Saia Reports Third Quarter Earnings per Share of $0.56

Thu Nov 1, 2012 7:30am EDT

* Reuters is not responsible for the content in this press release.

  JOHNS CREEK, GA, Nov 01 (Marketwire) -- 
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 

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