Saia Reports Second Quarter Results
Saia, Inc. (Nasdaq: SAIA) reported strong second quarter 2024 financial results. Highlights include:
- Revenue increased 18.5% to $823.2 million
- Operating income rose 14.4% to $137.6 million
- Diluted EPS grew to $3.83 from $3.42 in Q2 2023
- LTL shipments per workday increased 18.1%
- LTL tonnage per workday increased 9.7%
Saia opened six new terminals and relocated two others during the quarter. The company plans to open an additional 10-13 terminals in 2024. Despite market disruptions and a softer macroeconomic environment, Saia continues to execute its long-term growth strategy, focusing on customer service and quality to create value for shareholders.
- Revenue increased 18.5% year-over-year to $823.2 million
- Operating income grew 14.4% to $137.6 million
- Diluted EPS improved to $3.83 from $3.42 in Q2 2023
- LTL shipments per workday increased 18.1%
- LTL tonnage per workday increased 9.7%
- Opened six new terminals and relocated two others during the quarter
- Plans to open an additional 10-13 terminals in 2024
- Operating ratio slightly increased to 83.3% from 82.7% in Q2 2023
- Softer macroeconomic environment impacting revenue per bill and operating ratio
- Mix of business shifting to more retail-oriented, lighter-weighted shipments
- Total debt increased to $176.7 million from $21.4 million in June 2023
- Cash on hand decreased to $11.2 million from $235.0 million in June 2023
Insights
Saia's Q2 2024 results showcase robust growth amid a challenging macroeconomic environment. The 18.5% revenue increase to
The company's aggressive expansion strategy, opening six new terminals and relocating two others, is a bold move. While this expansion drives growth, with LTL shipments per workday up
Financially, Saia's position has changed significantly year-over-year. The company has transitioned from a net cash position to net debt, with
Overall, Saia's growth strategy is yielding results, but investors should monitor the balance between expansion and profitability closely in the coming quarters.
Saia's Q2 performance reflects a strategic pivot in the LTL market, capitalizing on industry disruptions to expand its footprint and service offerings. The
The company's aggressive terminal expansion strategy - opening six new terminals and relocating two others in a single quarter - is ambitious and forward-thinking. This approach positions Saia to capture new markets and enhance its service network, potentially leading to long-term competitive advantages. The mention of plans to open an additional 10 to 13 terminals this year underscores the company's commitment to this growth strategy.
However, this rapid expansion comes with challenges. The drag on revenue per bill and operating ratio indicates that Saia is sacrificing some short-term efficiency for long-term growth. The focus on training investments for new team members is important to maintain service quality during this expansion phase.
The acquisition of properties from the Yellow auction for
In summary, Saia's Q2 results demonstrate a company in transition, aggressively pursuing growth opportunities at the expense of short-term profitability. The success of this strategy will depend on how effectively Saia can integrate its new terminals and capitalize on its expanded network in the face of uncertain macroeconomic conditions.
JOHNS CREEK, Ga., July 26, 2024 (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 2024 financial results. Diluted earnings per share for the quarter were
Highlights from the second quarter operating results were as follows:
Second Quarter 2024 Compared to Second Quarter 2023 Results
- Revenue was
$823.2 million , an18.5% increase - Operating income was
$137.6 million , a14.4% increase - Operating ratio of
83.3% compared to82.7% - LTL shipments per workday increased
18.1% - LTL tonnage per workday increased
9.7% - LTL revenue per hundredweight, excluding fuel surcharge revenue, increased
8.7% - LTL revenue per shipment, excluding fuel surcharge revenue, increased
1.0%
Saia President and CEO, Fritz Holzgrefe, commented on the quarter stating, “During the quarter, we successfully opened six new terminals and relocated two others in new and established markets, while maintaining our high service standards. Successfully opening and relocating terminals required investments in employee hiring, training and other costs that come in advance of opening and revenue generation. We are pleased to see the continued customer acceptance of these facilities, as well as the 23 other terminals opened in the last three years. We are excited about the opening of our new Stockton, California and Davenport, Iowa terminals earlier this week, and as we move through the rest of 2024, we plan to continue executing on our opening timeline, with the potential to open an additional 10 to 13 new terminals this year.”
“Disruptions in the LTL market that commenced in 2023 and our continued long-term investments in our network have resulted in share gains, including in some markets that we traditionally have not participated in, introducing both new challenges and opportunities. Most notably, the mix of business that we are handling post-disruption is more retail in nature and tends to be lighter weighted. This, coupled with a softer macroeconomic environment, has been a drag on revenue per bill and on our operating ratio. Our growth and expansion efforts over the past several years have positioned us to grow market share and provide service for our customers in new markets. We expect over the coming quarters to maintain high service levels as we continue to develop these markets, and we have doubled down on our quality focus by increasing our training investment in our new team members. We know that customer service and quality create long-term value for customers, and a value creating opportunity for Saia shareholders,” concluded Holzgrefe.
Executive Vice President and CFO, Matt Batteh, noted that, “While the freight backdrop and macroeconomic conditions remain uncertain, we believe our operating trends support the continued execution of our long-term growth strategy. With each new terminal opening, we better position ourselves to provide further value to our existing customers and develop relationships with new customers in new and established markets. We believe our performance over the last several years has positioned us for this record investment in the business, and our customers clearly see the value in our service and support our growth initiatives.”
Financial Position and Capital Expenditures
We ended the second quarter of 2024 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 1-800-715-9871 or 1-646-307-1963 referencing conference ID #4962445. 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 25, 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 #4962445.
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 202 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) 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 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
Investors@saia.com
| Saia, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 11,169 | $ | 296,215 | ||||
| Accounts receivable, net | 375,868 | 311,742 | ||||||
| Prepaid expenses and other | 59,024 | 40,737 | ||||||
| Total current assets | 446,061 | 648,694 | ||||||
| Property and Equipment: | ||||||||
| Cost | 3,535,457 | 2,881,800 | ||||||
| Less: accumulated depreciation | 1,194,231 | 1,118,492 | ||||||
| Net property and equipment | 2,341,226 | 1,763,308 | ||||||
| Operating Lease Right-of-Use Assets | 127,441 | 118,734 | ||||||
| Other Assets | 42,394 | 52,829 | ||||||
| Total assets | $ | 2,957,122 | $ | 2,583,565 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 155,590 | $ | 141,877 | ||||
| Wages, vacation and employees' benefits | 62,614 | 75,514 | ||||||
| Other current liabilities | 75,985 | 68,735 | ||||||
| Current portion of long-term debt | 7,577 | 10,173 | ||||||
| Current portion of operating lease liability | 26,062 | 25,757 | ||||||
| Total current liabilities | 327,828 | 322,056 | ||||||
| Other Liabilities: | ||||||||
| Long-term debt, less current portion | 169,098 | 6,315 | ||||||
| Operating lease liability, less current portion | 97,480 | 96,462 | ||||||
| Deferred income taxes | 159,925 | 155,841 | ||||||
| Claims, insurance and other | 66,705 | 61,397 | ||||||
| Total other liabilities | 493,208 | 320,015 | ||||||
| Stockholders' Equity: | ||||||||
| Common stock | 27 | 27 | ||||||
| Additional paid-in capital | 287,611 | 285,092 | ||||||
| Deferred compensation trust | (6,820 | ) | (5,679 | ) | ||||
| Retained earnings | 1,855,268 | 1,662,054 | ||||||
| Total stockholders' equity | 2,136,086 | 1,941,494 | ||||||
| Total liabilities and stockholders' equity | $ | 2,957,122 | $ | 2,583,565 | ||||
| Saia, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| For the Quarters and Six Months Ended June 30, 2024 and 2023 | ||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Second Quarter | Six Months | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating Revenue | $ | 823,244 | $ | 694,622 | $ | 1,578,019 | $ | 1,355,157 | ||||||||
| Operating Expenses: | ||||||||||||||||
| Salaries, wages and employees' benefits | 372,240 | 311,888 | 713,953 | 610,844 | ||||||||||||
| Purchased transportation | 61,047 | 49,771 | 113,554 | 96,498 | ||||||||||||
| Fuel, operating expenses and supplies | 160,877 | 133,490 | 317,202 | 275,115 | ||||||||||||
| Operating taxes and licenses | 19,693 | 17,457 | 39,459 | 34,522 | ||||||||||||
| Claims and insurance | 18,828 | 16,956 | 36,291 | 31,015 | ||||||||||||
| Depreciation and amortization | 52,536 | 44,658 | 101,385 | 87,538 | ||||||||||||
| Other operating, net | 430 | 147 | 670 | 227 | ||||||||||||
| Total operating expenses | 685,651 | 574,367 | 1,322,514 | 1,135,759 | ||||||||||||
| Operating Income | 137,593 | 120,255 | 255,505 | 219,398 | ||||||||||||
| Nonoperating (Income) Expenses: | ||||||||||||||||
| Interest expense | 2,412 | 458 | 2,954 | 1,146 | ||||||||||||
| Interest income | (110 | ) | (487 | ) | (865 | ) | (627 | ) | ||||||||
| Other, net | (326 | ) | (990 | ) | (1,114 | ) | (1,493 | ) | ||||||||
| Nonoperating (income) expenses, net | 1,976 | (1,019 | ) | 975 | (974 | ) | ||||||||||
| Income Before Income Taxes | 135,617 | 121,274 | 254,530 | 220,372 | ||||||||||||
| Income Tax Provision | 33,098 | 29,955 | 61,316 | 52,956 | ||||||||||||
| Net Income | $ | 102,519 | $ | 91,319 | $ | 193,214 | $ | 167,416 | ||||||||
| Weighted average common shares outstanding - basic | 26,691 | 26,634 | 26,682 | 26,617 | ||||||||||||
| Weighted average common shares outstanding - diluted | 26,802 | 26,736 | 26,798 | 26,722 | ||||||||||||
| Basic earnings per share | $ | 3.84 | $ | 3.43 | $ | 7.24 | $ | 6.29 | ||||||||
| Diluted earnings per share | $ | 3.83 | $ | 3.42 | $ | 7.21 | $ | 6.27 | ||||||||
| Saia, Inc. and Subsidiaries | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| For the six months ended June 30, 2024 and 2023 | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| Six Months | ||||||||
| 2024 | 2023 | |||||||
| Operating Activities: | ||||||||
| Net cash provided by operating activities | $ | 237,242 | $ | 291,405 | ||||
| Net cash provided by operating activities | 237,242 | 291,405 | ||||||
| Investing Activities: | ||||||||
| Acquisition of property and equipment | (681,919 | ) | (227,022 | ) | ||||
| Proceeds from disposal of property and equipment | 643 | 529 | ||||||
| Other | 4,999 | – | ||||||
| Net cash used in investing activities | (676,277 | ) | (226,493 | ) | ||||
| Financing Activities: | ||||||||
| Borrowing of revolving credit facility, net | 67,000 | – | ||||||
| Borrowing of private shelf agreement | 100,000 | – | ||||||
| Proceeds from stock option exercises | 1,993 | 2,250 | ||||||
| Shares withheld for taxes | (7,968 | ) | (8,928 | ) | ||||
| Other financing activity | (7,036 | ) | (10,627 | ) | ||||
| Net cash provided by (used in) financing activities | 153,989 | (17,305 | ) | |||||
| Net (Decrease) Increase in Cash and Cash Equivalents | (285,046 | ) | 47,607 | |||||
| Cash and Cash Equivalents, beginning of period | 296,215 | 187,390 | ||||||
| Cash and Cash Equivalents, end of period | $ | 11,169 | $ | 234,997 | ||||
| Saia, Inc. and Subsidiaries | |||||||||||||
| Financial Information | |||||||||||||
| For the Quarters Ended June 30, 2024 and 2023 | |||||||||||||
| (Unaudited) | |||||||||||||
| Second Quarter | |||||||||||||
| Second Quarter | % | Amount/Workday | % | ||||||||||
| 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||
| Workdays | 64 | 64 | |||||||||||
| Operating ratio | |||||||||||||
| LTL tonnage (1) | 1,559 | 1,421 | 9.7 | 24.36 | 22.20 | 9.7 | |||||||
| LTL shipments (1) | 2,327 | 1,970 | 18.1 | 36.36 | 30.78 | 18.1 | |||||||
| LTL revenue/cwt. | 8.0 | ||||||||||||
| LTL revenue/cwt., excluding fuel surcharge | 8.7 | ||||||||||||
| LTL revenue/shipment | 0.3 | ||||||||||||
| LTL revenue/shipment, excluding fuel surcharge | 1.0 | ||||||||||||
| LTL pounds/shipment | 1,340 | 1,443 | (7.1) | ||||||||||
| LTL length of haul (2) | 888 | 892 | (0.4) | ||||||||||
| (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 was Saia's revenue for Q2 2024?
How many new terminals did Saia open in Q2 2024?
What was Saia's diluted earnings per share (EPS) for Q2 2024?
How much did Saia's LTL shipments per workday increase in Q2 2024?
What is Saia's projected capital expenditure for 2024?
