GlobeNewswire Inc | Jul 29, 2020 07:30AM EDT

July 29, 2020

JOHNS CREEK, Ga., July 29, 2020 (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 second quarter 2020 financial results. Diluted earnings per share in the quarter were $1.07 compared to $1.40 in the second quarter of 2019.

Highlights from the second quarter operating results were as follows:

Second Quarter 2020 Compared to Second Quarter 2019 Results

-- Revenue was $418.1 million, a 9.9% decrease -- Operating income was $35.7 million, a 30.3% decrease -- Operating ratio of 91.5 compared to 89.0 -- LTL shipments per workday decreased 9.7% -- LTL tonnage per workday decreased by 8.9% -- LTL revenue per hundredweight decreased 0.6% -- LTL revenue per shipment rose 0.3% to $235.08

Our second quarter results were achieved during one of the most volatile operating backdrops our company has ever faced, said Saia President and Chief Executive Officer, Fritz Holzgrefe. I have been gratified that our employees responded to the challenge by adapting to new operating procedures and practices, to provide not only for their safety, but that of our customers and vendors. Their willingness to do so allowed us to continuously fulfill our essential role in servicing our customers' critical needs, continued Holzgrefe.

After a dramatic drop in shipment volume in mid-March, we began to see a bottoming process in mid-April and then shipment trends continued to improve in May and June, stated Holzgrefe. Our second quarter results reflect both a difficult April and the subsequent improved volumes thereafter, combined with the prudent cost measures adopted quickly. As volumes improved through the quarter we were able to begin returning furloughed staff back to full-time hours and we were also able to award a special a one-time bonus of $250 per employee to those employees who worked through the difficult conditions created by the pandemic. While our operating ratio of 91.5 was higher than our record operating ratio last year, I was pleased that we were able to maintain margins similar to our record first quarter results this year, added Holzgrefe.

The COVID-19 pandemic has created unprecedented disruption and uncertainty for our business and our customers over the last few months. Though the outlook remains uncertain, we have demonstrated our ability to pivot and adapt to this increased volatility, said Holzgrefe. We are pleased to demonstrate that with solid execution of our strategy, we are in a position to be successful even when faced with an unprecedented situation in our country, concluded Holzgrefe.

Saia Executive Vice President and Chief Financial Officer, Douglas Col added, Despite the volatility in business levels we have experienced this year, revenue is only down 1.2% through the first six months compared to last year and net debt year-to-date is actually down 3.4%. With a strong balance sheet and the flexibility of our dedicated non-union workforce, we believe we are well-positioned to continue building upon our 96-year history of growth, Col concluded.

Financial Position and Capital Expenditures

Total debt was $160.8 million at June 30, 2020 and inclusive of the cash on-hand, net debt to total capital was 13.1%. This compares to total debt of $179.9 million and net debt to total capital of 19.1% at June 30, 2019.

Net capital expenditures in the first half of 2020 were $142.7 million. This compares to $171.1 million in net capital expenditures during the first half of 2019, which included equipment acquired with finance leases. In 2020, we anticipate net capital expenditures will be less than the $250 million previously planned.

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 800-367-2403 or 334-777-6978 referencing conference ID #1964358. 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.saiacorp.com. A replay of the call will be offered two hours after the completion of the call through August 26 at 1:00 p.m. Eastern Time. The replay will be available by dialing 888-203-1112.

Saia, Inc. (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 169 terminals across 44 states. For more information on Saia, Inc. visit the Investor Relations section at www.saiacorp.com.

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. 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) widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions that may arise from the COVID-19 pandemic in the future; (5) failure to achieve acquisition synergies; (6) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses; (7) economic declines in the geographic regions or industries in which our customers operate; (8) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (9) loss of significant customers; (10) the Companys need for capital and uncertainty of the credit markets; (11) the possibility of defaults under the Companys debt agreements (including violation of financial covenants); (12) possible issuance of equity which would dilute stock ownership; (13) integration risks; (14) the effect of litigation including class action lawsuits; (15) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment, technology and other assets; (16) 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 changes to international trade agreements and tariffs; (17) changes in interpretation of accounting principles; (18) dependence on key employees; (19) inclement weather; (20) labor relations, including the adverse impact should a portion of the Companys workforce become unionized; (21) terrorism risks; (22) self-insurance claims and other expense volatility; (23) risks arising from international business operations and relationships; (24) recent increases in the severity of auto liability claims against trucking companies and sharply higher costs of settlements and verdicts; (25) cost and availability of insurance coverage including the possibility the Company may be required to pay additional premiums, may be required to assume additional liability under its auto policy or be unable to obtain coverage; (26) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (27) social media risks; (28) disruption in or failure of the Companys technology or equipment including services essential to operations of the Company and/or cyber security risk; (29) failure to successfully execute the strategy to expand the Companys service geography into the Northeastern United States; and (30) other financial, operational and legal risks and uncertainties detailed from time to time in the Companys 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.

CONTACT: Saia, Inc.Investor Relationsinvestors@saia.com770.232.4088

Saia, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Amounts in thousands)(Unaudited) June 30, 2020 December 31, 2019ASSETS CURRENT ASSETS: Cash and cash equivalents $ 29,280 $ 248 Accounts receivable, net 205,131 196,119 Prepaid expenses and other 35,232 36,012 Total current assets 269,643 232,379 PROPERTY AND EQUIPMENT: Cost 1,862,048 1,739,222 Less: accumulated depreciation 743,345 686,623 Net property and equipment 1,118,703 1,052,599 OPERATING LEASE RIGHT-OF-USE ASSETS 122,401 103,890 OTHER ASSETS 27,453 26,825 Total assets $ 1,538,200 $ 1,415,693 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 81,516 $ 83,621 Wages and employees' benefits 55,355 49,668 Other current liabilities 72,580 69,532 Current portion of long-term debt 19,727 19,405 Current portion of operating lease 18,916 19,020 liabilityTotal current liabilities 248,094 241,246 OTHER LIABILITIES: Long-term debt, less current portion 141,112 117,025 Operating lease liability, less current 104,958 86,239 portionDeferred income taxes 119,125 111,555 Claims, insurance and other 49,821 44,402 Total other liabilities 415,016 359,221 STOCKHOLDERS' EQUITY: Common stock 26 26 Additional paid-in capital 265,264 260,871 Deferred compensation trust (4,965 ) (3,871 )Retained earnings 614,765 558,200 Total stockholders' equity 875,090 815,226 Total liabilities and stockholders' $ 1,538,200 $ 1,415,693 equity

Saia, Inc. and Subsidiaries Consolidated Statements of Operations For the Quarters and Six Months Ended June 30, 2020 and 2019 (Amounts in thousands, except per share data) (Unaudited) Second Quarter Six Months 2020 2019 2020 2019 OPERATING $ 418,114 $ 464,195 $ 864,510 $ 874,779 REVENUE OPERATING EXPENSES:Salaries,wages and 224,277 237,689 462,922 458,041 employees'benefitsPurchased 26,406 34,154 56,465 62,572 transportationFuel,operating 65,902 85,328 148,801 168,871 expenses andsuppliesOperatingtaxes and 13,743 13,529 28,139 26,731 licensesClaims and 18,293 13,156 28,714 22,686 insuranceDepreciationand 33,664 29,143 66,254 55,925 amortizationLoss (gain)from property 148 30 (1,242 ) 156 disposals, netTotaloperating 382,433 413,029 790,053 794,982 expenses OPERATING 35,681 51,166 74,457 79,797 INCOME NONOPERATINGEXPENSES (INCOME):Interest 1,594 1,903 2,996 3,286 expenseOther, net (751 ) (140 ) (204 ) (474 ) Nonoperating 843 1,763 2,792 2,812 expenses, net INCOME BEFORE 34,838 49,403 71,665 76,985 INCOME TAXESIncome tax 6,384 12,330 15,100 17,653 expenseNET INCOME $ 28,454 $ 37,073 $ 56,565 $ 59,332 Average commonshares 26,134 25,958 26,102 25,915 outstanding -basicAverage commonshares 26,569 26,406 26,543 26,373 outstanding -diluted Basic earnings $ 1.09 $ 1.43 $ 2.17 $ 2.29 per shareDilutedearnings per $ 1.07 $ 1.40 $ 2.13 $ 2.25 share

Saia, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2020 and 2019 (Amounts in thousands) (Unaudited) Six Months 2020 2019 OPERATING ACTIVITIES: Net cash provided by operating activities $ 148,233 $ 113,574 Net cash provided by operating activities 148,233 113,574 INVESTING ACTIVITIES: Acquisition of property and equipment (148,865 ) (166,434 ) Proceeds from disposal of property and 6,143 380 equipmentNet cash used in investing activities (142,722 ) (166,054 ) FINANCING ACTIVITIES: Borrowing of revolving credit agreement, net 34,071 60,998 Proceeds from stock option exercises 2,591 2,154 Shares withheld for taxes (3,479 ) (3,304 ) Other financing activity (9,662 ) (9,059 ) Net cash provided by financing activities 23,521 50,789 NET INCREASE (DECREASE) IN CASH AND CASH 29,032 (1,691 ) EQUIVALENTSCASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 248 2,194 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 29,280 $ 503 NON-CASH ITEMS: Equipment financed with finance leases $ ? $ 5,058

Saia, Inc. and SubsidiariesFinancial InformationFor the Quarters Ended June 30, 2020 and 2019(Unaudited) Second Quarter Second Quarter % Amount/Workday % 2020 2019 Change 2020 2019 ChangeWorkdays 64 64 Operating 91.5 % 89.0 % ratioLTL tonnage 1,142 1,254 (8.9 ) 17.85 19.60 (8.9 )(1)LTLshipments 1,745 1,933 (9.7 ) 27.26 30.20 (9.7 )(1)LTL revenue $ 17.95 $ 18.05 (0.6 ) /cwt.LTL revenue $ 235.08 $ 234.33 0.3 /shipmentLTL pounds/ 1,309 1,298 0.8 shipmentLTL length 876 841 4.2 of haul (2) ^(1) In thousands. ^(2) In miles. Note: LTL operating statistics exclude transportation and logistics serviceswhere pricing is generally not determined by weight. The LTL operatingstatistics also exclude the adjustment required for financial statementpurposes in accordance with the Company's revenue recognition policy.