Investor Presentation Q3:2017

Transcription

1 Investor Presentation Q3:2017

2 Forward Looking Statement During this presentation, some "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, may be made. These "forwardlooking statements" and all other statements that may be made in this presentation that are not historical facts are subject to a number of risks and uncertainties; therefore, actual results may differ materially. Please refer to our recent SEC filings for more information on the factors that could cause actual results to differ. 2

3 Our Industry Saia competes in the domestic less-than-truckload (LTL) market with estimated annual industry revenue of $35 billion In the LTL industry, the top 5, 10 and 25 carriers have approximately 50%, 75% and 92% total share of revenue respectively $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Top 10 LTL Carriers 3

4 Our Company 153 TERMINALS ~26K SHIPMENTS DELIVERED DAILY ~9K ~18K NON-UNION EMPLOYEES TRACTORS, TRAILERS & FORKLIFTS ~5/7 AVERAGE AGE OF TRACTORS/TRAILERS AND WE RE STILL GROWING... 4

5 Our Service 1 39-state coverage 2 Average LTL shipment weighs 1,120 pounds 3 Average length of haul 813 miles 4 80% of our shipments are delivered within 48 hours 5 Q3 Cargo claims ratio of 0.74% 1.4% Claims Ratio 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Q3:17 5

6 Our Customers 6

7 Our Customer Service Indicators On-time Pick-up 99.0% CSI Goals Claims Free Delivery 99.5% On-time Delivery 98.0% Customer Satisfaction is our #1 Goal Exception Free Delivery 98.0% Invoicing Accuracy 99.1% Claims Settled w/in 30 days 100% 7

8 Our People 40+ hours onboarding for dockworkers/drivers 20 days training for Customer Service Representatives Dock-mentoring program Dock-to-driver program On-going driver safety training Safety recognition program Dedicated Non-union Workforce 8

9 Our Safety Culture 1 Hire experienced drivers driver trainers on staff PEOPLE 3 Annually certify all drivers in Smith System Defensive Driving 4 Weekly pre-shift safety meetings 5 100% of drivers are HazMat certified PROCESS 6 Vorad collision avoidance 7 Iteris lane departure warning 8 Vnomics captures driver behavior TOOLS 9 Bendix and Lytx video training 10 Fleet Safety Gap Analysis 9

10 Our Improved Results Pricing discipline has led to improved financial results Revenue 5-year CAGR of 3.4% Operating Income 5-year CAGR of 23.0% $1,400 Revenue and OR Comparison 98.0% $1,300 $1,200 $1,100 $1, % 96.0% 95.0% $ % $800 $700 $600 $ % 92.0% 91.0% $ YTD Revenue(mil) Operating Ratio 90.0% 10

11 Our Investments Average tractor age has improved to 5 years from 8 years Average trailer age has improved to 7 years from 12 years More than $100 million invested in terminal improvements and expansion $250 $230 $200 $150 $122 $112 $113 $152 $100 $68 $83 $50 $ E Revenue Equipment Real Estate/Tech Maintenance Replacement Level 11

12 Q3:17 Financial Results LTL Shipments per workday increased 3.1% LTL Tonnage per workday increased 3.6% LTL Yield increased 8.0% In $ U.S. millions except per share amounts and % 3rd Qtr rd Qtr 2016 Change Revenue $350 $ % Operating Income $24.6 $ % Operating Ratio (%) (20) bps Diluted Earnings Per Share $0.55 $ % Net Debt / Capital (%) NA EBITDA (non-gaap financial metric) $46.9 $ % 12

13 Our Solid Financial Position Solid liquidity position Capacity to fund growth (millions) Borrowings Liquidity Cash $ - $ - Capitalized Leases Senior Fixed Notes $180 $160 $140 $139 Total Debt $157 $148 $127 Revolving Credit Facility Total $ $181.6 $120 $100 $80 $94 $74 Revolving Credit Facility $250.0 $60 Borrowings (34.5) Letters of Credit Outstanding (33.9) Available on Facility $181.6 $40 $20 $0 6/1/16 9/1/16 12/1/16 3/1/17 6/1/17 9/1/17 13

14 Driving Growth in the Northeast $5 billion Annual LTL industry revenue in the northeastern US is approximately $7 billion of the total domestic LTL industry estimated at $35 billion 14

15 Northeast Expansion On May 1 st we launched service from 4 new terminals to serve customers in PA and NJ. On October 16 th we opened a new terminal in Laurel, Md. to allow us to serve customers around Baltimore and Washington D.C. TST Partnership to serve Canadian customers In December we will open a new terminal in Allentown, Pa

16 Benefits of Geographic Expansion 1 Margin enhanced through improved density 2 Synergy revenue from existing service area, provides opportunity for tonnage growth 3 Our customers are there 4 Leverage fixed costs 5 Attain operating efficiencies less fringe in network 6 Increase brand recognition 7 New England presence to provide access to Canadian customers TST Overland Express 16

17 Investment Summary Unique story in that we are a 90+ year old company, with above-market growth potential Revenue opportunities from a combination of geographic expansion, new cross-border Canadian partnership, positive shipment trends and on-going efforts to improve yield. Significant operating leverage as 100 basis points of operating margin improvement results in $0.33 per share in earnings 17

18 Appendix Thank you for your continued interest in Saia For more information see our website or contact 18

19 Reconciliation of Non-GAAP Measures In thousands, except per share amounts Q TTM Net debt / total capital: 30-Sep-17 Revenue from continuing operations $1,355,482 Total debt $127,233 Increase in operating income resulting from 1% operating ratio improvement $13,555 Less: Cash and cash equivalents $81 Marginal tax rate 37.00% Net debt $127,152 Increase in net income resulting from 1% operating ratio improvement $8,540 Shareholders' equity $531,753 Common shares outstanding - Diluted 26,113 Total capital $658,905 Increase in earnings per share resulting from 1% operating ratio improvement $0.33 Net debt / Total capital 19.3% Q EBITDA 2017 YTD EBITDA Income Before Taxes $23,420 Income Before Taxes $68,020 Interest Expense $1,313 Interest Expense $3,762 Depreciation and amortization $22,338 Depreciation and amortization $64,607 EBITDA $47,071 EBITDA $136,389 19

20 2017 Planned CapEx ($ in thousands) Count Cost Tractors ~600 $ 63,000 48' Trailers ~250 7,500 53' Trailers ~200 6,500 Pup Trailers ~600 14,000 Forklifts ~500 10,500 Other revenue equip. 7,500 Net Revenue Equipment 109,000 Land & Structures 109,000 Technology Equipment 12,000 Net Capital Expenditures $ 230,000 20

21 Historical Trends Operating Income ($mil) EPS ($) YTD YTD 21

22 Our Company FY 2014 FY 2015 FY 2016 FY 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 3 Qtr 4 Qtr Revenue Operating Ratio LTL Tonnage 947 1, LTL Shipments 1,586 1, ,542 1, ,553 1, ,607 1, LTL Yield $14.51 $ $ $15.17 $ $ $15.49 $ $ $16.68 $ $ Weight Per Shipment 1,195 1,179 1,165 1,159 1,147 1,141 1,134 1,125 1,118 1,121 1,114 1,118 1,101 1,118 1,120 Length of Haul Operating Days Revenue 1,030, , ,660 1,030,224 1,098,679 1,139,094 1,272,321 1,221,311 1,218,481 EBITDA 30,628 35,857 48,694 65, , , , , ,553 Operating Ratio % -1.7% -1.4% -2.6% -1.2% -0.2% -0.6% 0.8% LTL Tonnage 3,696 3,476 3,563 3,689 3,671 3,671 3,902 3,628 3, % 2.5% 3.5% -0.5% 0.0% 6.3% -7.0% -2.4% LTL Shipments 6,710 6,428 6,399 6,487 6,295 6,487 6,645 6,382 6, % -0.5% 1.4% -3.0% 3.1% 2.4% -4.0% -0.7% LTL Yield $ $ $ $ $ $ $ $ $ % 2.8% 10.1% 6.9% 3.7% 4.4% 3.2% 3.2% Weight Per Shipment 1,101 1,082 1,113 1,138 1,170 1,173 1,175 1,137 1, % 2.9% 2.2% 2.8% 0.3% 0.1% -3.2% -1.7% Length of Haul Operating Days

23 Management Overview Management Team Saia Tenure Industry Experience President & Chief Executive Officer EVP, Finance and Chief Financial Officer 3 8 EVP, Operations 3 20 EVP, Chief Customer Officer V.P. Human Resources