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SAIA
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Saia Reports Fourth Quarter Results

1. Fourth quarter EPS declined to $2.84 from $3.33 YoY. 2. Operating income dropped by 9.9% despite a revenue increase of 5%. 3. Capital expenditures exceeded $1 billion, indicating strong investment for growth. 4. Saia expanded operations by opening 21 new terminals in 2024. 5. Debt rose significantly, ending 2024 at $200.3 million from $16.5 million.

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Why Neutral?

SAIA's slightly lower EPS and higher operating ratio may hinder stock price despite revenue growth. Similar earnings drops in past quarters led to minimal stock price changes.

How important is it?

The article contains key financial data, impacting investor perceptions and decision-making significantly.

Why Short Term?

Current results suggest near-term price stabilization but long-term negative outlooks may become evident over time. Historical volatility post-earnings reports often affects short-term outlook.

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February 03, 2025 07:30 ET  | Source: Saia, Inc. JOHNS CREEK, Ga., Feb. 03, 2025 (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 fourth quarter 2024 financial results. Diluted earnings per share for the quarter were $2.84 compared to $3.33 in the fourth quarter of 2023. Full year diluted earnings per share were $13.51 in 2024 compared to $13.26 in 2023. Highlights from the fourth quarter and full year operating results were as follows: Fourth Quarter 2024 Compared to Fourth Quarter 2023 Results Revenue was $789.0 million, a 5.0% increaseOperating income was $101.5 million, a 9.9% decreaseOperating ratio of 87.1% compared to 85.0%LTL shipments per workday increased 4.5%LTL tonnage per workday increased 8.3%LTL revenue per hundredweight, excluding fuel surcharge revenue, decreased 2.3%LTL revenue per shipment, excluding fuel surcharge revenue, increased 1.3% Full Year 2024 Compared to Full Year 2023 Results Revenue was $3.2 billion, an 11.4% increaseOperating income was $482.2 million, a 4.7% increaseOperating ratio of 85.0% compared to 84.0%LTL shipments per workday increased 11.5%LTL tonnage per workday increased 8.0%LTL revenue per hundredweight, excluding fuel surcharge revenue, increased 4.3%LTL revenue per shipment, excluding fuel surcharge revenue, increased 1.1% Saia President and CEO, Fritz Holzgrefe, commented on the year stating, “I am pleased with the progress we made this year, as we opened 21 new terminals and relocated 9 others, further enhancing our service offerings in both new and existing markets. We are proud to bring our 100th year in operation to a close with 214 terminals and our ability to provide direct service to all 48 contiguous states, positioning us as a leading national carrier. We remain focused on operational excellence and are pleased with customer acceptance thus far. We onboarded approximately 1,300 new team members during the year and closed 2024 with over 15,000 employees company-wide.” Executive Vice President and CFO, Matt Batteh, noted that, “2024 represented a record level of investment in the business, with over $1 billion in capital expenditures. Investments in real estate, equipment, technology, and most importantly, our people, represent our continued commitment to our long-term growth strategy. With 214 facilities and a national footprint, our value proposition to our customers has never been stronger.”  Financial Position and Capital Expenditures We ended 2024 with $19.5 million of cash on hand and total debt of $200.3 million, which compares to $296.2 million of cash on hand and total debt of $16.5 million at December 31, 2023. Net capital expenditures were $1,040.9 million during 2024, compared to $437.2 million in net capital expenditures during 2023. 2024 capital expenditures include $235.7 million to secure properties as part of the Yellow Corporation auction process. In 2025, we anticipate that net capital expenditures will be over $700 million, subject to ongoing evaluation of market conditions. 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 1-877-317-6789 and request to join the Saia, Inc. call. 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 March 3, 2025 at 11:59 P.M. Eastern Time. The replay will be available by dialing 1-877-344-7529 referencing conference ID #9091018. 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 214 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 BattehExecutive Vice President and Chief Financial OfficerInvestors@saia.com    Saia, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(Amounts in thousands)(Unaudited)     December 31, 2024 December 31, 2023Assets       Current Assets:   Cash and cash equivalents$19,473  $296,215 Accounts receivable, net 322,991   311,742 Prepaid expenses and other 93,305   40,737 Total current assets 435,769   648,694     Property and Equipment:   Cost 3,790,069   2,881,800 Less: accumulated depreciation 1,233,134   1,118,492 Net property and equipment 2,556,935   1,763,308 Operating Lease Right-of-Use Assets 126,828   118,734 Other Assets 47,325   52,829 Total assets$3,166,857  $2,583,565     Liabilities and Stockholders' Equity       Current Liabilities:   Accounts payable$114,560  $141,877 Wages, vacation and employees' benefits 49,953   75,514 Other current liabilities 81,162   68,735 Current portion of long-term debt 5,313   10,173 Current portion of operating lease liability 27,372   25,757 Total current liabilities 278,360   322,056     Other Liabilities:   Long-term debt, less current portion 194,981   6,315 Operating lease liability, less current portion 96,798   96,462 Deferred income taxes 219,062   155,841 Claims, insurance and other 66,385   61,397 Total other liabilities 577,226   320,015     Stockholders' Equity:   Common stock 27   27 Additional paid-in capital 295,106   285,092 Deferred compensation trust (7,981)  (5,679)Retained earnings 2,024,119   1,662,054 Total stockholders' equity 2,311,271   1,941,494 Total liabilities and stockholders' equity$3,166,857  $2,583,565      Saia, Inc. and SubsidiariesConsolidated Statements of OperationsFor the Quarters and Years Ended December 31, 2024 and 2023(Amounts in thousands, except per share data)(Unaudited)     Fourth Quarter Years  2024   2023   2024   2023 Operating Revenue$788,952  $751,132  $3,209,074  $2,881,433         Operating Expenses:       Salaries, wages and employees' benefits 375,760   345,831   1,487,847   1,301,280 Purchased transportation 58,168   65,444   237,306   238,688 Fuel, operating expenses and supplies 153,467   144,291   629,402   563,688 Operating taxes and licenses 20,727   18,002   80,128   69,542 Claims and insurance 22,084   18,945   77,649   67,984 Depreciation and amortization 54,064   45,689   210,105   178,845 Other operating, net 3,198   267   4,477   910 Total operating expenses 687,468   638,469   2,726,914   2,420,937         Operating Income 101,484   112,663   482,160   460,496         Nonoperating (Income) Expenses:       Interest expense 2,979   935   8,930   2,535 Interest income (139)  (3,158)  (1,049)  (6,208)Other, net (155)  (722)  (1,729)  (2,058)Nonoperating (income) expenses, net 2,685   (2,945)  6,152   (5,731)        Income Before Income Taxes 98,799   115,608   476,008   466,227 Income Tax Provision 22,696   26,380   113,943   111,370 Net Income$76,103  $89,228  $362,065  $354,857         Weighted average common shares outstanding - basic 26,699   26,648   26,689   26,632 Weighted average common shares outstanding - diluted 26,811   26,785   26,802   26,763         Basic earnings per share$2.85  $3.35  $13.57  $13.32 Diluted earnings per share$2.84  $3.33  $13.51  $13.26          Saia, Inc. and SubsidiariesCondensed Consolidated Statements of Cash FlowsFor the twelve months ended December 31, 2024 and 2023(Amounts in thousands)(Unaudited) Years  2024   2023 Operating Activities:   Net cash provided by operating activities$583,702  $577,945 Net cash provided by operating activities 583,702   577,945 Investing Activities:   Acquisition of property and equipment (1,043,557)  (439,879)Proceeds from disposal of property and equipment 2,694   2,727 Other 4,999   (11,544)Net cash used in investing activities (1,035,864)  (448,696)Financing Activities:   Borrowing of revolving credit facility, net 94,000   – Borrowing of private shelf agreement 100,000   – Proceeds from stock option exercises 2,574   4,875 Shares withheld for taxes (9,107)  (9,216)Other financing activity (12,047)  (16,083)Net cash provided by (used in) financing activities 175,420   (20,424)Net (Decrease) Increase in Cash and Cash Equivalents (276,742)  108,825 Cash and Cash Equivalents, beginning of period 296,215   187,390 Cash and Cash Equivalents, end of period$19,473  $296,215      Saia, Inc. and SubsidiariesFinancial InformationFor the Quarters Ended December 31, 2024 and 2023(Unaudited)                         Fourth Quarter     Fourth Quarter % Amount/Workday  %   2024   2023  Change  2024   2023  ChangeWorkdays       62   61     Operating ratio 87.1%  85.0%              LTL tonnage (1) 1,481   1,345   10.1   23.89   22.05   8.3 LTL shipments (1) 2,174   2,047   6.2   35.06   33.56   4.5 LTL revenue/cwt.$25.73  $27.21   (5.4)            LTL revenue/cwt., excluding fuel surcharge$21.96  $22.47   (2.3)            LTL revenue/shipment$350.51  $357.50   (2.0)            LTL revenue/shipment, excluding fuel surcharge$299.17  $295.22   1.3             LTL pounds/shipment 1,362   1,314   3.7             LTL length of haul (2) 898   895   0.3              (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.    Saia, Inc. and Subsidiaries Financial Information For the Years Ended December 31, 2024 and 2023 (Unaudited)                             Year Over Year    Year Over Year % Amount/Workday % 2024 2023 Change 2024 2023 ChangeWorkdays          254   252    Operating ratio 85.0%  84.0%            LTL tonnage (1) 6,037   5,543   8.9   23.77   22.00   8.0 LTL shipments (1) 8,988   7,997   12.4   35.39   31.73   11.5 LTL revenue/cwt.$25.89  $25.38   2.0          LTL revenue/cwt., excluding fuel surcharges$21.90  $20.99   4.3          LTL revenue/shipment$347.81  $351.90   (1.2)         LTL revenue/shipment, excluding fuel surcharges$294.23  $291.00   1.1          LTL pounds/shipment 1,343   1,386   (3.1)         LTL length of haul (2) 891   894   (0.3)          (1) In thousands.(2) In miles.   

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