Saia Reports Second Quarter Results

Wednesday, 29. July 2020 13:30

JOHNS CREEK, Ga., July 29, 2020 (GLOBE NEWSWIRE) -- Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2020 financial results.  Diluted earnings per share in the quarter were $1.07 compared to $1.40 in the second quarter of 2019.

Highlights from the second quarter operating results were as follows:

Second Quarter 2020 Compared to Second Quarter 2019 Results

  • Revenue was $418.1 million, a 9.9% decrease
  • Operating income was $35.7 million, a 30.3% decrease
  • Operating ratio of 91.5 compared to 89.0
  • LTL shipments per workday decreased 9.7%
  • LTL tonnage per workday decreased by 8.9%
  • LTL revenue per hundredweight decreased 0.6%
  • LTL revenue per shipment rose 0.3% to $235.08

“Our second quarter results were achieved  during one of the most volatile operating backdrops our company has ever faced,” said Saia President and Chief Executive Officer, Fritz Holzgrefe.  “I have been gratified  that our employees responded to the challenge by adapting to new operating procedures and practices, to provide not only for their safety, but that of our customers and vendors. Their willingness to do so allowed us to continuously fulfill our essential  role in servicing our customers' critical needs,” continued Holzgrefe.

“After a dramatic drop in shipment volume in mid-March, we began to see a bottoming process in mid-April and then shipment trends continued to improve in May and June,” stated Holzgrefe.  “Our second quarter results reflect both a difficult April and the subsequent improved volumes thereafter, combined with the prudent cost measures adopted quickly.  As volumes improved through the quarter we were able to begin returning furloughed staff back to full-time hours and we were also able to award a special a one-time bonus of $250 per employee to those employees who worked through the difficult conditions created by the pandemic.  While our operating ratio of 91.5 was higher than our record operating ratio last year, I was pleased that we were able to maintain margins similar to our record first quarter results this year,” added Holzgrefe.

“The COVID-19 pandemic has created unprecedented disruption and uncertainty for our business and our customers over the last few months. Though the outlook remains uncertain, we have demonstrated our ability to pivot and adapt to this increased volatility,” said Holzgrefe. “We are pleased to demonstrate that with solid execution of our strategy, we are in a position to be successful even when faced with an unprecedented situation in our country,”  concluded Holzgrefe. 

Saia Executive Vice President and Chief Financial Officer, Douglas Col added, “Despite the volatility in business levels we have experienced this year, revenue is only down 1.2% through the first six months compared to last year and net debt year-to-date is actually down 3.4%.  With a strong balance sheet and the flexibility of our dedicated non-union workforce, we believe we are well-positioned to continue building upon our 96-year history of growth,” Col concluded.

Financial Position and Capital Expenditures

Total debt was $160.8 million at June 30, 2020 and inclusive of the cash on-hand, net debt to total capital was 13.1%.  This compares to total debt of $179.9 million and net debt to total capital of 19.1% at June 30, 2019.

Net capital expenditures in the first half of 2020 were $142.7 million.  This compares to $171.1 million in net capital expenditures during the first half of 2019, which included equipment acquired with finance leases.  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 #1964358.  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  A replay of the call will be offered two hours after the completion of the call through August 26 at 1:00 p.m. Eastern Time.  The replay will be available by dialing 888-203-1112.

Saia, Inc. (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 169 terminals across 44 states.  For more information on Saia, Inc. visit the Investor Relations section at

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 changes to international trade agreements and 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 

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
  June 30, 2020 December 31, 2019
Cash and cash equivalents $29,280  $248 
Accounts receivable, net  205,131   196,119 
Prepaid expenses and other  35,232   36,012 
Total current assets  269,643   232,379 
Cost  1,862,048   1,739,222 
Less: accumulated depreciation  743,345   686,623 
Net property and equipment  1,118,703   1,052,599 
 OTHER ASSETS  27,453   26,825 
Total assets $1,538,200  $1,415,693 
Accounts payable $81,516  $83,621 
Wages and employees' benefits  55,355   49,668 
Other current liabilities  72,580   69,532 
Current portion of long-term debt  19,727   19,405 
Current portion of operating lease liability  18,916   19,020 
Total current liabilities  248,094   241,246 
Long-term debt, less current portion  141,112   117,025 
Operating lease liability, less current portion  104,958   86,239 
Deferred income taxes  119,125   111,555 
Claims, insurance and other  49,821   44,402 
Total other liabilities  415,016   359,221 
Common stock  26   26 
Additional paid-in capital  265,264   260,871 
Deferred compensation trust  (4,965)  (3,871)
Retained earnings  614,765   558,200 
Total stockholders' equity  875,090   815,226 
Total liabilities and stockholders' equity $1,538,200  $1,415,693 

Saia, Inc. and Subsidiaries 
Consolidated Statements of Operations 
For the Quarters and Six Months Ended June 30, 2020 and 2019 
(Amounts in thousands, except per share data) 
  Second Quarter Six Months 
   2020   2019   2020   2019  
OPERATING REVENUE $418,114  $464,195  $864,510  $874,779  
Salaries, wages and employees' benefits  224,277   237,689   462,922   458,041  
Purchased transportation  26,406   34,154   56,465   62,572  
Fuel, operating expenses and supplies  65,902   85,328   148,801   168,871  
Operating taxes and licenses  13,743   13,529   28,139   26,731  
Claims and insurance  18,293   13,156   28,714   22,686  
Depreciation and amortization  33,664   29,143   66,254   55,925  
Loss (gain) from property disposals, net  148   30   (1,242)  156  
Total operating expenses  382,433   413,029   790,053   794,982  
OPERATING INCOME  35,681   51,166   74,457   79,797  
Interest expense  1,594   1,903   2,996   3,286  
Other, net  (751)  (140)  (204)  (474) 
Nonoperating expenses, net  843   1,763   2,792   2,812  
INCOME BEFORE INCOME TAXES  34,838   49,403   71,665   76,985  
Income tax expense  6,384   12,330   15,100   17,653  
NET INCOME $28,454  $37,073  $56,565  $59,332  
Average common shares outstanding - basic  26,134   25,958   26,102   25,915  
Average common shares outstanding - diluted  26,569   26,406   26,543   26,373  
Basic earnings per share $1.09  $1.43  $2.17  $2.29  
Diluted earnings per share $1.07  $1.40  $2.13  $2.25  

Saia, Inc. and Subsidiaries 
Condensed Consolidated Statements of Cash Flows 
For the six months ended June 30, 2020 and 2019 
(Amounts in thousands) 
  Six Months 
   2020   2019  
Net cash provided by operating activities $148,233  $113,574  
Net cash provided by operating activities  148,233   113,574  
Acquisition of property and equipment  (148,865)  (166,434) 
Proceeds from disposal of property and equipment  6,143   380  
Net cash used in investing activities  (142,722)  (166,054) 
Borrowing of revolving credit agreement, net  34,071   60,998  
Proceeds from stock option exercises  2,591   2,154  
Shares withheld for taxes  (3,479)  (3,304) 
Other financing activity  (9,662)  (9,059) 
Net cash provided by financing activities  23,521   50,789  
Equipment financed with finance leases $  $5,058  

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2020 and 2019
        Second Quarter  
  Second Quarter  % Amount/Workday  %
   2020   2019  Change 2020 2019 Change
Workdays      64 64  
Operating ratio 91.5%  89.0%        
LTL tonnage (1) 1,142   1,254  (8.9) 17.85 19.60 (8.9)
LTL shipments (1) 1,745   1,933  (9.7) 27.26 30.20 (9.7)
LTL revenue/cwt.$17.95  $18.05  (0.6)      
LTL revenue/shipment$235.08  $234.33  0.3       
LTL pounds/shipment 1,309   1,298  0.8       
LTL length of haul (2) 876   841  4.2       
(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.

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