On July 26, 2024, Saia Inc (SAIA, Financial) released its 8-K filing for the second quarter of 2024. Saia Inc, one of the top 10 less-than-truckload (LTL) carriers in the United States, reported diluted earnings per share (EPS) of $3.83, falling short of the analyst estimate of $4.02. The company also reported revenue of $823.2 million, slightly below the estimated $826.55 million.
Company Overview
Saia Inc (SAIA, Financial) operates over 200 facilities with a fleet of more than 6,200 tractors and 20,800 trailers. The company provides national LTL services, including time-definite and expedited options for shipments ranging between 100 and 10,000 pounds. Saia is recognized for its profitability and high service standards.
Q2 2024 Financial Performance
In the second quarter of 2024, Saia Inc (SAIA, Financial) reported a revenue increase of 18.5% year-over-year, reaching $823.2 million. Operating income rose by 14.4% to $137.6 million, while the operating ratio slightly increased to 83.3% from 82.7% in the same period last year. Despite these improvements, the company's EPS of $3.83 missed the analyst estimate of $4.02.
Operational Highlights
Saia Inc (SAIA, Financial) experienced significant growth in its LTL operations:
- LTL shipments per workday increased by 18.1%
- LTL tonnage per workday rose by 9.7%
- LTL revenue per hundredweight, excluding fuel surcharge revenue, increased by 8.7%
- LTL revenue per shipment, excluding fuel surcharge revenue, grew by 1.0%
Saia President and CEO, Fritz Holzgrefe, commented, “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.”
Financial Position and Capital Expenditures
As of June 30, 2024, Saia Inc (SAIA, Financial) held $11.2 million in cash and had total debt of $176.7 million. This compares to $235.0 million in cash and $21.4 million in total debt at the same time last year. The company reported net capital expenditures of $681.3 million for the first six months of 2024, a significant increase from $226.5 million in the same period of 2023. This includes $235.7 million spent on securing properties as part of the Yellow Corporation auction process.
Income Statement Summary
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Revenue | $823.2 million | $694.6 million |
| Operating Income | $137.6 million | $120.3 million |
| Net Income | $102.5 million | $91.3 million |
| Diluted EPS | $3.83 | $3.42 |
Analysis and Outlook
Saia Inc (SAIA, Financial) continues to expand its network, opening new terminals and relocating existing ones to better serve its customers. However, the company faces challenges from a softer macroeconomic environment and a shift in business mix towards lighter, more retail-oriented shipments. These factors have impacted revenue per bill and the operating ratio.
Executive Vice President and CFO, Matt Batteh, noted, “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.”
Despite missing analyst estimates, Saia Inc (SAIA, Financial) remains focused on its long-term growth strategy, leveraging its expanded network to capture market share and enhance service quality. The company's significant capital expenditures reflect its commitment to growth and operational excellence.
Explore the complete 8-K earnings release (here) from Saia Inc for further details.
