Jul 27, 2012 (Marketwire via COMTEX) –Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported improved second quarter 2012 results on stronger revenue, improved pricing fundamentals and operational efficiencies.
Second Quarter 2012 Compared to Second Quarter 2011 Results
· Revenues were $288 million, an increase of 8.1 percent
· Operating income increased 157 percent to $21.2 million compared to $8.3 million
· Earnings per share were $0.72 vs. $0.21
· Operating ratio was 92.6 vs. 96.9
· LTL tonnage increased by 1.1 percent as LTL shipments per workday were down 2.1 percent with a 3.3 percent increase in weight per shipment
· LTL yield was up 7.1 percent due to the favorable impact of pricing actions
“I am pleased with the contributions on many fronts saia tracking that resulted in a 430 basis point improvement in our operating ratio for the quarter. Saia’s excellent saia tracking service quality, continued progress with yield and focus on operational excellence were key contributors to our margin improvement. Supported by the recovery in the transportation market, we continue to advance our value proposition with investments in quality and refinements in pricing,” said Rick O’Dell, president and chief executive officer.
“Saia again consistently delivered 98 percent on-time service and we saw progress in essentially every quality metric we measure. Safety and cargo claim reduction programs also produced positive results and contributed to favorable quarterly comparisons. Our industrial engineering initiatives and operational efficiencies have reduced saia tracking our reliance on purchased transportation, enhanced fuel efficiency and reduced our self insurance costs. The quarter included higher costs from wage and benefits increases necessary to support our workforce as well as higher depreciation expense from investments in our fleet and technology to meet increasing customer and regulatory requirements,” continued O’Dell.
“Saia’s balance sheet is strong and our investments in technology and equipment continue to support operational efficiencies and enhance our company image. I believe that our fundamental execution on quality, yield management and optimization initiatives has never been better and provides Saia with a sound foundation for further progress,” O’Dell said.
Year to Date 2012 Compared to Year to Date 2011 Results
· Revenues were $556 million compared to $509 million in the prior year period, an increase of 9.3 percent
· Operating income was $32.2 million compared to $12.3 million in the prior year period
· Net income was $17.4 million compared to $4.1 million in the prior year period
· Earnings per share were $1.06 compared to $0.25 in the prior year period
· Operating ratio was 94.2 vs. 97.6 in the prior year period
Total debt was $90.7 million at June 30, 2012. Net of the Company’s $0.8 million cash balance at quarter-end, net debt to total capital was 27.4 percent. This compares to total debt of $81.4 million and net debt to total capital of 25.1 percent in the prior year quarter.
Net capital expenditures for the first six months of 2012 were $69.3 million. This compares to $20.6 million in the prior year period. The Company is planning net capital expenditures in 2012 of approximately $80.0 million. This expenditure level reflects replacement tractors and trailers and the Company’s continued investment in technology.
The Company will hold a conference call to discuss these results today at 10:00 a.m. Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-888-523-1245 or dial 719-325-2394 for international calls and use conference ID #4471158. Callers should dial in five minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through August 5, 2012. 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 leading, less-than-truckload (“LTL”) provider of regional, interregional and guaranteed services covering 34 states with truckload brokerage and value-added logistics services. Headquartered in Georgia, the carrier employs 8,200 people. For more information, please visit the Investor Relations section of the website 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 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, assumptions and uncertainties 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; integration risks; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; the effect of litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; governmental regulations, including but not limited to Hours of Service, engine emissions, the “Compliance, Safety, Accountability” (CSA) initiative, compliance with legislation 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; increased costs as a result of recently enacted healthcare reform legislation and 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. 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.