JOHNS CREEK, Ga., Feb. 03, 2020 (GLOBE NEWSWIRE) -- Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported fourth quarter 2019 financial results.  Diluted earnings per share in the quarter were $0.81 compared to $0.97 in the fourth quarter of 2018. Fourth quarter earnings per share include a $0.07 per share positive impact from tax credits for years 2018 and 2019, enacted in the fourth quarter.  Full year diluted earnings per share were $4.30 in 2019 compared to $3.99 in 2018.

Highlights from the fourth quarter and full year operating results were as follows:

Fourth Quarter 2019 Compared to Fourth Quarter 2018 Results

• Revenue was $443.1 million, an 8.9% increase
• Operating income was $27.4 million, a 17.7% decrease
• Operating ratio of 93.8 compared to 91.8
• LTL shipments per workday rose 6.3%
• LTL tonnage per workday increased by 4.3%
• LTL revenue per hundredweight increased 3.7%
• LTL revenue per shipment rose 1.8% to $238.45

Full Year 2019 Results Compared to Full Year 2018 Results

• Revenue was $1.8 billion, an 8.0% increase
• Operating income was $152.6 million, an 8.1% increase
• Operating ratio of 91.5 compared to 91.5
• LTL shipments per workday rose 4.3%
• LTL tonnage per workday increased by 0.4%
• LTL revenue per hundredweight increased 7.4%
• LTL revenue per shipment rose 3.4% to $234.81

The increase in fourth quarter revenue was offset by the investment in Northeast expansion, wage increase and continued inflationary healthcare costs.  The Company also experienced a spike in claims and insurance expense in the fourth quarter, primarily related to increased accident severity.  Finally, depreciation and amortization expense increased 17% year-over-year as a result of the Company’s continued investments in revenue equipment, properties and technology.

“While the fourth quarter results did not meet our expectations, 2019 revenue of $1.8 billion was a record and overall, I am pleased with what was accomplished this year,” said Saia Chief Executive Officer, Rick O’Dell.  “We opportunistically accelerated our expansion plans mid-year and of the nine terminals opened in the year, six were opened between mid-September and the end of October.  While these second half openings and the associated expenses were a drag in the back-half of the year, I believe that the longer term benefit of offering customers 48-state coverage is well worth the short-term challenges associated with the expansion,” O’Dell continued. “We have opened 18 terminals in new markets in the Northeast since our organic expansion began in May 2017, and we are now on an annualized revenue run rate of more than $280 million of business into and out of this region,” concluded O’Dell.

Saia’s President and Chief Operating Officer, Fritz Holzgrefe, commented on the current environment, “Our yield in the fourth quarter improved for the 38^th consecutive quarter and we remain committed to pricing for improved profitability.  Despite the sluggish industrial backdrop, we view the pricing environment as rational.”

“After a year of aggressive expansion and investment in our business in 2019, our plan for 2020 includes a very light terminal opening schedule.  Instead, our focus shifts to service execution across all of the new terminals and margin improvement through cost leverage,” Holzgrefe said. 

Financial Position and Capital Expenditures

Total debt was $136.4 million at December 31, 2019 and inclusive of the cash on-hand, net debt to total capital was 14.3%.  This compares to total debt of $122.9 million and net debt to total capital of 14.8% at December 31, 2018.

Net capital expenditures in 2019 were $287.2 million, including equipment acquired with capital leases.  This compares to $251.7 million in net capital expenditures during 2018.  In 2020, we anticipate net capital expenditures of approximately $250 million.

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 800-367-2403 or 334-777-6978 referencing conference ID #6815355.  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.  A replay of the call will be offered two hours after the completion of the call through March 2, 2020 at 1:00 p.m. Eastern Time.  The replay will be available by dialing 888-203-1112.

Saia, Inc. (Nasdaq: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services.  With headquarters in Johns Creek, GA, Saia LTL Freight operates 168 terminals across 43 states.  For more information on Saia, Inc. visit the Investor Relations section at www.saia.com.

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. 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 in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company’s need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company’s debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment, technology and other assets; (15) the effect of governmental regulations, including but not limited to Hours of Service, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, the Food and Drug Administration, compliance with legislation requiring companies to evaluate their internal control over financial reporting, Homeland Security, environmental regulations, tax law changes and potential changes to the North American Free Trade Agreement and to certain international tariffs; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company’s workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) risks arising from international business operations and relationships; (23) cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums under its auto liability policy; (24) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (25) social media risks; (26) disruption in or failure of the Company’s technology or equipment, including services essential to operations of the Company and/or cyber security risk; (27) failure to successfully execute the strategy to expand the Company’s service geography into the Northeastern United States; and (28) 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 press 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.

CONTACT:  Saia, Inc.
Investor Relations
investors@saia.com 
770.232.4088

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
		December 31, 2019				December 31, 2018
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	248			$	2,194
Accounts receivable, net			196,119				181,612
Prepaid expenses and other			36,012				29,567
Total current assets			232,379				213,373
PROPERTY AND EQUIPMENT:
Cost			1,739,222				1,521,341
Less: accumulated depreciation			686,623				628,283
Net property and equipment			1,052,599				893,058
OPERATING LEASE RIGHT-OF-USE ASSETS			101,666				–
OTHER ASSETS			29,049				27,312
Total assets		$	1,415,693			$	1,133,743
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	83,621			$	78,994
Wages and employees' benefits			49,668				48,116
Other current liabilities			69,532				64,118
Current portion of long-term debt			19,405				18,082
Current portion of operating lease liability			19,020				–
Total current liabilities			241,246				209,310
OTHER LIABILITIES:
Long-term debt, less current portion			117,025				104,777
Operating lease liability, less current portion			86,239				–
Deferred income taxes			111,555				86,893
Claims, insurance and other			44,402				36,899
Total other liabilities			359,221				228,569
STOCKHOLDERS' EQUITY:
Common stock			26				26
Additional paid-in capital			260,871				254,738
Deferred compensation trust			(3,871	)			(3,381	)
Retained earnings			558,200				444,481
Total stockholders' equity			815,226				695,864
Total liabilities and stockholders' equity		$	1,415,693			$	1,133,743

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Years Ended December 31, 2019 and 2018
(Amounts in thousands, except per share data)
(Unaudited)
		Fourth Quarter							Years
			2019				2018			2019				2018
OPERATING REVENUE		$	443,065			$	406,750		$	1,786,735			$	1,653,849
OPERATING EXPENSES:
Salaries, wages and employees' benefits			239,708				216,557			947,911				872,722
Purchased transportation			31,565				28,659			129,980				123,904
Fuel, operating expenses and supplies			86,926				79,818			340,056				325,000
Operating taxes and licenses			14,032				12,779			54,397				50,089
Claims and insurance			12,537				8,339			43,073				38,425
Depreciation and amortization			31,877				27,188			119,135				102,153
Loss (gain) from property disposals, net			(1,010	)			74			(403	)			379
Total operating expenses			415,635				373,414			1,634,149				1,512,672
OPERATING INCOME			27,430				33,336			152,586				141,177
NONOPERATING EXPENSES (INCOME):
Interest expense			1,534				1,328			6,688				5,418
Other, net			(260	)			310			(754	)			(74	)
Nonoperating expenses, net			1,274				1,638			5,934				5,344
INCOME BEFORE INCOME TAXES			26,156				31,698			146,652				135,833
Income tax expense			4,737				6,318			32,933				30,852
NET INCOME		$	21,419			$	25,380		$	113,719			$	104,981
Average common shares outstanding - basic			26,000				25,791			25,952				25,762
Average common shares outstanding - diluted			26,498				26,289			26,435				26,291
Basic earnings per share		$	0.82			$	0.98		$	4.38			$	4.08
Diluted earnings per share		$	0.81			$	0.97		$	4.30			$	3.99

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the twelve months ended December 31, 2019 and 2018
(Amounts in thousands)
(Unaudited)
		Years
			2019				2018
OPERATING ACTIVITIES:
Net cash provided by operating activities		$	272,876			$	256,436
Net cash provided by operating activities			272,876				256,436
INVESTING ACTIVITIES:
Acquisition of property and equipment			(287,655	)			(223,672	)
Proceeds from disposal of property and equipment			6,624				1,088
Net cash used in investing activities			(281,031	)			(222,584	)
FINANCING ACTIVITIES:
Borrowing (repayment) of revolving credit agreement, net			25,929				(23,000	)
Proceeds from stock option exercises			2,927				4,165
Shares withheld for taxes			(3,471	)			(1,396	)
Other financing activity			(19,176	)			(16,147	)
Net cash provided by (used in) financing activities			6,209				(36,378	)
NET DECREASE IN CASH AND CASH EQUIVALENTS			(1,946	)			(2,526	)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR			2,194				4,720
CASH AND CASH EQUIVALENTS, END OF YEAR		$	248			$	2,194
NON-CASH ITEMS:
Equipment financed with finance leases		$	6,169			$	29,090

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended December 31, 2019 and 2018
(Unaudited)
														Fourth Quarter
			Fourth Quarter								%			Amount/Workday				%
				2019				2018			Change			2019		2018		Change
Workdays														62		62
Operating ratio				93.8	%			91.8	%
LTL tonnage (1)				1,164				1,115			4.3			18.77		17.99		4.3
LTL shipments (1)				1,794				1,687			6.3			28.94		27.22		6.3
LTL revenue/cwt.			$	18.38			$	17.72			3.7
LTL revenue/shipment			$	238.45			$	234.33			1.8
LTL pounds/shipment				1,297				1,322			(1.9	)
LTL length of haul (2)				846				837			1.1
(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.

Saia, Inc. and Subsidiaries
Financial Information
For the Years Ended December 31, 2019 and 2018
(Unaudited)
														Year Over Year
			Year Over Year								%			Amount/Workday				%
				2019				2018			Change			2019		2018		Change
Workdays														253		253
Operating ratio				91.5	%			91.5	%
LTL tonnage (1)				4,820				4,801			0.4			19.05		18.97		0.4
LTL shipments (1)				7,409				7,103			4.3			29.28		28.08		4.3
LTL revenue/cwt.			$	18.05			$	16.80			7.4
LTL revenue/shipment			$	234.81			$	227.08			3.4
LTL pounds/shipment				1,301				1,352			(3.8	)
LTL length of haul (2)				840				837			0.4
(1	)	In thousands.
(2	)	In miles.