Saia Reports Second Quarter Results

JOHNS CREEK, Ga., July 28, 2023 (GLOBE NEWSWIRE) -- Saia, Inc. (Nasdaq: SAIA), a leading transportation provider offering national less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported second quarter 2023 financial results. Diluted earnings per share for the quarter were $3.42 compared to $4.10 in the second quarter of 2022. 

Highlights from the second quarter operating results were as follows:

Second Quarter 2023 Compared to Second Quarter 2022 Results

• Revenue was $694.6 million, a 6.8% decrease
• Operating income was $120.3 million, a 17.6% decrease
• Operating ratio of 82.7% compared to 80.4%
• LTL shipments per workday decreased 3.8%
• LTL tonnage per workday decreased 1.7%
• LTL revenue per hundredweight, excluding fuel surcharge revenue increased 2.7%
• LTL revenue per shipment, excluding fuel surcharge revenue increased 4.8%

“Saia released solid second quarter results despite the softer economic environment we faced compared to last year,” stated Saia President and Chief Executive Officer, Fritz Holzgrefe. “Total revenue was down only 6.8% while fuel surcharge revenue fell by more than 30%. Strong core execution helped to moderate tonnage declines year-over-year. Declining fuel costs helped offset cost trends and we were able to report an 82.7% operating ratio,” added Holzgrefe. “Our commitment to customer service and solid execution allowed us to raise prices and improve our revenue per shipment excluding fuel surcharge revenue, a key metric we monitor as we think about overcoming inflationary costs in our business,” continued Holzgrefe.

“We have opened five new terminals so far this year, enhancing our market position and in doing so we are making it easier for customers to choose Saia. Our claims ratio of 0.61% in the quarter is among the lowest in our industry and our customer first focus puts us in a great position to grow our market share for years to come,” concluded Holzgrefe.

Financial Position and Capital Expenditures

We ended the second quarter of 2023 with $235.0 million of cash on hand and total debt of $21.4 million, which compares to $137.9 million of cash on hand and total debt of $39.3 million at June 30, 2022.

Net capital expenditures were $226.5 million during the first six months of 2023, compared to $155.3 million in net capital expenditures during the first six months of 2022.  In 2023, we anticipate that net capital expenditures will be in excess of $400 million, subject to ongoing evaluation of market conditions.

Conference Call

Management will hold a conference call to discuss quarterly results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 1-888-440-5655 or 1-646-960-0338 referencing conference ID #9246157. 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 August 27, 2023 at 11:59 P.M. Eastern Time. The replay will be available by dialing 1-800-770-2030 or 1-647-362-9199 referencing conference ID #9246157.

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 192 terminals with service across 45 states. 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” 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) 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) 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; (10) failure to keep pace with technological developments; (11) labor relations, including the adverse impact should a portion of our workforce become unionized; (12) cost, availability and resale value of real property and revenue equipment; (13) supply chain disruption and delays on new equipment delivery; (14) capacity and highway infrastructure constraints; (15) risks arising from international business operations and relationships; (16) seasonal factors, harsh weather and disasters caused by climate change; (17) economic declines in the geographic regions or industries in which our customers operate; (18) the creditworthiness of our customers and their ability to pay for services; (19) our need for capital and uncertainty of the credit markets; (20) the possibility of defaults under our debt agreements, including violation of financial covenants; (21) inaccuracies and changes to estimates and assumptions used in preparing our financial statements; (22) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (23) dependence on key employees; (24) employee turnover from changes to compensation and benefits or market factors; (25) increased costs of healthcare benefits; (26) damage to our reputation from adverse publicity, including from the use of or impact from social media; (27) failure to make future acquisitions or to achieve acquisition synergies; (28) 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; (29) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (30) 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; (31) unforeseen costs from new and existing data privacy laws; (32) changes in accounting and financial standards or practices; (33) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic; (34) the conflict between Russia and Ukraine; (35) relations between China and Taiwan; (36) increasing investor and customer sensitivity to social and sustainability issues, including climate change;  (37) provisions in our governing documents and Delaware law that may have anti-takeover effects; (38) issuances of equity that would dilute stock ownership; (39) weakness, disruption or loss of confidence in financial or credit markets; and (40) 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 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.
	Douglas Col
	Executive Vice President and Chief Financial Officer
	Investors@saia.com

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
		June 30, 2023				December 31, 2022
Assets
Current Assets:
Cash and cash equivalents		$	234,997			$	187,390
Accounts receivable, net			299,551				290,306
Prepaid expenses and other			44,321				53,190
Total current assets			578,869				530,886
Property and Equipment:
Cost			2,683,192				2,478,824
Less: accumulated depreciation			1,075,639				996,204
Net property and equipment			1,607,553				1,482,620
Operating Lease Right-of-Use Assets			110,428				120,455
Other Assets			40,261				40,749
Total assets		$	2,337,111			$	2,174,710
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable		$	98,249			$	99,792
Wages, vacation and employees' benefits			63,153				66,684
Other current liabilities			68,818				68,165
Current portion of long-term debt			11,681				14,519
Current portion of operating lease liability			25,393				24,925
Total current liabilities			267,294				274,085
Other Liabilities:
Long-term debt, less current portion			9,677				16,489
Operating lease liability, less current portion			88,506				98,581
Deferred income taxes			158,543				145,771
Claims, insurance and other			66,869				60,443
Total other liabilities			323,595				321,284
Stockholders' Equity:
Common stock			27				26
Additional paid-in capital			277,208				277,366
Deferred compensation trust			(5,626	)			(5,248	)
Retained earnings			1,474,613				1,307,197
Total stockholders' equity			1,746,222				1,579,341
Total liabilities and stockholders' equity		$	2,337,111			$	2,174,710

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2023 and 2022
(Amounts in thousands, except per share data)
(Unaudited)
		Second Quarter								Six Months
			2023				2022				2023				2022
Operating Revenue		$	694,622			$	745,554			$	1,355,157			$	1,406,770
Operating Expenses:
Salaries, wages and employees' benefits			311,888				295,052				610,844				584,515
Purchased transportation			49,771				91,819				96,498				170,067
Fuel, operating expenses and supplies			133,490				145,530				275,115				268,301
Operating taxes and licenses			17,457				15,979				34,522				32,552
Claims and insurance			16,956				14,216				31,015				24,952
Depreciation and amortization			44,658				36,944				87,538				76,896
Other operating, net			147				21				227				45
Total operating expenses			574,367				599,561				1,135,759				1,157,328
Operating Income			120,255				145,993				219,398				249,442
Nonoperating (Income) Expenses:
Interest expense			458				668				1,146				1,360
Interest income			(487	)			(55	)			(627	)			(62	)
Other, net			(990	)			824				(1,493	)			1,066
Nonoperating (income) expenses, net			(1,019	)			1,437				(974	)			2,364
Income Before Income Taxes			121,274				144,556				220,372				247,078
Income tax expense			29,955				35,311				52,956				58,409
Net Income		$	91,319			$	109,245			$	167,416			$	188,669
Weighted average common shares outstanding - basic			26,634				26,507				26,617				26,489
Weighted average common shares outstanding - diluted			26,736				26,665				26,722				26,662
Basic earnings per share		$	3.43			$	4.12			$	6.29			$	7.12
Diluted earnings per share		$	3.42			$	4.10			$	6.27			$	7.08

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2023 and 2022
(Amounts in thousands)
(Unaudited)
		Six Months
			2023				2022
Operating Activities:
Net cash provided by operating activities		$	291,405			$	207,905
Net cash provided by operating activities			291,405				207,905
Investing Activities:
Acquisition of property and equipment			(227,022	)			(156,351	)
Proceeds from disposal of property and equipment			529				1,060
Net cash used in investing activities			(226,493	)			(155,291	)
Financing Activities:
Borrowing (repayment) of revolving credit agreement, net			–				–
Proceeds from stock option exercises			2,250				1,008
Shares withheld for taxes			(8,928	)			(11,230	)
Other financing activity			(10,627	)			(11,109	)
Net cash used in financing activities			(17,305	)			(21,331	)
Net Increase in Cash and Cash Equivalents			47,607				31,283
Cash and Cash Equivalents, beginning of period			187,390				106,588
Cash and Cash Equivalents, end of period		$	234,997			$	137,871

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2023 and 2022
(Unaudited)
														Second Quarter
			Second Quarter								%			Amount/Workday				%
				2023				2022			Change			2023		2022		Change
Workdays														64		64
Operating ratio				82.7	%			80.4	%
LTL tonnage (1)				1,421				1,446			(1.7	)		22.20		22.60		(1.7	)
LTL shipments (1)				1,970				2,048			(3.8	)		30.78		32.00		(3.8	)
LTL revenue/cwt.			$	23.85			$	25.05			(4.8	)
LTL revenue/cwt., excluding fuel surcharges			$	19.96			$	19.44			2.7
LTL revenue/shipment			$	344.08			$	353.74			(2.7	)
LTL revenue/shipment, excluding fuel surcharges			$	287.90			$	274.60			4.8
LTL pounds/shipment				1,443				1,412			2.2
LTL length of haul (2)				892				910			(2.0	)
	(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.