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Saia Reports First Quarter Earnings per Share of $0.42

JOHNS CREEK, GA -- (Marketwired) -- 04/27/16 -- Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported first quarter 2016 financial results.

First Quarter 2016 Compared to First Quarter 2015 Results

  • Revenues were $290 million, a decline of 1.1%
  • Operating income decreased by 17% to $17.6 million
  • Net income fell 16% to $10.6 million
  • Diluted earnings per share were $0.42 compared to $0.49
  • Operating ratio of 93.9 compared to 92.8
  • LTL shipments per workday fell by 0.8% and LTL tonnage per workday declined 3.4%
  • LTL revenue per hundredweight increased 2.1%

"While we were not able to match last year's record first quarter earnings results, I am pleased with the trajectory of our productivity and expense control initiatives. We continue to see benefits in the areas of dock productivity and maintenance expenditures, while maintaining service and advancing quality initiatives. We also reduced purchased transportation expense, which represented 4.3% of revenue compared to 6.0% of revenue in the first quarter last year," said Saia President and Chief Executive Officer, Rick O'Dell.

"Despite no noticeable improvement in the level of general economic activity, we secured average rate increases of 5.3% on contractual renewals in the period," O'Dell added.

Financial Position and Capital Expenditures
Total debt was $116.4 million at March 31, 2016 and inclusive of the cash on-hand, net debt to total capital was 20.9%. Due primarily to the timing of capital expenditures and seasonality factors, this represents an increase to the total debt of $69.0 million and net debt to total capital of 13.9% at December 31, 2015.

Net capital expenditures in the first quarter of 2016 were $63.7 million including equipment acquired with capital leases. This compares to $33.2 million of net capital expenditures in the first quarter 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 888-876-9177 or 785-424-1666 referencing conference ID #8234961. 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 June 22, 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; (25) 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)

                                                   March 31,   December 31,
                                                     2016          2015
                                                 ------------  ------------
ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                      $        238  $        124
  Accounts receivable, net                            137,607       124,222
  Prepaid expenses and other                           37,590        34,643
                                                 ------------  ------------
    Total current assets                              175,435       158,989

PROPERTY AND EQUIPMENT:
  Cost                                              1,056,435       995,514
  Less: accumulated depreciation                      467,212       456,335
                                                 ------------  ------------
    Net property and equipment                        589,223       539,179
OTHER ASSETS                                           31,047        31,025
                                                 ------------  ------------
    Total assets                                 $    795,705  $    729,193
                                                 ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable                               $     59,723  $     54,754
  Wages and employees' benefits                        30,423        27,834
  Other current liabilities                            46,700        46,360
  Current portion of long-term debt                    13,659        12,432
                                                 ------------  ------------
    Total current liabilities                         150,505       141,380

OTHER LIABILITIES:
  Long-term debt, less current portion                102,780        56,540
  Deferred income taxes                                69,078        67,417
  Claims, insurance and other                          34,574        35,967
                                                 ------------  ------------
    Total other liabilities                           206,432       159,924

STOCKHOLDERS' EQUITY:
  Common stock                                             25            25
  Additional paid-in capital                          231,114       230,593
  Deferred compensation trust                          (3,319)       (3,102)
  Retained earnings                                   210,948       200,373
                                                 ------------  ------------
    Total stockholders' equity                        438,768       427,889
                                                 ------------  ------------
    Total liabilities and stockholders' equity   $    795,705  $    729,193
                                                 ============  ============



                        Saia, Inc. and Subsidiaries
                   Consolidated Statements of Operations
               For the Quarters Ended March 31, 2016 and 2015
               (Amounts in thousands, except per share data)
                                (Unaudited)

                                                       First Quarters
                                                 --------------------------
                                                     2016          2015
                                                 ------------  ------------
OPERATING REVENUE                                $    289,911  $    293,022

OPERATING EXPENSES:
  Salaries, wages and employees' benefits             170,266       157,729
  Purchased transportation                             12,467        17,714
  Fuel, operating expenses and supplies                54,040        67,145
  Operating taxes and licenses                         10,040         9,096
  Claims and insurance                                  8,081         4,837
  Depreciation and amortization                        17,243        15,199
  Operating loss, net                                     190            69
                                                 ------------  ------------
    Total operating expenses                          272,327       271,789
                                                 ------------  ------------

OPERATING INCOME                                       17,584        21,233

NONOPERATING EXPENSES (INCOME):
  Interest expense                                        963         1,019
  Other, net                                               (7)          (51)
                                                 ------------  ------------
    Nonoperating expenses, net                            956           968
                                                 ------------  ------------

INCOME BEFORE INCOME TAXES                             16,628        20,265
Income tax expense                                      6,053         7,660
                                                 ------------  ------------
NET INCOME                                       $     10,575  $     12,605
                                                 ============  ============

Average common shares outstanding - basic              24,998        24,803
                                                 ============  ============
Average common shares outstanding - diluted            25,445        25,513
                                                 ============  ============

Basic earnings per share                         $       0.42  $       0.51
                                                 ============  ============
Diluted earnings per share                       $       0.42  $       0.49
                                                 ============  ============



                        Saia, Inc. and Subsidiaries
              Condensed Consolidated Statements of Cash Flows
               For the Quarters Ended March 31, 2016 and 2015
                           (Amounts in thousands)
                                (Unaudited)
                                                          Quarters
                                                 --------------------------
                                                     2016          2015
                                                 ------------  ------------
OPERATING ACTIVITIES:
Net cash provided by operating activities        $     16,306  $     26,160
                                                 ------------  ------------
    Net cash provided by operating activities          16,306        26,160
                                                 ------------  ------------

INVESTING ACTIVITIES:
  Acquisition of business, net of cash received             -       (23,080)
  Acquisition of property and equipment               (53,995)      (30,064)
  Proceeds from disposal of property and
   equipment                                              367           294
                                                 ------------  ------------
    Net cash used in investing activities             (53,628)      (52,850)
                                                 ------------  ------------

FINANCING ACTIVITIES:
  Borrowing of revolving credit agreement, net         38,826        21,577
  Proceeds from stock option exercises                      -         1,842
  Other financing activity                             (1,390)         (900)
                                                 ------------  ------------
    Net cash provided by financing activities          37,436        22,519
                                                 ------------  ------------

NET INCREASE (DECREASE) IN CASH AND CASH
 EQUIVALENTS                                              114        (4,171)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD            124         4,367
                                                 ------------  ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD         $        238  $        196
                                                 ============  ============

NON-CASH ITEMS:
  Acquisition of property and equipment financed
   with capital leases                           $     10,032  $      3,471
                                                 ============  ============



                        Saia, Inc. and Subsidiaries
                           Financial Information
               For the Quarters Ended March 31, 2016 and 2015
                                (Unaudited)

                                                     First Quarters
                                                    ---------------
                         First Quarters       %      Amount/Workday    %
                       ------------------           ---------------
                         2016      2015     Change    2016    2015   Change
                       --------  --------  -------  ------- ------- -------
Workdays                                                 64      63

Operating ratio            93.9%     92.8%

Tonnage (1)       LTL       868       884     (1.8)   13.56   14.04    (3.4)
                  TL        168       188    (10.6)    2.62    2.98   (12.0)

Shipments (1)     LTL     1,553     1,542      0.7    24.26   24.47    (0.8)
                  TL         24        27     (9.9)    0.38    0.42   (11.3)

Revenue/cwt. (2)  LTL  $  15.49  $  15.17      2.1
                  TL   $   5.64  $   5.89     (4.3)

Revenue/shipment  LTL
 (2)                   $ 173.20  $ 174.12     (0.5)
                  TL   $ 786.24  $ 828.54     (5.1)

Pounds/shipment   LTL     1,118     1,147     (2.6)
                  TL     13,942    14,061     (0.8)

Length of Haul              781       773      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.

CONTACT:
Saia, Inc.
Doug Col
dcol@saia.com
678.542.3910

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