Saia Reports Third Quarter Earnings per Share of $0.46

JOHNS CREEK, GA--(Marketwired - Oct 28, 2015) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported third quarter 2015 results. 

Third Quarter 2015 Compared to Third Quarter 2014 Results

• Revenues were $317 million, a 4.6% decrease
• Operating income decreased 27% to $19.8 million
• Diluted earnings per share were $0.46 compared to $0.64
• Operating ratio of 93.7 compared to 91.8
• LTL shipments were down 4.2% and LTL tonnage declined 6.7%
• LTL revenue per hundredweight increased 2.2% despite the impact of lower year-over-year fuel surcharges

"Our disappointing third quarter results were primarily the result of declining tonnage trends during the quarter, which made it difficult to offset higher investments in driver wages. Additionally, we incurred increased expenses associated with self-insurance claims. In this type of volume environment we will more aggressively manage costs and maintain a constant focus on mix management to ensure that proper compensatory pricing is in place," said Saia President and Chief Executive Officer, Rick O'Dell.

"Despite the negative year-over-year earnings results, we improved pricing and LTL yield for the 21^st consecutive quarter. Our level of service remains excellent at 98% on-time and we further improved our cargo claims results in the quarter," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $81.2 million at September 30, 2015 and inclusive of the $4.5 million of cash on-hand, net debt to total capital was 15.6% at quarter end. This compares to total debt of $83.0 million and net debt to total capital of 17.7% at December 31, 2014.

Net capital expenditures in the first nine months of the year were $92.1 million including equipment acquired with capital leases and excluding our acquisition of LinkEx in February. This compares to $85.5 million spent in the first nine months of 2014. The Company currently plans net capital expenditures in 2015 of approximately $125 million.

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 888-401-4669 or 719-325-2472 referencing conference ID #6997115. 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 November 3, 2015 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 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; effectiveness of Company-specific performance improvement initiatives, including management of the cost structure to match shifts in customer volume levels; the creditworthiness of our customers and their ability to pay for services; failure to achieve acquisition synergies; failure to operate and grow acquired businesses in a manner that supports the value allocated to these acquired businesses, including their goodwill; competitive initiatives and pricing pressures, including in connection with fuel surcharge; loss of significant customers; the Company's need for capital and uncertainty of the 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, Homeland Security, environmental regulations and the Food and Drug Administration; changes in interpretation of accounting principles; dependence on key employees; inclement weather; labor relations, including the adverse impact should a portion of the Company's workforce become unionized; terrorism risks; self-insurance claims and other expense volatility; increased costs as a result of healthcare reform legislation; social media risks; cyber security risk; 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)
				September 30, 2015				December 31, 2014
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	4,540			$	4,367
	Accounts receivable, net				139,041				128,367
	Prepaid expenses and other				42,156				56,902
		Total current assets			185,737				189,636
PROPERTY AND EQUIPMENT:
	Cost				975,874				891,145
	Less: accumulated depreciation				443,330				407,505
		Net property and equipment			532,544				483,640
OTHER ASSETS					32,706				13,169
		Total assets		$	750,987			$	686,445
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable			$	59,504			$	42,388
	Wages and employees' benefits				32,463				28,777
	Other current liabilities				50,495				50,176
	Current portion of long-term debt				12,031				9,138
		Total current liabilities			154,493				130,479
OTHER LIABILITIES:
	Long-term debt, less current portion				69,163				73,897
	Deferred income taxes				77,775				78,406
	Claims, insurance and other				35,728				36,757
		Total other liabilities			182,666				189,060
STOCKHOLDERS' EQUITY:
	Common stock				25				25
	Additional paid-in capital				228,015				223,713
	Deferred compensation trust				(3,198	)			(2,189	)
	Retained earnings				188,986				145,357
		Total stockholders' equity			413,828				366,906
		Total liabilities and stockholders' equity		$	750,987			$	686,445

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Nine Months Ended September 30, 2015 and 2014
(Amounts in thousands, except per share data)
(Unaudited)
				Third Quarter						Nine Months
				2015			2014			2015				2014
OPERATING REVENUE				$	317,199		$	332,544		$	933,701			$	962,673
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				177,623			166,353			505,817				476,779
	Purchased transportation				19,314			27,479			57,212				77,396
	Fuel, operating expenses and supplies				65,122			80,206			201,432				241,441
	Operating taxes and licenses				9,258			9,033			27,765				27,001
	Claims and insurance				9,146			6,956			20,344				30,651
	Depreciation and amortization				16,765			15,336			48,525				44,264
	Operating loss, net				126			32			247				20
		Total operating expenses			297,354			305,395			861,342				897,552
OPERATING INCOME					19,845			27,149			72,359				65,121
NONOPERATING EXPENSES:
	Interest expense				1,033			1,064			3,126				3,557
	Other, net				46			16			(19	)			(49	)
		Nonoperating expenses, net			1,079			1,080			3,107				3,508
INCOME BEFORE INCOME TAXES					18,766			26,069			69,252				61,613
Income tax expense					6,989			9,791			25,623				23,191
NET INCOME				$	11,777		$	16,278		$	43,629			$	38,422
Average common shares outstanding - basic					24,963			24,527			24,901				24,465
Average common shares outstanding - diluted					25,555			25,505			25,525				25,436
Basic earnings per share				$	0.47		$	0.66		$	1.75			$	1.57
Diluted earnings per share				$	0.46		$	0.64		$	1.71			$	1.51

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2015 and 2014
(Amounts in thousands)
(Unaudited)
				Nine Months
				2015				2014
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	114,038			$	92,017
		Net cash provided by operating activities			114,038				92,017
INVESTING ACTIVITIES:
	Acquisition of business				(22,238	)			-
	Acquisition of property and equipment				(68,835	)			(79,773	)
	Proceeds from disposal of property and equipment				665				2,590
		Net cash used in investing activities			(90,408	)			(77,183	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(3,571	)			(3,571	)
	Repayment of revolving credit agreement, net				(20,000	)			(8,317	)
	Proceeds from stock option exercises				2,816				4,159
	Other financing activities				(2,702	)			(20	)
		Net cash used in financing activities			(23,457	)			(7,749	)
NET INCREASE IN CASH AND CASH EQUIVALENTS					173				7,085
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					4,367				159
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	4,540			$	7,244
NON-CASH ITEMS:
	Acquisition of property and equipment financed with capital leases			$	23,979			$	8,328

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended September 30, 2015 and 2014
(Unaudited)
															Third Quarter
				Third Quarter								%			Amount/Workday				%
				2015				2014				Change			2015		2014		Change
Workdays															64		64
Operating ratio					93.7	%			91.8	%
Tonnage (1)		LTL			940				1,008			(6.7	)		14.68		15.75		(6.8	)
		TL			188				215			(12.6	)		2.93		3.36		(12.8	)
Shipments (1)		LTL			1,658				1,730			(4.2	)		25.91		27.03		(4.1	)
		TL			27				31			(12.6	)		0.42		0.48		(12.5	)
Revenue/cwt. (2)		LTL		$	15.51			$	15.17			2.2
		TL		$	5.87			$	5.95			(1.3	)
Revenue/shipment (2)		LTL		$	175.77			$	176.71			(0.5	)
		TL		$	820.00			$	831.69			(1.4	)
Pounds/shipment		LTL			1,134				1,165			(2.7	)
		TL			13,967				13,978			(0.1	)
Length of Haul					773				766			0.9

(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.