Yahoo Finance Saia Inc (SAIA) Q1 2024 Earnings Call Transcript Highlights: Robust Growth and Strategic Expansions
Revenue: Increased by 14.3% to $754.8 million.
Operating Ratio: Improved to 84.4% from 85% the previous year.
Net Income: Diluted earnings per share rose to $3.38 from $2.85.
Shipments Per Day: Grew by nearly 16% to 33,000.
New Locations: Opened 7 new locations over the past 12 months.
Yield (excluding fuel surcharge): Increased by 10.5%.
Revenue per Shipment (excluding fuel surcharge): Increased by 1.4% to $293.96.
Operating Income: Increased by 18.9% to $117.9 million.
Capital Expenditures: Projected to be approximately $1 billion for 2024.
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the monthly tonnage trends and provide an update for April? Also, could you share some thoughts on Q2 revenue and operating ratio expectations? A: (Douglas L. Col - Saia, Inc. - Executive VP, CFO & Secretary) In March, shipments were up 16.8% and tonnage was up 5.2%. For April, shipments per workday grew about 17%, and tonnage per day increased by approximately 6.5%. For Q2, we anticipate mid-single-digit revenue growth and an operating ratio improvement of 150 to 200 basis points from Q1 to Q2, despite higher depreciation and pre-opening costs for new terminals.
Q: How have the new terminal openings in Garland and Trenton been performing? A: (Frederick J. Holzgrefe - Saia, Inc. - President, CEO & Director) The new terminals are performing well, especially in improving service responsiveness and efficiency. Trenton is reducing costs and improving service as it was previously serviced from New York and Philadelphia. Garland, in the Dallas metroplex, is also showing positive early results, particularly with proximity to key accounts.
Q: What are your expectations for shipment growth in the latter half of the year as you start to anniversary the Yellow share gains? A: (Douglas L. Col - Saia, Inc. - Executive VP, CFO & Secretary) While the comps will become more challenging in the latter half of the year, the new terminal openings should provide some growth tailwinds. However, we are not specifically forecasting the macro environment or shipment growth for the back half of the year at this stage.
Q: Can you elaborate on the pricing environment and how customers are responding to rate increases? A: (Frederick J. Holzgrefe - Saia, Inc. - President, CEO & Director) Our contractual renewals in the quarter were at 9.2%. We continue to focus on ensuring that our service levels justify the rates we charge. While customers generally do not favor rate increases, our strong service levels support our pricing strategy.
Q: How is the competitive environment in the LTL industry evolving this year? A: (Douglas L. Col - Saia, Inc. - Executive VP, CFO & Secretary) The competitive environment remains disciplined with no significant changes. The industry continues to focus on profitability rather than volume growth at lower rates, which does not typically drive long-term value.
Q: With the expansion plans, how are you managing to staff new terminals and ensure service quality? A: (Frederick J. Holzgrefe - Saia, Inc. - President, CEO & Director) We are successfully staffing new terminals by promoting and relocating existing employees who understand our culture and service standards. This strategy helps maintain service quality and company culture as we expand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
