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

Exhibit 99.1

 

Saia Reports Record First Quarter Earnings per Share of $0.85

 

JOHNS CREEK, GA. – May 1, 2019 – 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.

 

 


Saia, Inc. First Quarter 2019 Results

Page 2

 

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.

 

# # #

 

 

CONTACT:Saia, Inc.

Doug Col

dcol@saia.com

678.542.3910

 


 


 

 

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.