Saia Reports First Quarter Earnings per Share of $0.44

JOHNS CREEK, GA--(Marketwired - Apr 28, 2017) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported first quarter 2017 financial results.

First Quarter 2017 Compared to First Quarter 2016 Results

• Revenues were $317.0 million, a 9.4% increase
• LTL Shipments and Tonnage rose 3.5% and 2.0%, respectively
• LTL Revenue per hundredweight increased 7.7%
• Operating ratio deteriorated by 60 basis points to 94.5%
• Operating income fell by 0.4% to $17.5 million
• Net income, benefitting from a lower effective tax rate, rose 7.7% to $11.4 million
• Diluted earnings per share were $0.44 compared to $0.42
  
  

"We are encouraged by the improved LTL shipment trends we experienced in the first quarter", said Saia President and Chief Executive Officer, Rick O'Dell. "Our first quarter was a very busy time for all of us at Saia, as our plan for expansion into Pennsylvania and New Jersey kicked into high gear. We have secured the necessary terminals and completed the necessary hiring to commence operations in four new locations on May 1^st. These are the first steps in our multi-year strategy of becoming a 48-state LTL service provider," O'Dell continued.

"Also during the quarter, we were pleased to announce our exclusive partnership with TST Overland Express, which will allow us to offer our customers a seamless, cross-border solution for their LTL service needs both to and from Canada. The partnership is scheduled to become effective on May 22^nd", concluded Mr. O'Dell.

Financial Position and Capital Expenditures

Total debt was $156.9 million at March 31, 2017 and inclusive of the cash on-hand, net debt to total capital was 24.0%. This compares to total debt of $116.4 million and net debt to total capital of 20.9% at March 31, 2016.

Net capital expenditures in the first quarter of 2017 were $108.2 million including equipment acquired with capital leases. This compares to $63.7 million in net capital expenditures in the first quarter of 2016. The Company currently plans net capital expenditures in 2017 of approximately $220 million.

Conference Call
Management will hold a conference call to discuss quarterly results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 888-778-9069 or 913-312-1480 referencing conference ID #5365991. 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 Friday, June 23, 2017 at 1:00 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 148 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 publicly 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, uncertainties and assumptions include, but are not limited to, (1) general economic conditions including downturns in the business cycle; (2) effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; (3) the creditworthiness of our customers and their ability to pay for services; (4) failure to achieve acquisition synergies; (5) failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; (6) economic declines in the geographic regions or industries in which our customers operate; (7) competitive initiatives and pricing pressures, including in connection with fuel surcharge; (8) loss of significant customers; (9) the Company's need for capital and uncertainty of the credit markets; (10) the possibility of defaults under the Company's debt agreements (including violation of financial covenants); (11) possible issuance of equity which would dilute stock ownership; (12) integration risks; (13) the effect of litigation including class action lawsuits; (14) cost and availability of qualified drivers, fuel, purchased transportation, real property, revenue equipment and other assets; (15) 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, Homeland Security, environmental regulations and the Food and Drug Administration; (16) changes in interpretation of accounting principles; (17) dependence on key employees; (18) inclement weather; (19) labor relations, including the adverse impact should a portion of the Company's workforce become unionized; (20) terrorism risks; (21) self-insurance claims and other expense volatility; (22) cost and availability of insurance coverage; (23) increased costs of healthcare and prescription drugs, including as a result of healthcare reform legislation; (24) social media risks; (25) cyber security risk; (26) failure to successfully execute the strategy to expand the Company's service geography into the Northeastern United States; and (27) 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)
			March 31, 2017				December 31, 2016
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$	711			$	1,539
	Accounts receivable, net			148,968				135,083
	Prepaid expenses and other			34,969				29,857
		Total current assets		184,648				166,479
PROPERTY AND EQUIPMENT:
	Cost			1,216,711				1,101,946
	Less: accumulated depreciation			504,324				497,827
		Net property and equipment		712,387				604,119
OTHER ASSETS				30,161				29,772
		Total assets	$	927,196			$	800,370
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable		$	70,971			$	45,149
	Wages and employees' benefits			33,098				31,700
	Other current liabilities			51,103				51,333
	Current portion of long-term debt			19,183				16,762
		Total current liabilities		174,355				144,944
OTHER LIABILITIES:
	Long-term debt, less current portion			137,738				57,042
	Deferred income taxes			82,738				80,199
	Claims, insurance and other			36,898				35,107
		Total other liabilities		257,374				172,348
STOCKHOLDERS' EQUITY:
	Common stock			25				25
	Additional paid-in capital			238,995				237,846
	Deferred compensation trust			(3,337	)			(3,190	)
	Retained earnings			259,784				248,397
		Total stockholders' equity		495,467				483,078
		Total liabilities and stockholders' equity	$	927,196			$	800,370

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters Ended March 31, 2017 and 2016
(Amounts in thousands, except per share data)
(Unaudited)
			First Quarter
			2017			2016
OPERATING REVENUE			$	317,037		$	289,911
OPERATING EXPENSES:
	Salaries, wages and employees' benefits			180,903			170,266
	Purchased transportation			14,775			12,467
	Fuel, operating expenses and supplies			63,990			54,040
	Operating taxes and licenses			10,582			10,040
	Claims and insurance			9,049			8,081
	Depreciation and amortization			20,087			17,243
	Loss from property disposals, net			132			190
		Total operating expenses		299,518			272,327
OPERATING INCOME				17,519			17,584
NONOPERATING EXPENSES (INCOME):
	Interest expense			911			963
	Other, net			98			(7	)
		Nonoperating expenses, net		1,009			956
INCOME BEFORE INCOME TAXES				16,510			16,628
Income tax expense				5,123			6,053
NET INCOME			$	11,387		$	10,575
Average common shares outstanding - basic				25,225			24,998
Average common shares outstanding - diluted				25,971			25,445
Basic earnings per share			$	0.45		$	0.42
Diluted earnings per share			$	0.44		$	0.42

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Quarters Ended March 31, 2017 and 2016
(Amounts in thousands)
(Unaudited)
			Quarters
			2017				2016
OPERATING ACTIVITIES:
Net cash provided by operating activities (1)			$	24,128			$	16,956
		Net cash provided by operating activities		24,128				16,956
INVESTING ACTIVITIES:
	Acquisition of property and equipment			(88,388	)			(53,995	)
	Proceeds from disposal of property and equipment			607				367
		Net cash used in investing activities		(87,781	)			(53,628	)
FINANCING ACTIVITIES:
	Borrowing of revolving credit agreement, net			65,183				38,826
	Proceeds from stock option exercises			1,288				-
	Shares withheld for taxes (1)			(1,211	)			(650	)
	Other financing activity			(2,435	)			(1,390	)
		Net cash provided by financing activities		62,825				36,786
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				(828	)			114
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD				1,539				124
CASH AND CASH EQUIVALENTS, END OF PERIOD			$	711			$	238
NON-CASH ITEMS:
	Equipment financed with capital leases		$	20,369			$	10,032
(1) March 31, 2016 balances have been reclassified to conform with the 2017 adoption of the Financial Accounting Standards Board Accounting Standards Update 2016-09, Improvement to Employee Share-Based Payment Accounting.

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended March 31, 2017 and 2016
(Unaudited)
														First Quarter
			First Quarter								%			Amount/Workday				%
			2017				2016				Change			2017		2016		Change
Workdays														64		64
Operating ratio				94.5	%			93.9	%
Tonnage (1)	LTL			885				868			2.0			13.83		13.56		2.0
	TL			183				168			9.2			2.86		2.62		9.2
Shipments (1)	LTL			1,607				1,553			3.5			25.12		24.26		3.5
	TL			26				24			6.8			0.40		0.38		6.8
Revenue/cwt. (2)	LTL		$	16.68			$	15.49			7.7
	TL		$	5.61			$	5.64			(0.4	)
Revenue/shipment (2)	LTL		$	183.68			$	173.20			6.1
	TL		$	800.02			$	786.24			1.8
Pounds/shipment	LTL			1,101				1,118			(1.5	)
	TL			14,249				13,942			2.2
Length of Haul (3)				797				781			2.0

(1)	In thousands
(2)	Revenue does not include the adjustment required for financial statement purposes in accordance with the Company's revenue recognition policy and other revenue.
(3)	In miles