EX-99.1 2 c11888exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
(SAIA LOGO)
**FOR IMMEDIATE RELEASE**
Saia, Inc. Reports Record 2006 Results from Continuing Operations
$1.74 earnings per share including $0.17 restructuring and integration charges
DULUTH, Ga. — January 31, 2007 — Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier (“the Company”), reported 2006 results with revenue of $875 million from continuing operations, an increase of 16 percent from 2005. 2006 operating income from continuing operations was $50.0 million including $4.1 million in restructuring and integration expenses, compared with 2005 operating income of $50.4 million which included a $7.0 million pretax real estate gain. Income from continuing operations increased to $25.9 million in 2006 from $25.2 million in 2005. Earnings per share from continuing operations were $1.74, including charges for restructuring and integration expenses, compared to $1.67 in 2005 which included $0.29 in real estate gain.
“For the fifth consecutive year, Saia produced growth and improvement in our core operating results. Earnings per share from continuing operations were $1.74 which included the impact of $0.17 in restructuring and integration related costs. This compares favorably to our $1.67 earnings per share from the prior year which included $0.29 per share in real estate gain. Our customers responded to Saia’s strong service offerings which resulted in 16 percent revenue growth for the year,” said Rick O’Dell, President and Chief Executive Officer. “In 2006, Saia again built upon our track record of growth and margin improvement. Saia further advanced our positioning for long-term profitable growth and shareholder value creation, particularly with our fourth quarter acquisition of The Connection.”
2006 highlights are summarized as follows:
    Operating ratio from continuing operations excluding real estate gain, restructuring and integration related costs improved to 93.8 from 94.2
 
    Excluding The Connection
    LTL tonnage growth of 9%
 
    LTL yield increase of 6%
For the fourth quarter, Saia reported earnings per share from continuing operations of $0.36 which included charges of $0.09 per share in restructuring and integration expenses compared to $0.69 in the prior year which included a benefit of $0.29 for the real estate gain. Fourth quarter revenue was $219 million, up 8 percent from prior year. Operating income from continuing operations was $10.5 million which includes $2.0 million of restructuring and integration expenses, which compares to the prior year quarter operating income of $18.2 million which included a $7.0 million real estate gain.
Fourth quarter 2006 highlights include:
    Operating ratio from continuing operations excluding real estate gain, restructuring and integration related costs improved to 94.3 from 94.5
 
    Excluding The Connection
    LTL tonnage growth of 2%
 
    LTL yield increase of 4%

 


 

Saia, Inc. Fourth-Quarter 2006 Earnings
Page 2
“In light of recent economic conditions and more difficult comparisons, I am pleased with our marketing success and fourth quarter revenue growth,” O’Dell said. “While we improved our operating ratio excluding real estate gain, restructuring and integration charges, our cost performance was challenged by the weaker than expected volumes, as well as unfavorable trends in workers’ compensation and health care expenses.”
On November 20th, Saia announced the acquisition of The Connection Company, a less-than-truckload carrier operating in four states. Fourth quarter results included an additional $7.0 million in revenue with no contribution to operating income and we incurred $1.5 million of costs related to the integration. “I am excited about 2007 as the acquisition of The Connection will provide opportunities for synergy revenue to and from the states of Michigan, Indiana, Ohio and Kentucky. We are on schedule to complete our February 12th integration and opening of the synergy lanes in March,” continued O’Dell.
On November 27th, Saia announced the authorization of an additional $25 million share repurchase program. During the quarter, Saia completed the previously approved program and repurchased shares under the new program for a total of $8.9 million repurchased during the quarter.
“We continue to focus on improving Saia’s financial and operational performance. With our recent acquisition and our goal of expanding geographically to increase market share, we believe Saia has a solid foundation to deliver strong value to both customers and shareholders,” said Jim Darby, Saia’s Vice President of Finance and Chief Financial Officer.
Financial Position and Capital Expenditures
Total debt was $110 million at December 31, 2006 with net debt to total capital of 32.8 percent, as a result of the Company’s $10.7 million cash balance at December 31, 2006. This compares to net debt to total capital of 30.0 percent at December 2005.
Consolidated net capital expenditures from continuing operations for 2006 were $91 million. The Company is planning net capital expenditures in 2007 of approximately $85 million which includes up to $35 million for real estate projects.
Conference Call
The Company will hold a conference call to discuss fourth-quarter results today at 9:00 a.m. Eastern Time. To participate in the call, please dial 1-877-558-9192 or dial 706-758-1748 for international calls. 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 February 07, 2007. The replay will be available by dialing 1-800-642-1687 or 706-645-9291 and using conference code 6095726.
The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com).”

 


 

Saia, Inc. Fourth-Quarter 2006 Earnings
Page 3
Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Duluth, Ga. and a network of 148 terminals, Saia employs 8,200 people. For more information, visit Investor Relations 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” 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; indemnification obligations associated with the sale of Jevic Transportation, Inc.; integration risks; 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 recent legislation requiring companies to evaluate their internal control over financial reporting and Homeland Security; dependence on key employees; inclement weather; labor relations; effectiveness of company-specific performance improvement initiatives; competitive initiatives and pricing pressures; terrorism risks; self-insurance claims, equity-based compensation and other expense volatility; the Company’s determination from time to time whether to purchase any shares under the repurchase program; 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 Subsidiaries
(formerly SCS Transportation, Inc. and Subsidiaries)
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
                 
    December 31,     December 31,  
    2006     2005  
 
               
ASSETS
               
 
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 10,669     $ 16,865  
Accounts receivable
    95,779       85,074  
Prepaid expenses and other
    27,236       22,233  
Current assets of discontinued operations
          50,073  
 
           
Total current assets
    133,684       174,245  
 
               
PROPERTY AND EQUIPMENT:
               
Cost
    518,052       427,019  
Less: Accumulated depreciation
    203,220       180,385  
 
           
Net property and equipment
    314,832       246,634  
 
               
GOODWILL AND OTHER ASSETS
    38,884       33,419  
Long-term assets of discontinued operations, net
          100,443  
 
           
Total assets
  $ 487,400     $ 554,741  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
CURRENT LIABILITIES:
               
Accounts payable and checks outstanding
  $ 39,389     $ 43,487  
Wages and employees’ benefits
    45,752       37,915  
Other current liabilities
    30,027       26,797  
Current portion of long-term debt
    11,356       5,000  
Current liabilities of discontinued operations
    117       23,388  
 
           
Total current liabilities
    126,641       136,587  
 
               
OTHER LIABILITIES:
               
Long-term debt
    98,628       109,913  
Deferred income taxes
    45,259       40,949  
Claims, insurance and other
    13,717       14,041  
Long-term liabilities of discontinued operations
          24,859  
 
           
Total other liabilities
    157,604       189,762  
 
               
SHAREHOLDERS’ EQUITY:
               
Common stock
    15       14  
Additional paid-in capital
    199,257       194,398  
Treasury Stock
    (8,861 )      
Deferred compensation trust
    (1,877 )     (1,322 )
Retained earnings
    14,621       35,302  
 
           
Total shareholders’ equity
    203,155       228,392  
 
           
Total liabilities and shareholders’ equity
  $ 487,400     $ 554,741  
 
           


 

Saia, Inc. and Subsidiaries
(formerly SCS Transportation, Inc. and Subsidiaries)
Consolidated Statements of Operations
For the Quarter and Year Ended December 31, 2006 and 2005
(Amounts in thousands, except per share data)
(Unaudited)
                                 
    Fourth Quarter     Year Ended  
    2006     2005     2006     2005  
 
                               
OPERATING REVENUE
  $ 219,160     $ 202,438     $ 874,738     $ 754,038  
 
                               
OPERATING EXPENSES:
                               
Salaries, wages and employees’ benefits
    120,967       110,166       473,956       413,710  
Purchased transportation
    16,459       18,617       70,029       62,557  
Fuel, operating expenses and supplies
    45,945       43,513       188,606       155,207  
Operating taxes and licenses
    7,342       6,598       28,853       25,857  
Claims and insurance
    7,338       5,023       28,089       24,987  
Depreciation and amortization
    8,861       7,325       32,550       28,849  
Operating (gains) and losses
    (235 )     (7,040 )     (1,416 )     (7,565 )
Restructuring charges
    538             2,587        
Integration charges
    1,490             1,490        
 
                       
Total operating expenses
    208,705       184,202       824,744       703,602  
 
                       
 
                               
OPERATING INCOME
    10,455       18,236       49,994       50,436  
 
                               
NONOPERATING EXPENSES:
                               
Interest expense
    2,146       2,534       9,288       9,773  
Other, net
    (485 )     (287 )     (1,267 )     (338 )
 
                       
Nonoperating expenses, net
    1,661       2,247       8,021       9,435  
 
                               
INCOME BEFORE INCOME TAXES
    8,794       15,989       41,973       41,001  
Income tax provision
    3,485       5,884       16,100       15,843  
 
                       
INCOME FROM CONTINUING OPERATIONS
    5,309       10,105       25,873       25,158  
Income (loss) from discontinued operations, net (including loss on disposal of $43,794 in 2006, net of tax benefit
    (107 )     610       (46,554 )     2,301  
 
                       
NET INCOME (LOSS)
  $ 5,202     $ 10,715     $ (20,681 )   $ 27,459  
 
                       
 
                               
Average common shares outstanding — basic
    14,475       14,386       14,536       14,707  
 
                       
Average common shares outstanding — diluted
    14,738       14,724       14,841       15,048  
 
                       
 
                               
Basic earnings per share-continuing operations
  $ 0.37     $ 0.70     $ 1.78     $ 1.71  
Basic earnings (loss) per share-discontinued operations
    (0.01 )     0.04       (3.20 )     0.16  
 
                       
Basic earnings (loss) per share
  $ 0.36     $ 0.74     $ (1.42 )   $ 1.87  
 
                       
 
                               
Diluted earnings per share-continuing operations
  $ 0.36     $ 0.69     $ 1.74     $ 1.67  
Diluted earnings (loss) per share-discontinued operations
    (0.01 )     0.04       (3.14 )     0.15  
 
                       
Diluted earnings (loss) per share
  $ 0.35     $ 0.73     $ (1.39 )   $ 1.82  
 
                       


 

Saia, Inc. and Subsidiaries
(formerly SCS Transportation, Inc. and Subsidiaries)
Condensed Consolidated Statements of Cash Flows
For the Year Ended December 31, 2006 and 2005
(Amounts in thousands)
(Unaudited)
                 
    2006     2005  
 
               
OPERATING ACTIVITIES:
               
Net cash from operating activities-continuing operations
  $ 55,643     $ 60,910  
Net cash from operating activities-discontinued operations
    20,494       22,993  
 
           
Net cash from operating activities
    76,137       83,903  
 
               
INVESTING ACTIVITIES:
               
Acquisition of property and equipment
    (93,235 )     (44,007 )
Proceeds from disposal of property and equipment
    2,487       10,702  
Proceeds from sale of subsidiary
    41,305        
Acquisition of business
    (17,496 )      
Net investment in discontinued operations
    (5,359 )     (20,396 )
 
           
Net cash used in investing activities
    (72,298 )     (53,701 )
 
               
FINANCING ACTIVITIES:
               
Repayment of long-term debt
    (5,000 )     (8,002 )
Repurchase of common stock
    (8,861 )     (12,903 )
Proceeds from stock option exercises
    3,826       619  
 
           
Net cash used in financing activities
    (10,035 )     (20,286 )
 
           
 
               
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS
    (6,196 )     9,916  
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD
    16,865       6,949  
 
           
CASH & CASH EQUIVALENTS, END OF PERIOD
  $ 10,669     $ 16,865  
 
           


 

Saia Motor Freight Line, Inc.
Financial Segment Information
For the Quarter and Year Ended December 31, 2006 and 2005
(Amounts in thousands)
(Unaudited)
                                                         
            Fourth Quarter     %   Year Ended   %  
            2006     2005     Change     2006     2005     Change  
                         
 
                                                       
Operating revenue
            219,160       202,438       8.3       874,738       754,038       16.0  
 
                                                       
Operating income
            11,184       20,418               59,648       55,294          
 
                                                       
Operating ratio
            94.9       89.9               93.2       92.7          
                                                         
                                    Fourth Quarter        
            Fourth Quarter   %   Amount/Workday   %  
            2006     2005     Change     2006     2005     Change  
                           
 
                                                       
Workdays
                                    61       61          
 
                                                       
F/S Revenue
  LTL     204,009       186,544       9.4       3,344.4       3,058.1       9.4  
 
  TL     15,152       15,894       (4.7 )     248.4       260.6       (4.7 )
 
  Total     219,161       202,438       8.3       3,592.8       3,318.7       8.3  
 
                                                       
Revenue excluding
  LTL     203,739       186,091       9.5       3,340.0       3,050.7       9.5  
revenue recognition
  TL     15,132       15,855       (4.6 )     248.1       259.9       (4.6 )
adjustment
  Total     218,871       201,946       8.4       3,588.1       3,310.6       8.4  
 
                                                       
Tonnage
  LTL     871       806       8.1       14.28       13.21       8.1  
 
  TL     163       174       (6.3 )     2.67       2.85       (6.3 )
 
  Total     1,034       980       5.5       16.95       16.06       5.5  
 
                                                       
Shipments
  LTL     1,559       1,436       8.6       25.56       23.54       8.6  
 
  TL     22       24       (7.7 )     0.36       0.39       (7.7 )
 
  Total     1,581       1,460       8.3       25.92       23.93       8.3  
 
                                                       
Revenue/cwt.
  LTL     11.70       11.55       1.3                          
 
  TL     4.64       4.55       1.9                          
 
  Total     10.58       10.30       2.7                          
 
                                                       
Revenue/cwt.
  LTL     10.36       10.08       2.7                          
(excluding fuel surcharge)
  TL     4.57       4.46       2.5                          
 
  Total     9.44       9.08       3.9                          
 
                                                       
Revenue/shipment
  TL     130.67       129.62       0.8                          
 
  TL     682.88       660.71       3.4                          
 
  Total     138.41       138.35       0.0                          
 
                                                       
Pounds/shipment
  LTL     1,117       1,123       (0.5 )                        
 
  TL     14,726       14,513       1.5                          
 
  Total     1,308       1,343       (2.6 )