JOHNS CREEK, Ga., Oct. 30, 2019 (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 third quarter 2019 financial results. Diluted earnings per share in the quarter were $1.25 compared to $1.07 in the third quarter of 2018.
Third Quarter 2019 Compared to Third Quarter 2018 ResultsRevenue was $468.9 million, a 10.2% increaseOperating income was $45.4 million, a 17.2% increaseOperating ratio improved to 90.3 from 90.9LTL shipments per workday rose 7.3%LTL tonnage per workday increased by 3.0%LTL revenue per hundredweight increased 5.3%LTL revenue per shipment rose 1.1% to $235.87“The record third quarter results at Saia were achieved even as the Company opened three new terminals and relocated another all in the back half of September, as we continue to focus on our long-term growth strategy,” said Saia President and Chief Operating Officer, Fritz Holzgrefe. “While I was generally pleased with our execution in the third quarter, the challenge created by the new terminal openings and relocations late in the quarter, and continuing negative weight per shipment trends provided a larger than expected headwind to results,” continued Holzgrefe. “Saia’s LTL yield increased year-over-year for the 37th consecutive quarter and the market remains rational in our view,” Holzgrefe concluded. “This year has been by far our most active year in terms of facility openings since our organic expansion began in 2017,” stated Saia Chief Executive Officer, Rick O’Dell. “We have opened eight new terminals in the Northeast including two in October and we have relocated three others in major markets. Additionally, in early October we opened a new terminal in Long Beach, California,” continued O’Dell. “Long Beach is the second busiest container port in the country and this 14th terminal in California positions us well for continued growth. The Long Beach terminal opening highlights our long-term opportunity to open new terminals in existing markets and get closer to customers, provide better service and ultimately gain market share,” continued O’Dell. “We plan to relocate two additional terminals before year-end,” concluded O’Dell.Financial Position and Capital ExpendituresTotal debt was $165.3 million at September 30, 2019 and inclusive of the cash on-hand, net debt to total capital was 17.3%. This compares to total debt of $121.3 million and net debt to total capital of 15.3% at September 30, 2018.Net capital expenditures in the year-to-date period through September were $250.7 million including equipment acquired with capital leases. This compares to $182.5 million in net capital expenditures through the first nine months of 2018. In 2019, we anticipate net capital expenditures of $275-$300 million.Conference CallManagement 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 #9832917. 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 November 27, 2019 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 StatementsThe 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.
(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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