Saia, Inc. · NASDAQ:SAIA
Saia — Q2 2024 Earnings Presentation
22 slides from Saia's earnings presentation, Aug 20, 2024
Slide 1: Investor Presentation Second Quarter 2024
INVESTOR PRESENTATION SECOND QUARTER 2024 Data Classification - Private
Slide 2: Forward Looking Statement
F O R WAR D LO O K I N G STAT E M E N T The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release may contain these types of s
Slide 3: Less-Than-Truckload Industry Overview
L E S S -T H A N- • Saia competes in the domestic less-than-truckload (LTL) market. T R U C K LOAD • The LTL market has an estimated annual industry revenue of $52 billion, with the top 10 carriers owning 70% of market share I N D U ST RY OV ER V I EW Top 10 US LTL Carriers – Revenue* (M) $10,000 $9
Slide 4: Saia Q2 2024 Overview
SAIA Q2 2024 O ve r v i e w Revenue $ 823.2M 200* ~36K ~15K ~34K Operating Income TERMINALS SHIPMENTS NON-UNION TRACTORS & DELIVERED EMPLOYEES TRAILERS $137.6M DAILY AND WE ARE STILL GROWING . . . Earnings Per Share $3.83 *as of 06/30/24
Slide 5: Quality and Service Delivered
QUALITY • 46-state direct coverage and growing • ~60% of shipments delivered within 48 AND • Average LTL shipment weighs ~1,340 hours SERVICE pounds • Q2 2024 cargo claims ratio of 0.56% DELIVERED • Average length of haul ~888 miles Claims Ratio 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20%
Slide 6: Diverse Customer Base
D i ve rs e C u st o m e r B a s e No single customer represents greater than 5% of sales
Slide 7: Core Values Drive Customer First Approach
C o r e Va l u e s • Customer is at the center of our core values Drive Customer • Actively recruit top talent First Approach • Onboarding • Annual training programs • Driver Academy • Internship programs • Employee engagement drives culture of continuous improvement • Expansion efforts promote inve
Slide 8: Safety Driven
SAFETY D R I V EN • Hire experienced drivers • 80+ hours of onboarding for drivers and dockworkers P EO P L E • 300+ driver trainers on staff • Annually certify all drivers in defensive driving • Weekly pre-shift safety meetings P RO C E S S • 100% of drivers are hazmat certified • Tractors equipped
Slide 9: History of Profitable Growth
10-year CAGR metrics represent investments in the company to drive profitable growth H I STO RY O F • Revenue – 9.6% P RO F I TA B L E • Operating Income – 21.0% G RO W T H • EPS – 23.5% Operating Income and Operating Ratio $500 96% $450 94% $400 92% $350 90% $300 88% $250 86% $200 84% $150 82% $100
Slide 10: Pricing to Match Service
PRICING TO • Strategic investments in facilities build density and improve proximity to customer, which help drive premier quality and service offering MATCH • ~57% of zip codes are within 50 miles of a Saia facility, up from ~35% in 2017 SERVICE • Directly service 99% of outbound industry revenue,
Slide 11: Growth Strategy Validated by Customers
• As evidenced by customer feedback, investments in people, equipment, and facilities G r ow t h have resulted in improved service offering and market share gains S t ra t e g y Va l i d at e d by • Third-party data reaffirms growth strategy to drive further customer satisfaction C u s t om e rs Cop
Slide 12: Continued Investments in Network Expansion
CONTINUED • 54 terminals opened since start of 2017, leading to market share gains and profitable growth INVESTMENTS • Continuing growth strategy with record level of capital investment of $1 billion planned for 2024 to better support customer needs, including largest equipment investment in company
Slide 13: Further Network Growth Planned
FURTHER • Plan to open 10 – 13 additional new terminals in 2024 and pipeline for further openings remains robust NETWORK • Successful acquisition of 28 terminals through auction provides generational GROWTH opportunity to expand footprint and enhance customer service PLANNED • Acquired terminals rep
Slide 14: Q2 2024 Financial Results
Q2 2024 FINANCIAL R E S U LTS +18.1% +9.7% +8.0% LTL SHIPMENTS LTL TONNAGE LTL YIELD PER WORKDAY PER WORKDAY Q2 2024 Q2 2023 Change Revenue (in millions) $823.2 $694.6 18.5% Operating Income (in millions) $137.6 $120.3 14.4% Operating Ratio (%) 83.3 82.7 60 bps Diluted Earnings Per Share $3.83 $3.42
Slide 15: Investment Summary
INVESTMENT SUMMARY • Unique story in that we are a 100-year-old company, with above-market growth potential • Investments in our network have us well positioned for volume growth and share gains • Significant revenue growth opportunities: • On-going yield improvement opportunities • Geographic expan
Slide 16: Thank You For Your Continued Interest in Saia
APPENDIX THANK YOU FOR YOUR CONTINUED INTEREST IN SAIA For more information, visit our website saia.com or contact [email protected] Data Classification - Private
Slide 17: Q2 2024 Financial Position
Q 2 2 0 2 4 F I N A N C I AL P O S I T I O N • Solid capital position • Capacity to fund growth • Private shelf agreement allows for $250M in additional funding (in millions) BORROWINGS LIQUIDITY Total Debt Cash $ - $11.2 $200 $177 Finance Leases 9.7 - $180 Senior Fixed Notes 100.0 - $160 $140 Revol
Slide 18: Reconciliation of Non-GAAP Measures
R EC O N C I L I AT I O N O F NO N - GA AP M E A S U RE S In thousands, except percentages and per share amounts N e t D e b t / To t a l C a p i t a l : 6/30/2024 Total debt $176,675 Q2 2024 TTM Less: Cash and cash equivalents $11,169 Revenue from continuing operations $3,104,295 Net debt $165,506
Slide 19: Reconciliation of Non-GAAP Measures
R EC O N C I L I AT I O N O F NO N - GA AP M E A S U RE S In thousands 2016 2017 2018 2019 2020 2021 2022 2023 Income Before $74,919 $89,751 $135,833 $146,652 $176,278 $332,773 $468,048 $466,227 Income Taxes Interest Expense 4,394 5,051 5,418 6,688 5,177 3,212 2,611 2,535 Depreciation and 76,240 87,
Slide 20: Historical Trends
H I STO R I C A L T R E N D S Revenue ($mil) Operating Income ($mil) EPS ($) 3,500 600 16.00 3,000 14.00 500 2,500 12.00 400 10.00 2,000 300 8.00 1,500 6.00 1,000 200 4.00 500 100 2.00 0 - - 2018 2019 2020 2021 2022 2023 TTM 2018 2019 2020 2021 2022 2023 TTM 2018 2019 2020 2021 2022 2023 TTM
Slide 21: Our Company
O U R C O M PA NY FY 2021 FY 2022 FY 2023 FY 2024 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr Rev (in millions) $484 $571 $616 $617 $661 $746 $730 $656 $661 $695 $775 $751 $755 823 OR 89.9 85.5 82.8 84.2 84.4 80.4 82.4 85.9 85.0 82.7 83.4 85.0 84.4 83.3 LTL To
Slide 22: Management Overview
M AN AGE M EN T OV E RV I E W Management Team Saia Tenure Industry Experience President & CEO 10 13 EVP & CFO 9 9 EVP, Chief Customer Officer 27 33 EVP, Chief Human Resources 2 2 Officer EVP, Operations 8 8 EVP, Chief Information Officer 7 7