[Stay on top of transportation news: Get TTNews in your inbox.]
Saia Reports Mixed Operating Metrics in Q1
LTL Carrier Posts Earnings Beat but Higher OR
Key Takeaways:
- Saia reported nearly flat first-quarter net income of $49.9 million as revenue rose 2.4% to $806.2 million.
- The LTL carrier beat analyst expectations, though its operating ratio worsened 60 basis points to 91.7.
- Saia leaders said they will continue their long-term strategy to improve service, get closer to customers and support pricing.
Saia Inc. reported April 30 that revenue and earnings increased in the first quarter, but its operating ratio worsened slightly.
The Johns Creek, Ga.-based less-than-truckload carrier posted net income of $49.9 million, or $1.86 a diluted share, for the three months ending March 31. That compared with $49.8 million, $1.86, during the same time the previous year.
Total operating revenue increased 2.4% to $806.2 million from $787.6 million the prior year. The operating ratio ticked up despite those gains, increasing 60 basis points to 91.7 from 91.1.
“Our results reflected record first-quarter revenue levels as customers increasingly continued to rely on our national network as volumes grew in March following a challenging January and February,” said Saia CEO Fritz Holzgrefe. “As our national network continues to mature, I was pleased to see year-over-year improvements in our core efficiency metrics.”
Holzgrefe added that company leaders will continue to execute on their long-term strategy. The approach has centered on getting closer to customers to improve service, which in turn will drive prices.
“Our team’s commitment to the customer remained paramount, evidenced by a first quarter claims ratio of 0.5%,” said Matt Batteh, executive vice president and chief financial officer at Saia. “Reinforced by our commitment to our customers, shipments grew in both legacy and ramping facilities compared to the prior year.”
The results beat expectations by investment analysts, which had been looking for $1.82 per share and quarterly revenue of $787.58 million, according to Zacks Consensus Estimate.
Saia highlighted in the earnings report that LTL shipments per workday increased 1%, and that LTL tonnage per workday decreased 2.1%.
The report also showed that LTL revenue per hundredweight increased 1.9%, while LTL revenue per shipment decreased 1.2%.
Saia ranks No. 17 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 7 on the LTL sector list.
