Saia Reports Record Second Quarter Earnings per Share of $0.75

JOHNS CREEK, GA--(Marketwired - Jul 29, 2015) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported second quarter 2015 results. 

Second Quarter 2015 Compared to Second Quarter 2014 Results

• Revenues were $323 million, a 2.1% decrease
• Operating income increased 38% to $31.3 million
• Diluted earnings per share were $0.75 compared to $0.53
• Operating ratio improved to 90.3 compared to 93.1
• LTL shipments were down 2.9% as LTL tonnage decreased 6.0%
• LTL revenue per hundredweight increased by 3.9% despite the impact of lower year-over-year fuel surcharges
  
  

"I am very pleased to report our fourth consecutive quarter of record earnings and would note that the results were achieved with improvements across our organization. We are especially pleased with the improved safety and cargo claims results in the quarter. Network optimization efforts continue to be successful and our purchased transportation costs were down nearly 28% in the quarter, " said Saia President and Chief Executive Officer, Rick O'Dell. 

"Strong yield improvements continued in the quarter and though we will continue to face difficult tonnage comparisons for the rest of the year, our network is balanced and our sales force is focused on finding customers that find our value proposition to be compelling," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $108.6 million at June 30, 2015 and inclusive of the $3.7 million of cash on hand, net debt to total capital was 20.8% 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 half of the year were $73.3 million including equipment acquired with capital leases. This compares to $66.7 million spent in the first half 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 888-438-5519 or 719-325-2464 referencing conference ID #2753051. 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 August 4, 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 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; failure to achieve acquisition synergies; 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 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; cyber security risks; 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; social media 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)
				June 30, 2015				December 31, 2014
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	3,663			$	4,367
	Accounts receivable, net				146,202				128,367
	Prepaid expenses and other				44,132				56,902
		Total current assets			193,997				189,636
PROPERTY AND EQUIPMENT:
	Cost				957,345				891,145
	Less: accumulated depreciation				429,698				407,505
		Net property and equipment			527,647				483,640
OTHER ASSETS					34,695				13,169
		Total assets		$	756,339			$	686,445
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable			$	49,939			$	42,388
	Wages and employees' benefits				38,844				28,777
	Other current liabilities				49,017				50,176
	Current portion of long-term debt				11,215				9,138
		Total current liabilities			149,015				130,479
OTHER LIABILITIES:
	Long-term debt, less current portion				97,419				73,897
	Deferred income taxes				74,224				78,406
	Claims, insurance and other				34,689				36,757
		Total other liabilities			206,332				189,060
STOCKHOLDERS' EQUITY:
	Common stock				25				25
	Additional paid-in capital				226,891				223,713
	Deferred compensation trust				(3,133	)			(2,189	)
	Retained earnings				177,209				145,357
		Total stockholders' equity			400,992				366,906
		Total liabilities and stockholders' equity		$	756,339			$	686,445

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2015 and 2014
(Amounts in thousands, except per share data)
(Unaudited)
				Second Quarter								Six Months
				2015				2014				2015				2014
OPERATING REVENUE				$	323,480			$	330,399			$	616,502			$	630,129
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				170,465				160,204				328,194				310,426
	Purchased transportation				20,184				27,926				37,898				49,917
	Fuel, operating expenses and supplies				69,165				81,276				136,310				161,235
	Operating taxes and licenses				9,411				8,993				18,507				17,968
	Claims and insurance				6,361				14,177				11,198				23,695
	Depreciation and amortization				16,561				15,087				31,760				28,928
	Operating loss (gains), net				52				(5	)			121				(12	)
		Total operating expenses			292,199				307,658				563,988				592,157
OPERATING INCOME					31,281				22,741				52,514				37,972
NONOPERATING EXPENSES:
	Interest expense				1,074				1,177				2,093				2,493
	Other, net				(14	)			(35	)			(65	)			(65	)
		Nonoperating expenses, net			1,060				1,142				2,028				2,428
INCOME BEFORE INCOME TAXES					30,221				21,599				50,486				35,544
Income tax expense					10,974				8,031				18,634				13,400
NET INCOME				$	19,247			$	13,568			$	31,852			$	22,144
Average common shares outstanding - basic					24,936				24,484				24,870				24,434
Average common shares outstanding - diluted					25,561				25,447				25,526				25,396
Basic earnings per share				$	0.77			$	0.55			$	1.28			$	0.91
Diluted earnings per share				$	0.75			$	0.53			$	1.25			$	0.87

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2015 and 2014
(Amounts in thousands)
(Unaudited)
				Six Months
				2015				2014
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	67,045			$	46,875
		Net cash provided by operating activities			67,045				46,875
INVESTING ACTIVITIES:
	Acquisition of business				(22,238	)			-
	Acquisition of property and equipment				(56,466	)			(67,077	)
	Proceeds from disposal of property and equipment				517				421
		Net cash used in investing activities			(78,187	)			(66,656	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(3,571	)			(3,571	)
	Borrowings of revolving credit agreement, net				13,000				22,422
	Proceeds from stock option exercises				2,629				2,559
	Other financing activities				(1,620	)			-
		Net cash provided by financing activities			10,438				21,410
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS					(704	)			1,629
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					4,367				159
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	3,663			$	1,788
NON-CASH ITEMS:
	Acquisition of property and equipment financed with capital leases			$	17,336			$	-

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2015 and 2014
(Unaudited)
															Second Quarter
				Second Quarter								%			Amount/Workday				%
				2015				2014				Change			2015		2014		Change
Workdays															64		64
Operating ratio					90.3	%			93.1	%
Tonnage (1)		LTL			960				1,021			(6.0	)		15.00		15.96		(6.0	)
		TL			200				228			(12.4	)		3.12		3.56		(12.4	)
Shipments (1)		LTL			1,683				1,732			(2.9	)		26.29		27.07		(2.9	)
		TL			29				33			(12.4	)		0.45		0.51		(11.8	)
Revenue/cwt. (2)		LTL		$	15.42			$	14.85			3.9
		TL		$	5.93			$	5.70			3.9
Revenue/shipment (2)		LTL		$	176.02			$	175.09			0.5
		TL		$	830.27			$	798.13			4.0
Pounds/shipment		LTL			1,141				1,179			(3.2	)
		TL			14,012				14,000			0.1
Length of Haul					778				759			2.5

(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.