Saia, Inc. (SAIA): history, ownership, mission, how it works & makes money

A Brief History of Saia, Inc.

Saia, Inc., a prominent transportation company headquartered in Johns Creek, Georgia, specializes in less-than-truckload (LTL) services across the United States. As of 2024, the company has significantly expanded its operations and financial performance.

Financial Performance Overview

For the third quarter of 2024, Saia reported consolidated revenue of $842.1 million, an increase of 8.6% compared to $775.1 million in the same quarter of 2023. The growth was primarily driven by increases in shipments and tonnage, with LTL tonnage up 9.4% to 1.6 million tons and LTL shipments increasing 10.2% to 2.4 million shipments.

Operating Income and Expenses

In Q3 2024, Saia's operating income was $125.2 million, compared to $128.4 million in Q3 2023, reflecting a 2.5% decrease due to rising operating expenses associated with an expanded operational footprint. The operating ratio (operating expenses divided by operating revenue) for this period was 85.1%, up from 83.4% in the prior year.

Employee and Operational Investments

Salaries, wages, and employee benefits increased by $53.5 million in Q3 2024 compared to Q3 2023, driven by increased headcount and a company-wide wage increase of approximately 4.1% in July 2024. The company opened eleven new terminals and relocated one during the quarter, further enhancing its operational capacity.

Cash Flow and Capital Expenditures

Saia generated $419.0 million in net cash provided by operating activities for the first nine months of 2024, slightly up from $416.3 million in the same period last year. Capital expenditures for the first nine months amounted to $873.2 million, which included $235.7 million for the acquisition of terminals from Yellow Corporation.

Debt and Financing Arrangements

As of September 30, 2024, Saia had total debt of $190.9 million, which included $183.0 million from credit arrangements and $8.0 million in finance leases. The company maintains a revolving credit facility of up to $300 million, with $184.8 million available as of the reporting date.

Future Outlook

The outlook for Saia remains contingent on various external factors, including economic conditions, fuel prices, and competitive pressures. The company is focused on enhancing customer service and optimizing its pricing strategies to navigate these challenges effectively.

A Who Owns Saia, Inc. (SAIA)

Ownership Structure

As of 2024, Saia, Inc. (SAIA) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The total number of shares outstanding is approximately 26.6 million.

Major Institutional Investors

The following table lists the major institutional shareholders of Saia, Inc. as of 2024:

Insider Ownership

Insider ownership is a critical aspect of Saia's governance. The following are notable insiders and their respective holdings:

Recent Changes in Ownership

In 2024, Saia, Inc. experienced a shift in its ownership structure due to the acquisition of 17 freight terminals from Yellow Corporation. This acquisition involved an aggregate purchase price of $235.7 million, influencing the stock's performance and potentially altering shareholder dynamics.

Stock Performance

As of September 30, 2024, the stock price of Saia, Inc. stood at approximately $400.60 per share. This reflects a year-to-date increase of 25.4% from the beginning of the year, driven by robust financial performance and strategic growth initiatives.

Conclusion on Ownership Dynamics

The ownership of Saia, Inc. is characterized by strong institutional backing, with significant insider holdings that contribute to a stable governance structure. The company's growth trajectory, driven by strategic acquisitions and operational efficiencies, positions it favorably in the competitive logistics market.

Saia, Inc. (SAIA) Mission Statement

Saia, Inc. operates as a transportation company that specializes in less-than-truckload (LTL) services across the United States. The company's mission is to provide superior service through a commitment to safety, operational excellence, and customer satisfaction. The core values of Saia emphasize integrity, teamwork, and continuous improvement.

Financial Overview

As of the third quarter of 2024, Saia reported significant financial metrics that reflect its operational effectiveness and market position:

Operational Metrics

Saia's operational performance is key to understanding its mission execution:

Strategic Initiatives

To enhance its mission, Saia focuses on several strategic initiatives:

• Expansion of terminal network: The opening of eleven new terminals in 2024.
• Investment in technology to improve operational efficiencies and customer service.
• Implementation of general rate increases to optimize pricing strategies.

Market Position

Saia's market position is bolstered by its customer-centric approach and continuous improvement initiatives:

• Approximately 75% of operating revenue is subject to specific customer price negotiations.
• General rate increases of 7.5% and 6.5% were implemented for significant customer segments in late 2023 and early 2024.

Financial Performance Summary

For the nine months ended September 30, 2024, Saia's performance demonstrated robust growth:

As of September 30, 2024, Saia's working capital stood at $90.7 million, a decrease from $346.4 million the previous year, primarily due to strategic investments and acquisitions. Total assets reached $3.1 billion, reflecting the company's growth trajectory and operational capacity.

Saia continues to align its mission with operational strategies to enhance customer satisfaction and market competitiveness while navigating the complexities of the transportation sector.

How Saia, Inc. (SAIA) Works

Overview of Operations

Saia, Inc. operates as a transportation company providing national less-than-truckload (LTL) services across the United States. The company has a significant focus on expanding its geographic footprint and improving customer service.

Financial Performance

As of the third quarter of 2024, Saia reported consolidated operating revenue of $842.1 million, an increase of 8.6% from $775.1 million in the same quarter of 2023. For the nine months ended September 30, 2024, total operating revenues reached $2.4 billion, up 13.6% from $2.1 billion in the previous year.

Operating Expenses

For the third quarter of 2024, Saia's operating expenses totaled $716.9 million, compared to $646.7 million in the third quarter of 2023, reflecting an increase of 10.8%.

Operational Metrics

Saia's operational metrics indicate strong performance in terms of shipment volume and tonnage.

Investment and Expansion

Saia has undertaken significant capital investments to expand its operations. For the nine months ended September 30, 2024, net acquisitions of property and equipment were approximately $873.2 million, which includes the acquisition of 17 freight terminals from Yellow Corporation for $235.7 million.

Cash Flow and Liquidity

For the nine months ended September 30, 2024, net cash provided by operating activities was $419.0 million, compared to $416.3 million in the same period last year. Cash and cash equivalents at the end of the period were $14.4 million.

Debt and Credit Arrangements

As of September 30, 2024, Saia had outstanding borrowings of $83.0 million under its revolving credit facility, with an availability of $184.8 million.

Conclusion

Saia, Inc. continues to demonstrate growth in its operations, driven by a strategic focus on expanding its service capabilities and optimizing its cost structure.

How Saia, Inc. (SAIA) Makes Money

Revenue Streams

Saia, Inc. primarily generates revenue through its less-than-truckload (LTL) freight transportation services. For the nine months ended September 30, 2024, the operating revenue was $2.4 billion, reflecting a 13.6% increase compared to the same period in 2023. This growth was largely driven by increased shipments and tonnage, partly due to the redistribution of freight following a competitor's bankruptcy in 2023.

Operating Revenue Breakdown

The operating revenue for the third quarter of 2024 was $842.1 million, up 8.6% from $775.1 million in the same quarter of 2023. The revenue per shipment, excluding fuel surcharges, was $293.39, a 0.9% increase compared to the previous year.

Impact of Fuel Surcharges

Fuel surcharge revenue is a significant component of Saia's revenue model. For Q3 2024, fuel surcharge revenue constituted 14.8% of total operating revenue, a decrease from 16.9% in Q3 2023. This reduction was attributed to decreases in the average cost of diesel fuel and changes in customer mix.

Operating Expenses

Operating expenses for Q3 2024 totaled $716.9 million, up from $646.7 million in Q3 2023, resulting in an operating ratio of 85.1%, compared to 83.4% the prior year. Key components of these expenses included:

• Salaries, wages, and employee benefits: $398.1 million, up 15.5% from $344.6 million
• Purchased transportation: $65.6 million, down 14.5% from $76.7 million
• Fuel and other operating expenses: $158.7 million, up 10.5% from $144.3 million
• Depreciation and amortization: $54.7 million, up 19.8% from $45.6 million

Growth Initiatives and Investments

Saia has been actively expanding its terminal network. In Q3 2024, the company opened eleven new terminals and relocated one additional terminal. The total net acquisitions of property and equipment for the nine months ended September 30, 2024, was $873.2 million, reflecting a significant investment to support increased volumes and network expansion.

Cash Flow and Financing

For the nine months ended September 30, 2024, Saia reported cash flows provided by operating activities of $419.0 million, slightly higher than the $416.3 million reported for the same period in 2023. The company’s current working capital as of September 30, 2024, was $90.7 million, a decrease from $346.4 million a year earlier.

Net Income and Earnings Per Share

For Q3 2024, Saia reported net income of $92.7 million, translating to diluted earnings per share of $3.46, down from $3.67 in Q3 2023. For the first nine months of 2024, net income was $286.0 million, or $10.68 per diluted share, compared to $265.6 million, or $9.93 per diluted share for the same period in 2023.

Article updated on 8 Nov 2024

Resources:

• Saia, Inc. (SAIA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Saia, Inc. (SAIA)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Saia, Inc. (SAIA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.