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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