10-Q 1 saia-20220630.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 0-49983

 

Saia, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

48-1229851

(State of incorporation)

 

(I.R.S. Employer

Identification No.)

11465 Johns Creek Parkway, Suite 400

 

 

Johns Creek, GA

 

30097

(Address of principal executive offices)

 

(Zip Code)

(770) 232-5067

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $.001 per share

 

SAIA

 

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

There were 26,411,736 shares of Common Stock outstanding at July 25, 2022.

1


 

 

SAIA, INC. AND SUBSIDIARIES

INDEX

 

 

 

 

PAGE

 

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

ITEM 1:

Financial Statements

 

3

 

 

 

 

 

Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021

 

3

 

 

 

 

 

Condensed Consolidated Statements of Operations for the quarters and six months ended June 30, 2022 and 2021

 

4

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the quarters and six months ended June 30, 2022 and 2021

 

5

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021

 

6

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

7

 

 

 

 

ITEM 2:

Management's Discussion and Analysis of Financial Condition and Results of Operations

 

11

 

 

 

 

ITEM 3:

Quantitative and Qualitative Disclosures About Market Risk

 

18

 

 

 

 

ITEM 4:

Controls and Procedures

 

19

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

ITEM 1:

Legal Proceedings

 

20

 

 

 

 

ITEM 1A:

Risk Factors

 

20

 

 

 

 

ITEM 2:

Unregistered Sales of Equity Securities and Use of Proceeds

 

21

 

 

 

 

ITEM 3:

Defaults Upon Senior Securities

 

21

 

 

 

 

ITEM 4:

Mine Safety Disclosures

 

21

 

 

 

 

ITEM 5:

Other Information

 

21

 

 

 

 

ITEM 6:

Exhibits

 

22

 

 

 

 

Signature

 

23

 

 

 

 

 

2


 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(unaudited)

 

 

 

June 30, 2022

 

 

December 31, 2021

 

Assets

 

(in thousands, except share and per share data)

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

137,871

 

 

$

106,588

 

Accounts receivable, net

 

 

357,052

 

 

 

276,755

 

Income tax receivable

 

 

9,412

 

 

 

 

Prepaid expenses and other

 

 

32,041

 

 

 

32,912

 

Total current assets

 

 

536,376

 

 

 

416,255

 

Property and Equipment, at cost

 

 

2,277,527

 

 

 

2,144,528

 

Less: accumulated depreciation

 

 

924,628

 

 

 

864,074

 

Net property and equipment

 

 

1,352,899

 

 

 

1,280,454

 

Operating Lease Right-of-Use Assets

 

 

105,376

 

 

 

107,781

 

Goodwill and Identifiable Intangibles, net

 

 

18,576

 

 

 

19,157

 

Other Noncurrent Assets

 

 

34,628

 

 

 

21,603

 

Total assets

 

$

2,047,855

 

 

$

1,845,250

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

145,298

 

 

$

114,010

 

Wages, vacation and employees’ benefits

 

 

78,945

 

 

 

73,109

 

Claims and insurance accruals

 

 

49,222

 

 

 

54,717

 

Other current liabilities

 

 

25,594

 

 

 

38,551

 

Current portion of long-term debt

 

 

17,935

 

 

 

19,396

 

Current portion of operating lease liability

 

 

22,155

 

 

 

21,565

 

Total current liabilities

 

 

339,149

 

 

 

321,348

 

Other Liabilities:

 

 

 

 

 

 

Long-term debt, less current portion

 

 

21,360

 

 

 

31,008

 

Operating lease liability, less current portion

 

 

85,522

 

 

 

88,409

 

Deferred income taxes

 

 

123,229

 

 

 

124,137

 

Claims, insurance and other

 

 

74,833

 

 

 

60,015

 

Total other liabilities

 

 

304,944

 

 

 

303,569

 

Stockholders’ Equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value, 50,000 shares authorized,
     
none issued and outstanding

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized,
     
26,411,736 and 26,336,589 shares issued and outstanding at
     June 30, 2022 and December 31, 2021, respectively

 

 

26

 

 

 

26

 

Additional paid-in-capital

 

 

271,395

 

 

 

274,633

 

Deferred compensation trust, 83,197 and 94,627 shares of common
     stock at cost at June 30, 2022 and December 31, 2021, respectively

 

 

(6,103

)

 

 

(4,101

)

Retained earnings

 

 

1,138,444

 

 

 

949,775

 

Total stockholders’ equity

 

 

1,403,762

 

 

 

1,220,333

 

Total liabilities and stockholders’ equity

 

$

2,047,855

 

 

$

1,845,250

 

 

See accompanying notes to condensed consolidated financial statements.

3


 

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the quarters and six months ended June 30, 2022 and 2021

(unaudited)

 

 

 

Second Quarter

 

 

Six Months

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands, except per share data)

 

Operating Revenue

 

$

745,554

 

 

$

571,333

 

 

$

1,406,770

 

 

$

1,055,407

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and employees' benefits

 

 

295,052

 

 

 

268,786

 

 

 

584,515

 

 

 

513,223

 

Purchased transportation

 

 

91,819

 

 

 

62,481

 

 

 

170,067

 

 

 

107,512

 

Fuel, operating expenses and supplies

 

 

145,530

 

 

 

90,664

 

 

 

268,301

 

 

 

175,565

 

Operating taxes and licenses

 

 

15,979

 

 

 

14,559

 

 

 

32,552

 

 

 

28,897

 

Claims and insurance

 

 

14,216

 

 

 

17,328

 

 

 

24,952

 

 

 

28,808

 

Depreciation and amortization

 

 

36,944

 

 

 

34,659

 

 

 

76,896

 

 

 

70,031

 

Loss (gain) from property disposals, net

 

 

21

 

 

 

(69

)

 

 

45

 

 

 

(268

)

Total operating expenses

 

 

599,561

 

 

 

488,408

 

 

 

1,157,328

 

 

 

923,768

 

Operating Income

 

 

145,993

 

 

 

82,925

 

 

 

249,442

 

 

 

131,639

 

Nonoperating Expenses (Income):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

668

 

 

 

834

 

 

 

1,360

 

 

 

1,686

 

Other, net

 

 

769

 

 

 

(430

)

 

 

1,004

 

 

 

(561

)

Nonoperating expenses, net

 

 

1,437

 

 

 

404

 

 

 

2,364

 

 

 

1,125

 

Income Before Income Taxes

 

 

144,556

 

 

 

82,521

 

 

 

247,078

 

 

 

130,514

 

Income Tax Provision

 

 

35,311

 

 

 

20,047

 

 

 

58,409

 

 

 

30,749

 

Net Income

 

$

109,245

 

 

$

62,474

 

 

$

188,669

 

 

$

99,765

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic

 

 

26,507

 

 

 

26,332

 

 

 

26,489

 

 

 

26,309

 

Weighted average common shares outstanding – diluted

 

 

26,665

 

 

 

26,704

 

 

 

26,662

 

 

 

26,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

4.12

 

 

$

2.37

 

 

$

7.12

 

 

$

3.79

 

Diluted Earnings Per Share

 

$

4.10

 

 

$

2.34

 

 

$

7.08

 

 

$

3.74

 

 

See accompanying notes to condensed consolidated financial statements.

4


 

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the quarters and six months ended June 30, 2022 and 2021

(unaudited)

 

 

 

Common Shares

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Deferred Compensation Trust

 

 

Retained Earnings

 

 

Total

 

 

 

(in thousands, except share data)

 

Balance at December 31, 2021

 

 

26,336,589

 

 

$

26

 

 

$

274,633

 

 

$

(4,101

)

 

$

949,775

 

 

$

1,220,333

 

Stock compensation, including options and long-term incentives

 

 

 

 

 

 

 

 

2,056

 

 

 

 

 

 

 

 

 

2,056

 

Exercise of stock options, less shares withheld for taxes

 

 

10,992

 

 

 

 

 

 

907

 

 

 

 

 

 

 

 

 

907

 

Shares issued for long-term incentive awards, net of shares withheld for taxes

 

 

60,821

 

 

 

 

 

 

(11,230

)

 

 

 

 

 

 

 

 

(11,230

)

Purchase of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

2,445

 

 

 

(2,445

)

 

 

 

 

 

 

Sale of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

(1,066

)

 

 

1,066

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

79,424

 

 

 

79,424

 

Balance at March 31, 2022

 

 

26,408,402

 

 

$

26

 

 

$

267,745

 

 

$

(5,480

)

 

$

1,029,199

 

 

$

1,291,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation, including options and long-term incentives

 

 

 

 

 

 

 

 

1,756

 

 

 

 

 

 

 

 

 

1,756

 

Director deferred share activity

 

 

2,327

 

 

 

 

 

 

1,170

 

 

 

 

 

 

 

 

 

1,170

 

Exercise of stock options, less shares withheld for taxes

 

 

1,007

 

 

 

 

 

 

101

 

 

 

 

 

 

 

 

 

101

 

Shares issued for long-term incentive awards, net of shares withheld for taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

631

 

 

 

(631

)

 

 

 

 

 

 

Sale of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

(8

)

 

 

8

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

109,245

 

 

 

109,245

 

Balance at June 30, 2022

 

 

26,411,736

 

 

$

26

 

 

$

271,395

 

 

$

(6,103

)

 

$

1,138,444

 

 

$

1,403,762

 

 

 

 

 

Common Shares

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Deferred Compensation Trust

 

 

Retained Earnings

 

 

Total

 

 

 

(in thousands, except share data)

 

Balance at December 31, 2020

 

 

26,236,570

 

 

$

26

 

 

$

267,666

 

 

$

(2,944

)

 

$

696,540

 

 

$

961,288

 

Stock compensation, including options and long-term incentives

 

 

 

 

 

 

 

 

1,711

 

 

 

 

 

 

 

 

 

1,711

 

Exercise of stock options, less shares withheld for taxes

 

 

46,741

 

 

 

 

 

 

3,678

 

 

 

 

 

 

 

 

 

3,678

 

Shares issued for long-term incentive awards, net of shares withheld for taxes

 

 

50,381

 

 

 

 

 

 

(6,350

)

 

 

 

 

 

 

 

 

(6,350

)

Purchase of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

742

 

 

 

(742

)

 

 

 

 

 

 

Sale of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

(17

)

 

 

17

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,291

 

 

 

37,291

 

Balance at March 31, 2021

 

 

26,333,692

 

 

$

26

 

 

$

267,430

 

 

$

(3,669

)

 

$

733,831

 

 

$

997,618

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation, including options and long-term incentives

 

 

 

 

 

 

 

 

1,810

 

 

 

 

 

 

 

 

 

1,810

 

Director deferred share activity

 

 

1,404

 

 

 

 

 

 

1,256

 

 

 

 

 

 

 

 

 

1,256

 

Exercise of stock options, less shares withheld for taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued for long-term incentive awards, net of shares withheld for taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

112

 

 

 

(112

)

 

 

 

 

 

 

Sale of shares by Deferred Compensation Trust

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,474

 

 

 

62,474

 

Balance at June 30, 2021

 

 

26,335,096

 

 

$

26

 

 

$

270,608

 

 

$

(3,781

)

 

$

796,305

 

 

$

1,063,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

 

5


 

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2022 and 2021

(unaudited)

 

 

 

Six Months

 

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Operating Activities:

 

 

 

 

 

 

Net income

 

$

188,669

 

 

$

99,765

 

Noncash items included in net income:

 

 

 

 

 

 

Depreciation and amortization

 

 

76,896

 

 

 

70,031

 

Deferred income taxes

 

 

(907

)

 

 

3,183

 

Other, net

 

 

3,862

 

 

 

5,640

 

Changes in operating assets and liabilities, net

 

 

(60,615

)

 

 

(38,479

)

Net cash provided by operating activities

 

 

207,905

 

 

 

140,140

 

Investing Activities:

 

 

 

 

 

 

Acquisition of property and equipment

 

 

(156,351

)

 

 

(100,202

)

Proceeds from disposal of property and equipment

 

 

1,060

 

 

 

236

 

Net cash used in investing activities

 

 

(155,291

)

 

 

(99,966

)

Financing Activities:

 

 

 

 

 

 

Repayments of revolving credit agreement

 

 

(1,000

)

 

 

(27,614

)

Borrowings of revolving credit agreement

 

 

1,000