Revenues Were $264 Million With a 63 Percent Increase in Operating Income

JOHNS CREEK, GA -- (MARKETWIRE) -- 01/30/13 -- Saia, Inc. (NASDAQ: SAIA), a leading transportation provider offering multi-regional less-than-truckload (LTL), non-asset truckload and logistics, today reported improved fourth quarter 2012 results on stronger revenue, favorable pricing actions and operational efficiencies.

Fourth Quarter 2012 Compared to Fourth Quarter 2011 Results

  • Revenues were $264 million, an increase of 4.5 percent from the prior year period
  • Revenue per workday increased by 2.8 percent with one more workday in the fourth quarter of 2012
  • Operating income increased 63 percent to $10.1 million compared to $6.2 million in the prior year period
  • Earnings per share were $0.33 compared to $0.15 in the prior year period
  • Operating ratio was 96.2 compared to 97.6 in the prior year period
  • LTL tonnage per workday decreased by 3.2 percent
  • LTL yield was up 6 percent due to effective yield management and fuel surcharge revenue

"Saia's best-in-class service quality, demonstrated yield results and emphasis on operational excellence were again the primary drivers behind our margin improvement. We continue to advance our value proposition through investments in quality and by providing consistent, superior customer service. Additionally, we remain focused on yield improvement and advancing our operational efficiency goals. I believe the positive contribution from further advancing and institutionalizing practices in these key areas will continue to favorably impact our results going forward," said Rick O'Dell, president and chief executive officer.

"In spite of a lack-luster economic environment, Saia again produced significant earnings gains. The continued implementation of industrial engineering initiatives has improved operating efficiencies, reduced our reliance on purchased transportation, increased fuel efficiency, reduced cargo claims expense and enhanced customer service. The quarter did include increased healthcare and workers' compensation expense which virtually offset more normal accident severity, in addition to the higher costs from wage increases and depreciation due to our investments in employees, equipment and technology to meet increasing customer demands. Saia's dedicated employees provided 98% on-time service and solid customer satisfaction. Our balance sheet is strong and we are making significant investments in our business to provide a solid foundation for additional progress in 2013," O'Dell said.

2012 Results Compared to 2011 Results

  • Revenues were $1.1 billion, an increase of 7 percent from the prior year period
  • Operating income was $58.7 million compared to $28.1 million in the prior year
  • Net income was $32.0 million compared to $11.4 million in the prior year
  • Earnings per share were $1.94 compared to earnings per share of $0.70 in the prior year
  • Operating ratio was 94.7 compared to 97.3 in the prior year

Financial Position and Capital Expenditures
 Total debt was $60.7 million at December 31, 2012. This compares to total debt of $72.9 million at December 31, 2011. Net of the Company's $0.3 million cash balance at quarter-end, net debt to total capital was 19.2 percent.

Net capital expenditures in 2012 were $83 million. This compares to $68 million in the prior year. The Company currently plans net capital expenditures in 2013 of approximately $90 million. This expenditure level reflects 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 am Eastern Time. This call will be webcast live via the Company web site at www.saiacorp.com. To participate in the call, please dial 1-888-364-3109 or dial 719-325-2308 for international calls and use conference ID 3815447. Callers should dial in five to 10 minutes in advance of the conference call. A replay of the call will be available two hours after the completion of the call through February 5, 2013. 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 7,900 people. 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; 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)
December 31, December 31,
2012 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 321 $ 1,317
Accounts receivable, net 106,814 107,436
Prepaid expenses and other 37,028 34,063
Total current assets 144,163 142,816
PROPERTY AND EQUIPMENT:
Cost 718,527 669,345
Less: accumulated depreciation 356,823 344,890
Net property and equipment 361,704 324,455
OTHER ASSETS 13,821 7,615
Total assets $ 519,688 $ 474,886
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 43,706 $ 39,783
Wages and employees' benefits 30,842 21,185
Other current liabilities 44,609 41,237
Current portion of long-term debt 22,143 22,143
Total current liabilities 141,300 124,348
OTHER LIABILITIES:
Long-term debt, less current portion 38,562 50,714
Deferred income taxes 55,611 51,289
Claims, insurance and other 29,696 29,234
Total other liabilities 123,869 131,237
STOCKHOLDERS' EQUITY:
Common stock 16 16
Additional paid-in capital 206,977 203,793
Deferred compensation trust (2,213 ) (2,199 )
Retained earnings 49,739 17,691
Total stockholders' equity 254,519 219,301
Total liabilities and stockholders' equity $ 519,688 $ 474,886
Saia, Inc. and Subsidiaries
Consolidated Statements of Operations
For the Quarters and Years Ended December 31, 2012 and 2011
(Amounts in thousands, except per share data)
(Unaudited)
Fourth Quarter Years
2012 2011 2012 2011
OPERATING REVENUE $ 264,427 $ 253,020 $ 1,098,679 $ 1,030,224
OPERATING EXPENSES:
Salaries, wages and employees' benefits 136,284 127,108 546,755 513,977
Purchased transportation 15,350 18,095 74,521 87,159
Fuel, operating expenses and supplies 74,964 71,897 308,176 293,534
Operating taxes and licenses 9,222 9,441 38,283 38,228
Claims and insurance 6,303 10,213 24,712 32,067
Depreciation and amortization 12,304 10,179 47,985 37,278
Operating gains, net (78 ) (93 ) (487 ) (165 )
Total operating expenses 254,349 246,840 1,039,945 1,002,078
OPERATING INCOME 10,078 6,180 58,734 28,146
NONOPERATING EXPENSES:
Interest expense 1,707 2,321 7,807 10,468
Other, net (70 ) (64 ) (212 ) (52 )
Nonoperating expenses, net 1,637 2,257 7,595 10,416
INCOME BEFORE INCOME TAXES 8,441 3,923 51,139 17,730
Income tax expense 3,035 1,450 19,091 6,357
NET INCOME $ 5,406 $ 2,473 $ 32,048 $ 11,373
Average common shares outstanding - basic 15,908 15,798 15,882 15,789
Average common shares outstanding - diluted 16,586 16,143 16,543 16,136
Basic earnings per share $ 0.34 $ 0.16 $ 2.02 $ 0.72
Diluted earnings per share $ 0.33 $ 0.15 $ 1.94 $ 0.70
Saia, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Years Ended December 31, 2012 and 2011
(Amounts in thousands)
(Unaudited)
Years
2012 2011
OPERATING ACTIVITIES:
Net cash provided by operating activities $ 100,675 $ 58,211
Net cash provided by operating activities 100,675 58,211
INVESTING ACTIVITIES:
Acquisition of property and equipment (86,120 ) (70,862 )
Proceeds from disposal of property and equipment 3,305 2,963
Acquisition of subsidiary, net of cash (7,616 ) -
Net cash used in investing activities (90,431 ) (67,899 )
FINANCING ACTIVITIES:
Repayment of long-term debt (22,143 ) (17,143 )
Borrowings of revolving credit agreement, net 9,990 -
Payment of debt issuance costs - (1,046 )
Proceeds from stock option exercises 913 149
Net cash used in financing activities (11,240 ) (18,040 )
NET DECREASE IN CASH AND CASH EQUIVALENTS (996 ) (27,728 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,317 29,045
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 321 $ 1,317
Saia, Inc. and Subsidiaries
Financial Information
For the Quarters Ended December 31, 2012 and 2011
(Unaudited)
Fourth Quarter
Fourth Quarter % Amount/Workday %
2012 2011 Change 2012 2011 Change
Workdays 62 61
Operating ratio 96.2 % 97.6 %
Tonnage (1) LTL 863 877 (1.6 ) 13.91 14.37 (3.2 )
TL 157 164 (4.5 ) 2.53 2.69 (6.0 )
Shipments (1) LTL 1,466 1,517 (3.4 ) 23.64 24.86 (4.9 )
TL 23 23 (3.0 ) 0.37 0.38 (4.6 )
Revenue/cwt. (2) LTL $ 14.13 $ 13.33 6.0
TL $ 5.90 $ 5.51 6.9
Revenue/shipment (2) LTL $ 166.36 $ 154.10 8.0
TL $ 816.62 $ 775.09 5.4
Pounds/shipment LTL 1,177 1,156 1.8
TL 13,851 14,060 (1.5 )
Length of Haul 728 728 -

CONTACT:
Saia, Inc.
 Renee McKenzie
Treasurer
678.542.3910
Investors@Saia.com


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