Click here to close now.

Welcome!

News Feed Item

Saia Reports Second Quarter Earnings per Share of $0.53

Revenues Rose 12.9% on 6.9% LTL Tonnage Growth

JOHNS CREEK, GA -- (Marketwired) -- 07/30/14 -- 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 2014 results. Despite favorable tonnage trends and improving yield, the operating results were negatively impacted by adverse claims and insurance experience.

Second Quarter 2014 Compared to Second Quarter 2013 Results

  • Revenues were $330 million, an increase of 12.9%
  • LTL tonnage increased 6.9% as LTL shipments were up 5.5% with a 1.4% increase in weight per shipment
  • Operating income decreased to $22.7 million compared to $23.3 million
  • Operating ratio was 93.1 compared to 92.0
  • Diluted earnings per share were $0.53 compared to $0.54
  • Claims and insurance expense was $8.3 million higher than the second quarter last year due primarily to accident severity.

"The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved. LTL yield improved 4.9%, reflective of our customers' recognition of the value proposition Saia provides," said Saia President and Chief Executive Officer, Rick O'Dell.

"The 12.9% second quarter revenue increase was the highest that we have achieved at Saia in seven years. The top line growth driven by last year's investment in sales and marketing resources coupled with effective yield management provided the opportunity to overcome a capacity constrained environment which significantly increased costs for driver recruiting, training and purchased transportation. This revenue momentum combined with our focus on service and operational excellence positions Saia well to capitalize on the unique market dynamics we are currently experiencing to improve customer and shareholder value in the future," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $95.7 million at June 30, 2014 resulting in net debt to total capital of 22.1%. This compares to total debt of $99.0 million and net debt to total capital of 25.5% at the end of last year's second quarter.

Net capital expenditures in the first half of 2014 were $67 million compared to $71 million in the first half of 2013. The Company currently projects net capital expenditures for the full year of approximately $110 million. In July, Saia began taking delivery of some of the 800 additional linehaul trailers that will be put in service this year and provide additional capacity.

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 888-427-9376 or 719-457-2085 referencing conference ID #6869513. 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 August 5, 2014 at 2:00 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 147 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 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, general economic conditions including downturns in the business cycle; the creditworthiness of our customers and their ability to pay for services; competitive initiatives and pricing pressures, including in connection with fuel surcharge; the Company's need for capital and uncertainty of the current credit markets; the possibility of defaults under the Company's debt agreements (including violation of financial covenants); possible issuance of equity which would dilute stock ownership; integration risks; the effect of litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; 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, changes in interpretation of accounting principles and Homeland Security; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; effectiveness of Company-specific performance improvement initiatives; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of healthcare reform legislation 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,    December 31,
                                                     2014          2013
                                                 ------------  ------------
ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                      $      1,788  $        159
  Accounts receivable, net                            148,850       117,937
  Prepaid expenses and other                           43,877        52,157
                                                 ------------  ------------
    Total current assets                              194,515       170,253

PROPERTY AND EQUIPMENT:
  Cost                                                863,193       797,527
  Less: accumulated depreciation                      389,041       365,301
                                                 ------------  ------------
    Net property and equipment                        474,152       432,226

OTHER ASSETS                                           14,024        14,322
                                                 ------------  ------------
    Total assets                                 $    682,691  $    616,801
                                                 ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                               $     62,885  $     50,799
  Wages and employees' benefits                        34,502        35,248
  Other current liabilities                            48,922        47,667
  Current portion of long-term debt                     7,143         7,143
                                                 ------------  ------------
    Total current liabilities                         153,452       140,857

OTHER LIABILITIES:
  Long-term debt, less current portion                 88,597        69,740
  Deferred income taxes                                68,472        69,916
  Claims, insurance and other                          41,932        31,496
                                                 ------------  ------------
    Total other liabilities                           199,001       171,152

STOCKHOLDERS' EQUITY:
  Common stock                                             25            24
  Additional paid-in capital                          216,926       213,648
  Deferred compensation trust                          (2,223)       (2,246)
  Retained earnings                                   115,510        93,366
                                                 ------------  ------------
    Total stockholders' equity                        330,238       304,792
                                                 ------------  ------------
    Total liabilities and stockholders' equity   $    682,691  $    616,801
                                                 ============  ============



                        Saia, Inc. and Subsidiaries
                   Consolidated Statements of Operations
        For the Quarters and Six Months Ended June 30, 2014 and 2013
               (Amounts in thousands, except per share data)
                                (Unaudited)

                                 Second Quarter            Six Months
                             ----------------------  ----------------------
                                2014        2013        2014        2013
                             ----------  ----------  ----------  ----------

OPERATING REVENUE            $  330,399  $  292,557  $  630,129  $  566,352

OPERATING EXPENSES:
  Salaries, wages and
   employees' benefits          160,204     144,309     310,426     281,163
  Purchased transportation       27,926      19,338      49,917      36,109
  Fuel, operating expenses
   and supplies                  81,276      78,154     161,235     157,156
  Operating taxes and
   licenses                       8,993       9,330      17,968      18,909
  Claims and insurance           14,177       5,883      23,695      11,478
  Depreciation and
   amortization                  15,087      12,386      28,928      24,020
  Operating gains, net               (5)       (102)        (12)       (274)
                             ----------  ----------  ----------  ----------
    Total operating expenses    307,658     269,298     592,157     528,561
                             ----------  ----------  ----------  ----------

OPERATING INCOME                 22,741      23,259      37,972      37,791

NONOPERATING EXPENSES:
  Interest expense                1,177       1,618       2,493       3,146
  Other, net                        (35)        (29)        (65)        (95)
                             ----------  ----------  ----------  ----------
    Nonoperating expenses,
     net                          1,142       1,589       2,428       3,051
                             ----------  ----------  ----------  ----------


INCOME BEFORE INCOME TAXES       21,599      21,670      35,544      34,740
Income tax expense                8,031       8,170      13,400      12,085
                             ----------  ----------  ----------  ----------
NET INCOME                   $   13,568  $   13,500  $   22,144  $   22,655
                             ==========  ==========  ==========  ==========

Average common shares
 outstanding - basic             24,484      24,163      24,434      24,073
                             ==========  ==========  ==========  ==========
Average common shares
 outstanding - diluted           25,447      25,218      25,396      25,123
                             ==========  ==========  ==========  ==========

Basic earnings per share     $     0.55  $     0.56  $     0.91  $     0.94
                             ==========  ==========  ==========  ==========

Diluted earnings per share   $     0.53  $     0.54  $     0.87  $     0.90
                             ==========  ==========  ==========  ==========



                        Saia, Inc. and Subsidiaries
              Condensed Consolidated Statements of Cash Flows
              For the Six Months Ended June 30, 2014 and 2013
                           (Amounts in thousands)
                                (Unaudited)
                                                         Six Months
                                                 --------------------------
                                                     2014          2013
                                                 ------------  ------------

OPERATING ACTIVITIES:
Net cash provided by operating activities        $     46,875  $     31,982
                                                 ------------  ------------
    Net cash provided by operating activities          46,875        31,982
                                                 ------------  ------------

INVESTING ACTIVITIES:
  Acquisition of property and equipment               (67,077)      (72,092)
  Proceeds from disposal of property and
   equipment                                              421         1,273
                                                 ------------  ------------
    Net cash used in investing activities             (66,656)      (70,819)
                                                 ------------  ------------

FINANCING ACTIVITIES:
  Repayment of long-term debt                          (3,571)      (11,071)
  Borrowings of revolving credit agreement, net        22,422        49,386
  Proceeds from stock option exercises                  2,559         3,659
  Other financing activities                                -          (586)
                                                 ------------  ------------
    Net cash provided by financing activities          21,410        41,388
                                                 ------------  ------------

NET INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS                                            1,629         2,551
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD            159           321
                                                 ------------  ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD         $      1,788  $      2,872
                                                 ============  ============



                         Saia, Inc. and Subsidiaries
                            Financial Information
                For the Quarters Ended June 30, 2014 and 2013
                                 (Unaudited)

                                                       Second Quarter
                                                      ---------------
                             Second Quarter      %     Amount/Workday    %
                            ----------------          ---------------
                              2014     2013   Change    2014    2013  Change
                            -------  -------  ------  ------- ------- ------

Workdays                                                   64      64

Operating Ratio (1)            93.1%    92.0%


Tonnage (2)          LTL      1,021      955     6.9    15.96   14.92    6.9
                     TL         228      178    28.1     3.56    2.78   28.1

Shipments (2)        LTL      1,732    1,642     5.5    27.07   25.65    5.5
                     TL          33       26    25.9     0.51    0.40   25.9

Revenue/cwt. (3)     LTL    $ 14.85  $ 14.16     4.9
                     TL     $  5.70  $  5.84    (2.4)

Revenue/shipment (3) LTL    $175.09  $164.68     6.3
                     TL     $798.13  $804.16    (0.7)

Pounds/shipment      LTL      1,179    1,163     1.4
                     TL      14,000   13,763     1.7

Length of Haul                  759      743     2.2

(1)      The operating ratio is the calculation of operating expenses
         divided by operating revenue.

(2)      In thousands

(3)      Revenue does not include the adjustment required for financial
         statement purposes in accordance with the Company's revenue
         recognition policy and other revenue.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
IT data is typically silo'd by the various tools in place. Unifying all the log, metric and event data in one analytics platform stops finger pointing and provides the end-to-end correlation. Logs, metrics and custom event data can be joined to tell the holistic story of your software and operations. For example, users can correlate code deploys to system performance to application error codes. In his session at DevOps Summit, Michael Demmer, VP of Engineering at Jut, will discuss how this can...
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
"AgilData is the next generation of dbShards. It just adds a whole bunch more functionality to improve the developer experience," noted Dan Lynn, CEO of AgilData, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are ra...
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company helps mid-market firms built on IBM hardware platforms to deploy new levels of reliable and cost-effective computing and hig...
"We help to transform an organization and their operations and make them more efficient, more agile, and more nimble to move into the cloud or to move between cloud providers and create an agnostic tool set," noted Jeremy Steinert, DevOps Services Practice Lead at WSM International, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgenthal...
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction. ...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...