Saia reports Q3 EPS $3.67, consensus $3.62

Reports Q3 revenue $775.1M, consensus $745.98M. Operating ratio of 83.4% compared to 82.4%; LTL shipments per workday increased 12.2%; LTL tonnage per workday increased 6.7%’ LTL revenue per hundredweight, excluding fuel surcharge revenue increased 8.4%; LTL revenue per shipment, excluding fuel surcharge revenue increased 3.0%. Saia President and CEO, Fritz Holzgrefe, commented on the quarter stating, “I am pleased with how third quarter results came together, especially in light of the significant step-up in volume in late July resulting from the shutdown of a large LTL competitor. Our team worked some very long hours to handle a 10% increase in shipments per day compared to June levels while maintaining our high customer service levels. We have added more than 1,000 new employees since the end of the second quarter, and onboarding and training activities are ongoing.” “Our operating ratio deteriorated by 100 basis points compared to last year, but expenses were generally well controlled. Salaries, wages and benefits increased by nearly 16% compared to last year from a combination of employee growth and an average wage increase of 4.1% implemented in July. Despite the significant increase in headcount and hours, total operating expenses grew by only 7.6%. As new employees gain experience, we expect to see improved productivity and less overtime related to onboarding and training,” stated Holzgrefe. “While there are costs associated with the rapid step-up in volume, I was pleased with how our team kept the network fluid and provided excellent service for our customers. Over the past couple years, we have heightened our focus on our core value of “Customer First”, and there was no better example of that than managing through Q3. Our teams consistently went above and beyond to satisfy customer demand, and we believe that this will continue to serve us well as we continue to grow our footprint,” continued Holzgrefe. “I was also pleased to see the core pricing environment remain positive in the quarter. Despite the headwinds from weight per shipment, revenue per shipment, excluding fuel surcharge, increased 3%. As the incremental volume began flowing into the system, our team was focused on ensuring that the freight profile and margins met our expectations. We were pleased to see the focus that our team has put on providing reliable, quality service which supports our profitability initiatives,” concluded Holzgrefe.