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Published: 2023-07-28 08:24:24 ET
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EX-99.1 2 saia-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

img187963839_0.jpg

 

Saia Reports Second Quarter Results

 

JOHNS CREEK, GA – July 28, 2023 – Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering national less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2023 financial results. Diluted earnings per share for the quarter were $3.42 compared to $4.10 in the second quarter of 2022.

 

Highlights from the second quarter operating results were as follows:

 

Second Quarter 2023 Compared to Second Quarter 2022 Results

 

Revenue was $694.6 million, a 6.8% decrease
Operating income was $120.3 million, a 17.6% decrease
Operating ratio of 82.7% compared to 80.4%
LTL shipments per workday decreased 3.8%
LTL tonnage per workday decreased 1.7%
LTL revenue per hundredweight, excluding fuel surcharge revenue increased 2.7%
LTL revenue per shipment, excluding fuel surcharge revenue increased 4.8%

 

“Saia released solid second quarter results despite the softer economic environment we faced compared to last year,” stated Saia President and Chief Executive Officer, Fritz Holzgrefe. “Total revenue was down only 6.8% while fuel surcharge revenue fell by more than 30%. Strong core execution helped to moderate tonnage declines year-over-year. Declining fuel costs helped offset cost trends and we were able to report an 82.7% operating ratio,” added Holzgrefe. “Our commitment to customer service and solid execution allowed us to raise prices and improve our revenue per shipment excluding fuel surcharge revenue, a key metric we monitor as we think about overcoming inflationary costs in our business,” continued Holzgrefe.

“We have opened five new terminals so far this year, enhancing our market position and in doing so we are making it easier for customers to choose Saia. Our claims ratio of 0.61% in the quarter is among the lowest in our industry and our customer first focus puts us in a great position to grow our market share for years to come,” concluded Holzgrefe.

 

 

 


Saia, Inc. Second Quarter 2023 Results

Page 2

 

Financial Position and Capital Expenditures

 

We ended the second quarter of 2023 with $235.0 million of cash on hand and total debt of $21.4 million, which compares to $137.9 million of cash on hand and total debt of $39.3 million at June 30, 2022.

 

Net capital expenditures were $226.5 million during the first six months of 2023, compared to $155.3 million in net capital expenditures during the first six months of 2022. In 2023, we anticipate that net capital expenditures will be in excess of $400 million, subject to ongoing evaluation of market conditions.

 

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 1-888-440-5655 or 1-646-960-0338 referencing conference ID #9246157. 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.saia.com/about-us/investor-relations/financial-releases. A replay of the call will be offered two hours after the completion of the call through August 27, 2023 at 11:59 P.M. Eastern Time. The replay will be available by dialing 1-800-770-2030 or 1-647-362-9199 referencing conference ID #9246157.

 

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 192 terminals with service across 45 states. For more information on Saia, Inc. visit the Investor Relations section at www.saia.com/about-us/investor-relations.

 

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, except as required by law. 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 or inflationary periods in the business cycle; (2) operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors; (3) industry-wide external factors largely out of our control; (4) cost and availability of qualified drivers, dock workers, mechanics and other employees, purchased transportation and fuel; (5) inflationary increases in operating expenses and corresponding reductions of profitability; (6) cost and availability of diesel fuel and fuel surcharges; (7) cost and availability of insurance coverage and claims expenses and other expense volatility, including for personal injury, cargo

 


Saia, Inc. Second Quarter 2023 Results

Page 3

 

loss and damage, workers’ compensation, employment and group health plan claims; (8) failure to successfully execute the strategy to expand our service geography; (9) costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks; (10) failure to keep pace with technological developments; (11) labor relations, including the adverse impact should a portion of our workforce become unionized; (12) cost, availability and resale value of real property and revenue equipment; (13) supply chain disruption and delays on new equipment delivery; (14) capacity and highway infrastructure constraints; (15) risks arising from international business operations and relationships; (16) seasonal factors, harsh weather and disasters caused by climate change; (17) economic declines in the geographic regions or industries in which our customers operate; (18) the creditworthiness of our customers and their ability to pay for services; (19) our need for capital and uncertainty of the credit markets; (20) the possibility of defaults under our debt agreements, including violation of financial covenants; (21) inaccuracies and changes to estimates and assumptions used in preparing our financial statements; (22) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (23) dependence on key employees; (24) employee turnover from changes to compensation and benefits or market factors; (25) increased costs of healthcare benefits; (26) damage to our reputation from adverse publicity, including from the use of or impact from social media; (27) failure to make future acquisitions or to achieve acquisition synergies; (28) the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future; (29) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (30) the effect of governmental regulations, including hours of service and licensing compliance for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of the Food and Drug Administration and Homeland Security, and healthcare and environmental regulations; (31) unforeseen costs from new and existing data privacy laws; (32) changes in accounting and financial standards or practices; (33) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic; (34) the conflict between Russia and Ukraine; (35) relations between China and Taiwan; (36) increasing investor and customer sensitivity to social and sustainability issues, including climate change; (37) provisions in our governing documents and Delaware law that may have anti-takeover effects; (38) issuances of equity that would dilute stock ownership; (39) weakness, disruption or loss of confidence in financial or credit markets; and (40) 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 news 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, except as otherwise required by law.

 

# # #

 


Saia, Inc. Second Quarter 2023 Results

Page 4

 

CONTACT: Saia, Inc.

Douglas Col

Executive Vice President and Chief Financial Officer

Investors@saia.com

 

 

 


 

 

Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

 

 

 

 

 

 

 

June 30, 2023

 

December 31, 2022

Assets

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$234,997

 

$187,390

Accounts receivable, net

 

299,551

 

290,306

Prepaid expenses and other

 

44,321

 

53,190

Total current assets

 

578,869

 

530,886

 

 

 

 

 

Property and Equipment:

 

 

 

 

Cost

 

2,683,192

 

2,478,824

Less: accumulated depreciation

 

1,075,639

 

996,204

Net property and equipment

 

1,607,553

 

1,482,620

Operating Lease Right-of-Use Assets

 

110,428

 

120,455

Other Assets

 

40,261

 

40,749

Total assets

 

$2,337,111

 

$2,174,710

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$98,249

 

$99,792

Wages, vacation and employees' benefits

 

63,153

 

66,684

Other current liabilities

 

68,818

 

68,165

Current portion of long-term debt

 

11,681

 

14,519

Current portion of operating lease liability

 

25,393

 

24,925

Total current liabilities

 

267,294

 

274,085

 

 

 

 

 

Other Liabilities:

 

 

 

 

Long-term debt, less current portion

 

9,677

 

16,489

Operating lease liability, less current portion

 

88,506

 

98,581

Deferred income taxes

 

158,543

 

145,771

Claims, insurance and other

 

66,869

 

60,443

Total other liabilities

 

323,595

 

321,284

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

Common stock

 

27

 

26

Additional paid-in capital

 

277,208

 

277,366

Deferred compensation trust

 

(5,626)

 

(5,248)

Retained earnings

 

1,474,613

 

1,307,197

Total stockholders' equity

 

1,746,222

 

1,579,341

Total liabilities and stockholders' equity

 

$2,337,111

 

$2,174,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Six Months Ended June 30, 2023 and 2022

(Amounts in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

Second Quarter

 

Six Months

 

 

2023

 

2022

 

2023

 

2022

Operating Revenue

 

$694,622

 

$745,554

 

$1,355,157

 

$1,406,770

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

311,888

 

295,052

 

610,844

 

584,515

Purchased transportation

 

49,771

 

91,819

 

96,498

 

170,067

Fuel, operating expenses and supplies

 

133,490

 

145,530

 

275,115

 

268,301

Operating taxes and licenses

 

17,457

 

15,979

 

34,522

 

32,552

Claims and insurance

 

16,956

 

14,216

 

31,015

 

24,952

Depreciation and amortization

 

44,658

 

36,944

 

87,538

 

76,896

Other operating, net

 

147

 

21

 

227

 

45

Total operating expenses

 

574,367

 

599,561

 

1,135,759

 

1,157,328

 

 

 

 

 

 

 

 

 

Operating Income

 

120,255

 

145,993

 

219,398

 

249,442

 

 

 

 

 

 

 

 

 

Nonoperating (Income) Expenses:

 

 

 

 

 

 

 

 

Interest expense

 

458

 

668

 

1,146

 

1,360

Interest income

 

(487)

 

(55)

 

(627)

 

(62)

Other, net

 

(990)

 

824

 

(1,493)

 

1,066

Nonoperating (income) expenses, net

 

(1,019)

 

1,437

 

(974)

 

2,364

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

121,274

 

144,556

 

220,372

 

247,078

Income tax expense

 

29,955

 

35,311

 

52,956

 

58,409

Net Income

 

$91,319

 

$109,245

 

$167,416

 

$188,669

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

26,634

 

26,507

 

26,617

 

26,489

Weighted average common shares outstanding - diluted

 

26,736

 

26,665

 

26,722

 

26,662

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$3.43

 

$4.12

 

$6.29

 

$7.12

Diluted earnings per share

 

$3.42

 

$4.10

 

$6.27

 

$7.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2023 and 2022

(Amounts in thousands)

(Unaudited)

 

 

Six Months

 

 

2023

 

2022

Operating Activities:

 

 

 

 

Net cash provided by operating activities

 

$291,405

 

$207,905

Net cash provided by operating activities

 

291,405

 

207,905

 

 

 

 

 

Investing Activities:

 

 

 

 

Acquisition of property and equipment

 

(227,022)

 

(156,351)

Proceeds from disposal of property and equipment

 

529

 

1,060

Net cash used in investing activities

 

(226,493)

 

(155,291)

 

 

 

 

 

Financing Activities:

 

 

 

 

Borrowing (repayment) of revolving credit agreement, net

 

 

Proceeds from stock option exercises

 

2,250

 

1,008

Shares withheld for taxes

 

(8,928)

 

(11,230)

Other financing activity

 

(10,627)

 

(11,109)

Net cash used in financing activities

 

(17,305)

 

(21,331)

 

 

 

 

 

Net Increase in Cash and Cash Equivalents

 

47,607

 

31,283

Cash and Cash Equivalents, beginning of period

 

187,390

 

106,588

Cash and Cash Equivalents, end of period

 

$234,997

 

$137,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended June 30, 2023 and 2022

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

 

 

 

Second Quarter

 

%

 

Amount/Workday

 

%

 

 

2023

 

2022

 

Change

 

2023

 

2022

 

Change

Workdays

 

 

 

 

 

 

64

 

64

 

 

Operating ratio

82.7%

 

80.4%

 

 

 

 

 

 

 

 

LTL tonnage (1)

1,421

 

1,446

 

(1.7)

 

22.20

 

22.60

 

(1.7)

LTL shipments (1)

1,970

 

2,048

 

(3.8)

 

30.78

 

32.00

 

(3.8)

LTL revenue/cwt.

$23.85

 

$25.05

 

(4.8)

 

 

 

 

 

 

LTL revenue/cwt., excluding fuel surcharges

$19.96

 

$19.44

 

2.7

 

 

 

 

 

 

LTL revenue/shipment

$344.08

 

$353.74

 

(2.7)

 

 

 

 

 

 

LTL revenue/shipment, excluding fuel surcharges

$287.90

 

$274.60

 

4.8

 

 

 

 

 

 

LTL pounds/shipment

1,443

 

1,412

 

2.2

 

 

 

 

 

 

LTL length of haul (2)

892

 

910

 

(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.