• Revenue: $789 million for Q4 2024, a 5% increase from the previous year's Q4.
• Operating Ratio: 87.1% for Q4 2024, deteriorated by 210 basis points from 85% in Q4 2023.
• Diluted Earnings Per Share (EPS): $2.84 for Q4 2024, compared to $3.33 in Q4 2023.
• Full Year Revenue: $3.2 billion for 2024.
• Full Year Operating Income: $482.2 million for 2024.
• Full Year Diluted EPS: $13.51 for 2024, compared to $13.26 in 2023.
• Shipments Per Workday: Increased by 4.5% in Q4 2024.
• Revenue Per Shipment (Excluding Fuel Surcharge): Increased by 1.3% to $299.7 in Q4 2024.
• Weight Per Shipment: Increased by 3.7% in Q4 2024.
• Fuel Surcharge Revenue: Decreased by 12.5% in Q4 2024.
• Salaries, Wages, and Benefits: Increased by 8.7% in Q4 2024.
• Purchased Transportation Expense: Decreased by 11.1% in Q4 2024.
• Fuel Expense: Decreased by 2.9% in Q4 2024.
• Claims and Insurance Expense: Increased by 16.6% in Q4 2024.
• Depreciation Expense: $54.1 million in Q4 2024, an 18.3% increase year-over-year.
• Total Expenses: Increased by 7.7% in Q4 2024.
• Capital Expenditures: Over $1 billion in 2024.
• Cash on Hand: Just shy of $20 million at the end of 2024.
• Total Debt Outstanding: Approximately $200 million at the end of 2024.

• Warning! GuruFocus has detected 3 Warning Signs with SAIA.

Release Date: February 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Saia Inc (NASDAQ:SAIA) achieved a record revenue of $3.2 billion for the full year 2024, marking a significant milestone in its 100th year of operation.
• The company opened 21 new terminals in 2024, expanding its national footprint and enabling direct service across the 48 contiguous states.
• Saia Inc (NASDAQ:SAIA) onboarded over 1,300 new team members, enhancing its workforce to support growth and maintain high service standards.
• Fourth quarter revenue increased by 5% year-over-year to $789 million, setting a record for any fourth quarter in the company's history.
• The company successfully completed the upsize and extension of its revolving credit facility, providing financial flexibility for future capital expenditures.

Negative Points

• The operating ratio deteriorated to 87.1% in the fourth quarter, compared to 85% a year ago, indicating increased operational costs.
• Yield, excluding fuel surcharge, declined by 2.3% in the fourth quarter, reflecting challenges in pricing and mix optimization.
• Claims and insurance expenses increased by 16.6% year-over-year, driven by higher claims activity and unfavorable development of open cases.
• Depreciation expenses rose by 18.3% year-over-year due to ongoing investments in revenue equipment, real estate, and technology.
• Diluted earnings per share decreased to $2.84 in the fourth quarter, down from $3.33 in the same period last year, highlighting pressure on profitability.

Q & A Highlights

Q: Can you provide clarity on December tonnage and shipments, and what you expect for January? Also, what is the normal seasonal trend from Q4 to Q1? A: December shipments were up 7.2% and tonnage up 13.5%. For January, shipments are up about 6.5% and tonnage up about 13.5%. Typically, we see a 30 to 50 basis points deterioration from Q4 to Q1, but March is crucial for the quarter's performance. Most of the shipment growth is from terminals opened in 2024, which are still maturing.

Q: Could you elaborate on the operating ratio (OR) expectations for Q1 and how it might change as you lap new terminal openings? A: We expect a 30 to 50 basis points deterioration from Q4 to Q1 due to January's weather challenges and the impact of new terminals. As these facilities mature, we anticipate improvement throughout the year, aiming for an 80 to 100 basis points OR improvement for the full year.

Q: How are pricing trends progressing, and how was the acceptance of the 7.9% GRI? A: Pricing trends are focused on mix optimization and ensuring fair compensation. The GRI acceptance has been good, with some initial volume shifts. We remain committed to maintaining our pricing strategy and ensuring we are compensated for the services provided.

Q: Can you discuss the impact of new terminal openings on the OR and the timeline for reaching a sub-80 OR? A: The 21 new terminals operated around breakeven for the quarter, which is a drag on the company OR. These are long-term investments, and as they mature, we expect OR improvements. Achieving a sub-80 OR depends on both internal efficiencies and the macro environment.

Q: What is the strategy for maintaining service quality and culture with the addition of new employees? A: We focus on thorough training and onboarding, often positioning experienced Saia leaders in new facilities to instill our culture. It can take several months to a year for new employees to reach full productivity, but we emphasize customer care and operational efficiency to maintain service quality.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.