Saia(US:SAIA)2024-07-26 20:05Financial Performance - Operating revenue for Q2 2024 was $823,244,000, a 18.5% increase from $694,622,000 in Q2 2023[12] - Net income for Q2 2024 reached $102,519,000, up 12.3% from $91,319,000 in Q2 2023[12] - Operating income for the first half of 2024 was $255,505,000, a 16.4% increase from $219,398,000 in the same period of 2023[12] - Basic earnings per share for Q2 2024 was $3.84, compared to $3.43 in Q2 2023, representing an increase of 12.0%[12] - Net income for the six months ended June 30, 2024, was $193,214,000, an increase of 15.4% compared to $167,416,000 for the same period in 2023[19] - Basic earnings per share for the six months ended June 30, 2024, was $7.24, up from $6.29 in the same period of 2023, representing a 15.1% increase[30] - Consolidated operating income for the second quarter of 2024 was $137.6 million, an increase of 14.4% compared to $120.3 million in the prior year quarter[62] - Consolidated operating income for the first six months of 2024 was $255.5 million, up 16.5% from $219.4 million in the same period in 2023[64] - Net income for the second quarter of 2024 was $102.5 million, or $3.83 per diluted share, compared to $91.3 million, or $3.42 per diluted share, in the second quarter of 2023[68] Assets and Liabilities - Total assets increased to $2,957,122,000 as of June 30, 2024, compared to $2,583,565,000 at the end of 2023, reflecting a growth of 14.5%[10] - Total current liabilities slightly increased to $327,828,000 from $322,056,000 at the end of 2023[10] - Long-term debt, less current portion, increased significantly to $169,098,000 from $6,315,000 at the end of 2023[10] - Total debt increased to $176,675,000 as of June 30, 2024, compared to $16,488,000 at the end of 2023[34] - The company has a $300 million revolving credit facility, with $67 million borrowed and $32.2 million in outstanding letters of credit as of June 30, 2024[36] Cash Flow and Investments - The company invested $681,919,000 in property and equipment, significantly higher than $227,022,000 in the previous year, marking a 200.5% increase[19] - Net cash provided by operating activities decreased to $237,242,000 from $291,405,000, a decline of 18.6%[19] - Cash flows provided by operating activities for the first six months of 2024 were $237.2 million, down from $291.4 million in the same period last year[53][58] Operating Metrics - The operating ratio was 83.3% in Q2 2024, slightly higher than 82.7% in Q2 2023[53] - LTL shipments rose by 18.1% to 2.3 million, while LTL tonnage increased by 9.7% to 1.6 million tons in Q2 2024 compared to the prior year[52][59] - LTL revenue per hundredweight, excluding fuel surcharge, increased by 8.7% to $21.69 in Q2 2024[59] Employee Compensation - Salaries, wages, and employee benefits increased by $60.4 million in the second quarter of 2024, primarily due to a 4.1% company-wide wage increase and increased headcount[63] - The company implemented a market competitive salary and wage increase of approximately 4.1% effective July 2024, expected to be partially offset by productivity gains[70] Compliance and Governance - The company is in compliance with its debt covenants as of June 30, 2024, under both the revolving credit facility and the private shelf agreement[35][40] - The Company conducted an evaluation of its disclosure controls and concluded they are effective as of the end of the reporting period[96] - There were no material changes to the risk factors identified in the Annual Report for the year ended December 31, 2023[106] - The company has no changes in internal control over financial reporting that materially affected its financial reporting[97] Tax and Obligations - The effective tax rate was 24.4% for the quarter ended June 30, 2024, compared to 24.7% for the same quarter in 2023[67] - As of June 30, 2024, the Company has total contractual obligations for operating leases amounting to $147.6 million, with finance leases at $10.0 million[88] - The Company has purchase obligations totaling $153.0 million, including $152.8 million for capital expenditures as of June 30, 2024[88] - The Company has accrued approximately $4.4 million for uncertain tax positions and $86.9 million for claims and insurance liabilities as of June 30, 2024[90] - The Company has a total outstanding letters of credit of $32.2 million and surety bonds of $59.6 million as of June 30, 2024[89] Stock and Debt Issuance - The Company issued $100 million in senior promissory notes under a private shelf agreement, with an interest rate of 6.09% per annum[38] - The Company purchased a total of 2,300 shares of its stock during the three months ended June 30, 2024, at an average price of $417.55[107] Depreciation and Amortization - Depreciation and amortization expenses rose to $101,385,000 from $87,538,000, reflecting a 15.7% increase year-over-year[19] - The company extended the estimated useful lives of certain trailers and dollies from 14 years to 20 years, resulting in a $1.5 million increase in net income for the six months ended June 30, 2024[29]