Saia Reports Second Quarter Earnings per Share of $0.54

JOHNS CREEK, GA--(Marketwired - Jul 26, 2013) - Saia, Inc. ( NASDAQ : SAIA ), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics services, today reported improved second quarter 2013 results driven by effective revenue management and operational efficiencies. All prior period share and per share data in this release have been adjusted to reflect the Company's June 2013 three for two stock split.

Second Quarter 2013 Compared to Second Quarter 2012 Results

• Revenues were $293 million, an increase of 2 percent
• Operating income increased 10 percent to $23.3 million compared to $21.2 million
• Earnings per share were $0.54 compared to $0.48
• Operating ratio was 92.0 compared to 92.6
• LTL tonnage decreased by 1.6 percent as LTL shipments were down 0.9 percent with a 0.7 percent decrease in weight per shipment
• LTL yield was up 3.2 percent due to the favorable impact of pricing actions

"Saia's high service quality, continued progress with yield and focus on operational excellence were the drivers of our margin improvement. While volumes during the quarter were relatively soft in line with the general economy, we continue to advance our value proposition with investments in quality and focus on customer service," said Saia President and Chief Executive Officer Rick O'Dell.

"Saia's Quality Matters initiative is the foundation of our improvements in every major quality metric, highlighted by our seventh consecutive quarter of 98 percent on-time service. Our industrial engineering initiatives and operating efficiencies have reduced our reliance on purchased transportation, increased fuel efficiency, improved safety and cargo claims and enhanced customer service. I believe that our focus on quality, customer service, revenue management and operational excellence has set the stage for solid financial performance in the second half of the year," continued O'Dell.

"Investments in our people, technology and equipment drive operational efficiencies and enhance our customer service which has led to overall quality improvement throughout every segment of our company. I believe that our execution on quality, revenue management and operations optimization affords Saia with a strong foundation for further progress and long term profitable growth in the future," O'Dell said.

Year to Date 2013 Compared to Year to Date 2012 Results

• Revenues were $566 million compared to $556 million
• Operating income was $37.8 million compared to $32.2 million
• Net income was $22.7 million compared to $17.4 million
• Earnings per share were $0.90 compared to $0.70
• Operating ratio was 93.3 compared to 94.2

Financial Position and Capital Expenditures Total debt was $99.0 million at June 30, 2013. Net of the Company's $2.9 million cash balance at quarter-end, net debt to total capital was 25.5 percent. This compares to total debt of $90.7 million and net debt to total capital of 27.4 percent in the prior year quarter.

On June 28, 2013, the Company entered into an amendment to its revolving credit facility to increase Saia's borrowing capacity, lower certain interest rates and extend the term.

Net capital expenditures for the first six months of 2013 were $71 million. This compares to $69 million in the prior year period. The Company is planning net capital expenditures in 2013 of approximately $90 million. This expenditure level reflects replacement tractors and trailers to reduce the average age of our fleet and the Company's continued investment in technology.

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 888-466-4462 or 719-325-2308 referencing conference ID #7045108. 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 1, 2013 at 2:00 p.m. Eastern Time. The replay will be available by dialing 1-888-203-1112 or 719-457-0820 .

The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com , Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents ( www.streetevents.com ), a password-protected event management site.

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; indemnification obligations associated with the 2006 sale of Jevic Transportation, Inc.; 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 recently enacted 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,
				2013				2012
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	2,872			$	321
	Accounts receivable, net				130,929				106,814
	Prepaid expenses and other				33,601				37,028
		Total current assets			167,402				144,163
PROPERTY AND EQUIPMENT:
	Cost				787,616				718,527
	Less: accumulated depreciation				369,346				356,823
		Net property and equipment			418,270				361,704
OTHER ASSETS					14,845				13,821
		Total assets		$	600,517			$	519,688
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable			$	59,597			$	43,706
	Wages and employees' benefits				31,925				30,842
	Other current liabilities				41,480				44,609
	Current portion of long-term debt				14,643				22,143
		Total current liabilities			147,645				141,300
OTHER LIABILITIES:
	Long-term debt, less current portion				84,378				38,562
	Deferred income taxes				55,733				55,611
	Claims, insurance and other				31,515				29,696
		Total other liabilities			171,626				123,869
STOCKHOLDERS' EQUITY:
	Common stock				24				24
	Additional paid-in capital				211,054				206,969
	Deferred compensation trust				(2,226	)			(2,213	)
	Retained earnings				72,394				49,739
		Total stockholders' equity			281,246				254,519
		Total liabilities and stockholders' equity		$	600,517			$	519,688

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Six Months Ended June 30, 2013 and 2012
(Amounts in thousands, except per share data)
(Unaudited)
				Second Quarter								Six Months
				2013				2012				2013				2012
OPERATING REVENUE				$	292,557			$	287,538			$	566,352			$	556,228
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				144,309				140,239				281,163				271,939
	Purchased transportation				19,338				21,052				36,109				40,361
	Fuel, operating expenses and supplies				78,154				77,354				157,156				156,751
	Operating taxes and licenses				9,330				9,750				18,909				19,616
	Claims and insurance				5,883				6,102				11,478				12,276
	Depreciation and amortization				12,386				11,951				24,020				23,366
	Operating gains, net				(102	)			(102	)			(274	)			(321	)
		Total operating expenses			269,298				266,346				528,561				523,988
OPERATING INCOME					23,259				21,192				37,791				32,240
NONOPERATING EXPENSES:
	Interest expense				1,618				2,195				3,146				4,159
	Other, net				(29	)			(3	)			(95	)			(98	)
		Nonoperating expenses, net			1,589				2,192				3,051				4,061
INCOME BEFORE INCOME TAXES					21,670				19,000				34,740				28,179
Income tax expense					8,170				7,149				12,085				10,793
NET INCOME				$	13,500			$	11,851			$	22,655			$	17,386
Average common shares outstanding - basic					24,163				23,827				24,073				23,789
Average common shares outstanding - diluted					25,218				24,771				25,123				24,708
Basic earnings per share				$	0.56			$	0.50			$	0.94			$	0.73
Diluted earnings per share				$	0.54			$	0.48			$	0.90			$	0.70

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2013 and 2012
(Amounts in thousands)
(Unaudited)
				Six Months
				2013				2012
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	31,982			$	50,326
		Net cash provided by operating activities			31,982				50,326
INVESTING ACTIVITIES:
	Acquisition of property and equipment				(72,092	)			(71,442	)
	Proceeds from disposal of property and equipment				1,273				2,138
		Net cash used in investing activities			(70,819	)			(69,304	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(11,071	)			(11,071	)
	Borrowings of revolving credit agreement, net				49,386				28,945
	Proceeds from stock option exercises				3,659				613
	Other financing activities				(586	)			-
		Net cash provided by financing activities			41,388				18,487
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS					2,551				(491	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					321				1,317
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	2,872			$	826

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended June 30, 2013 and 2012
(Unaudited)
															Second Quarter
				Second Quarter								%			Amount/Workday				%
				2013				2012				Change			2013		2012		Change
Workdays															64		64
Operating Ratio (1)					92.0	%			92.6	%
Tonnage (2)		LTL			955				970			(1.6	)		14.92		15.16		(1.6	)
		TL			178				193			(7.9	)		2.78		3.02		(7.9	)
Shipments (2)		LTL			1,642				1,656			(0.9	)		25.65		25.87		(0.9	)
		TL			26				28			(6.7	)		0.40		0.43		(6.7	)
Revenue/cwt. (3)		LTL		$	14.16			$	13.71			3.2
		TL		$	5.84			$	5.53			5.7
Revenue/shipment (3)		LTL		$	164.68			$	160.62			2.5
		TL		$	804.16			$	771.04			4.3
Pounds/shipment		LTL			1,163				1,172			(0.7	)
		TL			13,763				13,946			(1.3	)
Length of Haul					743				725			2.5

(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.