Saia Reports Second Quarter Earnings per Share of $0.53

JOHNS CREEK, GA--(Marketwired - Jul 30, 2014) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported second quarter 2014 results. Despite favorable tonnage trends and improving yield, the operating results were negatively impacted by adverse claims and insurance experience.

Second Quarter 2014 Compared to Second Quarter 2013 Results

• Revenues were $330 million, an increase of 12.9%
• LTL tonnage increased 6.9% as LTL shipments were up 5.5% with a 1.4% increase in weight per shipment
• Operating income decreased to $22.7 million compared to $23.3 million
• Operating ratio was 93.1 compared to 92.0
• Diluted earnings per share were $0.53 compared to $0.54
• Claims and insurance expense was $8.3 million higher than the second quarter last year due primarily to accident severity.
  
  

"The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved. LTL yield improved 4.9%, reflective of our customers' recognition of the value proposition Saia provides," said Saia President and Chief Executive Officer, Rick O'Dell.

"The 12.9% second quarter revenue increase was the highest that we have achieved at Saia in seven years. The top line growth driven by last year's investment in sales and marketing resources coupled with effective yield management provided the opportunity to overcome a capacity constrained environment which significantly increased costs for driver recruiting, training and purchased transportation. This revenue momentum combined with our focus on service and operational excellence positions Saia well to capitalize on the unique market dynamics we are currently experiencing to improve customer and shareholder value in the future," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $95.7 million at June 30, 2014 resulting in net debt to total capital of 22.1%. This compares to total debt of $99.0 million and net debt to total capital of 25.5% at the end of last year's second quarter.

Net capital expenditures in the first half of 2014 were $67 million compared to $71 million in the first half of 2013. The Company currently projects net capital expenditures for the full year of approximately $110 million. In July, Saia began taking delivery of some of the 800 additional linehaul trailers that will be put in service this year and provide additional capacity.

Conference Call
Management will hold a conference call to discuss quarterly results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 888-427-9376 or 719-457-2085 referencing conference ID #6869513. Callers should dial in five to ten minutes in advance of the conference call. This call will be webcast live via the Company web site at www.saiacorp.com. A replay of the call will be offered two hours after the completion of the call through August 5, 2014 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

Saia, Inc. (NASDAQ: SAIA) offers customers a wide range of less-than-truckload, non-asset truckload, expedited and logistics services. With headquarters in Georgia, Saia LTL Freight operates 147 terminals in 34 states. For more information on Saia, Inc. visit the Investor Relations section at www.saiacorp.com.

The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand the future prospects of a company and make informed investment decisions. This news release contains these types of statements, which are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.

Words such as "anticipate," "estimate," "expect," "project," "intend," "may," "plan," "predict," "believe," "should" and similar words or expressions are intended to identify forward-looking statements. Investors should not place undue reliance on forward-looking statements and the Company undertakes no obligation to update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management as of the date of this news release and are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. These factors, risks, assumptions and uncertainties include, but are not limited to, general economic conditions including downturns in the business cycle; the creditworthiness of our customers and their ability to pay for services; competitive initiatives and pricing pressures, including in connection with fuel surcharge; the Company's need for capital and uncertainty of the current credit markets; the possibility of defaults under the Company's debt agreements (including violation of financial covenants); possible issuance of equity which would dilute stock ownership; integration risks; the effect of litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; governmental regulations, including but not limited to Hours of Service, engine emissions, the "Compliance, Safety, Accountability" (CSA) initiative, compliance with legislation requiring companies to evaluate their internal control over financial reporting, changes in interpretation of accounting principles and Homeland Security; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; effectiveness of Company-specific performance improvement initiatives; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of healthcare reform legislation and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC filings. As a result of these and other factors, no assurance can be given as to our future results and achievements. A forward looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur.

Saia, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Amounts in thousands)
(Unaudited)
			June 30,				December 31,
			2014				2013
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$	1,788			$	159
	Accounts receivable, net			148,850				117,937
	Prepaid expenses and other			43,877				52,157
		Total current assets		194,515				170,253
PROPERTY AND EQUIPMENT:
	Cost			863,193				797,527
	Less: accumulated depreciation			389,041				365,301
		Net property and equipment		474,152				432,226
OTHER ASSETS				14,024				14,322
		Total assets	$	682,691			$	616,801
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable		$	62,885			$	50,799
	Wages and employees' benefits			34,502				35,248
	Other current liabilities			48,922				47,667
	Current portion of long-term debt			7,143				7,143
		Total current liabilities		153,452				140,857
OTHER LIABILITIES:
	Long-term debt, less current portion			88,597				69,740
	Deferred income taxes			68,472				69,916
	Claims, insurance and other			41,932				31,496
		Total other liabilities		199,001				171,152
STOCKHOLDERS' EQUITY:
	Common stock			25				24
	Additional paid-in capital			216,926				213,648
	Deferred compensation trust			(2,223	)			(2,246	)
	Retained earnings			115,510				93,366
		Total stockholders' equity		330,238				304,792
		Total liabilities and stockholders' equity	$	682,691			$	616,801

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2014 and 2013
(Amounts in thousands, except per share data)
(Unaudited)
			Second Quarter								Six Months
			2014				2013				2014				2013
OPERATING REVENUE			$	330,399			$	292,557			$	630,129			$	566,352
OPERATING EXPENSES:
	Salaries, wages and employees' benefits			160,204				144,309				310,426				281,163
	Purchased transportation			27,926				19,338				49,917				36,109
	Fuel, operating expenses and supplies			81,276				78,154				161,235				157,156
	Operating taxes and licenses			8,993				9,330				17,968				18,909
	Claims and insurance			14,177				5,883				23,695				11,478
	Depreciation and amortization			15,087				12,386				28,928				24,020
	Operating gains, net			(5	)			(102	)			(12	)			(274	)
		Total operating expenses		307,658				269,298				592,157				528,561
OPERATING INCOME				22,741				23,259				37,972				37,791
NONOPERATING EXPENSES:
	Interest expense			1,177				1,618				2,493				3,146
	Other, net			(35	)			(29	)			(65	)			(95	)
		Nonoperating expenses, net		1,142				1,589				2,428				3,051
INCOME BEFORE INCOME TAXES				21,599				21,670				35,544				34,740
Income tax expense				8,031				8,170				13,400				12,085
NET INCOME			$	13,568			$	13,500			$	22,144			$	22,655
Average common shares outstanding - basic				24,484				24,163				24,434				24,073
Average common shares outstanding - diluted				25,447				25,218				25,396				25,123
Basic earnings per share			$	0.55			$	0.56			$	0.91			$	0.94
Diluted earnings per share			$	0.53			$	0.54			$	0.87			$	0.90

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2014 and 2013
(Amounts in thousands)
(Unaudited)
			Six Months
			2014				2013
OPERATING ACTIVITIES:
Net cash provided by operating activities			$	46,875			$	31,982
		Net cash provided by operating activities		46,875				31,982
INVESTING ACTIVITIES:
	Acquisition of property and equipment			(67,077	)			(72,092	)
	Proceeds from disposal of property and equipment			421				1,273
		Net cash used in investing activities		(66,656	)			(70,819	)
FINANCING ACTIVITIES:
	Repayment of long-term debt			(3,571	)			(11,071	)
	Borrowings of revolving credit agreement, net			22,422				49,386
	Proceeds from stock option exercises			2,559				3,659
	Other financing activities			-				(586	)
		Net cash provided by financing activities		21,410				41,388
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				1,629				2,551
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD				159				321
CASH AND CASH EQUIVALENTS, END OF PERIOD			$	1,788			$	2,872

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2014 and 2013
(Unaudited)
														Second Quarter
			Second Quarter								%			Amount/Workday				%
			2014				2013				Change			2014		2013		Change
Workdays														64		64
Operating Ratio (1)				93.1	%			92.0	%
Tonnage (2)		LTL		1,021				955			6.9			15.96		14.92		6.9
		TL		228				178			28.1			3.56		2.78		28.1
Shipments (2)		LTL		1,732				1,642			5.5			27.07		25.65		5.5
		TL		33				26			25.9			0.51		0.40		25.9
Revenue/cwt. (3)		LTL	$	14.85			$	14.16			4.9
		TL	$	5.70			$	5.84			(2.4	)
Revenue/shipment (3)		LTL	$	175.09			$	164.68			6.3
		TL	$	798.13			$	804.16			(0.7	)
Pounds/shipment		LTL		1,179				1,163			1.4
		TL		14,000				13,763			1.7
Length of Haul				759				743			2.2

(1)	The operating ratio is the calculation of operating expenses divided by operating revenue.
(2)	In thousands
(3)	Revenue does not include the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy and other revenue.