 2014-09, Revenue from Contracts with Customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

In thousands.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

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.  2017 LTL operating statistics have been restated to reflect this presentation.