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Saia Reports Record Third Quarter Earnings per Share of $1.25

979 Days ago

JOHNS CREEK, Ga., Oct. 30, 2019 (GLOBE NEWSWIRE) -- 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 2019 financial results. Diluted earnings per share in the quarter were $1.25 compared to $1.07 in the third quarter of 2018. 

Third Quarter 2019 Compared to Third Quarter 2018 Results

  • Revenue was $468.9 million, a 10.2% increase
  • Operating income was $45.4 million, a 17.2% increase
  • Operating ratio improved to 90.3 from 90.9
  • LTL shipments per workday rose 7.3%
  • LTL tonnage per workday increased by 3.0%
  • LTL revenue per hundredweight increased 5.3%
  • LTL revenue per shipment rose 1.1% to $235.87

“The record third quarter results at Saia were achieved even as the Company opened three new terminals and relocated another all in the back half of September, as we continue to focus on our long-term growth strategy,” said Saia President and Chief Operating Officer, Fritz Holzgrefe.  “While I was generally pleased with our execution in the third quarter, the challenge created by the new terminal openings and relocations late in the quarter, and continuing negative weight per shipment trends provided a larger than expected headwind to results,” continued Holzgrefe.  “Saia’s LTL yield increased year-over-year for the 37th consecutive quarter and the market remains rational in our view,” Holzgrefe concluded. 

“This year has been by far our most active year in terms of facility openings since our organic expansion began in 2017,” stated Saia Chief Executive Officer, Rick O’Dell.  “We have opened eight new terminals in the Northeast including two in October and we have relocated three others in major markets.  Additionally, in early October we opened a new terminal in Long Beach, California,” continued O’Dell.  “Long Beach is the second busiest container port in the country and this 14th terminal in California positions us well for continued growth.  The Long Beach terminal opening highlights our long-term opportunity to open new terminals in existing markets and get closer to customers, provide better service and ultimately gain market share,” continued O’Dell.  “We plan to relocate two additional terminals before year-end,” concluded O’Dell.

Financial Position and Capital Expenditures

Total debt was $165.3 million at September 30, 2019 and inclusive of the cash on-hand, net debt to total capital was 17.3%.  This compares to total debt of $121.3 million and net debt to total capital of 15.3% at September 30, 2018.

Net capital expenditures in the year-to-date period through September were $250.7 million including equipment acquired with capital leases.  This compares to $182.5 million in net capital expenditures through the first nine months of 2018.  In 2019, we anticipate net capital expenditures of $275-$300 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 800-367-2403 or 334-777-6978 referencing conference ID #9832917.  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 November 27, 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 Johns Creek, GA, Saia LTL Freight operates 168 terminals across 43 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

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
  September 30, 2019   December 31, 2018
Cash and cash equivalents $ 15     $ 2,194  
Accounts receivable, net   218,000       181,612  
Prepaid expenses and other   31,694       29,567  
Total current assets   249,709       213,373  
Cost   1,735,019       1,521,341  
Less: accumulated depreciation   693,895       628,283  
Net property and equipment   1,041,124       893,058  
OTHER ASSETS   27,789       27,312  
Total assets $ 1,422,272     $ 1,133,743  
Accounts payable $ 84,857     $ 78,994  
Wages and employees' benefits   53,068       48,116  
Other current liabilities   68,607       64,118  
Current portion of long-term debt   19,245       18,082  
Current portion of operating lease liability   18,304        
Total current liabilities   244,081       209,310  
Long-term debt, less current portion   146,020       104,777  
Operating lease liability, less current portion   86,552        
Deferred income taxes   108,711       86,893  
Claims, insurance and other   44,537       36,899  
Total other liabilities   385,820       228,569  
Common stock   26       26  
Additional paid-in capital   259,388       254,738  
Deferred compensation trust   (3,824 )     (3,381 )
Retained earnings   536,781       444,481  
Total stockholders' equity   792,371       695,864  
Total liabilities and stockholders' equity $ 1,422,272     $ 1,133,743  

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Nine Months Ended September 30, 2019 and 2018
(Amounts in thousands, except per share data)
  Third Quarter   Nine Months
    2019       2018       2019       2018  
OPERATING REVENUE $ 468,891     $ 425,562     $ 1,343,670     $ 1,247,099  
Salaries, wages and employees' benefits   250,162       224,635       708,203       656,165  
Purchased transportation   35,843       31,216       98,415       95,245  
Fuel, operating expenses and supplies   84,259       81,643       253,130       245,182  
Operating taxes and licenses   13,634       12,366       40,365       37,310  
Claims and insurance   7,850       9,985       30,536       30,086  
Depreciation and amortization   31,333       26,694       87,258       74,965  
Loss from property disposals, net   451       326       607       305  
Total operating expenses   423,532       386,865       1,218,514       1,139,258  
OPERATING INCOME   45,359       38,697       125,156       107,841  
Interest expense   1,868       1,410       5,154       4,090  
Other, net   (20 )     (139 )     (494 )     (384 )
Nonoperating expenses, net   1,848       1,271       4,660       3,706  
INCOME BEFORE INCOME TAXES   43,511       37,426       120,496       104,135  
Income tax expense   10,543       9,231       28,196       24,534  
NET INCOME $ 32,968     $ 28,195     $ 92,300     $ 79,601  
Average common shares outstanding - basic   25,978       25,792       25,936       25,752  
Average common shares outstanding - diluted   26,460       26,354       26,413       26,328  
Basic earnings per share $ 1.27     $ 1.09     $ 3.56     $ 3.09  
Diluted earnings per share $ 1.25     $ 1.07     $ 3.49     $ 3.02  

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2019 and 2018
(Amounts in thousands)
  Nine Months
    2019       2018  
Net cash provided by operating activities $ 207,298     $ 187,110  
Net cash provided by operating activities   207,298       187,110  
Acquisition of property and equipment   (245,203 )     (155,217 )
Proceeds from disposal of property and equipment   678       778  
Net cash used in investing activities   (244,525 )     (154,439 )
Borrowing (repayment) of revolving credit agreement, net   50,005       (28,000 )
Proceeds from stock option exercises   2,927       4,165  
Shares withheld for taxes   (3,471 )     (1,396 )
Other financing activity   (14,413 )     (11,631 )
Net cash provided by (used in) financing activities   35,048       (36,862 )
Equipment financed with finance leases $ 6,165     $ 28,052  
Total current liabilities      

Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended September 30, 2019 and 2018  
              Third Quarter      
  Third Quarter    %   Amount/Workday  
    2019       2018     Change   2019   2018   Change
Workdays             64   63      
Operating ratio   90.3 %     90.9 %                  
LTL tonnage (1)   1,263       1,208     4.6     19.74   19.17   3.0  
LTL shipments (1)   1,941       1,780     9.0     30.33   28.26   7.3  
LTL revenue/cwt. $ 18.12     $ 17.20     5.3                
LTL revenue/shipment $ 235.87     $ 233.38     1.1                
LTL pounds/shipment   1,302       1,357     (4.1 )              
LTL length of haul (2)   842       835     0.8                

(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.

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