SCS Transportation, Inc. (NASDAQ: SCST), a holding company
comprised of Saia Motor Freight Line, Inc. (Saia), a leading
multi-regional less-than-truckload (LTL) carrier, today reported
second-quarter 2006 results. The Company also announced today that
effective immediately its name has changed to Saia, Inc. and
effective Monday, July 24, 2006 it will adopt and trade under the
new NASDAQ ticker symbol "SAIA". These changes more accurately
reflect the Company's focus on its sole operating company, Saia,
following the June 30, 2006 completion of the sale of Jevic
Transportation, Inc. (Jevic). Second-Quarter 2006 Results from
Continuing Operations Compared to Second-Quarter 2005 -- Revenues
were $225 million, an increase of 21 percent -- Operating income
was $17.0 million, an increase of 51 percent -- Income from
continuing operations was $9.0 million, an increase of 70 percent
-- Earnings per share from continuing operations were $0.60, an
increase of 71 percent Second-Quarter 2006 Operational Highlights
From Continuing Operations -- LTL tonnage increased 12 percent
versus the prior-year quarter -- LTL yield grew 8 percent (3
percent excluding fuel surcharges) -- Operating ratio, excluding
restructuring charges, improved 220 basis points to 91.7 "Saia is a
top-tier LTL service provider that delivered yet another strong
quarter," said Bert Trucksess, chairman and chief executive
officer. "We are confident that Saia is well-positioned for
continued profitable growth and value creation and that the
continued execution of Saia's strategic initiatives should create
outstanding value for our shareholders." Rick O'Dell, president,
said, "Revenues benefited from both tonnage growth well above the
underlying economy and a favorable pricing environment. Operating
income gains resulted from the volume increases as well as
effective cost management." Discontinued Operations and Related
Charges In connection with the sale of Jevic, the Company recorded
a non-cash, after-tax charge in the second quarter of $44.0
million, or $2.96 per share. Jevic is now reflected as a
discontinued operation in the Company's financial statements. Also
in the second quarter, the Company recorded a pre-tax charge in
continuing operations of $1.7 million, or $0.07 per share, of an
estimated $2.6 million in costs related to the planned
consolidation and relocation of the Company's corporate
headquarters to Duluth, Ga. Year-to-Date 2006 Results from
Continuing Operations Compared to Year-to-Date 2005 -- Revenues
were $429 million, an increase of 22 percent -- Operating income
was $25.6 million, an increase of 31 percent -- Income from
continuing operations was $12.9 million, an increase of 48 percent
-- Earnings per share from continuing operations were $0.87, an
increase of 53 percent Financial Position and Capital Expenditures
Total debt was $112.4 million at June 30, 2006, and debt to total
capital was 36 percent. Net debt to total capital was 25 percent as
a result of the Company's $47.6 million cash balance reflecting
proceeds from the sale of Jevic. Consolidated net capital
expenditures from continuing operations for the first six months of
2006 were $41.7 million. The Company expects 2006 net capital
expenditures from continuing operations of approximately $90
million which includes planned investments in strategic real
estate. Conference Call The Company will hold a conference call to
discuss second-quarter results on Friday, July 21, 2006, at 9:30
a.m. Eastern Time (8:30 a.m. Central Time). To participate in the
call, please dial 1-800-275-8866 or dial 1-706-634-4936 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.scstransportation.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 July 28, 2006. The
replay is available by dialing 1-800-642-1687 and using conference
code 2686402. 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., formerly
known as SCS Transportation, Inc., is the parent of Saia Motor
Freight Line, Inc., a multi-region LTL carrier based in Duluth, Ga.
Saia focuses on regional and interregional less-than-truckload
(LTL), and selected truckload (TL) and time-definite services. It
operates 128 terminals throughout 30 states and employs
approximately 7,100 people. For more information, please visit the
Company's website 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" 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; adjustments to consideration received for the sale of
Jevic; indemnification obligations associated with the sale of
Jevic; 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; integration risks;
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. -0- *T Saia, Inc. and Subsidiaries (formerly SCS
Transportation, Inc. and Subsidiaries) Condensed Consolidated
Balance Sheets (Amounts in thousands) (Unaudited) June 30, December
31, 2006 2005 --------- ------------ ASSETS CURRENT ASSETS: Cash
and cash equivalents $47,602 $ 16,865 Accounts receivable 95,959
85,074 Prepaid expenses and other 30,441 22,233 Current assets of
discontinued operations - 50,073 --------- ------------ Total
current assets 174,002 174,245 PROPERTY AND EQUIPMENT: Cost 457,510
427,019 Less: Accumulated depreciation 191,689 180,385 ---------
------------ Net property and equipment 265,821 246,634 GOODWILL
AND OTHER ASSETS 32,765 33,419 Long-term assets of discontinued
operations, net - 100,443 --------- ------------ Total assets
$472,588 $554,741 ========= ============ LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and
checks outstanding $ 43,166 $ 43,487 Wages and employees' benefits
39,105 37,915 Other current liabilities 27,101 26,797 Current
portion of long-term debt 8,856 5,000 Current liabilities of
discontinued operations - 23,388 --------- ------------ Total
current liabilities 118,228 136,587 OTHER LIABILITIES: Long-term
debt 103,593 109,913 Deferred income taxes 40,949 40,949 Claims,
insurance and other 12,199 14,041 Long-term liabilities of
discontinued operations - 24,859 --------- ------------ Total other
liabilities 156,741 189,762 SHAREHOLDERS' EQUITY: Common stock 15
14 Additional paid-in capital 197,498 194,398 Deferred compensation
trust (1,630) (1,322) Retained earnings 1,736 35,302 ---------
------------ Total shareholders' equity 197,619 228,392 ---------
------------ Total liabilities and shareholders' equity $472,588
$554,741 ========= ============ Saia, Inc. and Subsidiaries
(formerly SCS Transportation, Inc. and Subsidiaries) Consolidated
Statements of Operations For the Quarter and Six Months Ended June
30, 2006 and 2005 (Amounts in thousands, except per share data)
(Unaudited) Second Quarter Six Months -------------------
------------------- 2006 2005 2006 2005 --------- ---------
--------- --------- OPERATING REVENUE $224,814 $185,824 $429,460
$352,789 OPERATING EXPENSES: Salaries, wages and employees'
benefits 117,502 101,761 230,568 195,551 Purchased transportation
18,101 14,149 35,109 26,734 Operating expenses and supplies 48,758
37,308 93,664 70,379 Operating taxes and licenses 7,303 6,513
14,651 12,732 Claims and insurance 6,793 7,662 13,099 14,234
Depreciation and amortization 7,845 7,313 15,429 14,055 Operating
(gains) and losses (191) (162) (324) (436) Restructuring charges
1,680 - 1,680 - --------- --------- --------- --------- Total
operating expenses 207,791 174,544 403,876 333,249 ---------
--------- --------- --------- OPERATING INCOME 17,023 11,280 25,584
19,540 NONOPERATING EXPENSES: Interest expense 2,427 2,429 4,901
4,850 Other, net (28) (74) (213) 53 --------- --------- ---------
--------- Nonoperating expenses, net 2,399 2,355 4,688 4,903 INCOME
BEFORE INCOME TAXES 14,624 8,925 20,896 14,637 Income tax provision
5,658 3,650 8,013 5,911 --------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS 8,966 5,275 12,883 8,726 Income
(loss) from discontinued operations, net (including loss on
disposal of $44,015 in 2006, net of tax benefit) (44,903) 515
(46,449) 1,036 --------- --------- --------- --------- NET INCOME
(LOSS) $(35,937) $ 5,790 $(33,566) $ 9,762 ========= =========
========= ========= Average common shares outstanding - basic
14,557 14,892 14,529 14,975 ========= ========= ========= =========
Average common shares outstanding - diluted 14,873 15,217 14,859
15,318 ========= ========= ========= ========= Basic earnings per
share- continuing operations $ 0.61 $ 0.35 $ 0.89 $ 0.58 Basic
earnings (loss) per share-discontinued operations (3.08) 0.04
(3.20) 0.07 --------- --------- --------- --------- Basic earnings
(loss) per share $ (2.47) $ 0.39 $ (2.31) $ 0.65 =========
========= ========= ========= Diluted earnings per share-
continuing operations $ 0.60 $ 0.35 $ 0.87 $ 0.57 Diluted earnings
(loss) per share-discontinued operations (3.02) 0.03 (3.13) 0.07
--------- --------- --------- --------- Diluted earnings (loss) per
share $ (2.42) $ 0.38 $ (2.26) $ 0.64 ========= ========= =========
========= Saia, Inc. and Subsidiaries (formerly SCS Transportation,
Inc. and Subsidiaries) Condensed Consolidated Statements of Cash
Flows For the Six Months Ended June 30, 2006 and 2005 (Amounts in
thousands) (Unaudited) 2006 2005 --------- --------- OPERATING
ACTIVITIES: Net cash from operating activities-continuing
operations $ 27,609 $ 26,531 Net cash from operating
activities-discontinued operations 9,158 10,283 --------- ---------
Net cash from operating activities 36,767 36,814 INVESTING
ACTIVITIES: Acquisition of property and equipment (42,328) (14,349)
Proceeds from disposal of property and equipment 667 897 Proceeds
from sale of subsidiary 41,200 - Net investment in discontinued
operations (5,359) (11,203) --------- --------- Net cash used in
investing activities (5,820) (24,655) FINANCING ACTIVITIES:
Repayment of long-term debt (2,500) (8,002) Borrowing of long-term
debt - 4,000 Repurchase of common stock - (9,177) Proceeds from
stock option exercises 2,290 514 --------- --------- Net cash used
in financing activities (210) (12,665) --------- --------- NET
INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS 30,737 (506)
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD 16,865 6,949
--------- --------- CASH & CASH EQUIVALENTS, END OF PERIOD $
47,602 $ 6,443 ========= ========= Saia Motor Freight Line, Inc.
Financial Information For the Quarter and Six Months Ended June 30,
2006 and 2005 (Amounts in thousands) Second Quarter Six Months
---------------- % ---------------- % 2006 2005 Change 2006 2005
Change ---------------- ------ ---------------- ------ Operating
revenue 224,814 185,824 21.0 429,460 352,789 21.7 Operating income
19,117 12,507 31,577 21,470 Operating ratio 91.5 93.3 92.6 93.9
Second Quarter ---------------- Second Quarter Amount/Workday
---------------- % ---------------- % 2006 2005 Change 2006 2005
Change ---------------- ------ ---------------- ------ Workdays 64
64 F/S Revenue LTL 208,519 172,432 20.9 3,258.1 2,694.3 20.9 TL
16,295 13,392 21.7 254.6 209.3 21.7 Total 224,814 185,824 21.0
3,512.7 2,903.6 21.0 Revenue excluding revenue LTL 208,867 172,720
20.9 3,263.5 2,698.8 20.9 recognition TL 16,322 13,414 21.7 255.0
209.6 21.7 adjustment Total 225,189 186,134 21.0 3,518.5 2,908.4
21.0 Tonnage LTL 882 787 12.1 13.78 12.29 12.1 TL 179 162 10.5 2.80
2.54 10.5 Total 1,061 949 11.9 16.58 14.83 11.9 Shipments LTL 1,564
1,416 10.5 24.44 22.12 10.5 TL 25 22 14.2 0.39 0.34 14.2 Total
1,589 1,438 10.5 24.83 22.46 10.5 Revenue/cwt. LTL 11.84 10.98 7.8
TL 4.55 4.13 10.1 Total 10.61 9.81 8.2 Revenue/cwt. LTL 10.26 9.95
3.1 (excluding fuel TL 4.46 4.07 9.8 surcharge) Total 9.28 8.95 3.8
Revenue/shipment LTL 133.53 121.99 9.5 TL 653.32 612.93 6.6 Total
141.70 129.47 9.4 Pounds/shipment LTL 1,128 1,111 1.5 TL 14,357
14,831 (3.2) Total 1,336 1,320 1.2 *T
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