Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

f6f48169f4b2d963a8d5a6e0aa374e66409f473b6d4e41c40cdae6958a7969a3

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Saia, Inc. is a transportation company headquartered in Johns Creek, Georgia, specializing in less-than-truckload (LTL) freight services. The company operates across 45 states in the U.S. and extends its services to Canada and Mexico through partnerships with third-party carriers. Saia provides a range of value-added services, including expedited transportation, logistics, and non-asset truckload solutions, supported by a robust network of facilities and a modern fleet.

1. **Less-Than-Truckload (LTL) Services** - Transports shipments weighing between 100 and 10,000 pounds with options for time-definite and expedited delivery, accounting for the majority of the company's operations and revenue.  **[0000950170-24-019368_saia-20231231.htm:68]** **[0000950170-24-019368_saia-20231231.htm:2]** **[0000950170-23-004094_saia-20221231.htm:2]** 
2. **Non-Asset Truckload Services** - Offers truckload transportation solutions without owning the physical assets, leveraging partnerships to meet customer needs.  **[0000950170-24-019368_saia-20231231.htm:68]** **[0000950170-24-019368_saia-20231231.htm:2]** 
3. **Expedited Transportation** - Provides fast and reliable shipping options for time-sensitive freight across North America.  **[0000950170-24-019368_saia-20231231.htm:68]** **[0000950170-24-019368_saia-20231231.htm:2]** 
4. **Logistics Services** - Delivers comprehensive logistics solutions, including supply chain management and freight brokerage, to optimize customer operations.  **[0000950170-24-019368_saia-20231231.htm:68]** **[0000950170-24-019368_saia-20231231.htm:2]**

79c2b8081e14ad3e8b5d76ea1bfe6a07a9358e603a4af022affcf268373cf286

- Less-than-Truckload (LTL) Services

- Other Services

Total Revenue

5ce5c870efd7455c23e52e9e774ce0ce7abf77dd47d2e061a02b068ab9e2d225

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

LTL Tonnage (Million Tons)

LTL Shipments (Million Shipments)

LTL Revenue per Hundredweight (USD)

LTL Revenue per Hundredweight, Excl. Fuel (USD)

LTL Revenue per Shipment (USD)

LTL Revenue per Shipment, Excl. Fuel (USD)

LTL Pounds per Shipment (Pounds)

LTL Length of Haul (Miles)

b4f4d5a3d124fa5d28fea0833318f191b8afb93e8ec4d71ddf41263851a7e03f

1. Your operating ratio deteriorated by 170 basis points to 85.1% this quarter despite revenue growth; what specific cost control measures are you implementing to reverse this trend and improve operating efficiency?
2. Given that your yield excluding fuel surcharge increased only 1.7% while contractual renewals were at 7.9%, can you explain the discrepancy and how mix and pricing initiatives will translate into higher realized yields moving forward?
3. With weight per shipment declining by 0.8% and length of haul decreasing, how are you addressing these mix headwinds to optimize freight density and improve margin performance?
4. Considering that salaries, wages, and benefits increased 15.5% due to headcount growth and wage increases, how do you plan to manage labor costs as you continue expanding your network while maintaining profitability?
5. The recent Mastio survey indicated a decline in your service rankings; what specific initiatives are you undertaking to improve service quality and ensure customer satisfaction amid rapid network expansion and new employee onboarding?

96a3f4129ec47666de5304ef72c3da53013b0696c8318769e128c6e16dd63ef5

| Name                     | Position                                      | Start Date         | Short Bio                                                                                                                                                                                                                     |
|--------------------------|-----------------------------------------------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Frederick J. Holzgrefe   | President and Chief Executive Officer         | April 2020         | Joined Saia in **September 2014** as VP and CFO. Served as President and COO from **May 2019 to April 2020**. Extensive experience in industrial and distribution-related businesses.  **[0001193125-24-069637_d655188ddef14a.htm:11]** **[0000950170-24-019368_saia-20231231.htm:13]**                                 |
| Douglas L. Col           | Executive Vice President and Chief Financial Officer | January 2020       | Joined Saia in **2014** as Treasurer. Promoted to CFO in **January 2020** and has served as Secretary since **February 2019**.  **[0000950170-24-019368_saia-20231231.htm:13]**                                                                                           |
| Patrick D. Sugar         | Executive Vice President of Operations        | March 2021         | Joined Saia in **December 2016**. Previously served as VP of Linehaul and Industrial Engineering before promotion to EVP of Operations.  **[0000950170-24-019368_saia-20231231.htm:13]** **[0000950170-23-004094_saia-20221231.htm:12]**                                                                               |
| Raymond R. Ramu          | Executive Vice President and Chief Customer Officer | May 2015          | Joined Saia LTL Freight in **December 1997**. Previously served as VP of Sales - East from **April 2007 to May 2015**.  **[0000950170-24-019368_saia-20231231.htm:13]**                                                                                                   |
| Rohit Lal                | Executive Vice President and Chief Information Officer | August 2017       | Leads Saia's information technology team. Serving as EVP and CIO since **August 2017**.  **[0000950170-24-019368_saia-20231231.htm:13]** **[0000950170-23-004094_saia-20221231.htm:12]**                                                                                                                               |
| Anthony R. Norwood       | Executive Vice President and Chief Human Resources Officer | March 2022        | Joined Saia in **March 2022**. Previously VP, Human Resources - Corporate at Trane Technologies (**April 2020 to March 2022**) and held executive roles at Ingersoll Rand (**2008 to 2020**).  **[0000950170-24-019368_saia-20231231.htm:13]** **[0000950170-23-004094_saia-20221231.htm:12]**                         |
| Matthew Batteh           | Executive Vice President, Chief Financial Officer, and Secretary | May 13, 2024 (expected) | Joined Saia in **2015**. Held roles including VP of Finance (**2023-2024**) and VP, Pricing and Analytics (**2020-2023**). Holds a BS in Finance from Auburn University and an MBA from Emory University.  **[0000950170-24-059548_saia-20240513.htm:1]** **[0000950170-24-059548_saia-ex99_1.htm:0]**             |

a82952276990eee3360bb8fec7f22bb0bdc2d24bd21b4a87eb82c89e4c18032d

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Capital Expenditures**: Approximately **$1 billion**, including investments in equipment, technology, real estate, and facility enhancements  **[SAIA_3404020_4]** .
  - **Terminal Openings**: Plan to open **three additional terminals** by year-end, totaling **21 new terminals** for FY 2024, a record for the company  **[SAIA_3404020_4]** .
  - **Operating Ratio (OR) Seasonality**: Historically, OR degrades by **250 basis points** from Q3 to Q4, but Saia expressed confidence in potentially beating this average due to momentum from customer acceptance in new markets  **[SAIA_3404020_9]** .

---

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  - **Terminal Openings**: Plan to open **9 new facilities** in Q3 and potentially up to **4 more in Q4**  **[SAIA_3394691_4]** .
  - **Capital Expenditures**: Anticipated to be approximately **$1 billion** for FY 2024  **[SAIA_3394691_4]** .
  - **Contractual Renewals**: Renewal rate of **8.4%**  **[SAIA_3394691_6]** .
  - **Volume and Tonnage Trends**: July shipments up **10%** and tonnage up **4%** year-over-year, with tougher comps ahead  **[SAIA_3394691_12]** .

---

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Capital Expenditures**: Approximately **$1 billion**  **[SAIA_3381139_4]** .
  - **Terminal Openings**: Plan to open **15 to 20 terminals** in FY 2024  **[SAIA_3381139_1]** .
  - **Operating Ratio (OR)**: Targeting **100 to 150 basis points** improvement for FY 2024  **[SAIA_3381139_15]** .
  - **Revenue per Shipment**: Potential impact of mix changes but no specific guidance due to macroeconomic uncertainties  **[SAIA_3381139_15]** .

---

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024
- **Guidance**:
  - **January Trends**: Shipments per workday up **11.8%**, and tonnage up **3.3%**, though impacted by weather  **[SAIA_3371763_5]** .
  - **Operating Ratio (OR)**: Expected improvement from Q4 to Q1 by **50 to 75 basis points**, depending on weather and March performance  **[SAIA_3371763_5]** .
  - **Network Expansion**: Plan to open **15 to 20 new terminals** in FY 2024, with a potential **12% to 14%** increase in doors if all plans are executed  **[SAIA_3371763_34]** .
  - **Capacity and CapEx**: Focus on trailer investments to expand capacity  **[SAIA_3371763_27]** .
  - **Service and Claims Ratio**: Expected steady improvement over time  **[SAIA_3371763_30]** .


c9e533c6eff11ecb22b4c0075dd8f2a34faeddd639f943bae76778c35ad99c2c

- **Decline in service quality** according to the Mastio study, attributed to rapid expansion and the addition of **1,500 to 2,000 new employees** over the last 1.5 years, which may impact customer satisfaction.  **[SAIA_3404020_26]**
- **Risk of losing volume due to price increases**, as Saia is willing to let customers walk rather than chase volume, and shippers have alternatives in the current market environment.  **[SAIA_3404020_23]** **[SAIA_3404020_17]** **[SAIA_3404020_7]**
- **Significant capital expenditure of $1 billion in 2024** on opening new terminals, with uncertainties about immediate returns from these investments.  **[SAIA_3404020_4]** **[SAIA_3404020_25]** **[SAIA_3404020_12]**

e7856ea736f35974d08570c3c27142e7508305f987f5a7111c5bc95eecf94007

- **Significant capital expenditures to expand capacity and network facilities could strain financial resources in a weak economic environment.** Saia plans to increase capacity through heavy capital investments, expanding beyond the current **20% excess capacity**.  **[SAIA_3371763_27]** **[SAIA_3371763_32]**
- **The overall freight environment remains weak, which may limit growth opportunities and lead to lower shipment and tonnage growth, especially in a tepid economic environment.** Saia acknowledges that in a more limited economic environment, growth will be at the low end of any range.  **[SAIA_3371763_31]** **[SAIA_3371763_21]**
- **Operating results are vulnerable to weather disruptions**, as weather impacts in January led to lower shipments and tonnage, with potential for further weather-related challenges affecting operating ratios. January shipments per workday were up **11.8%**, but could have been better without weather impacts.  **[SAIA_3371763_23]** **[SAIA_3371763_5]**

1004784c36fbb1c5dd5cdcffad43a9a8c2ad2cbc618b41fb284f52e6ed2871ac

- **Aggressive Expansion Plans**: SAIA plans to open **15 additional new locations this year**, focusing on strategic markets like Trenton, Laredo, and areas in Minnesota, transforming these regions into significant markets for the company. This expansion is expected to drive growth and enhance service levels for customers.  **[SAIA_3381139_32]**
- **Strong Customer Acceptance and Pricing Power**: The company is experiencing **widespread customer acceptance** of its expanding national network, resulting in improved customer stickiness and opportunities to **enhance pricing**. Customers are recognizing the value of SAIA's high service levels and are increasingly willing to compensate appropriately.  **[SAIA_3381139_17]** **[SAIA_3381139_7]** **[SAIA_3381139_23]**
- **Positioned for Future Growth**: SAIA is confident in its ability to capitalize on future macroeconomic improvements due to its **expanded footprint and readiness to scale**. The company has a proven track record of successfully opening new terminals and delivering quality service, positioning it to handle increased volumes when the market strengthens.  **[SAIA_3381139_33]** **[SAIA_3381139_18]** **[SAIA_3381139_11]**

354dfdc9d1a412f378da92b5b7fbd63967f62bb9673d4bf0c0dc66bd22dd9045

- **Significant Network Expansion**: Saia is aggressively expanding its network, opening **11 new terminals in Q3** and planning a total of **21 new openings for the year**, a company record. This expansion increases their addressable market, provides full nationwide coverage, and positions them for long-term growth as a leading national LTL carrier.  **[SAIA_3404020_4]** ,  **[SAIA_3404020_23]** ,  **[SAIA_3404020_12]**
- **Strong Shipment and Tonnage Growth**: Despite not chasing volume, Saia is experiencing strong shipment and tonnage growth due to organic expansion and new terminal openings. **October shipments are up about 4%**, and **tonnage is up about 6.5%**, indicating successful integration of new terminals and market share gains even amid headwinds like hurricanes and challenging comps.  **[SAIA_3404020_23]** ,  **[SAIA_3404020_9]** ,  **[SAIA_3404020_5]**
- **Robust Pricing Power and Improving Yields**: Saia maintains strong pricing power with **contractual renewals at 7.9%** and recently implemented a **general rate increase of 7.9%**. The company is focused on driving pricing and mix management, which should support improved yields and margins as the macroeconomic environment improves.  **[SAIA_3404020_17]** ,  **[SAIA_3404020_7]** ,  **[SAIA_3404020_12]** ,  **[SAIA_3404020_8]**

2353e3ce1ea38452e9bdf9704e03d103667d79c9d7bb12328a32e727a517eaba

1. **Margin Improvement in 2025**  
   **Q:** Can margins improve next year without macro help?  
   **A:** Management expects to expand operating ratios next year even without macroeconomic improvement. They anticipate a potential **100 to 150 basis points** of OR improvement, driven by capturing value from investments in new facilities and focusing on pricing and mix management. **[SAIA_3404020_11]**

2. **Realizing Price Increases in Yields**  
   **Q:** Will pricing gains translate to higher yields in 2025?  
   **A:** Management is confident that their high single-digit contractual renewals and recent **7.9%** General Rate Increase will enhance yields, especially as the macro environment improves. They remain focused on mix management and expect to realize gains from their pricing initiatives. ** **[SAIA_3404020_7]** , **[SAIA_3404020_17]** **

3. **2025 CapEx Expectations**  
   **Q:** What are the early thoughts on 2025 CapEx?  
   **A:** While finalizing plans, management indicated that 2025 capital expenditures will normalize. Excluding a one-time transaction this year, they expect next year's CapEx to be in a similar range to the current adjusted **$1 billion** spend, acknowledging that as a larger company, maintenance capital will remain elevated. ** **[SAIA_3404020_18]** , **[SAIA_3404020_30]** **

4. **Impact of New Terminals on Margins**  
   **Q:** How will moderating terminal growth affect expenses and margins?  
   **A:** With no plans to open 21 terminals again soon, management expects expense growth to moderate next year. The focus will shift to capturing value from the existing **214** facilities, improving utilization, and enhancing incremental margins, leading to better operating leverage. They anticipate that scaling these investments will drive returns. ** **[SAIA_3404020_10]** , **[SAIA_3404020_19]** **

5. **Volume Trends and Growth Expectations**  
   **Q:** What are the shipment and tonnage trends for October?  
   **A:** October shipments are up **4%**, and tonnage is up **6.5%** to date. However, management notes that comparisons are influenced by last year's peer cyber issue and recent hurricanes, making comps unusual. They emphasize they are not chasing volume but focused on delivering value through their expanded network. ** **[SAIA_3404020_5]** , **[SAIA_3404020_9]** , **[SAIA_3404020_13]** **

6. **Operating Ratio Seasonality**  
   **Q:** What is the expected OR change from 3Q to 4Q?  
   **A:** Historically, the sequential degradation in OR from 3Q to 4Q is around **250 basis points**. With current momentum, management believes they can outperform that average this year, despite seasonal challenges and costs from new openings. They remain cautious due to the seasonally slower period and embedded costs from facility openings. ** **[SAIA_3404020_9]** , **[SAIA_3404020_14]** **

7. **Mastio Survey and Customer Satisfaction**  
   **Q:** How does the Mastio survey affect perceptions and pricing?  
   **A:** Management acknowledges the survey showing industry-wide improvements but notes that their relative decline is due to rapid growth and onboarding new customers and employees. They are committed to enhancing service levels and believe customers value their expanding network, which supports their pricing strategy. ** **[SAIA_3404020_15]** , **[SAIA_3404020_25]** , **[SAIA_3404020_26]** **

8. **Mix Management Strategies**  
   **Q:** Can mix improvements return to boost margins?  
   **A:** Management plans to refocus on pricing and mix management, engaging with customers about their expanded national network. By offering direct service to more markets, they see opportunities to optimize business mix and improve margins over time. ** **[SAIA_3404020_12]** , **[SAIA_3404020_20]** **

9. **Future Terminal Openings and Network Expansion**  
   **Q:** Will there be more terminal acquisitions or openings?  
   **A:** While not planning large-scale expansions like this year's 21 openings, management remains opportunistic about adding facilities that enhance the network. They believe the current **214** terminals position them well, but they may consider additional strategic acquisitions to improve service and coverage. ** **[SAIA_3404020_22]** , **[SAIA_3404020_25]** **

10. **Employee Productivity and Culture**  
    **Q:** How is employee productivity and engagement impacting operations?  
    **A:** Management emphasizes that with approximately **1,500 to 2,000** new employees added over the past year, focusing on culture and engagement is crucial. They expect productivity to improve as new employees gain experience, which should enhance service levels and operational efficiency. ** **[SAIA_3404020_33]** , **[SAIA_3404020_34]** **

d446d7fdbdd3448fddb5bacd72485d59745c00c6cdc2a8ed24bdff47ec70abf9

- **Saia experienced volume weakness**, with shipments below expectations, which may be due to macroeconomic factors **and possibly company-specific challenges**.  **[SAIA_3381139_29]** **[SAIA_3381139_14]**
- The company anticipates **higher costs and below-normal seasonality in Q2**, with **upfront expenses from opening new terminals** potentially impacting the **operating ratio negatively**.  **[SAIA_3381139_18]**
- Management is **less confident in achieving revenue per shipment growth targets** for the full year, indicating potential pressure on **profitability** due to **mix issues and macro uncertainties**.  **[SAIA_3381139_15]**

4b0f0bc36b5c3eca226fd3c9d0c950fd744dec50a3ce8242248d79cce8aaa44a

- **Unexpected costs and margin pressure from new terminal openings, particularly in less dense markets, have led to higher operating ratios in new facilities, impacting overall profitability.**  **[SAIA_3394691_31]**
- **Unfavorable freight mix shifts have created margin headwinds of approximately 150 to 200 basis points, challenging previous guidance for operating ratio improvement of 100 to 150 basis points for the full year.**  **[SAIA_3394691_6]**
- **Management now expects the full-year operating ratio to be roughly flat compared to last year, indicating potential difficulties in achieving previously stated profitability improvements.**  **[SAIA_3394691_13]**

95ac9be8ba52ed3d624b590159457a5a95b7a2be75f43d9a2da11b27bb95a7d9

- **Saia is investing in long-term growth by opening new strategic terminals**, such as **Garland, Texas**, **Trenton, New Jersey**, and **Laredo**, expected to be among their top-performing facilities.  **[SAIA_3394691_8]**
- **Contractual renewals remain strong at 8.4%**, reflecting a rational pricing environment and focus on margins, despite mix challenges.  **[SAIA_3394691_6]** **[SAIA_3394691_10]**
- **The company anticipates year-over-year operating income improvement and is focused on long-term value creation**, as new terminals mature and provide scale when the economy improves.  **[SAIA_3394691_20]** **[SAIA_3394691_13]**

caa38bdb82f7fd1706cec9cce113370705a45a3c233a99babdef40bafcfbd955

- **Aggressive network expansion plans**: Saia aims to increase terminals beyond **212-215**, possibly adding **10+ per year**, and investing in existing facilities to handle growth, indicating strong growth prospects.  **[SAIA_3371763_32]**
- **Positive pricing outlook and margin expansion**: Saia expects to continue achieving positive pricing due to its high service levels and relative pricing opportunities, suggesting potential margin expansion.  **[SAIA_3371763_9]**
- **Market share gains regardless of economic conditions**: Saia anticipates continued growth in shipments and tonnage by focusing on controllable factors like network expansion and high service quality, offering growth potential in both strong and weak economic environments.  **[SAIA_3371763_21]**

1b55abde52c03473fc970310b227fee6cb3bffee7f7ccd4fe3f7e7fe94e03f9b

Saia Inc (SAIA)

Financials