Tag - Saia

During a morning conference call, Saia, Inc. (Nasdaq: SAIA) CEO Rick O’Dell said the trucking company’s recent acquisitions will power future growth in a challenging economic environment. In May, Saia completed the integration of Madison Freight Systems and The Connection Company, which gave the company substantial carrier coverage in the Midwest.

“Considering the environment, I’m pleased with the top-line growth driven by recent acquisitions and I remain enthusiastic about the potential of the expanded geography. We expect the acquired geography to contribute positively to operating income in the fourth quarter of this year and into 2008,” O’Dell said. “Looking forward, we believe Saia is well positioned for long-term profitable growth and value creation for both shareholders and customers.”

Before the opening bell, the Duluth, Ga.-based company reported net income of $7.4 million, or $0.51 per share, for the second quarter ended June 30, compared with a loss of $35.9 million, or $2.42 per share, a year earlier. Saia recorded quarterly revenue of $252.8 million, compared with revenue of $224.8 million for the same three months of 2006. Analysts were expecting EPS of $0.62 on $254 million in revenue.

The company’s quarterly profit was damaged by truck accidents. During the quarter, Saia’s quarterly insurance and claims expenses rose to $9.4 million, from $6.7 million in the second quarter of 2006. In the most recent period, the increased accident severity was enough to offset the lower frequency of crashes. The company’s accident problems have also continued into the third quarter, CFO Jim Darby said.

“Due to our self-insured structure and $2 million retention level, our company will experience accident expense volatility,” Darby said.

The company’s rigorous driver screener, defensive driving education, pre-shift meetings on safety techniques, collision warning and radar systems will minimize volatility, O’Dell said. Saia is communicating with employees that its safety record is delaying wage increases until December, he said.

“I’m confident that over time these programs will generate a solid safety record and competitive cost performance,” O’Dell said.

April 20 (SmallCapInvestor.com) – Wall Street is rallying following news of better-than-expected financial results by Google Inc. and other heavyweights.  Among small caps, Bell Microproducts Inc. (Nasdaq: BELM) has reported record first-quarter revenue, while Strattec Security Corporation (Nasdaq: STRT) received an analyst upgrade.

At 11:18 AM the Russell 2000 was up 7.66 points, or 0.93 percent, to 826.98, after losing ground for three days in a row.  The Dow Jones Industrial Average had added 106.95 points, or 0.83 percent, to 12,915.58.