EX-99.1 2 c57805exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(SAIA LOGO)
**For Immediate Release**
Saia, Inc. Reports First Quarter 2010 Results
Revenues were $212 million, an increase of 3 percent from prior year quarter
JOHNS CREEK, GA. — April 29, 2010 — Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported first quarter 2010 results.
First Quarter 2010 Results Compared to First Quarter 2009
    Revenues were $212.2 million, an increase of 3 percent over the prior year quarter
 
    Operating loss was $2.1 million compared to operating loss of $7.5 million in the prior year quarter
 
    Net loss per share was $0.21. Net loss per share in the prior year quarter was $0.47
 
    Operating ratio was 101.0 vs. 103.6 in the prior year quarter
 
    LTL tonnage per workday was up 2.8 percent from prior year as LTL shipments per workday were flat with a 2.8 percent increase in weight per shipment
 
    LTL yield was down 0.2 percent from the prior year quarter due to competitive pricing partially offset by higher fuel surcharge
First quarter margins improved primarily due to cost reduction efforts and productivity initiatives. These initiatives include the following:
    Productivity improvement in load average, dock and clerical categories
 
    Terminal labor cost per bill improvement of 8.5 percent
 
    Lower accident severity and 30 percent improvement in lost time injuries
 
    Improved cargo claims experience
“While improved relative to 2009 trends, the environment remains difficult with soft tonnage and industry overcapacity which continue to pressure yields. We are addressing this challenging environment with measured pricing decisions, targeted sales and marketing programs and engineered efficiency initiatives. While we are beginning to see some rationalization in pricing, we have a long way to go to recover the yield deterioration experienced over the past two years” said Rick O’Dell, president and chief executive officer. “In the meantime, our execution is solid on a number of fronts including best in class on-time service and improved performance in key productivity metrics, safety and cargo claims.”
“Saia remains committed to managing through these difficult times with a relentless focus on our strategy of building density in our network, customer satisfaction and engineered process improvements to achieve long-term benefits for our customers and shareholders,” O’Dell said.
Financial Position and Capital Expenditures
Total debt was $90.0 million at March 31, 2010. Net of the Company’s $6.4 million cash balance at quarter-end, net debt to total capital was 29.5 percent. This compares to total debt of $116.3 million and net debt to total capital of 37.0 percent in the prior year quarter.

 


 

Saia, Inc. First Quarter 2010 Results
Page 2
Net capital expenditures for the first three months of 2010 were $63 thousand. This compares to $1.9 million in the prior year quarter. The Company is planning net capital expenditures in 2010 of approximately $10 million. This reduced level is due to the uncertain economic environment and will be reevaluated as tonnage improves.
Conference Call
The Company will hold a conference call to discuss these results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 1-800-776-9057 or dial 913-312-9321 for international calls and using conference ID #4878983. Callers should dial in five to 10 minutes in advance of the conference call. This call will be webcast live via the Company web site at www.saia.com and will be archived on the site. A replay of the call will be available two hours after the completion of the call through May 6, 2010. 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) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Georgia and a network of 147 terminals, Saia employs 7,200 people. For more information, 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 publicly update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management 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 and risks 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; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; the effect of ongoing litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, property, revenue equipment and other operating assets; governmental regulations, including but not limited to Hours of Service, engine emissions, compliance with legislation

 


 

Saia, Inc. First Quarter 2010 Results
Page 3
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; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s SEC filings.
# # #
         
CONTACT:
  Saia, Inc.
 
  Renée McKenzie, Treasurer
 
  RMcKenzie@Saia.com
 
  678.542.3910    

 


 

Saia, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
                 
    March 31,     December 31,  
    2010     2009  
ASSETS
               
 
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 6,372     $ 8,746  
Accounts receivable, net
    99,211       87,507  
Prepaid expenses and other
    40,003       38,300  
 
           
Total current assets
    145,586       134,553  
 
               
PROPERTY AND EQUIPMENT:
               
Cost
    615,234       615,803  
Less: accumulated depreciation
    301,213       292,443  
 
           
Net property and equipment
    314,021       323,360  
 
OTHER ASSETS
    8,244       8,513  
 
           
Total assets
  $ 467,851     $ 466,426  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
CURRENT LIABILITIES:
               
Accounts payable
  $ 49,798     $ 46,997  
Wages and employees’ benefits
    20,813       18,793  
Other current liabilities
    35,411       36,981  
 
           
Total current liabilities
    106,022       102,771  
 
               
OTHER LIABILITIES:
               
Long-term debt, less current portion
    90,000       90,000  
Deferred income taxes
    41,867       41,867  
Claims, insurance and other
    30,160       29,107  
 
           
Total other liabilities
    162,027       160,974  
 
               
SHAREHOLDERS’ EQUITY:
               
Common stock
    16       16  
Additional paid-in capital
    201,397       201,041  
Deferred compensation trust
    (2,749 )     (2,737 )
Retained earnings
    1,138       4,361  
 
           
Total shareholders’ equity
    199,802       202,681  
 
           
Total liabilities and shareholders’ equity
  $ 467,851     $ 466,426  
 
           

 


 

Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters Ended March 31, 2010 and 2009
(Amounts in thousands, except per share data)
(Unaudited)
                 
    First Quarter  
    2010     2009  
OPERATING REVENUE
  $ 212,224     $ 206,102  
 
               
OPERATING EXPENSES:
               
Salaries, wages and employees’ benefits
    117,464       127,635  
Purchased transportation
    17,435       13,861  
Fuel, operating expenses and supplies
    55,902       45,486  
Operating taxes and licenses
    9,214       8,990  
Claims and insurance
    5,085       7,611  
Depreciation and amortization
    9,305       10,031  
Operating gains, net
    (56 )     (59 )
 
           
Total operating expenses
    214,349       213,555  
 
           
 
               
OPERATING LOSS
    (2,125 )     (7,453 )
 
               
NONOPERATING EXPENSES:
               
Interest expense
    3,073       2,802  
Other, net
    (315 )     21  
 
           
Nonoperating expenses, net
    2,758       2,823  
 
           
 
               
LOSS BEFORE INCOME TAXES
    (4,883 )     (10,276 )
Income tax benefit
    (1,660 )     (3,987 )
 
           
NET LOSS
  $ (3,223 )   $ (6,289 )
 
           
 
               
Average common shares outstanding — basic
    15,697       13,345  
 
           
Average common shares outstanding — diluted
    15,697       13,345  
 
           
 
               
Basic loss per share
  $ (0.21 )   $ (0.47 )
 
           
 
               
Diluted loss per share
  $ (0.21 )   $ (0.47 )
 
           

 


 

Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Quarters Ended March 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
                 
    2010     2009  
OPERATING ACTIVITIES:
               
Net cash provided by (used in) operating activities-continuing operations
  $ (2,311 )   $ 7,012  
 
           
Net cash provided by (used in) operating activities
    (2,311 )     7,012  
 
               
INVESTING ACTIVITIES:
               
Acquisition of property and equipment
    (122 )     (2,266 )
Proceeds from disposal of property and equipment
    59       368  
 
           
Net cash used in investing activities
    (63 )     (1,898 )
 
               
FINANCING ACTIVITIES:
               
Repayment of long-term debt
          (20,225 )
 
           
Net cash used in financing activities
          (20,225 )
 
           
 
               
NET DECREASE IN CASH AND CASH EQUIVALENTS
    (2,374 )     (15,111 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    8,746       27,061  
 
           
CASH AND CASH EQUIVALENTS, END OF PERIOD
  $ 6,372     $ 11,950  
 
           

 


 

Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended March 31, 2010 and 2009
(Amounts in thousands)
(Unaudited)
                                                         
                                    First Quarter        
            First Quarter     %     Amount/Workday     %  
            2010     2009     Change     2010     2009     Change  
Workdays
                                    63       63          
 
                                                       
Operating ratio
            101.0 %     103.6 %                                
 
                                                       
F/S Revenue
  LTL     197,303       192,719       2.4       3,131.8       3,059.0       2.4  
 
  TL     14,921       13,383       11.5       236.8       212.4       11.5  
 
  Total     212,224       206,102       3.0       3,368.6       3,271.5       3.0  
 
                                                       
Revenue excluding
  LTL     197,677       192,647       2.6       3,137.7       3,057.9       2.6  
revenue recognition
  TL     14,949       13,378       11.7       237.3       212.4       11.7  
adjustment
  Total     212,627       206,025       3.2       3,375.0       3,270.2       3.2  
 
                                                       
Tonnage
  LTL     858       834       2.8       13.62       13.24       2.8  
 
  TL     163       150       8.9       2.59       2.38       8.9  
 
  Total     1,021       984       3.7       16.20       15.62       3.7  
 
                                                       
Shipments
  LTL     1,551       1,550       0.0       24.61       24.60       0.0  
 
  TL     23       21       11.7       0.37       0.33       11.7  
 
  Total     1,574       1,571       0.2       24.98       24.93       0.2  
 
                                                       
Revenue/cwt.
  LTL     11.52       11.55       (0.2 )                        
 
  TL     4.59       4.47       2.6                          
 
  Total     10.41       10.47       (0.5 )                        
 
                                                       
Revenue/shipment
  LTL     127.49       124.29       2.6                          
 
  TL     640.28       640.11       0.0                          
 
  Total     135.09       131.15       3.0                          
 
                                                       
Pounds/shipment
  LTL     1,106       1,076       2.8                          
 
  TL     13,963       14,324       (2.5 )                        
 
  Total     1,297       1,253       3.5