EX-99.1 2 c23422exv99w1.htm PRESS RELEASE exv99w1
 

(SAIA LOGO)
FOR IMMEDIATE RELEASE
Saia Reports 2007 Revenue of $976 million from continuing operations,
an increase of 12 percent
JOHNS CREEK, GA — January 30, 2008 — Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier (“the Company”), reported 2007 results with revenue of $976 million from continuing operations, an increase of 12 percent from 2006. 2007 operating income from continuing operations was $38.2 million including integration charges of $2.4 million, compared with 2006 operating income of $50.0 million which included $4.1 million in restructuring and integration expenses. Income from continuing operations was $17.1 million in 2007 compared to $25.9 million in 2006. Earnings per share from continuing operations were $1.22 including integration charges, compared to $1.74 in 2006 which included charges for restructuring and integration.
“Saia achieved 12 percent revenue growth due to acquisitions, synergy revenue to and from our expanded geography and our excellent service offerings. Earnings per share from continuing operations declined to $1.22 from $1.74 earnings per share in a very difficult economic environment,” said Rick O’Dell, President and Chief Executive Officer. “We believe Saia’s broad coverage and strong service provide a solid foundation for long-term profitable growth and shareholder value creation as we capitalize on our recently expanded coverage and improve margins.”
2007 highlights are summarized as follows:
    Operating ratio deteriorated to 96.1 from 94.3
 
    LTL tonnage per work day increased 9.2%
 
    LTL yield increased 2.1% including the impact of higher fuel surcharge
Additional points:
    Gain on sale of real estate of $1.7 million
 
    Equity based compensation was a benefit of $3.0 million compared to expense of $3.0 million in prior year
 
    Accident expense was $8.3 million over prior year primarily due to severity
Fourth quarter revenue was $244 million, up 11 percent from prior year. Saia reported earnings per share from continuing operations of $0.05 per share which included charges of $0.04 per share resulting from an employment related matter compared to $0.36 in the prior year which included charges of $0.09 per share for restructuring and integration expenses. Operating income from continuing operations was $3.9 million which includes $0.8 million of expenses from an employment related matter, which compares to the prior year quarter operating income of $10.5 million which included $2.0 million of restructuring and integration expenses.
Fourth quarter 2007 highlights include:
    Operating ratio from continuing operations deteriorated to 98.4 from 95.2
 
    LTL tonnage per work day increased 2.4%
 
    LTL yield increased 7.0% including the impact of higher fuel surcharge
 
    Accident expense was $1.1 million over prior year quarter due to severity

 


 

Saia, Inc. Fourth-Quarter 2007 Earnings
Page 2
“Considering the weak economic conditions, I am relatively pleased with our top line growth,” O’Dell said. “I am particularly disappointed with the second half results during which margins were challenged due to the weak economic environment, higher accident and health plan expenses at a time we were investing in servicing new lanes associated with our geographic expansions. While the near-term economic environment remains challenging, I am cautiously optimistic about 2008. We believe our focused strategy of building density in our recently expanded network and numerous engineered cost initiatives will improve margins and shareholder value.”
Financial Position and Capital Expenditures
Total debt was $172.8 million at December 31, 2007. Net of the Company’s $6.7 million cash balance at December 31, 2007, net debt to total capital was 45.3 percent. This compares to total debt of $110.0 million and net debt to total capital of 32.8 percent at December 31, 2006. Debt balances were impacted by $23.2 million expended during the year on share repurchase transactions.
Consolidated net capital expenditures from continuing operations for 2007 were $89 million. The Company is planning net capital expenditures in 2008 of approximately $56 million which includes $39 million for real estate projects. Planned expenditures for revenue equipment is a reduction from the prior year and may be reevaluated as tonnage improves.
Saia has entered into a new revolving credit agreement, which replaces its prior facility and extends its maturity. The new agreement includes significant enhancements including an increase in the size from $110 to $160 million, improved terms, enhanced pricing and favorable conditions to support the Company’s financing needs.
Discontinued Operations
In the quarter, the Company recorded a tax benefit of $1.3 million, or $0.09 per share, related to discontinued operations of the sale of a former subsidiary in 2006.
Conference Call
The Company will hold a conference call to discuss fourth-quarter results today at 10:00 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 06, 2008. The replay will be available by dialing 1-800-642-1687 or 706-645-9291 and using conference code 30445489.
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. (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 152

 


 

Saia, Inc. Fourth-Quarter 2007 Earnings
Page 3
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,” “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; integration risks; indemnification obligations associated with the 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 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.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
                 
    December 31,     December 31,  
    2007     2006  
ASSETS
               
 
               
CURRENT ASSETS:
               
Cash and cash equivalents
  $ 6,656     $ 10,669  
Accounts receivable
    107,116       95,779  
Prepaid expenses and other
    37,837       27,236  
 
           
Total current assets
    151,609       133,684  
 
               
PROPERTY AND EQUIPMENT:
               
Cost
    596,357       518,052  
Less: Accumulated depreciation
    227,585       203,220  
 
           
Net property and equipment
    368,772       314,832  
 
               
GOODWILL AND OTHER ASSETS
    40,202       38,884  
 
           
Total assets
  $ 560,583     $ 487,400  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
CURRENT LIABILITIES:
               
Accounts payable and checks outstanding
  $ 42,732     $ 39,389  
Wages and employees’ benefits
    32,863       45,752  
Other current liabilities
    38,138       30,027  
Current portion of long-term debt
    12,793       11,356  
Current liabilities of discontinued operations
          117  
 
           
Total current liabilities
    126,526       126,641  
 
               
OTHER LIABILITIES:
               
Long-term debt
    160,052       98,628  
Deferred income taxes
    55,961       45,259  
Claims, insurance and other
    17,392       13,717  
 
           
Total other liabilities
    233,405       157,604  
 
               
SHAREHOLDERS’ EQUITY:
               
Common stock
    13       15  
Additional paid-in capital
    170,260       199,257  
Treasury stock
          (8,861 )
Deferred compensation trust
    (2,584 )     (1,877 )
Retained earnings
    32,963       14,621  
 
           
Total shareholders’ equity
    200,652       203,155  
 
           
Total liabilities and shareholders’ equity
  $ 560,583     $ 487,400  
 
           

 


 

Saia, Inc.
Consolidated Statements of Operations
For the Quarter and Year Ended December 31, 2007 and 2006
(Amounts in thousands, except per share data)
(Unaudited)
                                 
    Fourth Quarter     Year Ended  
    2007     2006     2007     2006  
OPERATING REVENUE
  $ 243,710     $ 219,160     $ 976,123     $ 874,738  
 
                               
OPERATING EXPENSES:
                               
Salaries, wages and employees’ benefits
    130,291       120,967       524,599       473,956  
Purchased transportation
    20,172       16,459       76,123       70,029  
Fuel, operating expenses and supplies
    62,196       45,945       227,198       188,606  
Operating taxes and licenses
    8,765       7,342       34,474       28,853  
Claims and insurance
    8,492       7,338       36,754       28,089  
Depreciation and amortization
    10,083       8,861       38,685       32,550  
Operating gains, net
    (171 )     (235 )     (2,305 )     (1,416 )
Integration charges
          1,490       2,427       1,490  
Restructuring charges
          538             2,587  
 
                       
Total operating expenses
    239,828       208,705       937,955       824,744  
 
                       
 
                               
OPERATING INCOME
    3,882       10,455       38,168       49,994  
 
                               
NONOPERATING EXPENSES:
                               
Interest expense
    2,934       2,146       10,135       9,288  
Other, net
    (19 )     (485 )     (358 )     (1,267 )
 
                       
Nonoperating expenses, net
    2,915       1,661       9,777       8,021  
 
                               
INCOME BEFORE INCOME TAXES
    967       8,794       28,391       41,973  
Income tax provision
    251       3,485       11,306       16,100  
 
                       
INCOME FROM CONTINUING OPERATIONS
    716       5,309       17,085       25,873  
Income (loss) from discontinued operations, net (including loss on disposal of $43,794 in 2006, net of tax benefit)
    1,257       (107 )     1,257       (46,554 )
 
                       
NET INCOME (LOSS)
  $ 1,973     $ 5,202     $ 18,342     $ (20,681 )
 
                       
 
                               
Average common shares outstanding — basic
    13,281       14,475       13,823       14,536  
 
                       
Average common shares outstanding — diluted
    13,433       14,738       14,038       14,841  
 
                       
 
                               
Basic earnings per share-continuing operations
  $ 0.05     $ 0.37     $ 1.24     $ 1.78  
Basic earnings (loss) per share-discontinued operations
    0.09       (0.01 )     0.09       (3.20 )
 
                       
Basic earnings (loss) per share
  $ 0.15     $ 0.36     $ 1.33     $ (1.42 )
 
                       
 
                               
Diluted earnings per share-continuing operations
  $ 0.05     $ 0.36     $ 1.22     $ 1.74  
Diluted earnings (loss) per share-discontinued operations
    0.09       (0.01 )     0.09       (3.14 )
 
                       
Diluted earnings (loss) per share
  $ 0.15     $ 0.35     $ 1.31     $ (1.39 )
 
                       

 


 

Saia, Inc.
Condensed Consolidated Statements of Cash Flows
For the Year Ended December 31, 2007 and 2006
(Amounts in thousands)
(Unaudited)
                 
    2007     2006  
OPERATING ACTIVITIES:
               
Net cash from operating activities-continuing operations
  $ 46,271     $ 55,643  
Net cash from operating activities-discontinued operations
          20,494  
 
           
Net cash from operating activities
    46,271       76,137  
 
               
INVESTING ACTIVITIES:
               
Acquisition of property and equipment
    (95,486 )     (93,235 )
Proceeds from disposal of property and equipment
    6,401       2,487  
Acquisition of business
    (2,344 )     (17,496 )
Proceeds from sale of subsidiary
          41,305  
Net investment in discontinued operations
          (5,359 )
 
           
Net cash used in investing activities
    (91,429 )     (72,298 )
 
               
FINANCING ACTIVITIES:
               
Proceeds from long-term debt
    73,724        
Repayment of long-term debt
    (11,402 )     (5,000 )
Repurchase of common stock
    (23,226 )     (8,861 )
Proceeds from stock option exercises
    2,049       3,826  
 
           
Net cash from financing activities
    41,145       (10,035 )
 
           
 
               
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS
    (4,013 )     (6,196 )
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD
    10,669       16,865  
 
           
CASH & CASH EQUIVALENTS, END OF PERIOD
  $ 6,656     $ 10,669  
 
           

 


 

Saia, Inc.
Financial Information
For the Quarter Ended December 31, 2007 and 2006
(Amounts in thousands)
(Unaudited)
                                                     
                                Fourth Quarter    
        Fourth Quarter   %   Amount/Workday   %
        2007   2006   Change   2007   2006   Change
Workdays
                                62       61          
 
                                                   
Operating ratio
        98.4       95.2                                  
 
                                                   
F/S Revenue
  LTL     226,738       204,009       11.1       3,657.1       3,344.4       9.3  
 
  TL     16,972       15,152       12.0       273.7       248.4       10.2  
 
  Total     243,710       219,161       11.2       3,930.8       3,592.8       9.4  
 
                                                   
Revenue excluding
  LTL     226,995       203,739       11.4       3,661.2       3,340.0       9.6  
revenue recognition
  TL     16,991       15,132       12.3       274.0       248.1       10.5  
adjustment
  Total     243,986       218,871       11.5       3,935.3       3,588.0       9.7  
 
                                                   
Tonnage
  LTL     907       871       4.1       14.6       14.3       2.4  
 
  TL     180       163       10.2       2.9       2.7       8.4  
 
  Total     1,086       1,034       5.1       17.5       17.0       3.4  
 
                                                   
Shipments
  LTL     1,664       1,559       6.7       26.8       25.6       5.0  
 
  TL     24       22       8.5       0.4       0.4       6.7  
 
  Total     1,688       1,581       6.7       27.2       25.9       5.0  
 
                                                   
Revenue/cwt.
  LTL     12.52       11.70       7.0                          
 
  TL     4.73       4.64       1.9                          
 
  Total     11.23       10.58       6.1                          
 
                                                   
Revenue/shipment
  LTL     136.45       130.67       4.4                          
 
  TL     706.72       682.88       3.5                          
 
  Total     144.57       138.41       4.5                          
 
                                                   
Pounds/shipment
  LTL     1,090       1,117       (2.4 )                        
 
  TL     14,945       14,726       1.5                          
 
  Total     1,288       1,308       (1.6 )