Saia Reports First Quarter Earnings per Share of $0.34

JOHNS CREEK, GA--(Marketwired - Apr 25, 2014) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported improved first quarter 2014 results on solid tonnage growth despite difficult winter weather. All prior period share and per share data in this release have been adjusted to reflect the Company's June 2013 three-for-two stock split.

First Quarter 2014 Compared to First Quarter 2013 Results

• Revenues were $300 million, an increase of 9.5%
• LTL tonnage increased 5.7% as LTL shipments were up 4.4% with a 1.3% increase in weight per shipment
• Operating income increased 4.8% to $15.2 million compared to $14.5 million
• Operating ratio was 94.9 compared to 94.7
• Diluted earnings per share were $0.34 compared to $0.37 last year (last year's first quarter included the benefit of tax credits of $0.04 enacted in 2013 which were retroactive to 2012)
  
  

"Saia's first quarter results are very gratifying, given the disruptive weather patterns that challenged our entire industry. Our ability to handle nearly 6% more tons in this year's first quarter while maintaining solid service metrics is a direct result of the talents and commitment of our entire workforce. Saia's customers continue to appreciate our value-proposition and we were able to improve LTL pricing by 2.3% in the quarter," said Saia President and Chief Executive Officer, Rick O'Dell.

"In addition to the harsh weather, quarterly results were further unfavorably impacted by higher accident severity and increased usage of costly purchased transportation. With the operational challenges of the first quarter weather behind us, we are encouraged about our prospects for the remainder of 2014. We continue to invest in new equipment and technology, both necessary to drive efficiency and reliability across our service network. I believe that Saia's consistent message of service, operational excellence and focused pricing position us well for increasing shareholder and customer value," O'Dell said.

Financial Position and Capital Expenditures
Total debt was $79.7 million at March 31, 2014 resulting in net debt to total capital of 20.0%. This compares to total debt of $58.8 million and net debt to total capital of 18.1% at the end of last year's first quarter.

Net capital expenditures in the first quarter were $8.2 million. The Company currently projects net capital expenditures in 2014 of approximately $110 million, an increase of $25 million over our January forecast. This increased level of investment primarily allows for expansion of the linehaul trailer fleet in addition to the already planned replacement of revenue equipment and investments in technology and real estate projects.

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 888-364-3108 or 719-457-2727 referencing conference ID #8928397. 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 May 1, 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)
			March 31,				December 31,
			2014				2013
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$	842			$	159
	Accounts receivable, net			141,917				117,937
	Prepaid expenses and other			43,609				52,157
		Total current assets		186,368				170,253
PROPERTY AND EQUIPMENT:
	Cost			820,386				797,527
	Less: accumulated depreciation			377,108				365,301
		Net property and equipment		443,278				432,226
OTHER ASSETS				14,199				14,322
		Total assets	$	643,845			$	616,801
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable		$	66,098			$	50,799
	Wages and employees' benefits			29,816				35,248
	Other current liabilities			52,812				47,667
	Current portion of long-term debt			7,143				7,143
		Total current liabilities		155,869				140,857
OTHER LIABILITIES:
	Long-term debt, less current portion			72,576				69,740
	Deferred income taxes			68,612				69,916
	Claims, insurance and other			32,054				31,496
		Total other liabilities		173,242				171,152
STOCKHOLDERS' EQUITY:
	Common stock			25				24
	Additional paid-in capital			215,002				213,648
	Deferred compensation trust			(2,235	)			(2,246	)
	Retained earnings			101,942				93,366
		Total stockholders' equity		314,734				304,792
		Total liabilities and stockholders' equity	$	643,845			$	616,801

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters Ended March 31, 2014 and 2013
(Amounts in thousands, except per share data)
(Unaudited)
			First Quarter
			2014				2013
OPERATING REVENUE			$	299,730			$	273,795
OPERATING EXPENSES:
	Salaries, wages and employees' benefits			150,222				136,854
	Purchased transportation			21,991				16,771
	Fuel, operating expenses and supplies			79,959				79,002
	Operating taxes and licenses			8,975				9,579
	Claims and insurance			9,518				5,595
	Depreciation and amortization			13,841				11,634
	Operating gains, net			(7	)			(172	)
		Total operating expenses		284,499				259,263
OPERATING INCOME				15,231				14,532
NONOPERATING EXPENSES:
	Interest expense			1,316				1,528
	Other, net			(30	)			(66	)
		Nonoperating expenses, net		1,286				1,462
INCOME BEFORE INCOME TAXES				13,945				13,070
Income tax expense				5,369				3,915
NET INCOME			$	8,576			$	9,155
Average common shares outstanding - basic				24,382				23,985
Average common shares outstanding - diluted				25,361				24,948
Basic earnings per share			$	0.35			$	0.38
Diluted earnings per share			$	0.34			$	0.37

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Quarters Ended March 31, 2014 and 2013
(Amounts in thousands)
(Unaudited)
			Quarters
			2014				2013
OPERATING ACTIVITIES:
Net cash provided by operating activities			$	4,119			$	7,018
		Net cash provided by operating activities		4,119				7,018
INVESTING ACTIVITIES:
	Acquisition of property and equipment			(8,379	)			(6,725	)
	Proceeds from disposal of property and equipment			156				710
		Net cash used in investing activities		(8,223	)			(6,015	)
FINANCING ACTIVITIES:
	Borrowings (payment) of revolving credit agreement, net			2,831				(1,945	)
	Proceeds from stock option exercises			1,956				1,058
		Net cash provided by (used in) financing activities		4,787				(887	)
NET INCREASE IN CASH AND CASH EQUIVALENTS				683				116
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD				159				321
CASH AND CASH EQUIVALENTS, END OF PERIOD			$	842			$	437

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended March 31, 2014 and 2013
(Unaudited)
														First Quarter
			First Quarter								%			Amount/Workday				%
			2014				2013				Change			2014		2013		Change
Workdays														63		63
Operating Ratio (1)				94.9	%			94.7	%
Tonnage (2)	LTL			947				896			5.7			15.04		14.22		5.7
	TL			216				165			30.8			3.42		2.62		30.8
Shipments (2)	LTL			1,586				1,520			4.4			25.18		24.12		4.4
	TL			31				24			28.5			0.49		0.38		28.5
Revenue/cwt. (3)	LTL		$	14.51			$	14.18			2.3
	TL		$	5.71			$	5.90			(3.3	)
Revenue/shipment (3)	LTL		$	173.28			$	167.25			3.6
	TL		$	801.82			$	814.57			(1.6	)
Pounds/shipment	LTL			1,195				1,179			1.3
	TL			14,051				13,804			1.8
Length of Haul				753				734			2.6

(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.