Saia Inc.

10/25/2024 | Press release | Distributed by Public on 10/25/2024 05:46

Saia Reports Third Quarter Results Form 8 K

Saia Reports Third Quarter Results

JOHNS CREEK, GA - October 25, 2024 - Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering national less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported third quarter 2024 financial results. Diluted earnings per share for the quarter were $3.46 compared to $3.67 in the third quarter of 2023.

Highlights from the third quarter operating results were as follows:

Third Quarter 2024 Compared to Third Quarter 2023 Results

•
Revenue was $842.1 million, an 8.6% increase
•
Operating income was $125.2 million, a 2.5% decrease
•
Operating ratio of 85.1% compared to 83.4%
•
LTL shipments per workday increased 8.5%
•
LTL tonnage per workday increased 7.7%
•
LTL revenue per hundredweight, excluding fuel surcharge revenue, increased 1.7%
•
LTL revenue per shipment, excluding fuel surcharge revenue, increased 0.9%

Saia President and CEO, Fritz Holzgrefe, commented on the quarter stating, "We are pleased with the continued progress of our footprint expansion, as we opened 11 new terminals and relocated one terminal during the third quarter. The majority of the terminals opened in the quarter were in the Great Plains states, and these locations enable us to provide direct service in and out of a geography that has historically been serviced through partner carriers. With these recent terminal openings, we are now able to provide direct service to all of the contiguous 48 states, which significantly enhances our value proposition to our customers. We remain committed to our continued investment in the customer experience. We are encouraged by early customer acceptance, and we are excited to expand our addressable market for new and existing customers."

Executive Vice President and CFO, Matt Batteh, noted that, "The freight backdrop in the third quarter remained muted, and while weight per shipment was essentially flat compared to the second quarter, we continue to experience mix headwinds compared to prior year. We are pleased with the enhanced service for both new and existing customers, and with each new terminal opening, we are able to provide new solutions to customers. While there continues to be some uncertainty in the forward outlook, we remain committed to our long-term growth strategy. We are excited about the opening of our new Akron, Ohio

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terminal earlier this week, and we plan to open up to 3 additional new terminals in the fourth quarter, which would result in 21 new openings for the year. This investment in the business enables us to provide comprehensive national coverage for our customers, positioning us for long-term success."

Financial Position and Capital Expenditures

We ended the third quarter of 2024 with $14.4 million of cash on hand and total debt of $191.0 million, which compares to $249.3 million of cash on hand and total debt of $18.9 million at September 30, 2023.

Net capital expenditures were $873.2 million during the first nine months of 2024, compared to $338.4 million in net capital expenditures during the first nine months of 2023. Capital expenditures through the third quarter 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 #7664986. 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 November 24, 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 #7664986.

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 211 terminals with national service. 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," "potential" 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)

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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

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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.

Matthew Batteh

Executive Vice President and Chief Financial Officer

[email protected]

Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Amounts in thousands)

(Unaudited)

September 30, 2024

December 31, 2023

Assets

Current Assets:

Cash and cash equivalents

$14,405

$296,215

Accounts receivable, net

372,396

311,742

Prepaid expenses and other

50,546

40,737

Total current assets

437,347

648,694

Property and Equipment:

Cost

3,704,281

2,881,800

Less: accumulated depreciation

1,222,373

1,118,492

Net property and equipment

2,481,908

1,763,308

Operating Lease Right-of-Use Assets

121,336

118,734

Other Assets

41,533

52,829

Total assets

$3,082,124

$2,583,565

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts payable

$161,241

$141,877

Wages, vacation and employees' benefits

70,613

75,514

Other current liabilities

82,379

68,735

Current portion of long-term debt

6,761

10,173

Current portion of operating lease liability

25,679

25,757

Total current liabilities

346,673

322,056

Other Liabilities:

Long-term debt, less current portion

184,202

6,315

Operating lease liability, less current portion

92,325

96,462

Deferred income taxes

161,867

155,841

Claims, insurance and other

65,572

61,397

Total other liabilities

503,966

320,015

Stockholders' Equity:

Common stock

27

27

Additional paid-in capital

291,319

285,092

Deferred compensation trust

(7,877)

(5,679)

Retained earnings

1,948,016

1,662,054

Total stockholders' equity

2,231,485

1,941,494

Total liabilities and stockholders' equity

$3,082,124

$2,583,565

Saia, Inc. and Subsidiaries

Consolidated Statements of Operations

For the Quarters and Nine Months Ended September 30, 2024 and 2023

(Amounts in thousands, except per share data)

(Unaudited)

Third Quarter

Nine Months

2024

2023

2024

2023

Operating Revenue

$842,103

$775,144

$2,420,122

$2,130,301

Operating Expenses:

Salaries, wages and employees' benefits

398,134

344,605

1,112,087

955,449

Purchased transportation

65,584

76,746

179,138

173,244

Fuel, operating expenses and supplies

158,733

144,282

475,935

419,397

Operating taxes and licenses

19,942

17,018

59,401

51,540

Claims and insurance

19,274

18,024

55,565

49,039

Depreciation and amortization

54,656

45,618

156,041

133,156

Other operating, net

609

416

1,279

643

Total operating expenses

716,932

646,709

2,039,446

1,782,468

Operating Income

125,171

128,435

380,676

347,833

Nonoperating (Income) Expenses:

Interest expense

2,997

454

5,951

1,600

Interest income

(45)

(2,423)

(910)

(3,050)

Other, net

(460)

157

(1,574)

(1,336)

Nonoperating (income) expenses, net

2,492

(1,812)

3,467

(2,786)

Income Before Income Taxes

122,679

130,247

377,209

350,619

Income Tax Provision

29,931

32,034

91,247

84,990

Net Income

$92,748

$98,213

$285,962

$265,629

Weighted average common shares outstanding - basic

26,695

26,644

26,686

26,626

Weighted average common shares outstanding - diluted

26,789

26,779

26,785

26,755

Basic earnings per share

$3.47

$3.69

$10.72

$9.98

Diluted earnings per share

$3.46

$3.67

$10.68

$9.93

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the nine months ended September 30, 2024 and 2023

(Amounts in thousands)

(Unaudited)

Nine Months

2024

2023

Operating Activities:

Net cash provided by operating activities

$418,963

$416,268

Net cash provided by operating activities

418,963

416,268

Investing Activities:

Acquisition of property and equipment

(875,302)

(340,528)

Proceeds from disposal of property and equipment

2,079

2,141

Other

4,999

1,379

Net cash used in investing activities

(868,224)

(337,008)

Financing Activities:

Borrowing of revolving credit facility, net

83,000

-

Borrowing of private shelf agreement

100,000

-

Proceeds from stock option exercises

2,033

4,791

Shares withheld for taxes

(8,820)

(9,126)

Other financing activity

(8,762)

(13,053)

Net cash provided by (used in) financing activities

167,451

(17,388)

Net (Decrease) Increase in Cash and Cash Equivalents

(281,810)

61,872

Cash and Cash Equivalents, beginning of period

296,215

187,390

Cash and Cash Equivalents, end of period

$14,405

$249,262

Saia, Inc. and Subsidiaries

Financial Information

For the Quarters Ended September 30, 2024 and 2023

(Unaudited)

Third Quarter

Third Quarter

%

Amount/Workday

%

2024

2023

Change

2024

2023

Change

Workdays

64

63

Operating ratio

85.1%

83.4%

LTL tonnage (1)

1,605

1,467

9.4

25.08

23.29

7.7

LTL shipments (1)

2,379

2,158

10.2

37.17

34.25

8.5

LTL revenue/cwt.

$25.64

$25.87

(0.9)

LTL revenue/cwt., excluding fuel surcharge

$21.75

$21.39

1.7

LTL revenue/shipment

$345.93

$351.64

(1.6)

LTL revenue/shipment, excluding fuel surcharge

$293.39

$290.79

0.9

LTL pounds/shipment

1,349

1,360

(0.8)

LTL length of haul (2)

890

896

(0.7)

(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.