EX-99.1 2 saia-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

img187963839_0.jpg 

 

Saia Reports Record Second Quarter Results

 

JOHNS CREEK, GA – July 27, 2022 – Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering national less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2022 financial results. Diluted earnings per share in the quarter were $4.10 compared to $2.34 in the second quarter of 2021.

 

Highlights from the second quarter operating results were as follows:

 

Second Quarter 2022 Compared to Second Quarter 2021 Results

 

Revenue was $745.6 million, a 30.5% increase
Operating income was $146.0 million, a 76.1% increase
Operating ratio of 80.4 compared to 85.5
LTL shipments per workday increased 1.8%
LTL tonnage per workday increased 2.8%
LTL revenue per hundredweight increased 26.3%
LTL revenue per shipment rose 27.6% to $353.75

 

“As we continue to emphasize our customer first initiatives, we saw high levels of execution across our organization, fueling our record second quarter financial results,” stated Saia President and CEO, Fritz Holzgrefe. “Our quarterly revenue of $746 million and our operating income of $146 million are both records for our company, and our operating ratio of 80.4 was more than 500 basis points improved from the prior year quarter. Demand remained fairly consistent across the quarter averaging approximately 32,000 shipments per day and our cargo claims ratio was a solid 0.57%,” said Mr. Holzgrefe.

 

“In terms of our expansion efforts, four new terminals were opened in the quarter, and we have opened five in total so far this year. Plans are underway for an additional seven to ten terminals to be opened this year,” added Holzgrefe. “Our strategy of expanding our footprint is putting us in a position to be closer to customers, in more markets and therefore provide a higher level of service,” concluded Mr. Holzgrefe.

 

Saia Executive Vice President and Chief Financial Officer, Douglas Col added, “Enhancing the value proposition to our customers through higher service levels puts us in a good position to charge a more premium rate for that service, and we are seeing the benefit in our LTL revenue per shipment, which grew 27.6% to $353.75. Excluding fuel surcharge LTL revenue per shipment was up 16.1%.” “Despite inflation across our cost structure, we were still able to invest in improving service to support our premium service offering,” concluded Mr. Col.

 

 


Saia, Inc. Second Quarter 2022 Results

Page 2

 

Financial Position and Capital Expenditures

 

We ended the second quarter of 2022 with $137.9 million of cash on hand and total debt of $39.3 million, which compares to total debt of $61.0 million and $52.9 million of cash on hand at June 30, 2021.

 

Net capital expenditures were $155.3 million during the first six months of 2022, compared to $100.0 million in net capital expenditures during the first six months of 2021. In 2022, we anticipate that net capital expenditures will be in excess of $500 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 888-394-8218 or 323-794-2588 referencing conference ID #3976238. 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/about-us/investor-relations/financial-releases. A replay of the call will be offered two hours after the completion of the call through August 24, 2022 at 2:00 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 181 terminals with service across 45 states. For more information on Saia, Inc. visit the Investor Relations section at www.saia.com/about-us/investor-relations.

 

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, except as required by law. 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 or inflationary periods in the business cycle; (2) operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors; (3) industry-wide external factors largely out of our control; (4) cost and availability of qualified drivers, dock workers and other employees, purchased transportation and fuel; (5) claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (6) cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums,

 


Saia, Inc. Second Quarter 2022 Results

Page 3

 

assume additional liability under its auto liability policies or be unable to obtain insurance coverage; (7) failure to successfully execute the strategy to expand our service geography; (8) costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks; (9) failure to keep pace with technological developments; (10) labor relations, including the adverse impact should a portion of our workforce become unionized; (11) cost and availability of real property and revenue equipment; (12) supply chain disruption and delays on new equipment delivery; (13) capacity and highway infrastructure constraints; (14) risks arising from international business operations and relationships; (15) seasonal factors, harsh weather and disasters caused by climate change; (16) economic declines in the geographic regions or industries in which our customers operate; (17) the creditworthiness of our customers and their ability to pay for services; (18) our need for capital and uncertainty of the credit markets; (19) the possibility of defaults under our debt agreements (including violation of financial covenants); (20) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (21) dependence on key employees; (22) employee turnover from changes to compensation and benefits or market factors; (23) increased costs of healthcare benefits; (24) damage to our reputation from adverse publicity, including from the use of or impact from social media; (25) failure to make future acquisitions or to achieve acquisition synergies; (26) the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future; (27) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (28) the effect of governmental regulations, including hours of service and licensing compliance for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of the Food and Drug Administration and Homeland Security, and healthcare and environmental regulations; (29) unforeseen costs from new and existing data privacy laws; (30) changes in accounting and financial standards or practices; (31) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions and higher costs that may arise from the COVID-19 pandemic in the future, including governmental regulations requiring that employees be vaccinated or be tested regularly for COVID-19 before reporting to work; (32) increasing investor and customer sensitivity to social and sustainability issues, including climate change; (33) anti-terrorism measures and terrorist events; (34) provisions in our governing documents and Delaware law that may have anti-takeover effects; (35) issuances of equity that would dilute stock ownership; and (36) 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 news 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, except as otherwise required by law.

 

# # #

 


Saia, Inc. Second Quarter 2022 Results

Page 4

 

CONTACT: Saia, Inc.

Douglas Col

Executive Vice President and Chief Financial Officer

Investors@saia.com

 

 

 


 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

 

December 31, 2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

$

137,871

 

 

$

106,588

 

Accounts receivable, net

 

 

357,052

 

 

 

276,755

 

Prepaid expenses and other

 

 

41,453

 

 

 

32,912

 

Total current assets

 

 

536,376

 

 

 

416,255

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

Cost

 

 

2,277,527

 

 

 

2,144,528

 

Less: accumulated depreciation

 

 

924,628

 

 

 

864,074

 

Net property and equipment

 

 

1,352,899

 

 

 

1,280,454

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

 

105,376

 

 

 

107,781

 

OTHER ASSETS

 

 

53,204

 

 

 

40,760

 

Total assets

 

$

2,047,855

 

 

$

1,845,250

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

Accounts payable

 

$

145,298

 

 

$

114,010

 

Wages and employees' benefits

 

 

78,945

 

 

 

73,109

 

Other current liabilities

 

 

74,816

 

 

 

93,268

 

Current portion of long-term debt

 

 

17,935

 

 

 

19,396

 

Current portion of operating lease liability

 

 

22,155

 

 

 

21,565

 

Total current liabilities

 

 

339,149

 

 

 

321,348

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

Long-term debt, less current portion

 

 

21,360

 

 

 

31,008

 

Operating lease liability, less current portion

 

 

85,522

 

 

 

88,409

 

Deferred income taxes

 

 

123,229

 

 

 

124,137

 

Claims, insurance and other

 

 

74,833

 

 

 

60,015

 

Total other liabilities

 

 

304,944

 

 

 

303,569

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

Common stock

 

 

26

 

 

 

26

 

Additional paid-in capital

 

 

271,395

 

 

 

274,633

 

Deferred compensation trust

 

 

(6,103

)

 

 

(4,101

)

Retained earnings

 

 

1,138,444

 

 

 

949,775

 

Total stockholders' equity

 

 

1,403,762

 

 

 

1,220,333

 

Total liabilities and stockholders' equity

 

$

2,047,855

 

 

$

1,845,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Six Months Ended June 30, 2022 and 2021

(Amounts in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

Second Quarter

 

Six Months

 

 

2022

 

2021

 

2022

 

2021

OPERATING REVENUE

 

$745,554

 

$571,333

 

$1,406,770

 

$1,055,407

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

        295,052

 

268,786

 

          584,515

 

513,223

Purchased transportation

 

          91,819

 

62,481

 

          170,067

 

107,512

Fuel, operating expenses and supplies

 

        145,530

 

90,664

 

          268,301

 

175,565

Operating taxes and licenses

 

          15,979

 

14,559

 

            32,552

 

28,897

Claims and insurance

 

          14,216

 

17,328

 

            24,952

 

28,808

Depreciation and amortization

 

          36,944

 

34,659

 

            76,896

 

70,031

Loss (gain) from property disposals, net

 

                 21

 

(69)

 

                   45

 

(268)

Total operating expenses

 

        599,561

 

        488,408

 

       1,157,328

 

          923,768

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

        145,993

 

          82,925

 

          249,442

 

          131,639

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

Interest expense

 

               668

 

               834

 

              1,360

 

              1,686

Other, net

 

               769

 

              (430)

 

              1,004

 

                (561)

Nonoperating expenses, net

 

            1,437

 

               404

 

              2,364

 

              1,125

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

        144,556

 

          82,521

 

          247,078

 

          130,514

Income tax expense

 

          35,311

 

          20,047

 

            58,409

 

            30,749

NET INCOME

 

$109,245

 

$62,474

 

$188,669

 

$99,765

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

          26,507

 

          26,332

 

            26,489

 

            26,309

Average common shares outstanding - diluted

 

          26,665

 

          26,704

 

            26,662

 

            26,687

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$4.12

 

$2.37

 

$7.12

 

$3.79

Diluted earnings per share

 

$4.10

 

$2.34

 

$7.08

 

$3.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the six months ended June 30, 2022 and 2021

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

Six Months

 

 

 

2022

 

 

2021

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net cash provided by operating activities

 

$

207,905

 

 

$

140,140

 

Net cash provided by operating activities

 

 

207,905

 

 

 

140,140

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(156,351

)

 

 

(100,202

)

Proceeds from disposal of property and equipment

 

 

1,060

 

 

 

236

 

Net cash used in investing activities

 

 

(155,291

)

 

 

(99,966

)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowing (repayment) of revolving credit agreement, net

 

 

 

 

 

 

Proceeds from stock option exercises

 

 

1,008

 

 

 

3,678

 

Shares withheld for taxes

 

 

(11,230

)

 

 

(6,350

)

Other financing activity

 

 

(11,109

)

 

 

(9,950

)

Net cash used in financing activities

 

 

(21,331

)

 

 

(12,622

)

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

31,283

 

 

 

27,552

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

106,588

 

 

 

25,308

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

137,871

 

 

$

52,860

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

 

Financial Information

 

For the Quarters Ended June 30, 2022 and 2021

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

 

 

Second Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

2022

 

 

2021

 

 

Change

 

 

2022

 

 

2021

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

64

 

 

 

64

 

 

 

 

Operating ratio

 

80.4

%

 

 

85.5

%

 

 

 

 

 

 

 

 

 

 

 

 

LTL tonnage (1)

 

1,446

 

 

 

1,406

 

 

 

2.8

 

 

 

22.60

 

 

 

21.97

 

 

 

2.8

 

LTL shipments (1)

 

2,048

 

 

 

2,012

 

 

 

1.8

 

 

 

32.00

 

 

 

31.44

 

 

 

1.8

 

LTL revenue/cwt.

$

25.05

 

 

$

19.84

 

 

 

26.3

 

 

 

 

 

 

 

 

 

 

LTL revenue/cwt., excluding fuel surcharges

$

19.44

 

 

$

16.92

 

 

 

14.9

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment

$

353.75

 

 

$

277.24

 

 

 

27.6

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment, excluding fuel surcharges

$

274.60

 

 

$

236.43

 

 

 

16.1

 

 

 

 

 

 

 

 

 

 

LTL pounds/shipment

 

1,412

 

 

 

1,397

 

 

 

1.1

 

 

 

 

 

 

 

 

 

 

LTL length of haul (2)

 

910

 

 

 

911

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.