Saia Reports Third Quarter Earnings per Share of $0.30

JOHNS CREEK, GA--(Marketwire - Oct 26, 2011) - Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier, today reported improved third quarter 2011 results on stronger revenue and improving pricing fundamentals.

Third Quarter 2011 Compared to Third Quarter 2010 Results

• Revenues were $268 million, an increase of 14 percent from the prior year period
• Operating income increased 47 percent to $9.6 million compared to $6.5 million in the prior year period
• Earnings per share were $0.30 compared to $0.16 in the prior year period
• Operating ratio was 96.4 compared to 97.2 in the prior year period
• LTL tonnage increased by 2.6 percent as LTL shipments per workday were flat with a 2.6 percent increase in weight per shipment
• LTL yield was up 11.6 percent due to the impact of higher fuel surcharge and favorable pricing actions

"We continue to capitalize on an improved industry environment by taking prudent pricing actions across our customer base. Again this quarter, we achieved meaningful increases in contract renewals from customers who value Saia's service quality. In addition, our annual general rate increase (GRI) of 6.9% was effective on August 22^nd. We continue to see upside with yield improvement and business mix management and believe that steady increases will continue," said Rick O'Dell, president and chief executive officer.

"Our third quarter results were impacted by higher costs from health care, purchased transportation and maintenance," continued O'Dell. "These cost challenges held back margin improvement in the quarter and further validate the need for continued pricing progress."

"I am gratified that we continue to see improvements in our results. Saia's dedicated employees are providing best in class customer service delivering a strong value proposition in the marketplace. Cash flow is solid, our balance sheet is strong and we are again investing in the business," O'Dell said.

Year to Date 2011 Compared to Year to Date 2010 Results

• Revenues were $777 million compared to $678 million in the prior year period, an increase of 15 percent
• Operating income was $22.0 million compared to $10.3 million in the prior year period
• Net income was $8.9 million compared to $1.3 million in the prior year period
• Earnings per share were $0.55 compared to losses per share of $0.08 in the prior year period
• Operating ratio was 97.2 compared to 98.5 in the prior year period

Financial Position and Capital Expenditures
Total debt was $81.4 million at September 30, 2011. Net of the Company's $3.5 million cash balance at quarter-end, net debt to total capital was 26.5 percent. This compares to total debt of $90.0 million in the prior year quarter.

Net capital expenditures year to date in 2011 were $51.8 million. This compares to $1.2 million in the prior year period. The Company is planning net capital expenditures in 2011 of approximately $65.0 million. This expenditure level reflects replacement and growth units of tractors and the Company's continued investment in technology.

Conference Call
The Company will hold a conference call to discuss these results today at 12:00 noon Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-800-723-6498 or dial 785-830-7989 for international calls and use conference ID #4878983. Callers should dial in five to 10 minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through November 4, 2011. The replay is available by dialing 1-888-203-1112 or 719-457-0820.

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

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, Saia employs 8,000 people. For more information, visit the Investor Relations section 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)
			September 30,			December 31,
			2011			2010
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$	3,522		$	29,045
	Accounts receivable, net			115,166			94,569
	Prepaid expenses and other			29,311			29,882
		Total current assets		147,999			153,496
PROPERTY AND EQUIPMENT:
	Cost			659,406			610,572
	Less: accumulated depreciation			340,583			319,634
		Net property and equipment		318,823			290,938
OTHER ASSETS				7,178			7,723
		Total assets	$	474,000		$	452,157
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable		$	38,231		$	37,745
	Wages and employees' benefits			24,952			19,101
	Other current liabilities			37,816			31,777
	Current portion of long-term debt			19,643			17,143
		Total current liabilities		120,642			105,766
OTHER LIABILITIES:
	Long-term debt, less current portion			61,786			72,857
	Deferred income taxes			46,181			39,077
	Claims, insurance and other			28,852			28,099
		Total other liabilities		136,819			140,033
STOCKHOLDERS' EQUITY:
	Common stock			16			16
	Additional paid-in capital			203,547			202,751
	Deferred compensation trust			(2,242	)		(2,727	)
	Retained earnings			15,218			6,318
		Total stockholders' equity		216,539			206,358
		Total liabilities and stockholders' equity	$	474,000		$	452,157

Saia, Inc. and Subsidiary
Consolidated Statements of Operations
For the Quarter and Nine Months Ended September 30, 2011 and 2010
(Amounts in thousands, except per share data)
(Unaudited)
				Third Quarter							Nine Months
				2011			2010				2011				2010
OPERATING REVENUE				$	268,285		$	234,662			$	777,204			$	678,228
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				133,460			123,298				386,869				362,183
	Purchased transportation				23,345			21,617				69,064				61,063
	Fuel, operating expenses and supplies				75,510			58,987				221,637				173,269
	Operating taxes and licenses				9,830			9,293				28,787				27,680
	Claims and insurance				6,766			5,997				21,854				16,493
	Depreciation and amortization				9,723			8,946				27,099				27,473
	Operating (gains) loss, net				31			(23	)			(72	)			(229	)
		Total operating expenses			258,665			228,115				755,238				667,932
OPERATING INCOME					9,620			6,547				21,966				10,296
NONOPERATING EXPENSES:
	Interest expense				2,194			2,469				8,147				8,227
	Other, net				122			(95	)			12				(347	)
		Nonoperating expenses, net			2,316			2,374				8,159				7,880
INCOME BEFORE INCOME TAXES					7,304			4,173				13,807				2,416
Income tax expense					2,475			1,678				4,907				1,164
NET INCOME				$	4,829		$	2,495			$	8,900			$	1,252
Average common shares outstanding - basic					15,800			15,719				15,786				15,707
Average common shares outstanding - diluted					16,160			16,094				16,145				16,082
Basic earnings per share				$	0.31		$	0.16			$	0.56			$	0.08
Diluted earnings per share				$	0.30		$	0.16			$	0.55			$	0.08

Saia, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
				Nine Months
				2011				2010
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	34,653			$	19,527
		Net cash provided by operating activities			34,653				19,527
INVESTING ACTIVITIES:
	Acquisition of property and equipment				(52,309	)			(1,575	)
	Proceeds from disposal of property and equipment				555				401
		Net cash used in investing activities			(51,754	)			(1,174	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(8,571	)			--
	Proceeds from stock option exercises				149				109
		Net cash (used in) provided by financing activities			(8,422	)			109
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS					(25,523	)			18,462
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					29,045				8,746
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	3,522			$	27,208

Saia, Inc. and Subsidiary
Financial Information
For the Quarters Ended September 30, 2011 and 2010
(Amounts in thousands)
(Unaudited)
													Third Quarter
				Third Quarter									Amount/Workday
				2011			2010			% Change			2011		2010		% Change
Workdays													64		64
Operating ratio				96.4	%		97.2	%
F/S Revenue		LTL		248,818			217,327			14.5			3,887.8		3,395.7		14.5
		TL		19,468			17,336			12.3			304.2		270.9		12.3
		Total		268,285			234,662			14.3			4,192.0		3,666.6		14.3
Revenue excluding		LTL		248,855			217,358			14.5			3,888.4		3,396.2		14.5
revenue recognition		TL		19,470			17,338			12.3			304.2		270.9		12.3
adjustment		Total		268,325			234,696			14.3			4,192.6		3,667.1		14.3
Tonnage		LTL		947			924			2.6			14.80		14.43		2.6
		TL		180			179			0.4			2.81		2.80		0.4
		Total		1,127			1,102			2.2			17.61		17.23		2.2
Shipments		LTL		1,670			1,670			(0.0	)		26.09		26.09		(0.0	)
		TL		26			25			1.5			0.40		0.40		1.5
		Total		1,695			1,695			0.0			26.49		26.49		0.0
Revenue/cwt.		LTL		13.14			11.77			11.6
		TL		5.42			4.84			11.9
		Total		11.91			10.64			11.9
Revenue/shipment		LTL		149.04			130.17			14.5
		TL		758.55			685.28			10.7
		Total		158.27			138.45			14.3
Pounds/shipment		LTL		1,135			1,106			2.6
		TL		13,992			14,144			(1.1	)
		Total		1,329			1,301			2.2