Saia Reports 2007 Revenue of $976 Million from Continuing Operations, an Increase of 12 Percent

Saia, Inc. (NASDAQ: SAIA), a leading multi-regional less-than-truckload (LTL) carrier ("the Company”), reported 2007 results with revenue of $976 million from continuing operations, an increase of 12 percent from 2006. 2007 operating income from continuing operations was $38.2 million including integration charges of $2.4 million, compared with 2006 operating income of $50.0 million which included $4.1 million in restructuring and integration expenses. Income from continuing operations was $17.1 million in 2007 compared to $25.9 million in 2006. Earnings per share from continuing operations were $1.22 including integration charges, compared to $1.74 in 2006 which included charges for restructuring and integration. "Saia achieved 12 percent revenue growth due to acquisitions, synergy revenue to and from our expanded geography and our excellent service offerings. Earnings per share from continuing operations declined to $1.22 from $1.74 earnings per share in a very difficult economic environment,” said Rick O’Dell, President and Chief Executive Officer. "We believe Saia’s broad coverage and strong service provide a solid foundation for long-term profitable growth and shareholder value creation as we capitalize on our recently expanded coverage and improve margins.” 2007 highlights are summarized as follows: Operating ratio deteriorated to 96.1 from 94.3 LTL tonnage per work day increased 9.2% LTL yield increased 2.1% including the impact of higher fuel surcharge Additional points: Gain on sale of real estate of $1.7 million Equity based compensation was a benefit of $3.0 million compared to expense of $3.0 million in prior year Accident expense was $8.3 million over prior year primarily due to severity Fourth quarter revenue was $244 million, up 11 percent from prior year. Saia reported earnings per share from continuing operations of $0.05 per share which included charges of $0.04 per share resulting from an employment related matter compared to $0.36 in the prior year which included charges of $0.09 per share for restructuring and integration expenses. Operating income from continuing operations was $3.9 million which includes $0.8 million of expenses from an employment related matter, which compares to the prior year quarter operating income of $10.5 million which included $2.0 million of restructuring and integration expenses. Fourth quarter 2007 highlights include: Operating ratio from continuing operations deteriorated to 98.4 from 95.2 LTL tonnage per work day increased 2.4% LTL yield increased 7.0% including the impact of higher fuel surcharge Accident expense was $1.1 million over prior year quarter due to severity "Considering the weak economic conditions, I am relatively pleased with our top line growth,” O’Dell said. "I am particularly disappointed with the second half results during which margins were challenged due to the weak economic environment, higher accident and health plan expenses at a time we were investing in servicing new lanes associated with our geographic expansions. While the near-term economic environment remains challenging, I am cautiously optimistic about 2008. We believe our focused strategy of building density in our recently expanded network and numerous engineered cost initiatives will improve margins and shareholder value.” Financial Position and Capital Expenditures Total debt was $172.8 million at December 31, 2007. Net of the Company’s $6.7 million cash balance at December 31, 2007, net debt to total capital was 45.3 percent. This compares to total debt of $110.0 million and net debt to total capital of 32.8 percent at December 31, 2006. Debt balances were impacted by $23.2 million expended during the year on share repurchase transactions. Consolidated net capital expenditures from continuing operations for 2007 were $89 million. The Company is planning net capital expenditures in 2008 of approximately $56 million which includes $39 million for real estate projects. Planned expenditures for revenue equipment is a reduction from the prior year and may be reevaluated as tonnage improves. Saia has entered into a new revolving credit agreement, which replaces its prior facility and extends its maturity. The new agreement includes significant enhancements including an increase in the size from $110 to $160 million, improved terms, enhanced pricing and favorable conditions to support the Company’s financing needs. Discontinued Operations In the quarter, the Company recorded a tax benefit of $1.3 million, or $0.09 per share, related to discontinued operations of the sale of a former subsidiary in 2006. Conference Call The Company will hold a conference call to discuss fourth-quarter results today at 10:00 a.m. Eastern Time. To participate in the call, please dial 1-877-558-9192 or dial 706-758-1748 for international calls. Callers should dial in five to 10 minutes in advance of the conference call. This call will be webcast live via the Company web site at www.saia.com and will be archived on the site. A replay of the call will be available two hours after the completion of the call through February 06, 2008. The replay will be available by dialing 1-800-642-1687 or 706-645-9291 and using conference code 30445489. The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com). Saia, Inc. (NASDAQ: SAIA) is a less-than-truckload provider of regional, interregional and guaranteed services covering 34 states. With headquarters in Georgia and a network of 152 terminals, Saia employs 8,200 people. For more information, visit Investor Relations 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 publicly update or revise any forward-looking statements. All forward-looking statements reflect the present expectation of future events of our management 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 and risks include, but are not limited to, general economic conditions; integration risks; indemnification obligations associated with the sale of Jevic Transportation, Inc.; the effect of ongoing litigation including class action lawsuits; cost and availability of qualified drivers, fuel, purchased transportation, property, revenue equipment and other operating assets; governmental regulations, including but not limited to Hours of Service, engine emissions, compliance with recent legislation requiring companies to evaluate their internal control over financial reporting and Homeland Security; dependence on key employees; inclement weather; labor relations; effectiveness of company-specific performance improvement initiatives; competitive initiatives and pricing pressures; terrorism risks; self-insurance claims, equity-based compensation and other expense volatility; the Company’s determination from time to time whether to purchase any shares under the repurchase program; and other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s SEC filings. Saia, Inc. Condensed Consolidated Balance Sheets (Amounts in thousands) (Unaudited)         December 31, December 31, 2007 2006 ASSETS   CURRENT ASSETS: Cash and cash equivalents $ 6,656 $ 10,669 Accounts receivable 107,116 95,779 Prepaid expenses and other   37,837     27,236   Total current assets 151,609 133,684   PROPERTY AND EQUIPMENT: Cost 596,357 518,052 Less: Accumulated depreciation   227,585     203,220   Net property and equipment 368,772 314,832   GOODWILL AND OTHER ASSETS   40,202     38,884   Total assets $ 560,583   $ 487,400     LIABILITIES AND SHAREHOLDERS' EQUITY   CURRENT LIABILITIES: Accounts payable and checks outstanding $ 42,732 $ 39,389 Wages and employees' benefits 32,863 45,752 Other current liabilities 38,138 30,027 Current portion of long-term debt 12,793 11,356 Current liabilities of discontinued operations   –     117   Total current liabilities 126,526 126,641   OTHER LIABILITIES: Long-term debt 160,052 98,628 Deferred income taxes 55,961 45,259 Claims, insurance and other   17,392     13,717   Total other liabilities 233,405 157,604   SHAREHOLDERS' EQUITY: Common stock 13 15 Additional paid-in capital 170,260 199,257 Treasury stock – (8,861 ) Deferred compensation trust (2,584 ) (1,877 ) Retained earnings   32,963     14,621   Total shareholders' equity   200,652     203,155   Total liabilities and shareholders' equity $ 560,583   $ 487,400   Saia, Inc. Consolidated Statements of Operations For the Quarter and Year Ended December 31, 2007 and 2006 (Amounts in thousands, except per share data) (Unaudited)               Fourth Quarter Year Ended 2007 2006 2007 2006   OPERATING REVENUE $ 243,710 $ 219,160 $ 976,123 $ 874,738   OPERATING EXPENSES: Salaries, wages and employees' benefits 130,291 120,967 524,599 473,956 Purchased transportation 20,172 16,459 76,123 70,029 Fuel, operating expenses and supplies 62,196 45,945 227,198 188,606 Operating taxes and licenses 8,765 7,342 34,474 28,853 Claims and insurance 8,492 7,338 36,754 28,089 Depreciation and amortization 10,083 8,861 38,685 32,550 Operating gains, net (171 ) (235 ) (2,305 ) (1,416 ) Integration charges – 1,490 2,427 1,490 Restructuring charges   –     538     –     2,587   Total operating expenses   239,828     208,705     937,955     824,744     OPERATING INCOME 3,882 10,455 38,168 49,994   NONOPERATING EXPENSES: Interest expense 2,934 2,146 10,135 9,288 Other, net   (19 )   (485 )   (358 )   (1,267 ) Nonoperating expenses, net 2,915 1,661 9,777 8,021   INCOME BEFORE INCOME TAXES 967 8,794 28,391 41,973 Income tax provision   251     3,485     11,306     16,100   INCOME FROM CONTINUING OPERATIONS 716 5,309 17,085 25,873 Income (loss) from discontinued operations, net (including loss on disposal of $43,794 in 2006, net of tax benefit)   1,257     (107 )   1,257     (46,554 ) NET INCOME (LOSS) $ 1,973   $ 5,202   $ 18,342   $ (20,681 )   Average common shares outstanding - basic   13,281     14,475     13,823     14,536   Average common shares outstanding - diluted   13,433     14,738     14,038     14,841     Basic earnings per share-continuing operations $ 0.05 $ 0.37 $ 1.24 $ 1.78 Basic earnings (loss) per share-discontinued operations   0.09     (0.01 )   0.09     (3.20 ) Basic earnings (loss) per share $ 0.15   $ 0.36   $ 1.33   $ (1.42 )   Diluted earnings per share-continuing operations $ 0.05 $ 0.36 $ 1.22 $ 1.74 Diluted earnings (loss) per share-discontinued operations   0.09     (0.01 )   0.09     (3.14 ) Diluted earnings (loss) per share $ 0.15   $ 0.35   $ 1.31   $ (1.39 ) Saia, Inc. Condensed Consolidated Statements of Cash Flows For the Year Ended December 31, 2007 and 2006 (Amounts in thousands) (Unaudited)     2007 2006   OPERATING ACTIVITIES: Net cash from operating activities-continuing operations $ 46,271 $ 55,643 Net cash from operating activities-discontinued operations   –     20,494   Net cash from operating activities 46,271 76,137   INVESTING ACTIVITIES: Acquisition of property and equipment (95,486 ) (93,235 ) Proceeds from disposal of property and equipment 6,401 2,487 Acquisition of business (2,344 ) (17,496 ) Proceeds from sale of subsidiary – 41,305 Net investment in discontinued operations   –     (5,359 ) Net cash used in investing activities (91,429 ) (72,298 )   FINANCING ACTIVITIES: Proceeds from long-term debt 73,724 – Repayment of long-term debt (11,402 ) (5,000 ) Repurchase of common stock (23,226 ) (8,861 ) Proceeds from stock option exercises   2,049     3,826   Net cash from financing activities   41,145     (10,035 )   NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS (4,013 ) (6,196 ) CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD   10,669     16,865   CASH & CASH EQUIVALENTS, END OF PERIOD $ 6,656   $ 10,669   Saia, Inc. Financial Information For the Quarter Ended December 31, 2007 and 2006 (Amounts in thousands) (Unaudited)               Fourth Quarter Fourth Quarter % Amount/Workday % 2007   2006 Change 2007   2006 Change   Workdays 62 61   Operating ratio 98.4 95.2   F/S Revenue LTL 226,738 204,009 11.1 3,657.1 3,344.4 9.3 TL 16,972 15,152 12.0 273.7 248.4 10.2 Total 243,710 219,161 11.2 3,930.8 3,592.8 9.4     Revenue excluding LTL 226,995 203,739 11.4 3,661.2 3,340.0 9.6 revenue recognition TL 16,991 15,132 12.3 274.0 248.1 10.5 adjustment Total 243,986 218,871 11.5 3,935.3 3,588.0 9.7   Tonnage LTL 907 871 4.1 14.6 14.3 2.4 TL 180 163 10.2 2.9 2.7 8.4 Total 1,086 1,034 5.1 17.5 17.0 3.4   Shipments LTL 1,664 1,559 6.7 26.8 25.6 5.0 TL 24 22 8.5 0.4 0.4 6.7 Total 1,688 1,581 6.7 27.2 25.9 5.0   Revenue/cwt. LTL 12.52 11.70 7.0 TL 4.73 4.64 1.9 Total 11.23 10.58 6.1   Revenue/shipment LTL 136.45 130.67 4.4 TL 706.72 682.88 3.5 Total 144.57 138.41 4.5   Pounds/shipment LTL 1,090 1,117 (2.4 ) TL 14,945 14,726 1.5 Total 1,288 1,308 (1.6 )