Saia, Inc. Reports First Quarter 2012 Results

JOHNS CREEK, GA--(Marketwire - Apr 27, 2012) - Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported improved first quarter 2012 results on stronger revenue, improving pricing and solid cost execution.

First Quarter 2012 Compared to First Quarter 2011 Results

• Revenues were $269 million, an increase of 11 percent from the prior year period
• Operating income increased to $11.0 million from $4.1 million in the prior year period
• Earnings per share were $0.34 compared to $0.04 in the prior year period
• Operating ratio was 95.9 compared to 98.3 in the prior year period
• LTL tonnage increased by 2.6 percent as LTL shipments per workday were down slightly with a 3.3 percent increase in LTL weight per shipment
• LTL yield was up 7.9 percent due to the impact of favorable pricing actions and higher fuel surcharges

"Saia's excellent service quality and continued progress with yield in an improving environment provided the foundation of our margin improvement in the quarter. This higher yield combined with continued cost optimization initiatives throughout our network were the primary drivers of the 240 basis point improvement in our operating ratio. Meaningful margin improvement was achieved in the quarter in spite of some expected higher wage and benefit costs necessary to support our workforce and customer requirements. On the other hand, we benefited from the mild winter weather this year. I am pleased with our progress on many fronts that contributed to materially improved margins for the quarter," said Rick O'Dell, President and Chief Executive Officer.

"Saia's service was 98 percent on-time and we saw improvements in essentially every quality metric we measure. I believe that our fundamental execution on quality, yield management and efficiency initiatives has never been better and the stage is set for further progress. Saia's balance sheet is strong and we are making major investments in technology and equipment that are also contributing to the enhancement of our company image while building on our operational efficiencies. I believe that Saia's targeted marketing, 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 $86.5 million at March 31, 2012 resulting in net debt to total capital of 27.7 percent. This compares to total debt of $90.0 million and net debt to total capital of 24.6 percent at March 31, 2011.

Net capital expenditures for the first three months of 2012 were $39 million. This compares to $6 million of capital expenditures over the same period in 2011. The Company is planning net capital expenditures in 2012 of approximately $80 million. This expenditure level reflects replacement tractors and trailers and the Company's continued investment in technology.

Conference Call
Management will hold a conference call to discuss first-quarter results today at 10:30 a.m. Eastern Time. To participate in the call, please dial 1-800-548-7911 or 719-325-4907 referencing conference ID #4755613. 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. 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 148 terminals, the carrier employs 8,000 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 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, 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,
				2012				2011
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	60			$	1,317
	Accounts receivable, net				120,743				107,436
	Prepaid expenses and other				29,215				34,063
		Total current assets			150,018				142,816
PROPERTY AND EQUIPMENT:
	Cost				700,132				669,345
	Less: accumulated depreciation				342,987				344,890
		Net property and equipment			357,145				324,455
OTHER ASSETS					7,761				7,615
		Total assets		$	514,924			$	474,886
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable			$	54,307			$	39,783
	Wages and employees' benefits				25,512				21,185
	Other current liabilities				41,834				41,237
	Current portion of long-term debt				22,143				22,143
		Total current liabilities			143,796				124,348
OTHER LIABILITIES:
	Long-term debt, less current portion				64,309				50,714
	Deferred income taxes				51,289				51,289
	Claims, insurance and other				29,954				29,234
		Total other liabilities			145,552				131,237
STOCKHOLDERS' EQUITY:
	Common stock				16				16
	Additional paid-in capital				204,555				203,793
	Deferred compensation trust				(2,221	)			(2,199	)
	Retained earnings				23,226				17,691
		Total stockholders' equity			225,576				219,301
		Total liabilities and stockholders' equity		$	514,924			$	474,886

Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarters Ended March 31, 2012 and 2011
(Amounts in thousands, except per share data)
(Unaudited)
				First Quarter
				2012				2011
OPERATING REVENUE				$	268,690			$	243,018
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				131,700				122,740
	Purchased transportation				19,309				21,066
	Fuel, operating expenses and supplies				79,397				69,941
	Operating taxes and licenses				9,866				9,357
	Claims and insurance				6,174				7,252
	Depreciation and amortization				11,415				8,573
	Operating gains loss, net				(219	)			(1	)
		Total operating expenses			257,642				238,928
OPERATING INCOME					11,048				4,090
NONOPERATING EXPENSES:
	Interest expense				1,964				2,998
	Other, net				(95	)			(91	)
		Nonoperating expenses, net			1,869				2,907
INCOME BEFORE INCOME TAXES					9,179				1,183
Income tax expense					3,644				470
NET INCOME				$	5,535			$	713
Average common shares outstanding - basic					15,833				15,768
Average common shares outstanding - diluted					16,358				16,119
Basic earnings per share				$	0.35			$	0.05
Diluted earnings per share				$	0.34			$	0.04

Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Quarters Ended March 31, 2012 and 2011
(Amounts in thousands)
(Unaudited)
				First Quarter
				2012				2011
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	24,049			$	(999	)
		Net cash provided by (used in) operating activities			24,049				(999	)
INVESTING ACTIVITIES:
	Acquisition of property and equipment				(40,595	)			(6,106	)
	Proceeds from disposal of property and equipment				1,358				61
		Net cash used in investing activities			(39,237	)			(6,045	)
FINANCING ACTIVITIES:
	Borrowings of revolving credit agreement, net				13,595				-
	Proceeds from stock option exercises				336				-
		Net cash provided by financing activities			13,931				-
NET DECREASE IN CASH AND CASH EQUIVALENTS					(1,257	)			(7,044	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					1,317				29,045
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	60			$	22,001

Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended March 31, 2012 and 2011
(Amounts in thousands)
(Unaudited)
													First Quarter
				First Quarter						%			Amount/Workday				%
				2012			2011			Change			2012		2011		Change
Workdays													64		64
Operating ratio				95.9	%		98.3	%
F/S Revenue		LTL		248,840			225,043			10.6			3,888.1		3,516.3		10.6
		TL		19,850			17,975			10.4			310.2		280.9		10.4
		Total		268,690			243,018			10.6			4,198.3		3,797.2		10.6
Revenue excluding		LTL		250,098			225,765			10.8			3,907.8		3,527.6		10.8
revenue recognition		TL		19,951			18,032			10.6			311.7		281.8		10.6
adjustment		Total		270,048			243,797			10.8			4,219.5		3,809.3		10.8
Tonnage		LTL		929			906			2.6			14.52		14.15		2.6
		TL		178			175			1.6			2.79		2.74		1.6
		Total		1,108			1,081			2.5			17.31		16.89		2.5
Shipments		LTL		1,599			1,609			(0.6	)		24.99		25.15		(0.6	)
		TL		25			25			1.8			0.40		0.39		1.8
		Total		1,625			1,634			(0.6	)		25.38		25.54		(0.6	)
Revenue/cwt.		LTL		13.45			12.47			7.9
		TL		5.60			5.14			8.9
		Total		12.19			11.28			8.1
Revenue/shipment		LTL		156.39			140.28			11.5
		TL		785.98			723.05			8.7
		Total		166.23			149.18			11.4
Pounds/shipment		LTL		1,162			1,125			3.3
		TL		14,047			14,073			(0.2	)
		Total		1,364			1,323			3.1