Saia, Inc. (Nasdaq: SAIA), a leading transportation provider
offering national less-than-truckload (LTL), non-asset truckload,
expedited and logistics services, today reported first quarter 2024
financial results. Diluted earnings per share for the quarter were
$3.38 compared to $2.85 in the first quarter of 2023.
Highlights from the first quarter operating
results were as follows:
First Quarter 2024 Compared to First Quarter 2023
Results
- Revenue was $754.8 million, a 14.3% increase
- Operating income was $117.9 million, an 18.9% increase
- Operating ratio of 84.4% compared to 85.0%
- LTL shipments per workday increased 15.7%
- LTL tonnage per workday increased 6.2%
- LTL revenue per hundredweight, excluding fuel surcharge
revenue, increased 10.5%
- LTL revenue per shipment, excluding fuel surcharge revenue,
increased 1.4%
Saia President and CEO, Fritz Holzgrefe,
commented on the quarter stating, “As is typical in the first
quarter of the year, winter weather impacted operations in the
first months of the quarter. March trends improved a bit from
February, but we did not experience the expected seasonal step-up.
Shipment growth of 15.7% for the full quarter included March
shipments per workday increasing by 16.8% from the prior year.
Despite volume being below our expectations late in the quarter, we
continued to focus on our customer service metrics which saw
continued improvement, reflecting our ongoing commitment to provide
an excellent service product for customers.”
“So far in 2024, we have opened four terminals
in new markets and relocated four additional terminals to new sites
in existing markets. We believe this year will mark an
unprecedented year of investment in our company, with a total of
15-20 new terminal openings planned for the year. To support our
growth, we have already taken delivery of over 2,000 trailers, 400
tractors and 400 forklifts this year, as part of our plan to spend
more than $400 million on fleet growth and modernization. All of
these investments support our strategy of continuing to enhance our
already strong customer service experience, and in doing so we hope
to stay on a path of improved financial performance,” concluded
Holzgrefe.
Executive Vice President and CFO Douglas Col
noted that, “Our performance over the last several years has
positioned us to invest in our company in response to the
significant industry consolidation event. We have made significant
investments year to date in real estate and equipment, and we
believe our operating trends support our investment plans for the
balance of this year. Our customers clearly see value in our
product and support our growth initiatives and our financial
position allows this flexibility.”
Financial Position and Capital Expenditures
We ended the first quarter of 2024 with $12.3
million of cash on hand and total debt of $84.1 million, which
compares to $166.4 million of cash on hand and total debt of $26.5
million at March 31, 2023.
Net capital expenditures were $456.8 million
during the first three months of 2024, compared to $128.1 million
in net capital expenditures during the first three months of 2023.
The year-to-date capital expenditures include $235.7 million to
secure properties as part of the Yellow Corporation auction
process. In 2024, we anticipate that net capital expenditures
will be approximately $1 billion, subject to ongoing evaluation of
market conditions.
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 1-800-715-9871 or
1-646-307-1963 referencing conference ID #5358022. 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 May 26, 2024 at 11:59 P.M. Eastern Time. The
replay will be available by dialing 1-800-770-2030 or
1-609-800-9909 referencing conference ID #5358022.
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 198 terminals with service across 46 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 loss and
damage, workers’ compensation, employment and group health plan
claims; (8) failure to successfully execute the strategy to expand
our service geography; (9) unexpected liabilities resulting from
the acquisition of real estate assets; (10) 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; (11)
failure to keep pace with technological developments; (12)
liabilities and costs arising from the use of artificial
intelligence; (13) labor relations, including the adverse impact
should a portion of our workforce become unionized; (14) cost,
availability and resale value of real property and revenue
equipment; (15) supply chain disruption and delays on new equipment
delivery; (16) capacity and highway infrastructure constraints;
(17) risks arising from international business operations and
relationships; (18) seasonal factors, harsh weather and disasters
caused by climate change; (19) economic declines in the geographic
regions or industries in which our customers operate; (20) the
creditworthiness of our customers and their ability to pay for
services; (21) our need for capital and uncertainty of the credit
markets; (22) the possibility of defaults under our debt
agreements, including violation of financial covenants; (23)
inaccuracies and changes to estimates and assumptions used in
preparing our financial statements; (24) failure to operate and
grow acquired businesses in a manner that support the value
allocated to acquired businesses; (25) dependence on key employees;
(26) employee turnover from changes to compensation and benefits or
market factors; (27) increased costs of healthcare benefits; (28)
damage to our reputation from adverse publicity, including from the
use of or impact from social media; (29) failure to make future
acquisitions or to achieve acquisition synergies; (30) 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; (31) the potential of
higher corporate taxes and new regulations, including with respect
to climate change, employment and labor law, healthcare and
securities regulation; (32) 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;
(33) unforeseen costs from new and existing data privacy laws; (34)
costs from new and existing laws regarding how to classify workers;
(35) changes in accounting and financial standards or practices;
(36) widespread outbreak of an illness or any other communicable
disease; (37) international conflicts and geopolitical instability;
(38) increasing investor and customer sensitivity to social and
sustainability issues, including climate change; (39) provisions in
our governing documents and Delaware law that may have
anti-takeover effects; (40) issuances of equity that would dilute
stock ownership; (41) weakness, disruption or loss of confidence in
financial or credit markets; and (42) 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.
CONTACT: Saia,
Inc.Douglas ColExecutive Vice President and Chief
Financial OfficerInvestors@saia.com
Saia, Inc. and Subsidiaries |
Condensed Consolidated Balance Sheets |
(Amounts in thousands) |
(Unaudited) |
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
12,308 |
|
|
$ |
296,215 |
|
Accounts receivable, net |
|
|
345,808 |
|
|
|
311,742 |
|
Prepaid expenses and other |
|
|
58,144 |
|
|
|
40,737 |
|
Total current assets |
|
|
416,260 |
|
|
|
648,694 |
|
|
|
|
|
|
Property and Equipment: |
|
|
|
|
Cost |
|
|
3,336,493 |
|
|
|
2,881,800 |
|
Less: accumulated depreciation |
|
|
1,159,629 |
|
|
|
1,118,492 |
|
Net property and equipment |
|
|
2,176,864 |
|
|
|
1,763,308 |
|
Operating Lease Right-of-Use Assets |
|
|
129,520 |
|
|
|
118,734 |
|
Other Assets |
|
|
43,070 |
|
|
|
52,829 |
|
Total assets |
|
$ |
2,765,714 |
|
|
$ |
2,583,565 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
Accounts payable |
|
$ |
153,487 |
|
|
$ |
141,877 |
|
Wages, vacation and employees' benefits |
|
|
55,318 |
|
|
|
75,514 |
|
Other current liabilities |
|
|
94,943 |
|
|
|
68,735 |
|
Current portion of long-term debt |
|
|
7,498 |
|
|
|
10,173 |
|
Current portion of operating lease liability |
|
|
26,526 |
|
|
|
25,757 |
|
Total current liabilities |
|
|
337,772 |
|
|
|
322,056 |
|
|
|
|
|
|
Other Liabilities: |
|
|
|
|
Long-term debt, less current portion |
|
|
76,553 |
|
|
|
6,315 |
|
Operating lease liability, less current portion |
|
|
98,190 |
|
|
|
96,462 |
|
Deferred income taxes |
|
|
157,626 |
|
|
|
155,841 |
|
Claims, insurance and other |
|
|
66,635 |
|
|
|
61,397 |
|
Total other liabilities |
|
|
399,004 |
|
|
|
320,015 |
|
|
|
|
|
|
Stockholders' Equity: |
|
|
|
|
Common stock |
|
|
27 |
|
|
|
27 |
|
Additional paid-in capital |
|
|
282,090 |
|
|
|
285,092 |
|
Deferred compensation trust |
|
|
(5,928 |
) |
|
|
(5,679 |
) |
Retained earnings |
|
|
1,752,749 |
|
|
|
1,662,054 |
|
Total stockholders' equity |
|
|
2,028,938 |
|
|
|
1,941,494 |
|
Total liabilities and stockholders' equity |
|
$ |
2,765,714 |
|
|
$ |
2,583,565 |
|
|
|
|
|
|
Saia, Inc. and Subsidiaries |
Consolidated Statements of Operations |
For the Quarters Ended March 31, 2024 and
2023 |
(Amounts in thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
First Quarter |
|
|
|
2024 |
|
|
|
2023 |
|
Operating Revenue |
|
$ |
754,775 |
|
|
$ |
660,535 |
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
Salaries, wages and employees' benefits |
|
|
341,713 |
|
|
|
298,956 |
|
Purchased transportation |
|
|
52,507 |
|
|
|
46,727 |
|
Fuel, operating expenses and supplies |
|
|
156,325 |
|
|
|
141,625 |
|
Operating taxes and licenses |
|
|
19,766 |
|
|
|
17,065 |
|
Claims and insurance |
|
|
17,463 |
|
|
|
14,059 |
|
Depreciation and amortization |
|
|
48,849 |
|
|
|
42,880 |
|
Other operating, net |
|
|
240 |
|
|
|
80 |
|
Total operating expenses |
|
|
636,863 |
|
|
|
561,392 |
|
|
|
|
|
|
Operating Income |
|
|
117,912 |
|
|
|
99,143 |
|
|
|
|
|
|
Nonoperating (Income) Expenses: |
|
|
|
|
Interest expense |
|
|
542 |
|
|
|
688 |
|
Interest income |
|
|
(755 |
) |
|
|
(140 |
) |
Other, net |
|
|
(788 |
) |
|
|
(503 |
) |
Nonoperating (income) expenses, net |
|
|
(1,001 |
) |
|
|
45 |
|
|
|
|
|
|
Income Before Income Taxes |
|
|
118,913 |
|
|
|
99,098 |
|
Income Tax Provision |
|
|
28,218 |
|
|
|
23,001 |
|
Net Income |
|
$ |
90,695 |
|
|
$ |
76,097 |
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
|
26,672 |
|
|
|
26,600 |
|
Weighted average common shares outstanding - diluted |
|
|
26,794 |
|
|
|
26,702 |
|
|
|
|
|
|
Basic earnings per share |
|
$ |
3.40 |
|
|
$ |
2.86 |
|
Diluted earnings per share |
|
$ |
3.38 |
|
|
$ |
2.85 |
|
|
|
|
|
|
Saia, Inc. and Subsidiaries |
Condensed Consolidated Statements of Cash
Flows |
For the three months ended March 31, 2024 and
2023 |
(Amounts in thousands) |
(Unaudited) |
|
|
First Quarter |
|
|
|
2024 |
|
|
|
2023 |
|
Operating Activities: |
|
|
|
|
Net
cash provided by operating activities |
|
$ |
106,468 |
|
|
$ |
119,270 |
|
Net cash provided by operating activities |
|
|
106,468 |
|
|
|
119,270 |
|
Investing Activities: |
|
|
|
|
Acquisition of property and equipment |
|
|
(457,164 |
) |
|
|
(128,415 |
) |
Proceeds from disposal of property and equipment |
|
|
343 |
|
|
|
360 |
|
Other |
|
|
4,999 |
|
|
|
– |
|
Net cash used in investing activities |
|
|
(451,822 |
) |
|
|
(128,055 |
) |
Financing Activities: |
|
|
|
|
Borrowing (repayment) of revolving credit facility, net |
|
|
72,000 |
|
|
|
– |
|
Proceeds from stock option exercises |
|
|
1,993 |
|
|
|
2,204 |
|
Shares withheld for taxes |
|
|
(7,968 |
) |
|
|
(8,927 |
) |
Other financing activity |
|
|
(4,578 |
) |
|
|
(5,457 |
) |
Net cash provided by (used in) financing activities |
|
|
61,447 |
|
|
|
(12,180 |
) |
Net Decrease in Cash and Cash Equivalents |
|
|
(283,907 |
) |
|
|
(20,965 |
) |
Cash and Cash Equivalents, beginning of period |
|
|
296,215 |
|
|
|
187,390 |
|
Cash and Cash Equivalents, end of period |
|
$ |
12,308 |
|
|
$ |
166,425 |
|
|
|
|
|
|
Saia, Inc. and Subsidiaries |
Financial Information |
For the Quarters Ended March 31, 2024 and
2023 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
|
First Quarter |
|
% |
|
Amount/Workday |
|
% |
|
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
2024 |
|
2023 |
|
Change |
Workdays |
|
|
|
|
|
|
64 |
|
64 |
|
|
Operating ratio |
|
84.4 |
% |
|
|
85.0 |
% |
|
|
|
|
|
|
|
|
LTL
tonnage (1) |
|
1,392 |
|
|
|
1,311 |
|
|
6.2 |
|
|
21.75 |
|
20.48 |
|
6.2 |
LTL
shipments (1) |
|
2,108 |
|
|
|
1,822 |
|
|
15.7 |
|
|
32.94 |
|
28.47 |
|
15.7 |
LTL
revenue/cwt. |
$ |
26.51 |
|
|
$ |
24.63 |
|
|
7.6 |
|
|
|
|
|
|
|
LTL
revenue/cwt., excluding fuel surcharge |
$ |
22.26 |
|
|
$ |
20.15 |
|
|
10.5 |
|
|
|
|
|
|
|
LTL
revenue/shipment |
$ |
350.18 |
|
|
$ |
354.37 |
|
|
(1.2 |
) |
|
|
|
|
|
|
LTL
revenue/shipment, excluding fuel surcharge |
$ |
293.96 |
|
|
$ |
289.87 |
|
|
1.4 |
|
|
|
|
|
|
|
LTL
pounds/shipment |
|
1,321 |
|
|
|
1,439 |
|
|
(8.2 |
) |
|
|
|
|
|
|
LTL
length of haul (2) |
|
888 |
|
|
|
892 |
|
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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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