Saia Reports Third Quarter Earnings per Share of $0.56

JOHNS CREEK, GA--(Marketwire - Nov 1, 2012) - Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering less-than-truckload, non-asset truckload, expedited and logistics services, today reported improved third quarter 2012 results on higher revenue, favorable pricing actions and operational efficiencies.

Third Quarter 2012 Compared to Third Quarter 2011 Results

• Revenues were $278 million, an increase of 3.6 percent
• Operating income increased 71 percent to $16.4 million compared to $9.6 million
• Earnings per share were $0.56 vs. $0.30
• Operating ratio was 94.1 vs. 96.4
• Revenue per workday increased by 5.3 percent with one less workday in the third quarter of 2012
• LTL tonnage per workday decreased by 1.6 percent
• LTL yield was up 6.6 percent due to effective yield management and fuel surcharge revenue

"Saia's 230 basis point improvement in our operating ratio for the quarter demonstrates continued effective execution across a number of key initiatives. Saia's best-in-class service quality, strong yield results and focus on operational excellence were the primary drivers to our margin improvement. While recovery in the transportation market appears to be moderating, we continue to advance our value proposition through investments in quality and by providing consistent, superior customer service. Simultaneously, we remain committed to receiving fair compensation from all the shippers who value Saia's service quality," said Rick O'Dell, president and chief executive officer.

"Saia's Quality Matters initiative resulted in improvements in every major quality metric. Our dedicated associates again delivered 98 percent on-time service and achieved a 36 percent reduction in cargo claims. Implementation of our industrial engineering projects and improved operating efficiencies have reduced our reliance on purchased transportation, increased fuel efficiency and enhanced customer service. The quarter did include higher costs from wage increases and depreciation due to investments in employees, equipment and technology to meet increasing customer and regulatory requirements," continued O'Dell.

On July 2nd, Saia announced the acquisition of Robart Transportation, Inc. and its subsidiary (the Companies). The Companies, now rebranded as Saia TL Plus, Inc. and Saia Logistics Services, LLC., have provided customers with quality truckload, expedited and full service logistics solutions since 1981. 

"The acquisition supports our strategic goal of diversifying our service portfolio providing further growth opportunities over time," said O'Dell. "Expanded offerings combined with impressive execution on quality, yield management and optimization initiatives provide Saia with a clear course for long term profitable growth."

Year to Date 2012 Compared to Year to Date 2011 Results

• Revenues were $834 million compared to $777 million in the prior year period, an increase of 7.3 percent
• Operating income was $48.7 million compared to $22.0 million in the prior year period
• Net income was $26.6 million compared to $8.9 million in the prior year period
• Earnings per share were $1.61 compared to $0.55 in the prior year period
• Operating ratio was 94.2 vs. 97.2 in the prior year period

Financial Position and Capital Expenditures
Total debt was $81.2 million at September 30, 2012. Net of the Company's $0.8 million cash balance at quarter-end, net debt to total capital was 24.5 percent. This compares to total debt of $81.4 million and net debt to total capital of 26.5 percent in the prior year quarter.

Net capital expenditures for the first nine months of 2012 were $79.3 million. This compares to $51.8 million in the prior year period. The Company is planning net capital expenditures in 2012 of approximately $83.0 million. This expenditure level reflects the purchase of replacement tractors and trailers and the Company's continued investment in technology.

Conference Call
The Company will hold a conference call to discuss these results today at 11:00 a.m. Eastern Time. This call will be webcast live via the Company web site at www.saia.com. To participate in the call, please dial 1-877-419-6603 or dial 719-325-4790 for international calls and use conference ID #8643130. Callers should dial in five minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through November 7, 2012 at 2:00 p.m. Eastern Time. The replay is 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. Saia LTL Freight operates 147 terminals in 34 states. With headquarters in Georgia, Saia employs 8,000 people. For more information on Saia, Inc. visit the Investor Relations section at www.saia.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)
				September 30,				December 31,
				2012				2011
ASSETS
CURRENT ASSETS:
	Cash and cash equivalents			$	804			$	1,317
	Accounts receivable, net				124,822				107,436
	Prepaid expenses and other				31,115				34,063
		Total current assets			156,741				142,816
PROPERTY AND EQUIPMENT:
	Cost				722,128				669,345
	Less: accumulated depreciation				353,328				344,890
		Net property and equipment			368,800				324,455
OTHER ASSETS					16,721				7,615
		Total assets		$	542,262			$	474,886
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
	Accounts payable			$	52,442			$	39,783
	Wages and employees' benefits				33,838				21,185
	Other current liabilities				41,201				41,237
	Current portion of long-term debt				22,143				22,143
		Total current liabilities			149,624				124,348
OTHER LIABILITIES:
	Long-term debt, less current portion				59,034				50,714
	Deferred income taxes				52,822				51,289
	Claims, insurance and other				32,503				29,234
		Total other liabilities			144,359				131,237
STOCKHOLDERS' EQUITY:
	Common stock				16				16
	Additional paid-in capital				206,159				203,793
	Deferred compensation trust				(2,229	)			(2,199	)
	Retained earnings				44,333				17,691
		Total stockholders' equity			248,279				219,301
		Total liabilities and stockholders' equity		$	542,262			$	474,886

Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Nine Months Ended September 30, 2012 and 2011
(Amounts in thousands, except per share data)
(Unaudited)
				Third Quarter							Nine Months
				2012				2011			2012				2011
OPERATING REVENUE				$	278,024			$	268,285		$	834,252			$	777,204
OPERATING EXPENSES:
	Salaries, wages and employees' benefits				138,532				133,460			410,471				386,869
	Purchased transportation				18,810				23,345			59,171				69,064
	Fuel, operating expenses and supplies				76,461				75,510			233,212				221,637
	Operating taxes and licenses				9,445				9,830			29,061				28,787
	Claims and insurance				6,133				6,766			18,409				21,854
	Depreciation and amortization				12,315				9,723			35,681				27,099
	Operating (gains) loss, net				(88	)			31			(409	)			(72	)
		Total operating expenses			261,608				258,665			785,596				755,238
OPERATING INCOME					16,416				9,620			48,656				21,966
NONOPERATING EXPENSES:
	Interest expense				1,941				2,194			6,100				8,147
	Other, net				(44	)			122			(142	)			12
		Nonoperating expenses, net			1,897				2,316			5,958				8,159
INCOME BEFORE INCOME TAXES					14,519				7,304			42,698				13,807
Income tax expense					5,263				2,475			16,056				4,907
NET INCOME				$	9,256			$	4,829		$	26,642			$	8,900
Average common shares outstanding - basic					15,900				15,800			15,873				15,786
Average common shares outstanding - diluted					16,575				16,160			16,529				16,145
Basic earnings per share				$	0.58			$	0.31		$	1.68			$	0.56
Diluted earnings per share				$	0.56			$	0.30		$	1.61			$	0.55

Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2012 and 2011
(Amounts in thousands)
(Unaudited)
				Nine Months
				2012				2011
OPERATING ACTIVITIES:
Net cash provided by operating activities				$	77,425			$	34,653
		Net cash provided by operating activities			77,425				34,653
INVESTING ACTIVITIES:
	Acquisition of property and equipment				(81,888	)			(52,309	)
	Proceeds from disposal of property and equipment				2,609				555
	Acquisition of subsidiary, net of cash				(7,616	)			-
		Net cash used in investing activities			(86,895	)			(51,754	)
FINANCING ACTIVITIES:
	Repayment of long-term debt				(11,071	)			(8,571	)
	Borrowings of revolving credit agreement, net				19,391				-
	Proceeds from stock option exercises				637				149
		Net cash provided by (used in) financing activities			8,957				(8,422	)
NET DECREASE IN CASH AND CASH EQUIVALENTS					(513	)			(25,523	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					1,317				29,045
CASH AND CASH EQUIVALENTS, END OF PERIOD				$	804			$	3,522

Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended September 30, 2012 and 2011
(Unaudited)
															Third Quarter
				Third Quarter											Amount/Workday
				2012				2011				% Change			2012		2011		% Change
Workdays															63		64
Operating ratio					94.1	%			96.4	%
Tonnage (1)		LTL			918				947			(3.1	)		14.57		14.80		(1.6	)
		TL			176				180			(2.2	)		2.79		2.81		(0.6	)
Shipments (1)		LTL			1,574				1,670			(5.8	)		24.98		26.09		(4.3	)
		TL			25				26			(1.5	)		0.40		0.40		0.1
Revenue/cwt. (2)		LTL		$	14.00			$	13.14			6.6
		TL		$	5.71			$	5.42			5.3
Revenue/shipment (2)		LTL		$	163.32			$	149.04			9.6
		TL		$	793.48			$	758.55			4.6
Pounds/shipment		LTL			1,167				1,135			2.8
		TL			13,896				13,992			(0.7	)
Length of Haul					727				732			(0.7	)
(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.