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Saia Reports Second Quarter Earnings per Share of $0.52

JOHNS CREEK, GA -- (Marketwired) -- 07/29/16 -- 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,     December
                                                       2016       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.

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

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