Saia Reports Second Quarter Earnings per Share of $0.52
Marketwired
JOHNS CREEK, GA--(Marketwired - Jul 29, 2016) - 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 2016 financial results.
Second Quarter 2016 Compared to Second Quarter 2015 Results
Revenues were $312 million, a decline of 3.6%
LTL shipments per workday fell by 2.6% and LTL tonnage per workday declined 4.3%
LTL yield increased 2%, in spite of lower fuel surcharge
Operating income declined 30.6% from last year's record second quarter
Net income was $13.3 million compared to $19.2 million
Diluted earnings per share were $0.52 compared to $0.75
Operating ratio of 93.0 compared to 90.3
"Despite the challenging freight environment, we continued to deliver a high level of service and quality to our customers. We achieved 98% on-time service in the quarter and a cargo claims ratio of 0.77%. The perceived value in those measures, by our customers, enabled us to improve our yield in the quarter. Core operations continued to reach productivity and cost savings goals, but were negatively impacted by accident expense volatility and health care self-insurance during the quarter" said Saia President and Chief Executive Officer, Rick O'Dell.
"Our continued emphasis on service and quality resulted in contractual rate renewals remaining positive, up 5.4% in the quarter," O'Dell added.
Financial Position and Capital Expenditures Total debt was $139.4 million at June 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 23.4% compared to 20.7% at June 30, 2015. Net capital expenditures, including equipment financed with capital leases, in the first half of the year were $136.2 million compared to $73.3 million spent in the first half of 2015.
The Company currently plans net capital expenditures in 2016 of approximately $140 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 888-438-5491 or 719-325-2354 referencing conference ID #9438415. 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 September 23, 2016 at 1:00 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 148 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.
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, assumptions and uncertainties 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) 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.
Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
June 30, 2016
December 31, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
360
$
124
Accounts receivable, net
142,331
124,222
Prepaid expenses and other
29,450
34,643
Total current assets
172,141
158,989
PROPERTY AND EQUIPMENT:
Cost
1,107,001
995,514
Less: accumulated depreciation
481,088
456,335
Net property and equipment
625,913
539,179
OTHER ASSETS
30,853
31,025
Total assets
$
828,907
$
729,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
49,679
$
54,754
Wages and employees' benefits
33,619
27,834
Other current liabilities
45,014
46,360
Current portion of long-term debt
16,627
12,432
Total current liabilities
144,939
141,380
OTHER LIABILITIES:
Long-term debt, less current portion
122,747
56,540
Deferred income taxes
71,673
67,417
Claims, insurance and other
35,352
35,967
Total other liabilities
229,772
159,924
STOCKHOLDERS' EQUITY:
Common stock
25
25
Additional paid-in capital
233,200
230,593
Deferred compensation trust
(3,252
)
(3,102
)
Retained earnings
224,223
200,373
Total stockholders' equity
454,196
427,889
Total liabilities and stockholders' equity
$
828,907
$
729,193
Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2016 and 2015
(Amounts in thousands, except per share data)
(Unaudited)
Second Quarter
Six Months
2016
2015
2016
2015
OPERATING REVENUE
$
311,905
$
323,480
$
601,816
$
616,502
OPERATING EXPENSES:
Salaries, wages and employees' benefits
175,924
170,465
346,190
328,194
Purchased transportation
14,315
20,184
26,782
37,898
Fuel, operating expenses and supplies
59,026
69,165
113,066
136,310
Operating taxes and licenses
10,126
9,411
20,166
18,507
Claims and insurance
10,880
6,361
18,961
11,198
Depreciation and amortization
19,740
16,561
36,983
31,760
Operating loss, net
173
52
363
121
Total operating expenses
290,184
292,199
562,511
563,988
OPERATING INCOME
21,721
31,281
39,305
52,514
NONOPERATING EXPENSES (INCOME):
Interest expense
1,264
1,074
2,227
2,093
Other, net
(36
)
(14
)
(43
)
(65
)
Nonoperating expenses, net
1,228
1,060
2,184
2,028
INCOME BEFORE INCOME TAXES
20,493
30,221
37,121
50,486
Income tax expense
7,218
10,974
13,271
18,634
NET INCOME
$
13,275
$
19,247
$
23,850
$
31,852
Average common shares outstanding - basic
25,030
24,936
25,014
24,870
Average common shares outstanding - diluted
25,583
25,561
25,560
25,526
Basic earnings per share
$
0.53
$
0.77
$
0.95
$
1.28
Diluted earnings per share
$
0.52
$
0.75
$
0.93
$
1.25
Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2016 and 2015
(Amounts in thousands)
(Unaudited)
Six Months
2016
2015
OPERATING ACTIVITIES:
Net cash provided by operating activities
$
65,814
$
67,045
Net cash provided by operating activities
65,814
67,045
INVESTING ACTIVITIES:
Acquisition of business, net of cash received
-
(22,238
)
Acquisition of property and equipment
(102,140
)
(56,466
)
Proceeds from disposal of property and equipment
595
517
Net cash used in investing activities
(101,545
)
(78,187
)
FINANCING ACTIVITIES:
Repayment of long-term debt
(3,572
)
(3,571
)
Borrowing of revolving credit agreement, net
42,756
13,000
Proceeds from stock option exercises
248
2,629
Other financing activity
(3,465
)
(1,620
)
Net cash provided by financing activities
35,967
10,438
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
236
(704
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
124
4,367
CASH AND CASH EQUIVALENTS, END OF PERIOD
$
360
$
3,663
NON-CASH ITEMS:
Acquisition of property and equipment financed with capital leases
$
34,683
$
17,336
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2016 and 2015
(Unaudited)
Second Quarter
Second Quarter
%
Amount/Workday
%
2016
2015
Change
2016
2015
Change
Workdays
64
64
Operating ratio
93.0
%
90.3
%
Tonnage (1)
LTL
919
960
(4.3
)
14.36
15.00
(4.3
)
TL
182
200
(8.8
)
2.85
3.12
(8.8
)
Shipments (1)
LTL
1,639
1,683
(2.6
)
25.60
26.29
(2.6
)
TL
26
29
(9.3
)
0.40
0.45
(9.3
)
Revenue/cwt. (2)
LTL
$
15.73
$
15.42
2.0
TL
$
5.50
$
5.93
(7.2
)
Revenue/shipment (2)
LTL
$
176.45
$
176.02
0.2
TL
$
775.05
$
830.27
(6.7
)
Pounds/shipment
LTL
1,121
1,141
(1.7
)
TL
14,090
14,012
0.6
Length of Haul
786
778
1.0
(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.
