Market Overview

Saia Reports Second Quarter Results


JOHNS CREEK, Ga., July 29, 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 second quarter 2020 financial results.  Diluted earnings per share in the quarter were $1.07 compared to $1.40 in the second quarter of 2019.

Highlights from the second quarter operating results were as follows:

Second Quarter 2020 Compared to Second Quarter 2019 Results

  • Revenue was $418.1 million, a 9.9% decrease
  • Operating income was $35.7 million, a 30.3% decrease
  • Operating ratio of 91.5 compared to 89.0
  • LTL shipments per workday decreased 9.7%
  • LTL tonnage per workday decreased by 8.9%
  • LTL revenue per hundredweight decreased 0.6%
  • LTL revenue per shipment rose 0.3% to $235.08

"Our second quarter results were achieved  during one of the most volatile operating backdrops our company has ever faced," said Saia President and Chief Executive Officer, Fritz Holzgrefe.  "I have been gratified  that our employees responded to the challenge by adapting to new operating procedures and practices, to provide not only for their safety, but that of our customers and vendors. Their willingness to do so allowed us to continuously fulfill our essential  role in servicing our customers' critical needs," continued Holzgrefe.

"After a dramatic drop in shipment volume in mid-March, we began to see a bottoming process in mid-April and then shipment trends continued to improve in May and June," stated Holzgrefe.  "Our second quarter results reflect both a difficult April and the subsequent improved volumes thereafter, combined with the prudent cost measures adopted quickly.  As volumes improved through the quarter we were able to begin returning furloughed staff back to full-time hours and we were also able to award a special a one-time bonus of $250 per employee to those employees who worked through the difficult conditions created by the pandemic.  While our operating ratio of 91.5 was higher than our record operating ratio last year, I was pleased that we were able to maintain margins similar to our record first quarter results this year," added Holzgrefe.

"The COVID-19 pandemic has created unprecedented disruption and uncertainty for our business and our customers over the last few months. Though the outlook remains uncertain, we have demonstrated our ability to pivot and adapt to this increased volatility," said Holzgrefe. "We are pleased to demonstrate that with solid execution of our strategy, we are in a position to be successful even when faced with an unprecedented situation in our country,"  concluded Holzgrefe. 

Saia Executive Vice President and Chief Financial Officer, Douglas Col added, "Despite the volatility in business levels we have experienced this year, revenue is only down 1.2% through the first six months compared to last year and net debt year-to-date is actually down 3.4%.  With a strong balance sheet and the flexibility of our dedicated non-union workforce, we believe we are well-positioned to continue building upon our 96-year history of growth," Col concluded.

Financial Position and Capital Expenditures

Total debt was $160.8 million at June 30, 2020 and inclusive of the cash on-hand, net debt to total capital was 13.1%.  This compares to total debt of $179.9 million and net debt to total capital of 19.1% at June 30, 2019.

Net capital expenditures in the first half of 2020 were $142.7 million.  This compares to $171.1 million in net capital expenditures during the first half of 2019, which included equipment acquired with finance leases.  In 2020, we anticipate net capital expenditures will be less than the $250 million previously planned.

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 #1964358.  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  A replay of the call will be offered two hours after the completion of the call through August 26 at 1:00 p.m. Eastern Time.  The replay will be available by dialing 888-203-1112.

Saia, Inc. (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 169 terminals across 44 states.  For more information on Saia, Inc. visit the Investor Relations section at

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) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (5) failure to achieve acquisition synergies; (6) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses; (7) economic declines in the geographic regions or industries in which our customers operate; (8) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (9) loss of significant customers; (10) the Company's need for capital and uncertainty of the credit markets; (11) the possibility of defaults under the Company's debt agreements (including violation of financial covenants); (12) possible issuance of equity which would dilute stock ownership; (13) integration risks; (14) the effect of litigation including class action lawsuits; (15) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment, technology and other assets; (16) 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 changes to international trade agreements and tariffs; (17) changes in interpretation of accounting principles; (18) dependence on key employees; (19) inclement weather; (20) labor relations, including the adverse impact should a portion of the Company's workforce become unionized; (21) terrorism risks; (22) self-insurance claims and other expense volatility; (23) risks arising from international business operations and relationships; (24) recent increases in the severity of auto liability claims against trucking companies and sharply higher costs of settlements and verdicts; (25) cost and availability of insurance coverage including the possibility the Company may be required to pay additional premiums, may be required to assume additional liability under its auto policy or be unable to obtain coverage; (26) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (27) social media risks; (28) disruption in or failure of the Company's technology or equipment including services essential to operations of the Company and/or cyber security risk; (29) failure to successfully execute the strategy to expand the Company's service geography into the Northeastern United States; and (30) 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 

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
    June 30, 2020   December 31, 2019
Cash and cash equivalents   $ 29,280     $ 248  
Accounts receivable, net     205,131       196,119  
Prepaid expenses and other     35,232       36,012  
Total current assets     269,643       232,379  
Cost     1,862,048       1,739,222  
Less: accumulated depreciation     743,345       686,623  
Net property and equipment     1,118,703       1,052,599  
OPERATING LEASE RIGHT-OF-USE ASSETS     122,401       103,890  
 OTHER ASSETS     27,453       26,825  
Total assets   $ 1,538,200     $ 1,415,693  
Accounts payable   $ 81,516     $ 83,621  
Wages and employees' benefits     55,355       49,668  
Other current liabilities     72,580       69,532  
Current portion of long-term debt     19,727       19,405  
Current portion of operating lease liability     18,916       19,020  
Total current liabilities     248,094       241,246  
Long-term debt, less current portion     141,112       117,025  
Operating lease liability, less current portion     104,958       86,239  
Deferred income taxes     119,125       111,555  
Claims, insurance and other     49,821       44,402  
Total other liabilities     415,016       359,221  
Common stock     26       26  
Additional paid-in capital     265,264       260,871  
Deferred compensation trust     (4,965 )     (3,871 )
Retained earnings     614,765       558,200  
Total stockholders' equity     875,090       815,226  
Total liabilities and stockholders' equity   $ 1,538,200     $ 1,415,693  

Saia, Inc. and Subsidiaries  
Consolidated Statements of Operations  
For the Quarters and Six Months Ended June 30, 2020 and 2019  
(Amounts in thousands, except per share data)  
    Second Quarter   Six Months  
      2020       2019       2020       2019    
OPERATING REVENUE   $ 418,114     $ 464,195     $ 864,510     $ 874,779    
OPERATING EXPENSES:                  
Salaries, wages and employees' benefits     224,277       237,689       462,922       458,041    
Purchased transportation     26,406       34,154       56,465       62,572    
Fuel, operating expenses and supplies     65,902       85,328       148,801       168,871    
Operating taxes and licenses     13,743       13,529       28,139       26,731    
Claims and insurance     18,293       13,156       28,714       22,686    
Depreciation and amortization     33,664       29,143       66,254       55,925    
Loss (gain) from property disposals, net     148       30       (1,242 )     156    
Total operating expenses     382,433       413,029       790,053       794,982    
OPERATING INCOME     35,681       51,166       74,457       79,797    
Interest expense     1,594       1,903       2,996       3,286    
Other, net     (751 )     (140 )     (204 )     (474 )  
Nonoperating expenses, net     843       1,763       2,792       2,812    
INCOME BEFORE INCOME TAXES     34,838       49,403       71,665       76,985    
Income tax expense     6,384       12,330       15,100       17,653    
NET INCOME   $ 28,454     $ 37,073     $ 56,565     $ 59,332    
Average common shares outstanding - basic     26,134       25,958       26,102       25,915    
Average common shares outstanding - diluted     26,569       26,406       26,543       26,373    
Basic earnings per share   $ 1.09     $ 1.43     $ 2.17     $ 2.29    
Diluted earnings per share   $ 1.07     $ 1.40     $ 2.13     $ 2.25    

Saia, Inc. and Subsidiaries  
Condensed Consolidated Statements of Cash Flows  
For the six months ended June 30, 2020 and 2019  
(Amounts in thousands)  
    Six Months  
      2020       2019    
Net cash provided by operating activities   $ 148,233     $ 113,574    
Net cash provided by operating activities     148,233       113,574    
Acquisition of property and equipment     (148,865 )     (166,434 )  
Proceeds from disposal of property and equipment     6,143       380    
Net cash used in investing activities     (142,722 )     (166,054 )  
Borrowing of revolving credit agreement, net     34,071       60,998    
Proceeds from stock option exercises     2,591       2,154    
Shares withheld for taxes     (3,479 )     (3,304 )  
Other financing activity     (9,662 )     (9,059 )  
Net cash provided by financing activities     23,521       50,789    
NON-CASH ITEMS:          
Equipment financed with finance leases   $     $ 5,058    

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2020 and 2019
                Second Quarter    
    Second Quarter    %   Amount/Workday    %
      2020       2019     Change   2020   2019   Change
Workdays             64   64    
Operating ratio   91.5 %     89.0 %                
LTL tonnage (1)   1,142       1,254     (8.9 )   17.85   19.60   (8.9 )
LTL shipments (1)   1,745       1,933     (9.7 )   27.26   30.20   (9.7 )
LTL revenue/cwt. $ 17.95     $ 18.05     (0.6 )            
LTL revenue/shipment $ 235.08     $ 234.33     0.3              
LTL pounds/shipment   1,309       1,298     0.8              
LTL length of haul (2)   876       841     4.2              
(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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