SOURCE: Saia, Inc.

Saia, Inc.

April 28, 2011 07:30 ET

Saia, Inc. Reports First Quarter 2011 Results

Revenues Were $243 Million, an Increase of 15% From Prior Year Quarter

JOHNS CREEK, GA--(Marketwire - Apr 28, 2011) - Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload ("LTL") carrier (the "Company"), today reported first quarter 2011 results. Earnings per share were $0.04 compared to losses of $0.21 per share in the prior year quarter. First quarter revenue was $243 million, up 15 percent from the prior year quarter, reflecting both stronger tonnage and improved yield.

First quarter 2011 highlights include:

--  Operating income was $4.1 million compared to a $2.1 million operating
    loss in the prior year quarter
--  Operating ratio was 98.3 vs. 101.0 in the prior year quarter
--  LTL tonnage per workday was up 3.9 percent from prior year quarter
--  LTL shipments per workday were up 2.2 percent with a 1.7 percent
    increase in weight per shipment over the prior year quarter
--  LTL yield was up 8.2 percent over the prior year quarter due to pricing
    actions and increased fuel surcharge

"Measured pricing actions initiated in 2010 continued successfully through the first quarter. The resulting higher yield combined with the increased demand for our services were the primary drivers of our 2.7 point improvement in our operating ratio. Meaningful margin advancement was achieved in spite of higher costs from purchased transportation, maintenance, accident severity and unusually harsh winter weather. While our margins are not back to historical levels or our targeted returns, I am pleased with our progress particularly with respect to achieving both significant yield improvement and tonnage gains," said Rick O'Dell, President and Chief Executive Officer.

"Improving market fundamentals have allowed us to advance our targeted initiatives to secure customers that value our service quality resulting in improving yields and business mix. I believe that we are still in the early stages of this yield recovery with additional opportunities ahead. During 2011, we will continue to focus on our core strategy of building density, enhancing customer satisfaction and reducing costs supported by engineered process improvements. With industry dynamics improving, we feel that Saia's broad coverage, strong service offering, focused pricing discipline and consistent cost execution provide a solid foundation for long-term profitable growth and increased shareholder and customer value," O'Dell said.

Financial Position and Capital Expenditures

Total debt was $90.0 million at March 31, 2011. Net of the Company's $22.0 million cash balance at March 31, 2011, net debt to total capital was 24.6 percent. This compares to total debt of $90.0 million and net debt to total capital of 29.5 percent at March 31, 2010.

Net capital expenditures for the first three months of 2011 were $6.0 million. This compares to $63 thousand of capital expenditures over the same period in 2010. The Company is now planning net capital expenditures in 2011 of approximately $63.0 million. This level reflects replacement and growth units of tractors and continued investment in technology.

Conference Call

Management will hold a conference call to discuss first-quarter results today at 11:00 a.m. Eastern Time. To participate in the call, please dial 1-800-776-9057 or 913-312-9321 referencing conference ID #4878983. 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.saia.com. A replay of the call will be offered two hours after the completion of the call through May 5, 2011 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Georgia and a network of 147 terminals, the carrier employs 7,500 people. For more information, please visit the Investor Relations section of the website at www.saia.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; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; 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 recently enacted 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 Subsidiary
                  Condensed Consolidated Balance Sheets
                          (Amounts in thousands)
                                (Unaudited)


                                                  March 31,   December 31,
                                                    2011          2010
                                                ------------  ------------
ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                     $     22,001  $     29,045
  Accounts receivable, net                           110,672        94,569
  Prepaid expenses and other                          30,682        29,882
                                                ------------  ------------
    Total current assets                             163,355       153,496

PROPERTY AND EQUIPMENT:
  Cost                                               615,281       610,572
  Less: accumulated depreciation                     327,542       319,634
                                                ------------  ------------
    Net property and equipment                       287,739       290,938

OTHER ASSETS                                           7,414         7,723
                                                ------------  ------------
    Total assets                                $    458,508  $    452,157
                                                ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                              $     38,162  $     37,745
  Wages and employees' benefits                       20,985        19,101
  Other current liabilities                           32,804        31,777
  Current portion of long-term debt                   17,143        17,143
                                                ------------  ------------
    Total current liabilities                        109,094       105,766

OTHER LIABILITIES:
  Long-term debt, less current portion                72,857        72,857
  Deferred income taxes                               39,077        39,077
  Claims, insurance and other                         29,529        28,099
                                                ------------  ------------
    Total other liabilities                          141,463       140,033

STOCKHOLDERS' EQUITY:
  Common stock                                            16            16
  Additional paid-in capital                         203,087       202,751
  Deferred compensation trust                         (2,183)       (2,727)
  Retained earnings                                    7,031         6,318
                                                ------------  ------------
    Total stockholders' equity                       207,951       206,358
                                                ------------  ------------
    Total liabilities and stockholders' equity  $    458,508  $    452,157
                                                ============  ============





                        Saia, Inc. and Subsidiary
                  Consolidated Statements of Operations
              For the Quarters Ended March 31, 2011 and 2010
              (Amounts in thousands, except per share data)
                                (Unaudited)


                                                          First Quarter
                                                      --------------------
                                                        2011       2010
                                                      ---------  ---------

OPERATING REVENUE                                     $ 243,018  $ 212,224

OPERATING EXPENSES:
  Salaries, wages and employees' benefits               122,740    117,464
  Purchased transportation                               21,066     17,435
  Fuel, operating expenses and supplies                  69,941     55,902
  Operating taxes and licenses                            9,357      9,214
  Claims and insurance                                    7,252      5,085
  Depreciation and amortization                           8,573      9,305
  Operating gains, net                                       (1)       (56)
                                                      ---------  ---------
    Total operating expenses                            238,928    214,349
                                                      ---------  ---------

OPERATING INCOME (LOSS)                                   4,090     (2,125)

NONOPERATING EXPENSES:
  Interest expense                                        2,998      3,073
  Other, net                                                (91)      (315)
                                                      ---------  ---------
    Nonoperating expenses, net                            2,907      2,758
                                                      ---------  ---------


INCOME (LOSS) BEFORE INCOME TAXES                         1,183     (4,883)
Income tax expense (benefit)                                470     (1,660)
                                                      ---------  ---------
NET INCOME (LOSS)                                     $     713  $  (3,223)
                                                      =========  =========

Average common shares outstanding - basic                15,768     15,697
                                                      =========  =========
Average common shares outstanding - diluted              16,119     15,697
                                                      =========  =========

Basic earnings (loss) per share                       $    0.05  $   (0.21)
                                                      =========  =========

Diluted earnings (loss) per share                     $    0.04  $   (0.21)
                                                      =========  =========




                        Saia, Inc. and Subsidiary
              Condensed Consolidated Statements of Cash Flows
              For the Quarters Ended March 31, 2011 and 2010
                          (Amounts in thousands)
                                (Unaudited)

                                                          First Quarter
                                                        ------------------
                                                          2011      2010
                                                        --------  --------

OPERATING ACTIVITIES:
Net cash used in operating activities                   $   (999) $ (2,311)
                                                        --------  --------
    Net cash used in operating activities                   (999)   (2,311)
                                                        --------  --------

INVESTING ACTIVITIES:
  Acquisition of property and equipment                   (6,106)     (122)
  Proceeds from disposal of property and equipment            61        59
                                                        --------  --------
    Net cash used in investing activities                 (6,045)      (63)
                                                        --------  --------

FINANCING ACTIVITIES:
                                                         --------  --------
    Net cash provided by (used in) financing
     activities                                                -         -
                                                        --------  --------

NET DECREASE IN CASH AND CASH EQUIVALENTS                 (7,044)   (2,374)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD            29,045     8,746
                                                        --------  --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                $ 22,001  $  6,372
                                                        ========  ========







                        Saia, Inc. and Subsidiary
                          Financial  Information
              For the Quarters Ended March 31, 2011 and 2010
                          (Amounts in thousands)
                                (Unaudited)

                                                     First Quarter
                                                   -----------------
                            First Quarter           Amount/Workday
                          ----------------    %    -----------------   %
                            2011     2010   Change   2011     2010   Change
                          -------  -------  ------ -------- -------- ------

Workdays                                                 64       63

Operating ratio              98.3%   101.0%

F/S Revenue           LTL 225,043  197,303    14.1  3,516.3  3,131.8   12.3
                       TL  17,975   14,921    20.5    280.9    236.8   18.6
                    Total 243,018  212,224    14.5  3,797.2  3,368.6   12.7

Revenue excluding     LTL 225,765  197,677    14.2  3,527.6  3,137.7   12.4
revenue recognition    TL  18,032   14,949    20.6    281.8    237.3   18.7
adjustment          Total 243,797  212,627    14.7  3,809.3  3,375.0   12.9

Tonnage               LTL     906      858     5.6    14.15    13.62    3.9
                       TL     175      163     7.7     2.74     2.59    6.0
                    Total   1,081    1,021     5.9    16.89    16.20    4.3

Shipments             LTL   1,609    1,551     3.8    25.15    24.61    2.2
                       TL      25       23     6.8     0.39     0.37    5.1
                    Total   1,634    1,574     3.8    25.54    24.98    2.2

Revenue/cwt.          LTL   12.47    11.52     8.2
                       TL    5.14     4.59    12.0
                    Total   11.28    10.41     8.3

Revenue/shipment      LTL  140.28   127.49    10.0
                       TL  723.05   640.28    12.9
                    Total  149.18   135.09    10.4

Pounds/shipment       LTL   1,125    1,106     1.7
                       TL  14,073   13,963     0.8
                    Total   1,323    1,297     2.0

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