Saia, Inc. Reports First Quarter 2013 Earnings

Operating Income Increased 32 Percent to $14.5 Million

Marketwired

JOHNS CREEK, GA--(Marketwired - Apr 26, 2013) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported improved first quarter 2013 results driven by effective yield management and operational efficiencies.

First Quarter 2013 Compared to First Quarter 2012 Results

  • Revenues were $274 million, an increase of 1.9 percent
  • Revenue per workday increased by 3.5 percent with one less workday in the first quarter of 2013
  • Operating income increased by 32 percent to $14.5 million from $11.0 million
  • Earnings per share were $0.55, including $0.06 in tax credits enacted in 2013 retroactive to 2012, compared to $0.34
  • Operating ratio was 94.7 compared to 95.9
  • LTL tonnage per workday decreased 2.1 percent
  • LTL yield was up 5.4 percent due to yield management and higher fuel surcharges

"Saia's superior service quality, operational excellence and revenue management initiatives facilitated another quarter of improved margins. We achieved a 120 basis point improvement in our operating ratio by marketing to customers who value quality service and by achieving targeted operational efficiencies. I am pleased that the company's execution in key areas continues to progress margins and earnings per share," said Rick O'Dell, Saia President and Chief Executive Officer.

"Saia's service was consistently 98 percent on-time during the quarter. We remain committed to advancing our value proposition through major investments in equipment and technology that are also driving operational efficiencies. I was particularly pleased that we achieved projected efficiencies in our linehaul network performance in spite of relatively soft tonnage. I believe that Saia's strong overall service, focused pricing discipline and operational strength provide a solid foundation for long-term profitable growth and increased shareholder and customer value," O'Dell said.

Financial Position and Capital Expenditures
Total debt was $58.8 million at March 31, 2013 resulting in net debt to total capital of 18.1 percent. This compares to total debt of $86.5 million and net debt to total capital of 27.7 percent at March 31, 2012.

Net capital expenditures for the first three months of 2013 were $6 million. This compares to $39 million of net capital expenditures in the same period in 2012. The Company is planning net capital expenditures in 2013 of approximately $90 million. This expenditure level reflects replacement tractors and trailers to reduce the average age of our fleet and the Company's continued investment in technology.

Conference Call
Management will hold a conference call to discuss first-quarter results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 1-888-389-5988 or 719-457-2664 referencing conference ID #4697039. Callers should dial in five 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 available starting two hours after the completion of the call through May 2, 2013 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. Saia LTL Freight operates 147 terminals in 34 states. With headquarters in Georgia, Saia employs 8,000 people. 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; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; 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 recently enacted 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)  
             
    March 31,     December 31,  
    2013     2012  
ASSETS      
                 
CURRENT ASSETS:                
  Cash and cash equivalents   $ 437     $ 321  
  Accounts receivable, net     126,597       106,814  
  Prepaid expenses and other     32,585       37,028  
    Total current assets     159,619       144,163  
                 
PROPERTY AND EQUIPMENT:                
  Cost     722,265       718,527  
  Less: accumulated depreciation     361,364       356,823  
    Net property and equipment     360,901       361,704  
                 
OTHER ASSETS     14,534       13,821  
    Total assets   $ 535,054     $ 519,688  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Accounts payable   $ 53,476     $ 43,706  
  Wages and employees' benefits     26,848       30,842  
  Other current liabilities     44,721       44,609  
  Current portion of long-term debt     22,143       22,143  
    Total current liabilities     147,188       141,300  
                 
OTHER LIABILITIES:                
  Long-term debt, less current portion     36,613       38,562  
  Deferred income taxes     55,611       55,611  
  Claims, insurance and other     31,639       29,696  
    Total other liabilities     123,863       123,869  
                 
STOCKHOLDERS' EQUITY:                
  Common stock     16       16  
  Additional paid-in capital     207,258       206,977  
  Deferred compensation trust     (2,165 )     (2,213 )
  Retained earnings     58,894       49,739  
    Total stockholders' equity     264,003       254,519  
    Total liabilities and stockholders' equity   $ 535,054     $ 519,688  
                 
                 
   
Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters Ended March 31, 2013 and 2012  
(Amounts in thousands, except per share data)  
(Unaudited)  
       
    First Quarter  
    2013     2012  
                 
OPERATING REVENUE   $ 273,795     $ 268,690  
                 
OPERATING EXPENSES:                
  Salaries, wages and employees' benefits     136,854       131,700  
  Purchased transportation     16,771       19,309  
  Fuel, operating expenses and supplies     79,002       79,397  
  Operating taxes and licenses     9,579       9,866  
  Claims and insurance     5,595       6,174  
  Depreciation and amortization     11,634       11,415  
  Operating gains, net     (172 )     (219 )
    Total operating expenses     259,263       257,642  
                 
OPERATING INCOME     14,532       11,048  
                 
NONOPERATING EXPENSES:                
  Interest expense     1,528       1,964  
  Other, net     (66 )     (95 )
    Nonoperating expenses, net     1,462       1,869  
                 
                 
INCOME BEFORE INCOME TAXES     13,070       9,179  
Income tax expense     3,915       3,644  
NET INCOME   $ 9,155     $ 5,535  
                 
Average common shares outstanding - basic     15,990       15,833  
Average common shares outstanding - diluted     16,632       16,358  
                 
Basic earnings per share   $ 0.57     $ 0.35  
                 
Diluted earnings per share   $ 0.55     $ 0.34  
                 
                 
   
Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the Quarters Ended March 31, 2013 and 2012  
(Amounts in thousands)  
(Unaudited)  
    Quarters  
    2013     2012  
                 
OPERATING ACTIVITIES:                
Net cash provided by operating activities   $ 7,018     $ 24,049  
  Net cash provided by operating activities     7,018       24,049  
                 
INVESTING ACTIVITIES:                
Acquisition of property and equipment     (6,725 )     (40,595 )
Proceeds from disposal of property and equipment     710       1,358  
  Net cash used in investing activities     (6,015 )     (39,237 )
                 
FINANCING ACTIVITIES:                
Borrowings (payment) of revolving credit agreement, net     (1,945 )     13,595  
Proceeds from stock option exercises     1,058       336  
  Net cash provided by (used in) financing activities     (887 )     13,931  
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     116       (1,257 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD     321       1,317  
CASH AND CASH EQUIVALENTS, END OF PERIOD   $ 437     $ 60  
                 
                 
   
Saia, Inc. and Subsidiaries  
Financial Information  
For the Quarters Ended March 31, 2013 and 2012  
(Unaudited)  
                                     
                  First Quarter      
        First Quarter     %     Amount/Workday   %  
        2013     2012     Change     2013   2012   Change  
                                         
Workdays                             63   64      
                                         
Operating Ratio (1)         94.7 %     95.9 %                    
                                         
                                         
Tonnage (2)   LTL     896       929     (3.6 )   14.22   14.52   (2.1 )
    TL     165       178     (7.5 )   2.62   2.79   (6.0 )
                                         
Shipments (2)   LTL     1,520       1,599     (5.0 )   24.12   24.99   (3.5 )
    TL     24       25     (5.9 )   0.38   0.40   (4.4 )
                                         
Revenue/cwt. (3)   LTL   $ 14.18     $ 13.45     5.4                
    TL   $ 5.90     $ 5.60     5.5                
                                         
Revenue/shipment (3)   LTL   $ 167.25     $ 156.39     6.9                
    TL   $ 814.57     $ 785.98     3.6                
                                         
Pounds/shipment   LTL     1,179       1,162     1.4                
    TL     13,804       14,047     (1.7 )              
                                         
Length of Haul         734       728     0.8                
                                         
     
(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.
     
     
Contact:
CONTACT:
Saia, Inc.
Renee McKenzie
Treasurer
RMcKenzie@Saia.com
678.542.3910
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