Saia Reports Record Third Quarter Earnings per Share of $0.64

JOHNS CREEK, GA--(Marketwired - Oct 28, 2014) - 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 2014 results. 

Third Quarter 2014 Compared to Third Quarter 2013 Results

• Revenues were $332.5 million, an increase of 13.5%
• LTL tonnage increased 8.2% as LTL shipments were up 7.6% with a 0.5% increase in weight per shipment
• Operating income increased to $27.1 million compared to $21.9 million
• Operating ratio was 91.8 compared to 92.5
• Diluted earnings per share were 25.5% higher at $0.64 compared to $0.51 

"Strong tonnage growth and improved pricing provided a solid foundation for third quarter results. Customers have responded favorably to our consistent and reliable service offering which was the catalyst for our 4.3% improvement in LTL yield for the quarter," said Saia President and Chief Executive Officer, Rick O'Dell.

"While I am pleased to report the year-over-year improvement in our operating ratio, I still believe there is upside that will allow for improved performance as we optimize our network to handle the increased volumes in a capacity-constrained environment. The investment in sales resources we made late last year has helped us build momentum on the top-line and our operations group has responded well to the increased volumes, providing 98% on time service in the third quarter. In July, we were pleased to be able to increase wages for the fourth year in a row for our dedicated non-union workforce," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $73.3 million at September 30, 2014. Net of the Company's $7.2 million in cash on hand at quarter-end, net debt to total capital was 15.9%. This compares to total debt of $91.5 million and net debt to total capital of 22.9% at the end of last year's third quarter.

Net capital expenditures year-to-date through September were $85.5 million inclusive of equipment acquired with capital leases. This compares to $97.7 million spent through the first nine months of 2013. The Company projects net capital expenditures for the full year of approximately $118 million. In the third quarter, Saia put in service nearly half of the 800 additional linehaul trailers that will be put in service by year end.

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 888-505-4375 or 719-325-2376 referencing conference ID #5750398. 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, 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)
				September 30,				December 31,
				2014				2013
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	7,244			$	159
	Accounts receivable, net				146,597				117,937
	Prepaid expenses and other				39,619				52,157
		Total current assets			193,460				170,253
PROPERTY AND EQUIPMENT:
	Cost				869,573				797,527
	Less: accumulated depreciation				397,458				365,301
		Net property and equipment			472,115				432,226
OTHER ASSETS					13,919				14,322
		Total assets		$	679,494			$	616,801
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable			$	57,460			$	50,799
	Wages and employees' benefits				39,764				35,248
	Other current liabilities				47,937				47,667
	Current portion of long-term debt				8,120				7,143
		Total current liabilities			153,281				140,857
OTHER LIABILITIES:
	Long-term debt, less current portion				65,188				69,740
	Deferred income taxes				69,422				69,916
	Claims, insurance and other				42,500				31,496
		Total other liabilities			177,110				171,152
STOCKHOLDERS' EQUITY:
	Common stock				25				24
	Additional paid-in capital				219,512				213,648
	Deferred compensation trust				(2,222	)			(2,246	)
	Retained earnings				131,788				93,366
		Total stockholders' equity			349,103				304,792
		Total liabilities and stockholders' equity		$	679,494			$	616,801

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Nine Months Ended September 30, 2014 and 2013
(Amounts in thousands, except per share data)
(Unaudited)
				Third Quarter							Nine Months
				2014			2013				2014				2013
OPERATING REVENUE				$	332,544		$	293,087			$	962,673			$	859,439
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				166,353			147,305				476,779				428,468
	Purchased transportation				27,479			18,914				77,396				55,023
	Fuel, operating expenses and supplies				80,206			75,803				241,441				232,959
	Operating taxes and licenses				9,033			9,074				27,001				27,983
	Claims and insurance				6,956			6,607				30,651				18,085
	Depreciation and amortization				15,336			13,745				44,264				37,765
	Operating (gain) loss, net				32			(296	)			20				(570	)
		Total operating expenses			305,395			271,152				897,552				799,713
OPERATING INCOME					27,149			21,935				65,121				59,726
NONOPERATING EXPENSES:
	Interest expense				1,064			1,760				3,557				4,906
	Other, net				16			(85	)			(49	)			(180	)
		Nonoperating expenses, net			1,080			1,675				3,508				4,726
INCOME BEFORE INCOME TAXES					26,069			20,260				61,613				55,000
Income tax expense					9,791			7,352				23,191				19,437
NET INCOME				$	16,278		$	12,908			$	38,422			$	35,563
Average common shares outstanding - basic					24,527			24,220				24,465				24,123
Average common shares outstanding - diluted					25,505			25,269				25,436				25,173
Basic earnings per share				$	0.66		$	0.53			$	1.57			$	1.47
Diluted earnings per share				$	0.64		$	0.51			$	1.51			$	1.41

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2014 and 2013
(Amounts in thousands)
(Unaudited)
				Nine Months
				2014				2013
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	92,017			$	67,557
		Net cash provided by operating activities			92,017				67,557
INVESTING ACTIVITIES:
	Acquisition of property and equipment				(79,773	)			(100,799	)
	Proceeds from disposal of property and equipment				2,590				3,058
		Net cash used in investing activities			(77,183	)			(97,741	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(3,571	)			(11,071	)
	Borrowings (repayment) of revolving credit agreement, net				(8,317	)			41,872
	Proceeds from stock option exercises				4,159				3,708
	Other financing activities				(20	)			(586	)
		Net cash provided by (used in) financing activities			(7,749	)			33,923
NET INCREASE IN CASH AND CASH EQUIVALENTS					7,085				3,739
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					159				321
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	7,244			$	4,060
NON-CASH ITEMS:
	Acquisition of property and equipment financed with capital leases			$	8,328			$	-

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended September 30, 2014 and 2013
(Unaudited)
													Third Quarter
			Third Quarter								%		Amount/Workday				%
			2014				2013				Change		2014		2013		Change
Workdays													64		64
Operating Ratio (1)				91.8	%			92.5	%
Tonnage (2)		LTL		1,008				932			8.2		15.75		14.56		8.2
		TL		215				178			20.9		3.36		2.78		20.9
Shipments (2)		LTL		1,730				1,608			7.6		27.03		25.13		7.6
		TL		31				26			18.7		0.48		0.40		18.7
Revenue/cwt. (3)		LTL	$	15.17			$	14.54			4.3
		TL	$	5.95			$	5.89			1.0
Revenue/shipment (3)		LTL	$	176.71			$	168.43			4.9
		TL	$	831.69			$	808.48			2.9
Pounds/shipment		LTL		1,165				1,159			0.5
		TL		13,978				13,719			1.9
Length of Haul				766				742			3.2

(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.