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Saia Reports Third Quarter Earnings per Share of $0.56

Thursday, November 1, 2012 7:30 AM


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JOHNS CREEK, GA -- (Marketwire) -- 11/01/12 -- Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering less-than-truckload, non-asset truckload, expedited and logistics services, today reported improved third quarter 2012 results on higher revenue, favorable pricing actions and operational efficiencies.

Third Quarter 2012 Compared to Third Quarter 2011 Results

  • Revenues were $278 million, an increase of 3.6 percent
  • Operating income increased 71 percent to $16.4 million compared to $9.6 million
  • Earnings per share were $0.56 vs. $0.30
  • Operating ratio was 94.1 vs. 96.4
  • Revenue per workday increased by 5.3 percent with one less workday in the third quarter of 2012
  • LTL tonnage per workday decreased by 1.6 percent
  • LTL yield was up 6.6 percent due to effective yield management and fuel surcharge revenue

"Saia's 230 basis point improvement in our operating ratio for the quarter demonstrates continued effective execution across a number of key initiatives. Saia's best-in-class service quality, strong yield results and focus on operational excellence were the primary drivers to our margin improvement. While recovery in the transportation market appears to be moderating, we continue to advance our value proposition through investments in quality and by providing consistent, superior customer service. Simultaneously, we remain committed to receiving fair compensation from all the shippers who value Saia's service quality," said Rick O'Dell, president and chief executive officer.

"Saia's Quality Matters initiative resulted in improvements in every major quality metric. Our dedicated associates again delivered 98 percent on-time service and achieved a 36 percent reduction in cargo claims. Implementation of our industrial engineering projects and improved operating efficiencies have reduced our reliance on purchased transportation, increased fuel efficiency and enhanced customer service. The quarter did include higher costs from wage increases and depreciation due to investments in employees, equipment and technology to meet increasing customer and regulatory requirements," continued O'Dell.

On July 2nd, Saia announced the acquisition of Robart Transportation, Inc. and its subsidiary (the Companies). The Companies, now rebranded as Saia TL Plus, Inc. and Saia Logistics Services, LLC., have provided customers with quality truckload, expedited and full service logistics solutions since 1981.

"The acquisition supports our strategic goal of diversifying our service portfolio providing further growth opportunities over time," said O'Dell. "Expanded offerings combined with impressive execution on quality, yield management and optimization initiatives provide Saia with a clear course for long term profitable growth."

Year to Date 2012 Compared to Year to Date 2011 Results

  • Revenues were $834 million compared to $777 million in the prior year period, an increase of 7.3 percent
  • Operating income was $48.7 million compared to $22.0 million in the prior year period
  • Net income was $26.6 million compared to $8.9 million in the prior year period
  • Earnings per share were $1.61 compared to $0.55 in the prior year period
  • Operating ratio was 94.2 vs. 97.2 in the prior year period

Financial Position and Capital Expenditures
Total debt was $81.2 million at September 30, 2012. Net of the Company's $0.8 million cash balance at quarter-end, net debt to total capital was 24.5 percent. This compares to total debt of $81.4 million and net debt to total capital of 26.5 percent in the prior year quarter.

Net capital expenditures for the first nine months of 2012 were $79.3 million. This compares to $51.8 million in the prior year period. The Company is planning net capital expenditures in 2012 of approximately $83.0 million. This expenditure level reflects the purchase of replacement tractors and trailers and the Company's continued investment in technology.

Conference Call
The Company will hold a conference call to discuss these results today at 11:00 a.m. Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-877-419-6603 or dial 719-325-4790 for international calls and use conference ID #8643130. Callers should dial in five minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through November 7, 2012 at 2:00 p.m. Eastern Time. The replay is available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

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.saia.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; 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)
                                               September 30,   December 31,
                                                    2012           2011
                                               -------------  -------------
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                    $         804  $       1,317
  Accounts receivable, net                           124,822        107,436
  Prepaid expenses and other                          31,115         34,063
                                               -------------  -------------
    Total current assets                             156,741        142,816
PROPERTY AND EQUIPMENT:
  Cost                                               722,128        669,345
  Less: accumulated depreciation                     353,328        344,890
                                               -------------  -------------
    Net property and equipment                       368,800        324,455
OTHER ASSETS                                          16,721          7,615
                                               -------------  -------------
    Total assets                               $     542,262  $     474,886
                                               =============  =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                             $      52,442  $      39,783
  Wages and employees' benefits                       33,838         21,185
  Other current liabilities                           41,201         41,237
  Current portion of long-term debt                   22,143         22,143
                                               -------------  -------------
    Total current liabilities                        149,624        124,348
OTHER LIABILITIES:
  Long-term debt, less current portion                59,034         50,714
  Deferred income taxes                               52,822         51,289
  Claims, insurance and other                         32,503         29,234
                                               -------------  -------------
    Total other liabilities                          144,359        131,237
STOCKHOLDERS' EQUITY:
  Common stock                                            16             16
  Additional paid-in capital                         206,159        203,793
  Deferred compensation trust                         (2,229)        (2,199)
  Retained earnings                                   44,333         17,691
                                               -------------  -------------
    Total stockholders' equity                       248,279        219,301
                                               -------------  -------------
    Total liabilities and stockholders' equity $     542,262  $     474,886
                                               =============  =============

                        Saia, Inc. and Subsidiaries
                   Consolidated Statements of Operations
     For the Quarters and Nine Months Ended September 30, 2012 and 2011
               (Amounts in thousands, except per share data)
                                (Unaudited)
                                      Third Quarter         Nine Months
                                  -------------------- --------------------
                                     2012       2011      2012       2011
                                  ---------  --------- ---------  ---------
OPERATING REVENUE                 $ 278,024  $ 268,285 $ 834,252  $ 777,204
OPERATING EXPENSES:
  Salaries, wages and employees'
   benefits                         138,532    133,460   410,471    386,869
  Purchased transportation           18,810     23,345    59,171     69,064
  Fuel, operating expenses and
   supplies                          76,461     75,510   233,212    221,637
  Operating taxes and licenses        9,445      9,830    29,061     28,787
  Claims and insurance                6,133      6,766    18,409     21,854
  Depreciation and amortization      12,315      9,723    35,681     27,099
  Operating (gains) loss, net           (88)        31      (409)       (72)
                                  ---------  --------- ---------  ---------
    Total operating expenses        261,608    258,665   785,596    755,238
                                  ---------  --------- ---------  ---------
OPERATING INCOME                     16,416      9,620    48,656     21,966
NONOPERATING EXPENSES:
  Interest expense                    1,941      2,194     6,100      8,147
  Other, net                            (44)       122      (142)        12
                                  ---------  --------- ---------  ---------
    Nonoperating expenses, net        1,897      2,316     5,958      8,159
                                  ---------  --------- ---------  ---------

INCOME BEFORE INCOME TAXES           14,519      7,304    42,698     13,807
Income tax expense                    5,263      2,475    16,056      4,907
                                  ---------  --------- ---------  ---------
NET INCOME                        $   9,256  $   4,829 $  26,642  $   8,900
                                  =========  ========= =========  =========
Average common shares outstanding
 - basic                             15,900     15,800    15,873     15,786
                                  =========  ========= =========  =========
Average common shares outstanding
 - diluted                           16,575     16,160    16,529     16,145
                                  =========  ========= =========  =========
Basic earnings per share          $    0.58  $    0.31 $    1.68  $    0.56
                                  =========  ========= =========  =========
Diluted earnings per share        $    0.56  $    0.30 $    1.61  $    0.55
                                  =========  ========= =========  =========

                        Saia, Inc. and Subsidiaries
              Condensed Consolidated Statements of Cash Flows
           For the Nine Months Ended September 30, 2012 and 2011
                           (Amounts in thousands)
                                (Unaudited)
                                                          Nine Months
                                                   ------------------------
                                                       2012         2011
                                                   -----------  -----------
OPERATING ACTIVITIES:
Net cash provided by operating activities          $    77,425  $    34,653
                                                   -----------  -----------
    Net cash provided by operating activities           77,425       34,653
                                                   -----------  -----------
INVESTING ACTIVITIES:
  Acquisition of property and equipment                (81,888)     (52,309)
  Proceeds from disposal of property and equipment       2,609          555
  Acquisition of subsidiary, net of cash                (7,616)           -
                                                   -----------  -----------
    Net cash used in investing activities              (86,895)     (51,754)
                                                   -----------  -----------
FINANCING ACTIVITIES:
  Repayment of long-term debt                          (11,071)      (8,571)
  Borrowings of revolving credit agreement, net         19,391            -
  Proceeds from stock option exercises                     637          149
                                                   -----------  -----------
    Net cash provided by (used in) financing
     activities                                          8,957       (8,422)
                                                   -----------  -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS                 (513)     (25,523)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD           1,317       29,045
                                                   -----------  -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD           $       804  $     3,522
                                                   ===========  ===========

                        Saia, Inc. and Subsidiaries
                           Financial Information
             For the Quarters Ended September 30, 2012 and 2011
                                (Unaudited)
                                                     Third Quarter
                                                    --------------
                          Third Quarter             Amount/Workday
                        ----------------            --------------
                          2012     2011   % Change   2012    2011  % Change
                        -------  -------  --------  ------  ------ --------
Workdays                                                63      64
Operating ratio            94.1%    96.4%

Tonnage (1)         LTL     918      947      (3.1)  14.57   14.80     (1.6)
                    TL      176      180      (2.2)   2.79    2.81     (0.6)
Shipments (1)       LTL   1,574    1,670      (5.8)  24.98   26.09     (4.3)
                    TL       25       26      (1.5)   0.40    0.40      0.1
Revenue/cwt. (2)    LTL $ 14.00  $ 13.14       6.6
                    TL  $  5.71  $  5.42       5.3
Revenue/shipment
 (2)                LTL $163.32  $149.04       9.6
                    TL  $793.48  $758.55       4.6
Pounds/shipment     LTL   1,167    1,135       2.8
                    TL   13,896   13,992      (0.7)
Length of Haul              727      732      (0.7)
(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.

CONTACT:
Saia, Inc.
Renee McKenzie
Treasurer
RMcKenzie@Saia.com
678.542.3910

(Source: Market Wire )
(Source: Quotemedia)

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