Click here to close now.

SYS-CON MEDIA Authors: AppDynamics Blog, Mike Kavis, Esmeralda Swartz, Cloud Best Practices Network, Ruxit Blog

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
Plutora provides enterprise release management and test environment SaaS solutions to clients in North America, Europe and Asia Pacific. Leading companies across a variety of industries, including financial services, telecommunications, retail, pharmaceutical and media, rely on Plutora's SaaS solutions to orchestrate releases and environments faster and with integrity. Products include Plutora Release Manager, Plutora Test Environment Manager and Plutora Deployment Manager.
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
When it comes to building applications, one database definitely does not fit all. Traditional SQL databases are great for storing highly structured, normalized data and performing analytics and reporting. NoSQL has attracted developers with its awesome flexibility, and JSON-centric document stores like Cloudant make web developers incredibly productive by offering a JavaScript environment from end-to-end. Recent Big Data challenges have driven the need for a distributed approach to analytics e...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud....
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Even though it’s now Microservices Journal, long-time fans of SOA World Magazine can take comfort in the fact that the URL – soa.sys-con.com – remains unchanged. And that’s no mistake, as microservices are really nothing more than a new and improved take on the Service-Oriented Architecture (SOA) best practices we struggled to hammer out over the last decade. Skeptics, however, might say that this change is nothing more than an exercise in buzzword-hopping. SOA is passé, and now that people are ...
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting we...
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
The webinar, hosted by XebiaLabs, will feature 4 experts including Special Host Gene Kim, author of The Phoenix Project, along with IT thought leaders Gary Gruver, Randy Shoup and XebiaLabs' Andrew Phillips. The panel brings more than 30 years of collective experience surrounding microservices transformations at major companies including Google, eBay and Tripwire. "The story around microservices and containers is pretty compelling and the attraction of more flexibility is obviously alluring,"...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...