Saia Reports Third Quarter Earnings per Share of $0.54

JOHNS CREEK, GA--(Marketwired - Oct 26, 2016) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload, expedited and logistics services, today reported third quarter 2016 financial results.

Third Quarter 2016 Compared to Third Quarter 2015 Results

• Revenue declined by 0.2% to $316 million
• LTL shipments per workday declined by 1.2%
• LTL tonnage per workday fell by 2.9%
• LTL yield increased 3.7%
• Operating ratio of 92.8 compared to 93.7
• Operating income increased 14.1% to $22.6 million
• Net income increased 17.4% to $13.8 million
• Diluted earnings per share were $0.54 compared to $0.46

"Third quarter operating results reflect our continued pricing discipline and our company-wide efforts aimed at achieving operating efficiencies across all areas of our network. In the quarter we saw year-over-year improvements in dock, city and linehaul productivity," said Saia President and Chief Executive Officer, Rick O'Dell. "The combination of improved productivity with continued positive pricing actions enabled us to post a 90 basis point improvement in our operating ratio in the third quarter compared to third quarter last year. Rates increased an average of 5.7% on contractual renewals in the quarter and in early October we implemented a general rate increase of 4.9%," O'Dell added.

"Though the economic environment continues to offer only tepid growth, I was encouraged to see our LTL shipment trend turn positive in September for the first time since February," O'Dell concluded.

Financial Position and Capital Expenditures
Total debt was $94.2 million at September 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 16.6% compared to 15.6% at September 30, 2015. Net capital expenditures, including equipment financed with capital leases, in the year-to-date period through September were $142.5 million compared to $114.4 million in the first nine months of 2015.

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 800-499-4035 or 416-204-9269 referencing conference ID #3198861. 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 December 21, 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; (26) 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, 2016				December 31, 2015
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	789			$	124
	Accounts receivable, net				143,461				124,222
	Prepaid expenses and other				22,152				34,643
		Total current assets			166,402				158,989
PROPERTY AND EQUIPMENT:
	Cost				1,104,495				995,514
	Less: accumulated depreciation				492,577				456,335
	Net property and equipment				611,918				539,179
OTHER ASSETS					30,292				31,025
		Total assets		$	808,612			$	729,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable			$	48,129			$	54,754
	Wages and employees' benefits				38,277				27,834
	Other current liabilities				50,300				46,360
	Current portion of long-term debt				16,695				12,432
		Total current liabilities			153,401				141,380
OTHER LIABILITIES:
	Long-term debt, less current portion				77,543				56,540
	Deferred income taxes				74,091				67,417
	Claims, insurance and other				34,687				35,967
		Total other liabilities			186,321				159,924
STOCKHOLDERS' EQUITY:
	Common stock				25				25
	Additional paid-in capital				234,045				230,593
	Deferred compensation trust				(3,229	)			(3,102	)
	Retained earnings				238,049				200,373
		Total stockholders' equity			468,890				427,889
		Total liabilities and stockholders' equity		$	808,612			$	729,193

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Nine Months Ended September 30, 2016 and 2015
(Amounts in thousands, except per share data)
(Unaudited)
				Third Quarter							Nine Months
				2016				2015			2016				2015
OPERATING REVENUE				$	316,442			$	317,199		$	918,258			$	933,701
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				178,687				177,623			524,877				505,817
	Purchased transportation				15,657				19,314			42,439				57,212
	Fuel, operating expenses and supplies				59,345				65,122			172,411				201,432
	Operating taxes and licenses				10,061				9,258			30,227				27,765
	Claims and insurance				9,988				9,146			28,949				20,344
	Depreciation and amortization				19,927				16,765			56,910				48,525
	Operating loss, net				133				126			496				247
		Total operating expenses			293,798				297,354			856,309				861,342
OPERATING INCOME					22,644				19,845			61,949				72,359
NONOPERATING EXPENSES (INCOME):
	Interest expense				1,183				1,033			3,410				3,126
	Other, net				(104	)			46			(147	)			(19	)
		Nonoperating expenses, net			1,079				1,079			3,263				3,107
INCOME BEFORE INCOME TAXES					21,565				18,766			58,686				69,252
Income tax expense					7,739				6,989			21,010				25,623
NET INCOME				$	13,826			$	11,777		$	37,676			$	43,629
Average common shares outstanding - basic					25,038				24,963			25,022				24,901
Average common shares outstanding - diluted					25,658				25,555			25,625				25,525
Basic earnings per share				$	0.55			$	0.47		$	1.51			$	1.75
Diluted earnings per share				$	0.54			$	0.46		$	1.47			$	1.71

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2016 and 2015
(Amounts in thousands)
(Unaudited)
				Nine Months
				2016				2015
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	117,659			$	114,038
		Net cash provided by operating activities			117,659				114,038
INVESTING ACTIVITIES:
	Acquisition of business, net of cash received				-				(22,238	)
	Acquisition of property and equipment				(108,871	)			(68,835	)
	Proceeds from disposal of property and equipment				1,046				665
		Net cash used in investing activities			(107,825	)			(90,408	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(3,571	)			(3,571	)
	Borrowing of revolving credit agreement, net				(35	)			(20,000	)
	Proceeds from stock option exercises				248				2,816
	Other financing activity				(5,811	)			(2,702	)
		Net cash used in financing activities			(9,169	)			(23,457	)
NET INCREASE IN CASH AND CASH EQUIVALENTS					665				173
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					124				4,367
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	789			$	4,540
NON-CASH ITEMS:
	Equipment financed with capital leases			$	34,683			$	23,979

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended September 30, 2016 and 2015
(Unaudited)
															Third Quarter
				Third Quarter								%			Amount/Workday				%
				2016				2015				Change			2016		2015		Change
Workdays															64		64
Operating ratio					92.8	%			93.7	%
Tonnage (1)		LTL			913				940			(2.9	)		14.26		14.68		(2.9	)
		TL			182				188			(2.9	)		2.85		2.93		(2.9	)
Shipments (1)		LTL			1,638				1,658			(1.2	)		25.59		25.91		(1.2	)
		TL			26				27			(4.7	)		0.40		0.42		(4.7	)
Revenue/cwt. (2)		LTL		$	16.08			$	15.51			3.7
		TL		$	5.51			$	5.87			(6.2	)
Revenue/shipment (2)		LTL		$	179.17			$	175.77			1.9
		TL		$	783.61			$	820.00			(4.4	)
Pounds/shipment		LTL			1,114				1,134			(1.7	)
		TL			14,229				13,967			1.9
Length of Haul (3)					789				773			2.1

(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.
(3)		In miles