Saia(US:SAIA)2025-02-24 21:40Revenue and Operating Performance - The company's operating revenue increased by 11.4% to $3.2 billion in 2024 compared to $2.88 billion in 2023, driven by increased shipments and tonnage [186]. - LTL tonnage rose by 8.9% and LTL shipments increased by 12.4% in 2024, attributed to a redistribution of freight following a competitor's bankruptcy in 2023 [195]. - Operating income for 2024 was $482.2 million, up from $460.5 million in 2023, reflecting increased volumes despite rising salaries and benefits expenses [187]. - The operating ratio for 2024 was 85.0%, compared to 84.0% in 2023, indicating a slight increase in operating expenses relative to revenue [197]. - The company implemented general rate increases of 7.9%, 7.5%, and 6.5% on specific dates in 2024 and 2023, impacting approximately 75% of operating revenue [195]. - The company implemented a 7.9% general rate increase for customers, affecting approximately 25% of its operating revenue on October 21, 2024 [200]. Expenses and Employee Compensation - Salaries, wages, and employee benefits increased by $186.6 million in 2024, largely due to a 4.1% wage increase and increased headcount to support growth [198]. - A salary and wage increase of approximately 4.1% for all employees, excluding executives, was implemented effective July 2024, with an expected annual cost of $59.0 million [201]. Cash Flow and Investments - The company generated $583.7 million in net cash from operating activities in 2024, compared to $577.9 million in 2023 [188]. - Net cash used in investing activities rose to $1.036 billion in 2024 from $448.7 million in 2023, indicating significant investment in property and equipment [188]. - Cash flows from operating activities were $583.7 million for 2024, compared to $577.9 million for 2023, driven by increased depreciation and amortization [209]. - Net capital expenditures for 2024 totaled $1.0 billion, with projected net capital expenditures for 2025 expected to exceed $700 million [211]. Debt and Financial Obligations - The company had $473.8 million available under its Revolving Credit Facility as of December 31, 2024 [210]. - Outstanding borrowings under the Revolving Credit Facility were $94.0 million at December 31, 2024, compared to no outstanding borrowings at December 31, 2023 [215]. - The company issued senior promissory notes totaling $100 million under a Private Shelf Agreement on May 1, 2024, bearing interest at 6.09% per annum [217]. - Total contractual obligations for operating leases amounted to $147.3 million at December 31, 2024 [222]. - The company accrued approximately $3.2 million for uncertain tax positions as of December 31, 2024 [224]. Tax and Regulatory Matters - The effective income tax rate remained stable at 23.9% for both 2024 and 2023 [199]. Risk Management and Estimates - The company has established a fuel surcharge program to mitigate exposure to rising diesel fuel prices [231]. - The company reported that a 100 basis point change in loss development factors would result in an immaterial change in claims and insurance accruals, with no material changes noted for the year ended December 31, 2024 [227]. - The company’s estimates for credit losses and billing adjustments are based on historical experience, which may significantly impact revenue recognition [229]. - Changes in economic conditions, customer creditworthiness, and pricing arrangements may significantly impact revenue and accounts receivable estimates [229]. Asset Management - The company’s depreciation of assets is based on estimated useful lives and residual values, which are routinely evaluated and updated [229]. - As of December 31, 2024, the company has fixed rate debt totaling $106.3 million with an average interest rate of 4.3% [233]. - The company has variable rate debt of $94.0 million with an average interest rate of 6.6% as of December 31, 2024 [233]. - The fair value of fixed rate debt is based on current market interest rates for similar financial instruments, reflecting level two inputs [232]. - The company’s debt structure includes annual principal cash flows and related weighted average interest rates by contractual maturity dates [232].