Saia Reports Second Quarter Earnings per Share of $0.53

Saia Reports Second Quarter Earnings per Share of $0.53  Revenues Rose 12.9% on 6.9% LTL Tonnage Growth  JOHNS CREEK, GA -- (Marketwired) -- 07/30/14 --  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 2014 results. Despite favorable tonnage trends and improving yield, the operating results were negatively impacted by adverse claims and insurance experience.  Second Quarter 2014 Compared to Second Quarter 2013 Results       --  Revenues were $330 million, an increase of 12.9% --  LTL tonnage increased 6.9% as LTL shipments were up 5.5% with a 1.4%     increase in weight per shipment --  Operating income decreased to $22.7 million compared to $23.3 million --  Operating ratio was 93.1 compared to 92.0 --  Diluted earnings per share were $0.53 compared to $0.54 --  Claims and insurance expense was $8.3 million higher than the second     quarter last year due primarily to accident severity.     "The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved. LTL yield improved 4.9%, reflective of our customers' recognition of the value proposition Saia provides," said Saia President and Chief Executive Officer, Rick O'Dell.  "The 12.9% second quarter revenue increase was the highest that we have achieved at Saia in seven years. The top line growth driven by last year's investment in sales and marketing resources coupled with effective yield management provided the opportunity to overcome a capacity constrained environment which significantly increased costs for driver recruiting, training and purchased transportation. This revenue momentum combined with our focus on service and operational excellence positions Saia well to capitalize on the unique market dynamics we are currently experiencing to improve customer and shareholder value in the future," O'Dell added.  Financial Position and Capital Expenditures  Total debt was $95.7 million at June 30, 2014 resulting in net debt to total capital of 22.1%. This compares to total debt of $99.0 million and net debt to total capital of 25.5% at the end of last year's second quarter.   Net capital expenditures in the first half of 2014 were $67 million compared to $71 million in the first half of 2013. The Company currently projects net capital expenditures for the full year of approximately $110 million. In July, Saia began taking delivery of some of the 800 additional linehaul trailers that will be put in service this year and provide additional capacity.  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 888-427-9376 or 719-457-2085 referencing conference ID #6869513. 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 August 5, 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)                                                                                                                                                                  June 30,    December 31,                                                       2014          2013                                                       ------------  ------------  ASSETS                                                                                                                                                    CURRENT ASSETS:                                                                Cash and cash equivalents                      $      1,788  $        159    Accounts receivable, net                            148,850       117,937    Prepaid expenses and other                           43,877        52,157                                                   ------------  ------------      Total current assets                              194,515       170,253                                                                               PROPERTY AND EQUIPMENT:                                                        Cost                                                863,193       797,527    Less: accumulated depreciation                      389,041       365,301                                                   ------------  ------------      Net property and equipment                        474,152       432,226                                                                               OTHER ASSETS                                           14,024        14,322                                                   ------------  ------------      Total assets                                 $    682,691  $    616,801                                                   ============  ============                                                                               LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                      CURRENT LIABILITIES:                                                           Accounts payable                               $     62,885  $     50,799    Wages and employees' benefits                        34,502        35,248    Other current liabilities                            48,922        47,667    Current portion of long-term debt                     7,143         7,143                                                   ------------  ------------      Total current liabilities                         153,452       140,857                                                                               OTHER LIABILITIES:                                                             Long-term debt, less current portion                 88,597        69,740    Deferred income taxes                                68,472        69,916    Claims, insurance and other                          41,932        31,496                                                   ------------  ------------      Total other liabilities                           199,001       171,152                                                                               STOCKHOLDERS' EQUITY:                                                          Common stock                                             25            24    Additional paid-in capital                          216,926       213,648    Deferred compensation trust                          (2,223)       (2,246)   Retained earnings                                   115,510        93,366                                                   ------------  ------------      Total stockholders' equity                        330,238       304,792                                                   ------------  ------------      Total liabilities and stockholders' equity   $    682,691  $    616,801                                                   ============  ============                                                                                                                                                                                                                                                                 Saia, Inc. and Subsidiaries                                             Consolidated Statements of Operations                             For the Quarters and Six Months Ended June 30, 2014 and 2013                        (Amounts in thousands, except per share data)                                                 (Unaudited)                                                                                                                                                Second Quarter            Six Months                                     ----------------------  ----------------------                                  2014        2013        2014        2013                                  ----------  ----------  ----------  ----------                                                                               OPERATING REVENUE            $  330,399  $  292,557  $  630,129  $  566,352                                                                               OPERATING EXPENSES:                                                            Salaries, wages and                                                           employees' benefits          160,204     144,309     310,426     281,163    Purchased transportation       27,926      19,338      49,917      36,109    Fuel, operating expenses                                                      and supplies                  81,276      78,154     161,235     157,156    Operating taxes and                                                           licenses                       8,993       9,330      17,968      18,909    Claims and insurance           14,177       5,883      23,695      11,478    Depreciation and                                                              amortization                  15,087      12,386      28,928      24,020    Operating gains, net               (5)       (102)        (12)       (274)                              ----------  ----------  ----------  ----------      Total operating expenses    307,658     269,298     592,157     528,561                               ----------  ----------  ----------  ----------                                                                               OPERATING INCOME                 22,741      23,259      37,972      37,791                                                                               NONOPERATING EXPENSES:                                                         Interest expense                1,177       1,618       2,493       3,146    Other, net                        (35)        (29)        (65)        (95)                              ----------  ----------  ----------  ----------      Nonoperating expenses,                                                        net                          1,142       1,589       2,428       3,051                               ----------  ----------  ----------  ----------                                                                                                                                                            INCOME BEFORE INCOME TAXES       21,599      21,670      35,544      34,740  Income tax expense                8,031       8,170      13,400      12,085                               ----------  ----------  ----------  ----------  NET INCOME                   $   13,568  $   13,500  $   22,144  $   22,655                               ==========  ==========  ==========  ==========                                                                               Average common shares                                                         outstanding - basic             24,484      24,163      24,434      24,073                               ==========  ==========  ==========  ==========  Average common shares                                                         outstanding - diluted           25,447      25,218      25,396      25,123                               ==========  ==========  ==========  ==========                                                                               Basic earnings per share     $     0.55  $     0.56  $     0.91  $     0.94                               ==========  ==========  ==========  ==========                                                                               Diluted earnings per share   $     0.53  $     0.54  $     0.87  $     0.90                               ==========  ==========  ==========  ==========                                                                                                                                                                                                                                                                 Saia, Inc. and Subsidiaries                                        Condensed Consolidated Statements of Cash Flows                              For the Six Months Ended June 30, 2014 and 2013                                           (Amounts in thousands)                                                            (Unaudited)                                                                                           Six Months                                                           --------------------------                                                       2014          2013                                                       ------------  ------------                                                                               OPERATING ACTIVITIES:                                                        Net cash provided by operating activities        $     46,875  $     31,982                                                   ------------  ------------      Net cash provided by operating activities          46,875        31,982                                                   ------------  ------------                                                                               INVESTING ACTIVITIES:                                                          Acquisition of property and equipment               (67,077)      (72,092)   Proceeds from disposal of property and                                        equipment                                              421         1,273                                                   ------------  ------------      Net cash used in investing activities             (66,656)      (70,819)                                                  ------------  ------------                                                                               FINANCING ACTIVITIES:                                                          Repayment of long-term debt                          (3,571)      (11,071)   Borrowings of revolving credit agreement, net        22,422        49,386    Proceeds from stock option exercises                  2,559         3,659    Other financing activities                                -          (586)                                                  ------------  ------------      Net cash provided by financing activities          21,410        41,388                                                   ------------  ------------                                                                               NET INCREASE (DECREASE) IN CASH AND CASH                                      EQUIVALENTS                                            1,629         2,551  CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD            159           321                                                   ------------  ------------  CASH AND CASH EQUIVALENTS, END OF PERIOD         $      1,788  $      2,872                                                   ============  ============                                                                                                                                                                                                                                                                  Saia, Inc. and Subsidiaries                                                     Financial Information                                            For the Quarters Ended June 30, 2014 and 2013                                                 (Unaudited)                                                                                                                                                                     Second Quarter                                                              ---------------                                     Second Quarter      %     Amount/Workday    %                               ----------------          ---------------                                      2014     2013   Change    2014    2013  Change                             -------  -------  ------  ------- ------- ------                                                                              Workdays                                                   64      64                                                                                     Operating Ratio (1)            93.1%    92.0%                                                                                                                                                                                          Tonnage (2)          LTL      1,021      955     6.9    15.96   14.92    6.9                      TL         228      178    28.1     3.56    2.78   28.1                                                                              Shipments (2)        LTL      1,732    1,642     5.5    27.07   25.65    5.5                      TL          33       26    25.9     0.51    0.40   25.9                                                                              Revenue/cwt. (3)     LTL    $ 14.85  $ 14.16     4.9                                              TL     $  5.70  $  5.84    (2.4)                                                                                                     Revenue/shipment (3) LTL    $175.09  $164.68     6.3                                              TL     $798.13  $804.16    (0.7)                                                                                                     Pounds/shipment      LTL      1,179    1,163     1.4                                              TL      14,000   13,763     1.7                                                                                                      Length of Haul                  759      743     2.2                                                                                                      (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.                                   CONTACT: Saia, Inc. Doug Col dcol@saia.com 678.542.3910     
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