Saia Reports Record Third Quarter Results
Saia, Inc. (NASDAQ: SAIA) reported strong third quarter 2022 results, with diluted earnings per share of $3.67, up from $2.98 in Q3 2021. Revenue reached $729.6 million, marking an 18.4% increase, while operating income rose 21.0% to $128.4 million. Despite a 2.5% drop in LTL shipments per workday, LTL revenue increased by 20.1% per shipment. The company opened five new terminals this quarter, improving operational efficiency and services. Cash on hand totaled $149.8 million with low debt levels of $34.9 million, enhancing its financial stability.
- Diluted EPS increased to $3.67 from $2.98 YoY.
- Revenue grew 18.4% to $729.6 million.
- Operating income rose 21.0% to $128.4 million.
- Improved operating ratio at 82.4, better than last year's adjusted 83.5.
- Opened five new terminals, enhancing service capacity.
- LTL shipments per workday decreased by 2.5%.
- LTL tonnage per workday decreased by 0.4%.
JOHNS CREEK, Ga., Oct. 31, 2022 (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 third quarter 2022 financial results. Diluted earnings per share in the quarter were
Highlights from the third quarter operating results were as follows:
Third Quarter 2022 Compared to Third Quarter 2021 Results
- Revenue was
$729.6 million , a18.4% increase - Operating income was
$128.4 million , a21.0% increase - Operating ratio of 82.4 compared to 82.8 (adjusted operating ratio1 of 83.5 in 2021)
- LTL shipments per workday decreased
2.5% - LTL tonnage per workday decreased
0.4% - LTL revenue per hundredweight increased
17.5% - LTL revenue per shipment rose
20.1% to$359.04
“Saia’s third quarter operating ratio of
“We opened five new terminals in the quarter and opened one more in October, bringing our year-to-date total of new openings to 11. We have no other openings planned for this year, but will resume our expansion efforts in the first quarter of 2023 and anticipate another 10-15 openings next year. Customer response to our expanded service capabilities continues to be positive and we believe that the terminal expansion strategy is enabling us to provide differentiated service levels,” concluded Mr. Holzgrefe.
Saia Executive Vice President and Chief Financial Officer, Douglas Col added, “I am pleased with the year-over-year operating ratio improvement and that we were able to achieve that while still being able to provide our employees with a wage increase in July. On the cost side, we have seen a step-up in depreciation expense as new equipment has been delivered into the fleet, but we expect to see a benefit in maintenance expense and also potentially in reduced purchased transportation expense in the coming months as we run more miles with Company equipment and drivers.”
Financial Position and Capital Expenditures
We ended the third quarter of 2022 with
Net capital expenditures were
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 888-394-8218 or 323-794-2591 referencing conference ID #6820944. 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 28, 2022 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 Georgia, Saia LTL Freight operates 187 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 and other employees, purchased transportation and fuel; (5) claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims; (6) cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums, assume additional liability under its auto liability policies or be unable to obtain insurance coverage; (7) failure to successfully execute the strategy to expand our service geography; (8) 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; (9) failure to keep pace with technological developments; (10) labor relations, including the adverse impact should a portion of our workforce become unionized; (11) cost and availability of real property and revenue equipment; (12) supply chain disruption and delays on new equipment delivery; (13) capacity and highway infrastructure constraints; (14) risks arising from international business operations and relationships; (15) seasonal factors, harsh weather and disasters caused by climate change; (16) economic declines in the geographic regions or industries in which our customers operate; (17) the creditworthiness of our customers and their ability to pay for services; (18) our need for capital and uncertainty of the credit markets; (19) the possibility of defaults under our debt agreements (including violation of financial covenants); (20) failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses; (21) dependence on key employees; (22) employee turnover from changes to compensation and benefits or market factors; (23) increased costs of healthcare benefits; (24) damage to our reputation from adverse publicity, including from the use of or impact from social media; (25) failure to make future acquisitions or to achieve acquisition synergies; (26) 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; (27) the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation; (28) 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; (29) unforeseen costs from new and existing data privacy laws; (30) changes in accounting and financial standards or practices; (31) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions and higher costs that may arise from the COVID-19 pandemic in the future, including governmental regulations requiring that employees be vaccinated or be tested regularly for COVID-19 before reporting to work; (32) increasing investor and customer sensitivity to social and sustainability issues, including climate change; (33) anti-terrorism measures and terrorist events; (34) provisions in our governing documents and Delaware law that may have anti-takeover effects; (35) issuances of equity that would dilute stock ownership; and (36) 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.
FOOTNOTE
1 Non-GAAP Financial Disclosure and Reconciliation:
From time to time we supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures. These include "adjusted" operating income and "adjusted" diluted earnings per share. The Company's management believes that certain non-GAAP financial measures provide a greater understanding of ongoing operations and enhance compatibility of results with prior periods. The Company's management believes that investors may use these non-GAAP financial measures to evaluate the Company's financial performance without the impact of items that may obscure trends in the Company's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
A gain of
| Saia, Inc. and Subsidiaries | ||||||||||||||||
| Reconciliation of Certain GAAP and Non-GAAP Income Statement Items | ||||||||||||||||
| For the Quarter and Nine Months Ended September 30, 2022 and 2021 | ||||||||||||||||
| (Amounts in thousands, except operating ratio and per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Third Quarter | Nine Months | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating Income (GAAP) | $ | 128,355 | $ | 106,117 | $ | 377,797 | $ | 237,756 | ||||||||
| Less: Operating Income impact of Gain on Real Estate Disposal | - | (4,267 | ) | - | (4,267 | ) | ||||||||||
| Adjusted operating income (Non-GAAP) | $ | 128,355 | $ | 101,850 | $ | 377,797 | $ | 233,489 | ||||||||
| Third Quarter | Nine Months | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Diluted earnings per share (GAAP) | $ | 3.67 | $ | 2.98 | $ | 10.75 | $ | 6.72 | ||||||||
| Less: Diluted earnings per share impact of Gain on Real Estate Disposal | - | (0.12 | ) | - | (0.12 | ) | ||||||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 3.67 | $ | 2.86 | $ | 10.75 | $ | 6.60 | ||||||||
| Third Quarter | Nine Months | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating Ratio | 82.4 | 82.8 | 82.3 | 85.8 | ||||||||||||
| Less: Operating Ratio impact of Gain on Real Estate Disposal | - | 0.7 | - | 0.2 | ||||||||||||
| Adjusted operating ratio | 82.4 | 83.5 | 82.3 | 86.0 | ||||||||||||
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) | ||||||||
| September 30, 2022 | December 31, 2021 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 149,825 | $ | 106,588 | ||||
| Accounts receivable, net | 335,595 | 276,755 | ||||||
| Prepaid expenses and other | 65,982 | 32,912 | ||||||
| Total current assets | 551,402 | 416,255 | ||||||
| PROPERTY AND EQUIPMENT: | ||||||||
| Cost | 2,403,702 | 2,144,528 | ||||||
| Less: accumulated depreciation | 964,533 | 864,074 | ||||||
| Net property and equipment | 1,439,169 | 1,280,454 | ||||||
| OPERATING LEASE RIGHT-OF-USE ASSETS | 107,456 | 107,781 | ||||||
| OTHER ASSETS | 42,297 | 40,760 | ||||||
| Total assets | $ | 2,140,324 | $ | 1,845,250 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 114,697 | $ | 114,010 | ||||
| Wages and employees' benefits | 79,193 | 73,109 | ||||||
| Other current liabilities | 105,915 | 93,268 | ||||||
| Current portion of long-term debt | 15,914 | 19,396 | ||||||
| Current portion of operating lease liability | 22,750 | 21,565 | ||||||
| Total current liabilities | 338,469 | 321,348 | ||||||
| OTHER LIABILITIES: | ||||||||
| Long-term debt, less current portion | 18,936 | 31,008 | ||||||
| Operating lease liability, less current portion | 87,388 | 88,409 | ||||||
| Deferred income taxes | 124,960 | 124,137 | ||||||
| Claims, insurance and other | 64,089 | 60,015 | ||||||
| Total other liabilities | 295,373 | 303,569 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Common stock | 26 | 26 | ||||||
| Additional paid-in capital | 275,358 | 274,633 | ||||||
| Deferred compensation trust | (5,237 | ) | (4,101 | ) | ||||
| Retained earnings | 1,236,335 | 949,775 | ||||||
| Total stockholders' equity | 1,506,482 | 1,220,333 | ||||||
| Total liabilities and stockholders' equity | $ | 2,140,324 | $ | 1,845,250 | ||||
| Saia, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| For the Quarters and Nine Months Ended September 30, 2022 and 2021 | ||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Third Quarter | Nine Months | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| OPERATING REVENUE | $ | 729,561 | $ | 616,216 | $ | 2,136,331 | $ | 1,671,623 | ||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Salaries, wages and employees' benefits | 297,247 | 277,087 | 881,762 | 790,310 | ||||||||||||
| Purchased transportation | 85,452 | 72,193 | 255,519 | 179,705 | ||||||||||||
| Fuel, operating expenses and supplies | 145,461 | 98,834 | 413,762 | 274,399 | ||||||||||||
| Operating taxes and licenses | 16,261 | 14,572 | 48,813 | 43,469 | ||||||||||||
| Claims and insurance | 15,988 | 15,518 | 40,940 | 44,326 | ||||||||||||
| Depreciation and amortization | 40,682 | 35,742 | 117,578 | 105,773 | ||||||||||||
| Loss (gain) from property disposals, net | 115 | (3,847 | ) | 160 | (4,115 | ) | ||||||||||
| Total operating expenses | 601,206 | 510,099 | 1,758,534 | 1,433,867 | ||||||||||||
| OPERATING INCOME | 128,355 | 106,117 | 377,797 | 237,756 | ||||||||||||
| NONOPERATING EXPENSES (INCOME): | ||||||||||||||||
| Interest expense | 581 | 777 | 1,941 | 2,463 | ||||||||||||
| Other, net | 68 | 14 | 1,072 | (547 | ) | |||||||||||
| Nonoperating expenses, net | 649 | 791 | 3,013 | 1,916 | ||||||||||||
| INCOME BEFORE INCOME TAXES | 127,706 | 105,326 | 374,784 | 235,840 | ||||||||||||
| Income tax expense | 29,815 | 25,617 | 88,224 | 56,366 | ||||||||||||
| NET INCOME | $ | 97,891 | $ | 79,709 | $ | 286,560 | $ | 179,474 | ||||||||
| Average common shares outstanding - basic | 26,539 | 26,334 | 26,506 | 26,317 | ||||||||||||
| Average common shares outstanding - diluted | 26,676 | 26,713 | 26,663 | 26,699 | ||||||||||||
| Basic earnings per share | $ | 3.69 | $ | 3.03 | $ | 10.81 | $ | 6.82 | ||||||||
| Diluted earnings per share | $ | 3.67 | $ | 2.98 | $ | 10.75 | $ | 6.72 | ||||||||
| Saia, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| For the nine months ended September 30, 2022 and 2021 | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| Nine Months | ||||||||
| 2022 | 2021 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net cash provided by operating activities | $ | 344,074 | $ | 267,686 | ||||
| Net cash provided by operating activities | 344,074 | 267,686 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Acquisition of property and equipment | (279,057 | ) | (154,884 | ) | ||||
| Proceeds from disposal of property and equipment | 1,061 | 6,460 | ||||||
| Other | – | (500 | ) | |||||
| Net cash used in investing activities | (277,996 | ) | (148,924 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Borrowing (repayment) of revolving credit agreement, net | – | – | ||||||
| Proceeds from stock option exercises | 4,416 | 3,678 | ||||||
| Shares withheld for taxes | (11,703 | ) | (6,571 | ) | ||||
| Other financing activity | (15,554 | ) | (15,805 | ) | ||||
| Net cash used in financing activities | (22,841 | ) | (18,698 | ) | ||||
| NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (1) | 43,237 | 100,064 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (1) | 106,588 | 25,308 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (1) | $ | 149,825 | $ | 125,372 | ||||
| (1) Cash, cash equivalents and restricted cash at the end of the period includes | ||||||||
| Saia, Inc. and Subsidiaries | |||||||||||||||||||||||||
| Financial Information | |||||||||||||||||||||||||
| For the Quarters Ended September 30, 2022 and 2021 | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Third Quarter | |||||||||||||||||||||||||
| Third Quarter | % | Amount/Workday | % | ||||||||||||||||||||||
| 2022 | 2021 | Change | 2022 | 2021 | Change | ||||||||||||||||||||
| Workdays | 64 | 64 | |||||||||||||||||||||||
| Operating ratio | 82.4 | % | 82.8 | % | |||||||||||||||||||||
| LTL tonnage (1) | 1,397 | 1,402 | (0.4 | ) | 21.83 | 21.91 | (0.4 | ) | |||||||||||||||||
| LTL shipments (1) | 1,954 | 2,004 | (2.5 | ) | 30.52 | 31.31 | (2.5 | ) | |||||||||||||||||
| LTL revenue/cwt. | $ | 25.10 | $ | 21.36 | 17.5 | ||||||||||||||||||||
| LTL revenue/cwt., excluding fuel surcharges | $ | 19.74 | $ | 18.31 | 7.8 | ||||||||||||||||||||
| LTL revenue/shipment | $ | 359.04 | $ | 299.02 | 20.1 | ||||||||||||||||||||
| LTL revenue/shipment, excluding fuel surcharges | $ | 282.41 | $ | 256.23 | 10.2 | ||||||||||||||||||||
| LTL pounds/shipment | 1,431 | 1,400 | 2.2 | ||||||||||||||||||||||
| LTL length of haul (2) | 897 | 915 | (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. | ||||||||||||||||||||||||
FAQ
What were Saia's earnings per share for Q3 2022?
How did Saia's revenue change in Q3 2022 compared to Q3 2021?
What is the operating income of Saia for Q3 2022?
Did Saia open any new terminals in Q3 2022?
What was the cash position of Saia at the end of Q3 2022?
