Saia, Inc. Reports 8.6% Revenue Growth in Q3 2024, Operating Income Declines

Saia, Inc. reported significant financial developments in its 10-Q filing for the third quarter and nine months ended September 30, 2024. The company achieved operating revenue of $842.1 million for Q3 2024, marking an 8.6% increase from $775.1 million in Q3 2023. For the nine months ended September 30, 2024, operating revenue reached $2.4 billion, up 13.6% from $2.1 billion in the same period last year. This growth was primarily driven by increased shipments and tonnage, with LTL shipments per workday rising by 8.5% and LTL tonnage increasing by 7.7% compared to the prior year.

Despite the revenue growth, Saia's operating income for Q3 2024 decreased to $125.2 million from $128.4 million in Q3 2023, reflecting a 2.5% decline. The operating ratio also worsened to 85.1% from 83.4% in the previous year, indicating higher operating expenses. Total operating expenses for Q3 2024 were $716.9 million, up from $646.7 million in Q3 2023, with salaries, wages, and employee benefits increasing by 15.5% to $398.1 million.

Net income for Q3 2024 was $92.7 million, down from $98.2 million in Q3 2023, resulting in diluted earnings per share of $3.46 compared to $3.67 in the prior year. For the nine-month period, net income increased to $286.0 million from $265.6 million, with diluted earnings per share rising to $10.68 from $9.93.

The company’s balance sheet showed total assets of $3.1 billion as of September 30, 2024, up from $2.6 billion at the end of 2023. Current assets decreased significantly to $437.3 million from $648.7 million, primarily due to a substantial drop in cash and cash equivalents, which fell to $14.4 million from $296.2 million. Long-term debt increased sharply to $184.2 million from $6.3 million, reflecting new borrowings to support capital expenditures, including the acquisition of 17 freight terminals from Yellow Corporation for $235.7 million.

Cash flows from operating activities for the nine months ended September 30, 2024, were $419.0 million, slightly up from $416.3 million in the same period last year. However, net cash used in investing activities surged to $868.2 million, driven by terminal acquisitions and increased purchases of revenue equipment. The company also reported net cash provided by financing activities of $167.5 million, a significant improvement from a net outflow of $17.4 million in the previous year.

Saia continues to focus on expanding its national less-than-truckload (LTL) services, with over 97% of revenue derived from LTL shipments across 48 states. The company opened eleven new terminals and relocated one during Q3 2024, further enhancing its operational capacity.