EX-99.1 2 saia-ex991_6.htm EX-99.1 saia-ex991_6.htm

Exhibit 99.1

 

Saia Reports First Quarter Results

 

JOHNS CREEK, GA – April 29, 2020 – Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported first quarter 2020 financial results.  Diluted earnings per share in the quarter were $1.06 compared to $0.85 in the first quarter of 2019.

 

Highlights from the first quarter operating results were as follows:

 

First Quarter 2020 Compared to First Quarter 2019 Results

 

 

Revenue was $446.4 million, an 8.7% increase

 

Operating income was $38.8 million, a 35.4% increase

 

Operating ratio of 91.3 compared to 93.0

 

LTL shipments per workday rose 2.3%

 

LTL tonnage per workday increased by 4.0%

 

LTL revenue per hundredweight increased 3.1%

 

LTL revenue per shipment rose 4.9% to $241.61

 

 

“First quarter results were marked by shipment volatility over the first couple of months and then after a strong start in March, we experienced a quick and meaningful downturn in business volumes across our network, as a result of the COVID-19 pandemic.  We were able to quickly make some cost adjustments, enabling us to produce improved financial results. We achieved a record low first quarter operating ratio which we believe validates our ability to execute on the growth strategy initiated several years ago”, said Saia President and Chief Executive Officer, Fritz Holzgrefe.

 

“Our operating ratio improved 170 basis points year-over-year as we saw improved productivity across our operations and as a result of our continued focus on pricing and mix management.  Our shipments were up 2.3% from the prior year and combined with a 3.4% increase in yield, we increased our revenue per shipment by over 5%.  The first quarter marked our 39th consecutive quarter of year over year yield improvement”, Holzgrefe continued.  

 

“The COVID-19 pandemic has created unprecedented disruption to our business and to that of our customers.  I am proud of the way our entire team has responded and that we have been able to do our part to provide essential goods all across the country. Our priority as a company is 100% focused on the


Saia, Inc. First Quarter 2020 Results

Page 2

 

health and safety of our employees, customers, vendors and all those in the communities we serve, while still honoring our commitment to deliver freight and meet our customers needs,”  concluded Holzgrefe.  

 

Saia Vice President and Chief Financial Officer, Douglas Col stated, “We have executed our growth strategy over the last several years while maintaining considerable financial flexibility and a strong balance sheet and liquidity position.  We currently have $47 million in cash on hand and access to more than $300 million through our revolving credit facility (including a $100 million accordion facility, subject to certain conditions and lender commitments) and other sources of borrowing in place.  We have prioritized our 2020 investment plan to match our current outlook. We plan to selectively forego some previously planned investments until such time that business conditions improve while remaining open to opportunistic investments should they become available”.

 

Financial Position and Capital Expenditures

 

Total debt was $235.8 million at March 31, 2020 and inclusive of the cash on-hand, net debt to total capital was 18.3%.  This compares to total debt of $148.9 million and net debt to total capital of 17.2% at March 31, 2019.

 

Net capital expenditures in the first quarter of 2020 were $102.7 million.  This compares to $56.5 million in net capital expenditures during the first quarter of 2019.  In 2020, we anticipate net capital expenditures will be less than the $250 million previously planned.

 

 

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 #5366709.  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.saiacorp.com.  A replay of the call will be offered two hours after the completion of the call through May 27, 2020 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 169 terminals across 44 states.  For more information on Saia, Inc. visit the Investor Relations section at www.saia.com.

 


Saia, Inc. First Quarter 2020 Results

Page 3

 

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) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (5) failure to achieve acquisition synergies; (6) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses; (7) economic declines in the geographic regions or industries in which our customers operate; (8) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (9) loss of significant customers; (10) the Company’s need for capital and uncertainty of the credit markets; (11) the possibility of defaults under the Company’s debt agreements (including violation of financial covenants); (12) possible issuance of equity which would dilute stock ownership; (13) integration risks; (14) the effect of litigation including class action lawsuits; (15) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment, technology and other assets; (16) 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; (17) changes in interpretation of accounting principles; (18) dependence on key employees; (19) inclement weather; (20) labor relations, including the adverse impact should a portion of the Company’s workforce become unionized; (21) terrorism risks; (22) self-insurance claims and other expense volatility; (23) risks arising from international business operations and relationships; (24) recent increases in the severity of auto liability claims against trucking companies and sharply higher costs of settlements and verdicts; (25) cost and availability of insurance coverage including the possibility the Company may be required to pay additional premiums, may be required to assume additional liability under its auto policy or be unable to obtain coverage; (26) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (27) social media risks; (28) disruption in or failure of the Company’s technology or equipment including services essential to operations of the Company and/or cyber security risk; (29) failure to successfully execute the strategy to expand the Company’s service geography into the Northeastern United States; and (30) 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.

Investor Relations

investors@saia.com

770.232.4088

 


 


 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheets

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

December 31, 2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

46,909

 

 

$

248

 

Accounts receivable, net

 

 

210,894

 

 

 

196,119

 

Prepaid expenses and other

 

 

48,105

 

 

 

36,012

 

Total current assets

 

 

305,908

 

 

 

232,379

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT:

 

 

 

 

 

 

 

 

Cost

 

 

1,834,768

 

 

 

1,739,222

 

Less: accumulated depreciation

 

 

712,882

 

 

 

686,623

 

Net property and equipment

 

 

1,121,886

 

 

 

1,052,599

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

 

122,652

 

 

 

103,890

 

OTHER ASSETS

 

 

26,813

 

 

 

26,825

 

Total assets

 

$

1,577,259

 

 

$

1,415,693

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Accounts payable

 

$

91,395

 

 

$

83,621

 

Wages and employees' benefits

 

 

46,678

 

 

 

49,668

 

Other current liabilities

 

 

72,720

 

 

 

69,532

 

Current portion of long-term debt

 

 

19,565

 

 

 

19,405

 

Current portion of operating lease liability

 

 

18,689

 

 

 

19,020

 

Total current liabilities

 

 

249,047

 

 

 

241,246

 

 

 

 

 

 

 

 

 

 

OTHER LIABILITIES:

 

 

 

 

 

 

 

 

Long-term debt, less current portion

 

 

216,202

 

 

 

117,025

 

Operating lease liability, less current portion

 

 

105,282

 

 

 

86,239

 

Deferred income taxes

 

 

118,624

 

 

 

111,555

 

Claims, insurance and other

 

 

44,717

 

 

 

44,402

 

Total other liabilities

 

 

484,825

 

 

 

359,221

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

26

 

 

 

26

 

Additional paid-in capital

 

 

262,008

 

 

 

260,871

 

Deferred compensation trust

 

 

(4,958

)

 

 

(3,871

)

Retained earnings

 

 

586,311

 

 

 

558,200

 

Total stockholders' equity

 

 

843,387

 

 

 

815,226

 

Total liabilities and stockholders' equity

 

$

1,577,259

 

 

$

1,415,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

 

Consolidated Statements of Operations

 

For the Quarters Ended March 31, 2020 and 2019

 

(Amounts in thousands, except per share data)

 

(Unaudited)

 

 

 

 

 

 

 

First Quarter

 

 

 

2020

 

 

2019

 

OPERATING REVENUE

 

$

446,396

 

 

$

410,584

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

238,645

 

 

 

220,352

 

Purchased transportation

 

 

30,059

 

 

 

28,418

 

Fuel, operating expenses and supplies

 

 

82,899

 

 

 

83,543

 

Operating taxes and licenses

 

 

14,396

 

 

 

13,202

 

Claims and insurance

 

 

10,421

 

 

 

9,530

 

Depreciation and amortization

 

 

32,590

 

 

 

26,782

 

Loss (gain) from property disposals, net

 

 

(1,390

)

 

 

126

 

Total operating expenses

 

 

407,620

 

 

 

381,953

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

38,776

 

 

 

28,631

 

 

 

 

 

 

 

 

 

 

NONOPERATING EXPENSES (INCOME):

 

 

 

 

 

 

 

 

Interest expense

 

 

1,402

 

 

 

1,383

 

Other, net

 

 

547

 

 

 

(334

)

Nonoperating expenses, net

 

 

1,949

 

 

 

1,049

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

36,827

 

 

 

27,582

 

Income tax expense

 

 

8,716

 

 

 

5,323

 

NET INCOME

 

$

28,111

 

 

$

22,259

 

 

 

 

 

 

 

 

 

 

Average common shares outstanding - basic

 

 

26,070

 

 

 

25,873

 

Average common shares outstanding - diluted

 

 

26,492

 

 

 

26,322

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

1.08

 

 

$

0.86

 

Diluted earnings per share

 

$

1.06

 

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

 

Condensed Consolidated Statements of Cash Flows

 

For the three months ended March 31, 2020 and 2019

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

First Quarter

 

 

 

2020

 

 

2019

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

51,267

 

 

$

30,400

 

Net cash provided by operating activities

 

 

51,267

 

 

 

30,400

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(107,591

)

 

 

(56,741

)

Proceeds from disposal of property and equipment

 

 

4,915

 

 

 

275

 

Net cash used in investing activities

 

 

(102,676

)

 

 

(56,466

)

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Borrowing of revolving credit agreement, net

 

 

104,140

 

 

 

30,608

 

Proceeds from stock option exercises

 

 

2,137

 

 

 

1,798

 

Shares withheld for taxes

 

 

(3,404

)

 

 

(3,268

)

Other financing activity

 

 

(4,803

)

 

 

(5,235

)

Net cash provided by financing activities

 

 

98,070

 

 

 

23,903

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

46,661

 

 

 

(2,163

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

248

 

 

 

2,194

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

46,909

 

 

$

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Saia, Inc. and Subsidiaries

 

Financial  Information

 

For the Quarters Ended March 31, 2020 and 2019

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

 

 

 

 

 

 

First Quarter

 

 

%

 

 

Amount/Workday

 

 

%

 

 

 

2020

 

 

2019

 

 

Change

 

 

2020

 

 

2019

 

 

Change

 

Workdays

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

63

 

 

 

 

 

Operating ratio

 

91.3

%

 

 

93.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL tonnage (1)

 

1,203

 

 

 

1,139

 

 

 

5.7

 

 

 

18.80

 

 

 

18.07

 

 

 

4.0

 

LTL shipments (1)

 

1,809

 

 

 

1,741

 

 

 

3.9

 

 

 

28.26

 

 

 

27.63

 

 

 

2.3

 

LTL revenue/cwt.

$

18.16

 

 

$

17.61

 

 

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL revenue/shipment

$

241.61

 

 

$

230.43

 

 

 

4.9

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL pounds/shipment

 

1,331

 

 

 

1,308

 

 

 

1.7

 

 

 

 

 

 

 

 

 

 

 

 

 

LTL length of haul (2)

 

848

 

 

 

831

 

 

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.