Saia Reports First Quarter Earnings per Share of $0.42

JOHNS CREEK, GA--(Marketwired - Apr 27, 2016) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported first quarter 2016 financial results.

First Quarter 2016 Compared to First Quarter 2015 Results

• Revenues were $290 million, a decline of 1.1%
• Operating income decreased by 17% to $17.6 million
• Net income fell 16% to $10.6 million
• Diluted earnings per share were $0.42 compared to $0.49
• Operating ratio of 93.9 compared to 92.8
• LTL shipments per workday fell by 0.8% and LTL tonnage per workday declined 3.4%
• LTL revenue per hundredweight increased 2.1%
  
  

"While we were not able to match last year's record first quarter earnings results, I am pleased with the trajectory of our productivity and expense control initiatives. We continue to see benefits in the areas of dock productivity and maintenance expenditures, while maintaining service and advancing quality initiatives. We also reduced purchased transportation expense, which represented 4.3% of revenue compared to 6.0% of revenue in the first quarter last year," said Saia President and Chief Executive Officer, Rick O'Dell.

"Despite no noticeable improvement in the level of general economic activity, we secured average rate increases of 5.3% on contractual renewals in the period," O'Dell added. 

Financial Position and Capital Expenditures
Total debt was $116.4 million at March 31, 2016 and inclusive of the cash on-hand, net debt to total capital was 20.9%. Due primarily to the timing of capital expenditures and seasonality factors, this represents an increase to the total debt of $69.0 million and net debt to total capital of 13.9% at December 31, 2015. 

Net capital expenditures in the first quarter of 2016 were $63.7 million including equipment acquired with capital leases. This compares to $33.2 million of net capital expenditures in the first quarter of 2015. The Company currently plans net capital expenditures in 2016 of approximately $140 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 888-876-9177 or 785-424-1666 referencing conference ID #8234961. 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 June 22, 2016 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, assumptions and uncertainties 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; (25) 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, 2016				December 31, 2015
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$	238			$	124
	Accounts receivable, net			137,607				124,222
	Prepaid expenses and other			37,590				34,643
		Total current assets		175,435				158,989
PROPERTY AND EQUIPMENT:
	Cost			1,056,435				995,514
	Less: accumulated depreciation			467,212				456,335
		Net property and equipment		589,223				539,179
OTHER ASSETS				31,047				31,025
		Total assets	$	795,705			$	729,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable		$	59,723			$	54,754
	Wages and employees' benefits			30,423				27,834
	Other current liabilities			46,700				46,360
	Current portion of long-term debt			13,659				12,432
		Total current liabilities		150,505				141,380
OTHER LIABILITIES:
	Long-term debt, less current portion			102,780				56,540
	Deferred income taxes			69,078				67,417
	Claims, insurance and other			34,574				35,967
		Total other liabilities		206,432				159,924
STOCKHOLDERS' EQUITY:
	Common stock			25				25
	Additional paid-in capital			231,114				230,593
	Deferred compensation trust			(3,319	)			(3,102	)
	Retained earnings			210,948				200,373
		Total stockholders' equity		438,768				427,889
		Total liabilities and stockholders' equity	$	795,705			$	729,193

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters Ended March 31, 2016 and 2015
(Amounts in thousands, except per share data)
(Unaudited)
			First Quarters
			2016				2015
OPERATING REVENUE			$	289,911			$	293,022
OPERATING EXPENSES:
	Salaries, wages and employees' benefits			170,266				157,729
	Purchased transportation			12,467				17,714
	Fuel, operating expenses and supplies			54,040				67,145
	Operating taxes and licenses			10,040				9,096
	Claims and insurance			8,081				4,837
	Depreciation and amortization			17,243				15,199
	Operating loss, net			190				69
		Total operating expenses		272,327				271,789
OPERATING INCOME				17,584				21,233
NONOPERATING EXPENSES (INCOME):
	Interest expense			963				1,019
	Other, net			(7	)			(51	)
		Nonoperating expenses, net		956				968
INCOME BEFORE INCOME TAXES				16,628				20,265
Income tax expense				6,053				7,660
NET INCOME			$	10,575			$	12,605
Average common shares outstanding - basic				24,998				24,803
Average common shares outstanding - diluted				25,445				25,513
Basic earnings per share			$	0.42			$	0.51
Diluted earnings per share			$	0.42			$	0.49

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Quarters Ended March 31, 2016 and 2015
(Amounts in thousands)
(Unaudited)
			Quarters
			2016				2015
OPERATING ACTIVITIES:
Net cash provided by operating activities			$	16,306			$	26,160
		Net cash provided by operating activities		16,306				26,160
INVESTING ACTIVITIES:
	Acquisition of business, net of cash received			-				(23,080	)
	Acquisition of property and equipment			(53,995	)			(30,064	)
	Proceeds from disposal of property and equipment			367				294
		Net cash used in investing activities		(53,628	)			(52,850	)
FINANCING ACTIVITIES:
	Borrowing of revolving credit agreement, net			38,826				21,577
	Proceeds from stock option exercises			-				1,842
	Other financing activity			(1,390	)			(900	)
		Net cash provided by financing activities		37,436				22,519
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS				114				(4,171	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD				124				4,367
CASH AND CASH EQUIVALENTS, END OF PERIOD			$	238			$	196
NON-CASH ITEMS:
	Acquisition of property and equipment financed with capital leases		$	10,032			$	3,471

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended March 31, 2016 and 2015
(Unaudited)
													First Quarters
		First Quarters								%			Amount/Workday				%
		2016				2015				Change			2016		2015		Change
Workdays													64		63
Operating ratio			93.9	%			92.8	%
Tonnage (1)	LTL		868				884			(1.8	)		13.56		14.04		(3.4	)
	TL		168				188			(10.6	)		2.62		2.98		(12.0	)
Shipments (1)	LTL		1,553				1,542			0.7			24.26		24.47		(0.8	)
	TL		24				27			(9.9	)		0.38		0.42		(11.3	)
Revenue/cwt. (2)	LTL	$	15.49			$	15.17			2.1
	TL	$	5.64			$	5.89			(4.3	)
Revenue/shipment (2)	LTL	$	173.20			$	174.12			(0.5	)
	TL	$	786.24			$	828.54			(5.1	)
Pounds/shipment	LTL		1,118				1,147			(2.6	)
	TL		13,942				14,061			(0.8	)
Length of Haul			781				773			1.0

(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.