Saia Reports Second Quarter Earnings per Share of $0.52

JOHNS CREEK, GA--(Marketwired - Jul 29, 2016) - 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 2016 financial results.

Second Quarter 2016 Compared to Second Quarter 2015 Results

• Revenues were $312 million, a decline of 3.6%

• LTL shipments per workday fell by 2.6% and LTL tonnage per workday declined 4.3%

• LTL yield increased 2%, in spite of lower fuel surcharge

• Operating income declined 30.6% from last year's record second quarter

• Net income was $13.3 million compared to $19.2 million

• Diluted earnings per share were $0.52 compared to $0.75

• Operating ratio of 93.0 compared to 90.3
  
  

"Despite the challenging freight environment, we continued to deliver a high level of service and quality to our customers. We achieved 98% on-time service in the quarter and a cargo claims ratio of 0.77%. The perceived value in those measures, by our customers, enabled us to improve our yield in the quarter. Core operations continued to reach productivity and cost savings goals, but were negatively impacted by accident expense volatility and health care self-insurance during the quarter" said Saia President and Chief Executive Officer, Rick O'Dell.

"Our continued emphasis on service and quality resulted in contractual rate renewals remaining positive, up 5.4% in the quarter," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $139.4 million at June 30, 2016 and inclusive of the cash on-hand, net debt to total capital was 23.4% compared to 20.7% at June 30, 2015. Net capital expenditures, including equipment financed with capital leases, in the first half of the year were $136.2 million compared to $73.3 million spent in the first half of 2015.

The Company currently plans net capital expenditures in 2016 of approximately $140 million.

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 888-438-5491 or 719-325-2354 referencing conference ID #9438415. 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 September 23, 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)
			June 30, 2016				December 31, 2015
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents		$	360			$	124
	Accounts receivable, net			142,331				124,222
	Prepaid expenses and other			29,450				34,643
		Total current assets		172,141				158,989
PROPERTY AND EQUIPMENT:
	Cost			1,107,001				995,514
	Less: accumulated depreciation			481,088				456,335
		Net property and equipment		625,913				539,179
OTHER ASSETS				30,853				31,025
		Total assets	$	828,907			$	729,193
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable		$	49,679			$	54,754
	Wages and employees' benefits			33,619				27,834
	Other current liabilities			45,014				46,360
	Current portion of long-term debt			16,627				12,432
		Total current liabilities		144,939				141,380
OTHER LIABILITIES:
	Long-term debt, less current portion			122,747				56,540
	Deferred income taxes			71,673				67,417
	Claims, insurance and other			35,352				35,967
		Total other liabilities		229,772				159,924
STOCKHOLDERS' EQUITY:
	Common stock			25				25
	Additional paid-in capital			233,200				230,593
	Deferred compensation trust			(3,252	)			(3,102	)
	Retained earnings			224,223				200,373
		Total stockholders' equity		454,196				427,889
		Total liabilities and stockholders' equity	$	828,907			$	729,193

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2016 and 2015
(Amounts in thousands, except per share data)
(Unaudited)
			Second Quarter						Six Months
			2016			2015			2016			2015
OPERATING REVENUE			$	311,905		$	323,480		$	601,816		$	616,502
OPERATING EXPENSES:
	Salaries, wages and employees' benefits			175,924			170,465			346,190			328,194
	Purchased transportation			14,315			20,184			26,782			37,898
	Fuel, operating expenses and supplies			59,026			69,165			113,066			136,310
	Operating taxes and licenses			10,126			9,411			20,166			18,507
	Claims and insurance			10,880			6,361			18,961			11,198
	Depreciation and amortization			19,740			16,561			36,983			31,760
	Operating loss, net			173			52			363			121
		Total operating expenses		290,184			292,199			562,511			563,988
OPERATING INCOME				21,721			31,281			39,305			52,514
NONOPERATING EXPENSES (INCOME):
	Interest expense			1,264			1,074			2,227			2,093
	Other, net			(36	)		(14	)		(43	)		(65	)
		Nonoperating expenses, net		1,228			1,060			2,184			2,028
INCOME BEFORE INCOME TAXES				20,493			30,221			37,121			50,486
Income tax expense				7,218			10,974			13,271			18,634
NET INCOME			$	13,275		$	19,247		$	23,850		$	31,852
Average common shares outstanding - basic				25,030			24,936			25,014			24,870
Average common shares outstanding - diluted				25,583			25,561			25,560			25,526
Basic earnings per share			$	0.53		$	0.77		$	0.95		$	1.28
Diluted earnings per share			$	0.52		$	0.75		$	0.93		$	1.25

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2016 and 2015
(Amounts in thousands)
(Unaudited)
				Six Months
				2016				2015
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	65,814			$	67,045
		Net cash provided by operating activities			65,814				67,045
INVESTING ACTIVITIES:
	Acquisition of business, net of cash received				-				(22,238	)
	Acquisition of property and equipment				(102,140	)			(56,466	)
	Proceeds from disposal of property and equipment				595				517
		Net cash used in investing activities			(101,545	)			(78,187	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(3,572	)			(3,571	)
	Borrowing of revolving credit agreement, net				42,756				13,000
	Proceeds from stock option exercises				248				2,629
	Other financing activity				(3,465	)			(1,620	)
		Net cash provided by financing activities			35,967				10,438
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS					236				(704	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					124				4,367
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	360			$	3,663
NON-CASH ITEMS:
	Acquisition of property and equipment financed with capital leases			$	34,683			$	17,336

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2016 and 2015
(Unaudited)
												Second Quarter
				Second Quarter						%		Amount/Workday		%
				2016			2015			Change		2016	2015	Change
Workdays												64	64
Operating ratio					93.0	%		90.3	%
Tonnage (1)		LTL			919			960		(4.3	)	14.36	15.00	(4.3	)
		TL			182			200		(8.8	)	2.85	3.12	(8.8	)
Shipments (1)		LTL			1,639			1,683		(2.6	)	25.60	26.29	(2.6	)
		TL			26			29		(9.3	)	0.40	0.45	(9.3	)
Revenue/cwt. (2)		LTL		$	15.73		$	15.42		2.0
		TL		$	5.50		$	5.93		(7.2	)
Revenue/shipment (2)		LTL		$	176.45		$	176.02		0.2
		TL		$	775.05		$	830.27		(6.7	)
Pounds/shipment		LTL			1,121			1,141		(1.7	)
		TL			14,090			14,012		0.6
Length of Haul					786			778		1.0
(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.