10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 0-49983

Saia, Inc.

(Exact name of registrant as specified in its charter)

Delaware	48-1229851
(State of incorporation)	(I.R.S. Employer Identification No.)
11465 Johns Creek Parkway, Suite 400
Johns Creek, GA	30097
(Address of principal executive offices)	(Zip Code)

(770) 232-5067

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.001 per share	SAIA	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 26,462,463 shares of Common Stock outstanding at October 27, 2022.

1

SAIA, INC. AND SUBSIDIARIES

INDEX

		PAGE
PART I. FINANCIAL INFORMATION
ITEM 1:	Financial Statements	3
	Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Operations for the quarters and nine months ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Stockholders’ Equity for the quarters and nine months ended September 30, 2022 and 2021	5
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021	7
	Notes to Condensed Consolidated Financial Statements	8
ITEM 2:	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
ITEM 3:	Quantitative and Qualitative Disclosures About Market Risk	19
ITEM 4:	Controls and Procedures	20
PART II. OTHER INFORMATION
ITEM 1:	Legal Proceedings	21
ITEM 1A:	Risk Factors	21
ITEM 2:	Unregistered Sales of Equity Securities and Use of Proceeds	22
ITEM 3:	Defaults Upon Senior Securities	22
ITEM 4:	Mine Safety Disclosures	22
ITEM 5:	Other Information	22
ITEM 6:	Exhibits	23
Signature		24

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Saia, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(unaudited)

	September 30, 2022			December 31, 2021
Assets	(in thousands, except share and per share data)
Current Assets:
Cash and cash equivalents	$	149,825		$	106,588
Accounts receivable, net		335,595			276,755
Income tax receivable		11,859			—
Prepaid expenses and other		54,123			32,912
Total current assets		551,402			416,255
Property and Equipment, at cost		2,403,702			2,144,528
Less: accumulated depreciation		964,533			864,074
Net property and equipment		1,439,169			1,280,454
Operating Lease Right-of-Use Assets		107,456			107,781
Goodwill and Identifiable Intangibles, net		18,362			19,157
Other Noncurrent Assets		23,935			21,603
Total assets	$	2,140,324		$	1,845,250
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	114,697		$	114,010
Wages, vacation and employees’ benefits		79,193			73,109
Claims and insurance accruals		74,799			54,717
Other current liabilities		31,116			38,551
Current portion of long-term debt		15,914			19,396
Current portion of operating lease liability		22,750			21,565
Total current liabilities		338,469			321,348
Other Liabilities:
Long-term debt, less current portion		18,936			31,008
Operating lease liability, less current portion		87,388			88,409
Deferred income taxes		124,960			124,137
Claims, insurance and other		64,089			60,015
Total other liabilities		295,373			303,569
Stockholders’ Equity:
Preferred stock, $0.001 par value, 50,000 shares authorized,      none issued and outstanding		—			—
Common stock, $0.001 par value, 100,000,000 shares authorized,      26,462,463 and 26,336,589 shares issued and outstanding at      September 30, 2022 and December 31, 2021, respectively		26			26
Additional paid-in-capital		275,358			274,633
Deferred compensation trust, 70,578 and 94,627 shares of common      stock at cost at September 30, 2022 and December 31, 2021, respectively		(5,237	)		(4,101	)
Retained earnings		1,236,335			949,775
Total stockholders’ equity		1,506,482			1,220,333
Total liabilities and stockholders’ equity	$	2,140,324		$	1,845,250

See accompanying notes to condensed consolidated financial statements.

3

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the quarters and nine months ended September 30, 2022 and 2021

(unaudited)

	Third Quarter					Nine Months
	2022		2021			2022		2021
	(in thousands, except per share data)
Operating Revenue	$	729,561	$	616,216		$	2,136,331	$	1,671,623
Operating Expenses:
Salaries, wages and employees' benefits		297,247		277,087			881,762		790,310
Purchased transportation		85,452		72,193			255,519		179,705
Fuel, operating expenses and supplies		145,461		98,834			413,762		274,399
Operating taxes and licenses		16,261		14,572			48,813		43,469
Claims and insurance		15,988		15,518			40,940		44,326
Depreciation and amortization		40,682		35,742			117,578		105,773
Loss (gain) from property disposals, net		115		(3,847	)		160		(4,115	)
Total operating expenses		601,206		510,099			1,758,534		1,433,867
Operating Income		128,355		106,117			377,797		237,756
Nonoperating Expenses (Income):
Interest expense		581		777			1,941		2,463
Other, net		68		14			1,072		(547	)
Nonoperating expenses, net		649		791			3,013		1,916
Income Before Income Taxes		127,706		105,326			374,784		235,840
Income Tax Provision		29,815		25,617			88,224		56,366
Net Income	$	97,891	$	79,709		$	286,560	$	179,474
Weighted average common shares outstanding – basic		26,539		26,334			26,506		26,317
Weighted average common shares outstanding – diluted		26,676		26,713			26,663		26,699
Basic Earnings Per Share	$	3.69	$	3.03		$	10.81	$	6.82
Diluted Earnings Per Share	$	3.67	$	2.98		$	10.75	$	6.72

See accompanying notes to condensed consolidated financial statements.

4

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

For the quarters and nine months ended September 30, 2022 and 2021

(unaudited)

	Common Shares		Common Stock		Additional Paid-in Capital			Deferred Compensation Trust			Retained Earnings		Total
	(in thousands, except share data)
Balance at December 31, 2021		26,336,589	$	26	$	274,633		$	(4,101	)	$	949,775	$	1,220,333
Stock compensation, including options and long-term incentives		—		—		2,056			—			—		2,056
Exercise of stock options, less shares withheld for taxes		10,992		—		907			—			—		907
Shares issued for long-term incentive awards, net of shares withheld for taxes		60,821		—		(11,230	)		—			—		(11,230	)
Purchase of shares by Deferred Compensation Trust		—		—		2,445			(2,445	)		—		—
Sale of shares by Deferred Compensation Trust		—		—		(1,066	)		1,066			—		—
Net income		—		—		—			—			79,424		79,424
Balance at March 31, 2022		26,408,402	$	26	$	267,745		$	(5,480	)	$	1,029,199	$	1,291,490
Stock compensation, including options and long-term incentives		—		—		1,756			—			—		1,756
Director deferred share activity		2,327		—		1,170			—			—		1,170
Exercise of stock options, less shares withheld for taxes		1,007		—		101			—			—		101
Shares issued for long-term incentive awards, net of shares withheld for taxes		—		—		—			—			—		—
Purchase of shares by Deferred Compensation Trust		—		—		631			(631	)		—		—
Sale of shares by Deferred Compensation Trust		—		—		(8	)		8			—		—
Net income		—		—		—			—			109,245		109,245
Balance at June 30, 2022		26,411,736	$	26	$	271,395		$	(6,103	)	$	1,138,444	$	1,403,762
Stock compensation, including options and long-term incentives		—		—		1,894			—			—		1,894
Director deferred share activity		—		—		—			—			—		—
Exercise of stock options less shares withheld for taxes		48,329		—		3,408			—			—		3,408
Shares issued for long-term incentive awards, net of shares withheld for taxes		2,398		—		(473	)		—			—		(473	)
Purchase of shares by Deferred Compensation Trust		—		—		93			(93	)		—		—
Sale of shares by Deferred Compensation Trust		—		—		(959	)		959			—		—
Net income		—		—		—			—			97,891		97,891
Balance at September 30, 2022		26,462,463	$	26	$	275,358		$	(5,237	)	$	1,236,335	$	1,506,482

5

	Common Shares		Common Stock		Additional Paid-in Capital			Deferred Compensation Trust			Retained Earnings		Total
	(in thousands, except share data)
Balance at December 31, 2020		26,236,570	$	26	$	267,666		$	(2,944	)	$	696,540	$	961,288
Stock compensation, including options and long-term incentives		—		—		1,711			—			—		1,711
Exercise of stock options, less shares withheld for taxes		46,741		—		3,678			—			—		3,678
Shares issued for long-term incentive awards, net of shares withheld for taxes		50,381		—		(6,350	)		—			—		(6,350	)
Purchase of shares by Deferred Compensation Trust		—		—		742			(742	)		—		—
Sale of shares by Deferred Compensation Trust		—		—		(17	)		17			—		—
Net income		—		—		—			—			37,291		37,291
Balance at March 31, 2021		26,333,692	$	26	$	267,430		$	(3,669	)	$	733,831	$	997,618
Stock compensation, including options and long-term incentives		—		—		1,810			—			—		1,810
Director deferred share activity		1,404		—		1,256			—			—		1,256
Exercise of stock options, less shares withheld for taxes		—		—		—			—			—		—
Shares issued for long-term incentive awards, net of shares withheld for taxes		—		—		—			—			—		—
Purchase of shares by Deferred Compensation Trust		—		—		112			(112	)		—		—
Sale of shares by Deferred Compensation Trust		—		—		—			—			—		—
Net income		—		—		—			—			62,474		62,474
Balance at June 30, 2021		26,335,096	$	26	$	270,608		$	(3,781	)	$	796,305	$	1,063,158
Stock compensation, including options and long-term incentives		—		—		1,878			—			—		1,878
Director deferred share activity		294		—		202			—			—		202
Exercise of stock options less shares withheld for taxes		—		—		—			—			—		—
Shares issued for long-term incentive awards, net of shares withheld for taxes		1,199		—		(221	)		—			—		(221	)
Purchase of shares by Deferred Compensation Trust		—		—		98			(98	)		—		—
Sale of shares by Deferred Compensation Trust		—		—		(20	)		20			—		—
Net income		—		—		—			—			79,709		79,709
Balance at September 30, 2021		26,336,589	$	26	$	272,545		$	(3,859	)	$	876,014	$	1,144,726

See accompanying notes to condensed consolidated financial statements.

6

Saia, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

For the nine months ended September 30, 2022 and 2021

(unaudited)

	Nine Months
	2022			2021
	(in thousands)
Operating Activities:
Net income	$	286,560		$	179,474
Noncash items included in net income:
Depreciation and amortization		117,578			105,773
Deferred income taxes		824			5,086
Other, net		268			4,290
Changes in operating assets and liabilities, net		(61,156	)		(26,937	)
Net cash provided by operating activities		344,074			267,686
Investing Activities:
Acquisition of property and equipment		(279,057	)		(154,884	)
Proceeds from disposal of property and equipment		1,061			6,460
Other		—			(500	)
Net cash used in investing activities		(277,996	)		(148,924	)
Financing Activities:
Repayments of revolving credit agreement		(1,000	)		(36,410	)
Borrowings of revolving credit agreement		1,000			36,410
Proceeds from stock option exercises		4,416			3,678
Shares withheld for taxes		(11,703	)		(6,571	)
Repayment of finance leases		(15,554	)		(15,805	)
Net cash used in financing activities		(22,841	)		(18,698	)
Net Increase in Cash, Cash Equivalents and Restricted Cash (1)		43,237			100,064
Cash, Cash Equivalents and Restricted Cash, beginning of period (1)		106,588			25,308
Cash, Cash Equivalents and Restricted Cash, end of period (1)	$	149,825		$	125,372

(1) Cash, cash equivalents and restricted cash at the end of the period includes $3.7 million of restricted cash included in accounts receivable, net on the Condensed Consolidated Balance Sheet ending September 30, 2021.

See accompanying notes to condensed consolidated financial statements.

7

Saia, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

(1) Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Saia, Inc. and its wholly-owned subsidiaries (together, the Company or Saia). All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements.

The condensed consolidated financial statements have been prepared by the Company without audit by the independent registered public accounting firm. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, stockholders’ equity and cash flows for the interim periods included herein have been made. These interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information, the instructions to Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted from these statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the quarter and nine months ended September 30, 2022 are not necessarily indicative of the results of operations that may be expected for the year ended December 31, 2022.

Business

The Company provides national less-than-truckload (LTL) services through a single integrated organization. While more than 96 percent of its revenue has been derived from transporting LTL shipments across 45 states, the Company also offers customers a wide range of other value-added services, including non-asset truckload, expedited and logistics services across North America. The Company’s customer base is diversified across numerous industries.

Revenue Recognition

The Company’s revenues are derived primarily from the transportation of freight as it satisfies performance obligations that arise from contracts with its customers. The Company’s performance obligations arise when it receives a bill of lading (“BOL”) to transport a customer's commodities at negotiated prices contained in either a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received and accepted, a legally-enforceable contract is formed whereby the parties are committed to perform and the rights of the parties, shipping terms and conditions, and payment terms have been identified. A customer may submit many BOLs for transportation services at various times throughout a service agreement term but each shipment represents a distinct service that is a separately identified performance obligation.

The typical transit time to complete a shipment is from one to five days. Billing for transportation services normally occurs after completion of the service and payment is generally due within 30 days after the invoice date. The Company recognizes revenue related to the Company’s LTL, non-asset truckload and expedited services over the transit time of the shipment as it moves from origin to destination. Revenue for services is recognized based on transit status at the end of each reporting period.

Key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows:

•Revenue associated with shipments in transit is recognized ratably over transit time; and

•Adjustments to revenue for billing adjustments and collectability.

The portion of the gross invoice related to interline transportation services that involve the services of another party, such as another LTL service provider, is not recorded in the Company’s revenues. Revenue from logistics services is recognized as the services are provided.

8

Remaining performance obligations represent the transaction price allocated to future periods for freight services started but not completed at the reporting date. These amounts include the unearned portion of billed and unbilled amounts for freight shipments in transit that the Company expects to recognize as revenue in the period subsequent to the reporting date, which is generally less than one week. The Company has elected to apply the optional exemption in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, as it relates to additional quantitative disclosures pertaining to remaining performance obligations.

Claims and Insurance Accruals

We are regularly subject to claims resulting from bodily injury, property damage, casualty and cargo losses, group healthcare costs, and workers' compensation. The Company has self-insured retention limits generally ranging from $250,000 to $1.0 million per occurrence for group healthcare, workers' compensation, casualty and cargo losses and certain property damage and from $2.0 million to $10.0 million for bodily injury and property damage related to auto liability. The Company’s automobile liability insurance policy for the four-year period ended March 1, 2023 provides coverage for a single loss of $8.0 million, an aggregate loss limit of $24.0 million for each policy year, and a $48.0 million aggregate loss limit for the four-year period, subject to risk retention of $2.0 million per occurrence. Under the policy, the Company is required to pay additional amounts of up to $11.5 million if losses paid by the insurer are greater than $18.4 million over the four-year policy period. Based on claims occurring since March 1, 2019, no additional amount was accrued as of September 30, 2022. Commencing on August 30, 2023, the Company may elect to commute the policy with respect to the insurer’s entire liability under the policy in which case the Company would be entitled to a return of a portion of the premium paid, up to $18.4 million, based on the amount of claims paid and the insurer would be released from all liability under the policy for the four-year period ending March 1, 2023. As a result, if the Company elects to commute the policy as to the entire policy term, the Company would be self-insured for $10.0 million per occurrence for the four years ended March 1, 2023. The Company is self-insured for auto liability for the first $10.0 million per occurrence for the one-year period ended March 1, 2019.

The Company also maintains an insurance policy covering the three-year period ending March 1, 2025 that provides $5.0 million of coverage per occurrence after an occurrence exceeds $10.0 million, subject to an aggregate loss limit of $10.0 million for each policy year, and a $20.0 million aggregate loss limit for the three-year term. Additionally, the Company is required to pay additional amounts of up to $7.5 million if losses paid by the insurer are greater than $1.4 million over the three-year policy period ending March 1, 2025. Based on claims occurring since March 1, 2022, no additional amounts were accrued at September 30, 2022. Under the policy, the Company may elect to commute the policy for the three-year term if losses incurred are less than $1.4 million and the Company does not elect to renew the policy. In the event the Company elects to commute the policy for such period, it will be entitled to a return of a portion of the premium paid, up to $1.1 million, based on the amount of claims paid and the insurer will be released from all liability under the policy in connection with such period. As a result, if the Company elects to commute the policy as to such period, the Company will be self-insured for the $10.0 million to $15.0 million loss layer per occurrence for the three years ended March 1, 2025. The election to commute the policy cannot be made before June 1, 2024 and must be made prior to December 1, 2025, unless the insurer agrees to extend such date.

(2) Computation of Earnings Per Share

The calculation of basic earnings per common share and diluted earnings per common share was as follows (in thousands, except per share amounts):

	Third Quarter				Nine Months
	2022		2021		2022		2021
Numerator:
Net income	$	97,891	$	79,709	$	286,560	$	179,474
Denominator:
Denominator for basic earnings per share–weighted      average common shares		26,539		26,334		26,506		26,317
Dilutive effect of share-based awards		137		379		157		382
Denominator for diluted earnings per share–adjusted      weighted average common shares		26,676		26,713		26,663		26,699
Basic Earnings Per Share	$	3.69	$	3.03	$	10.81	$	6.82
Diluted Earnings Per Share	$	3.67	$	2.98	$	10.75	$	6.72

For the quarter and nine months ended September 30, 2022, options and restricted stock for 43,602 and 27,598 shares of common stock, respectively, were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. For both the quarter

9

and nine months ended September 30, 2021, options and restricted stock for 19,250 shares of common stock were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive.

(3) Commitments and Contingencies

The Company pays its pro rata share of the cost of letters of credit outstanding for certain workers’ compensation claims incurred prior to March 1, 2000 that Saia’s former parent maintains for insurance programs. The Company’s pro rata share of these outstanding letters of credit was $1.8 million at September 30, 2022.

The Company is subject to legal proceedings that arise in the ordinary course of its business. Management believes that adequate provisions for the resolution of all contingencies, claims and pending litigation have been made for probable and estimable losses and that the ultimate outcome of these actions will not have a material adverse effect on its financial condition but could have a material adverse effect on the results of operations in a given quarter or annual period.

(4) Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximated fair value as of September 30, 2022 and December 31, 2021, because of the relatively short maturity of these instruments. Based on the borrowing rates currently available to the Company for debt with similar terms and remaining maturities, the estimated fair value of total debt at September 30, 2022 and December 31, 2021 was $34.8 million and $50.8 million, respectively, based upon level two inputs in the fair value hierarchy. The carrying value of the debt was $34.9 million and $50.4 million at September 30, 2022 and December 31, 2021, respectively.

(5) Debt and Financing Arrangements

At September 30, 2022 and December 31, 2021, debt consisted of the following (in thousands):

	September 30, 2022		December 31, 2021
Credit Agreement with Banks, described below	$	—	$	—
Finance Leases, described below		34,850		50,404
Total debt		34,850		50,404
Less: current portion of long-term debt		15,914		19,396
Long-term debt, less current portion	$	18,936	$	31,008

The Company’s liquidity needs arise primarily from capital investment in new equipment, land and structures, information technology and letters of credit required under insurance programs, as well as funding working capital requirements.

The Company is party to a revolving credit agreement with a group of banks that is available to fund capital investments, letters of credit and working capital needs.

Credit Agreement

The Company is a party to a Sixth Amended and Restated Credit Agreement with its banking group (the Amended Credit Agreement), which provides up to a $300 million revolving line of credit through February 2024. The Amended Credit Agreement also has an accordion feature that allows for an additional $100 million availability, subject to certain conditions and availability of lender commitments. The Amended Credit Agreement provides for a LIBOR rate margin range from 100 basis points to 200 basis points, base rate margins from minus 50 basis points to plus 50 basis points, an unused portion fee from 17.5 basis points to 30 basis points and letter of credit fees from 100 basis points to 200 basis points, in each case based on the Company’s leverage ratio. Under the Amended Credit Agreement, the Company must maintain a minimum debt service coverage ratio set at 1.25 to 1.00 and a maximum leverage ratio set at 3.25 to 1.00. The Amended Credit Agreement provides for a pledge by the Company of certain land and structures, accounts receivable and other assets to secure indebtedness under this agreement. The Amended Credit Agreement contains certain customary representations and warranties, affirmative and negative covenants and provisions relating to events of default. Under the Amended Credit Agreement, if an event of default occurs, the banks will be entitled to take various actions, including the acceleration of amounts due.

At September 30, 2022, the Company had no outstanding borrowings and outstanding letters of credit of $31.2 million under the Amended Credit Agreement. At December 31, 2021, the Company had no outstanding borrowings and outstanding letters of credit of $29.3 million under the Amended Credit Agreement. The available portion of the Amended Credit Agreement may be used for general corporate purposes, including capital expenditures, working capital and letter of credit requirements as needed.

10

Finance Leases

The Company is obligated under finance leases with seven-year original terms covering revenue equipment. Total liabilities recognized under finance leases were $34.9 million and $50.4 million as of September 30, 2022 and December 31, 2021, respectively. Amortization of assets held under the finance leases is included in depreciation and amortization expense. As of September 30, 2022 and December 31, 2021, approximately $64.8 million and $85.1 million of finance leased assets, net of depreciation, were included in Property and Equipment, respectively. The weighted average interest rates for the finance leases at September 30, 2022 and December 31, 2021 were 3.7 percent and 3.6 percent, respectively.

Principal Maturities of Long-Term Debt

The principal maturities of long-term debt, including interest on finance leases, for the next five years (in thousands) are as follows:

	Amount
2022	$	4,229
2023		15,409
2024		10,606
2025		5,453
2026		919
Thereafter		—
Total		36,616
Less: Amounts Representing Interest on Finance Leases		1,766
Total	$	34,850

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and our 2021 audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Those consolidated financial statements include additional information about our significant accounting policies, practices and the transactions that underlie our financial results.

Forward-Looking Statements

The Securities and Exchange Commission (the SEC) 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 Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations,” contains these types of statements, which are forward-looking 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, except as otherwise required by applicable law. All forward-looking statements reflect the present expectation of future events of our management as of the date of this Quarterly Report on Form 10-Q 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, uncertainties and assumptions include, but are not limited to, the following:

•general economic conditions including downturns or inflationary periods in the business cycle;

•operation within a highly competitive industry and the adverse impact from downward pricing pressures, including in connection with fuel surcharges, and other factors;

•industry-wide external factors largely out of our control;

•cost and availability of qualified drivers, dock workers and other employees, purchased transportation and fuel;

•inflationary increases in operating expenses and corresponding reductions of profitability;

•claims expenses and other expense volatility, including for personal injury, cargo loss and damage, workers’ compensation, employment and group health plan claims;

•cost and availability of insurance coverage, including the possibility the Company may be required to pay additional premiums, assume additional liability under its auto liability policies or be unable to obtain insurance coverage;

•failure to successfully execute the strategy to expand our service geography;

•costs and liabilities from the disruption in or failure of our technology or equipment essential to our operations, including as a result of cyber incidents, security breaches, malware or ransomware attacks;

•failure to keep pace with technological developments;

•labor relations, including the adverse impact should a portion of our workforce become unionized;

•cost, availability and resale value of real property and revenue equipment;

•supply chain disruption and delays on new equipment delivery;

•capacity and highway infrastructure constraints;

•risks arising from international business operations and relationships;

•seasonal factors, harsh weather and disasters caused by climate change;

•economic declines in the geographic regions or industries in which our customers operate;

•the creditworthiness of our customers and their ability to pay for services;

•our need for capital and uncertainty of the credit markets;

•the possibility of defaults under our debt agreements, including violation of financial covenants;

•failure to operate and grow acquired businesses in a manner that support the value allocated to acquired businesses;

•dependence on key employees;

•employee turnover from changes to compensation and benefits or market factors;

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•increased costs of healthcare benefits;

•damage to our reputation from adverse publicity, including from the use of or impact from social media;

•failure to make future acquisitions or to achieve acquisition synergies;

•the effect of litigation and class action lawsuits arising from the operation of our business, including the possibility of claims or judgments in excess of our insurance coverages or that result in increases in the cost of insurance coverage or that preclude us from obtaining adequate insurance coverage in the future;

•the potential of higher corporate taxes and new regulations, including with respect to climate change, employment and labor law, healthcare and securities regulation;

•the effect of governmental regulations, including hours of service and licensing compliance for drivers, engine emissions, the Compliance, Safety, Accountability (CSA) initiative, regulations of the Food and Drug Administration and Homeland Security, and healthcare and environmental regulations;

•unforeseen costs from new and existing data privacy laws;

•changes in accounting and financial standards or practices;

•widespread outbreak of an illness or any other communicable disease, including the COVID-19 pandemic, or any other health crisis or business disruptions and higher costs that may arise from the COVID-19 pandemic in the future, including governmental regulations requiring that employees be vaccinated or be tested regularly for COVID-19 before reporting to work;

•increasing investor and customer sensitivity to social and sustainability issues, including climate change;

•provisions in our governing documents and Delaware law that may have anti-takeover effects;

•issuances of equity that would dilute stock ownership; and

•other financial, operational and legal risks and uncertainties detailed from time to time in the Company’s SEC filings.

These factors and risks are described in Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as updated by Part II, Item 1A. of this Quarterly Report on Form 10-Q.

As a result of these and other factors, no assurance can be given as to our future results and achievements. Accordingly, 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. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this Form 10-Q. We are under no obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by applicable law.

Executive Overview

The Company’s business is highly correlated to non-service sectors of the general economy. The Company’s strategy is to improve profitability by increasing yield while also increasing volumes to build density in existing geography and to pursue geographic expansion to promote profitable growth and improve our customer value proposition over time. The Company’s business is labor intensive, capital intensive and service sensitive. The Company looks for opportunities to improve safety, cost effectiveness and asset utilization (primarily tractors and trailers). Pricing initiatives have had a positive impact on yield and profitability. The Company continues to execute targeted sales and marketing programs along with initiatives to align costs with volumes and improve customer satisfaction. Technology continues to be an important investment that is improving customer experience, operational efficiencies and Company image.

Third Quarter Overview

The Company’s operating revenue increased by 18.4 percent in the third quarter of 2022 compared to the same period in 2021. The increase resulted primarily from increases in revenue per shipment and fuel surcharge revenue.

Consolidated operating income was $128.4 million for the third quarter of 2022 compared to $106.1 million for the third quarter of 2021. In the third quarter of 2022, LTL shipments were down 2.5 percent per workday and LTL tonnage was down 0.4 percent per workday compared to the prior year quarter. Diluted earnings per share were $3.67 in the third quarter of 2022, compared to diluted earnings per share of $2.98 in the prior year quarter. The operating ratio (operating expenses divided by operating revenue) was 82.4 percent in the third quarter of 2022 compared to 82.8 percent in the third quarter of 2021. The improved operating ratio compared to prior year is due to the Company’s continued focus on pricing initiatives, cost control and operating efficiencies in addition to the impact of our fuel surcharge program. Additionally, a real estate gain resulted in a benefit of 70 basis points in the third quarter of 2021 operating ratio.

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The Company generated $344.1 million in net cash provided by operating activities in the first nine months of 2022 compared with $267.7 million in the same period last year. The increase is primarily due to increased profitability partially offset by a change in working capital, primarily driven by increases in accounts receivable compared to prior year. The Company’s net cash used in investing activities was $278.0 million during the first nine months of 2022 compared to $148.9 million in the first nine months of 2021, primarily as a result of increased capital expenditures related to real estate and revenue equipment acquisitions in the first nine months of 2022. The Company’s net cash used in financing activities was $22.8 million in the first nine months of 2022 compared to $18.7 million during the same period last year. This change was primarily due to equity based compensation shares withheld for taxes partially offset by increased proceeds from stock option exercises during the first nine months of 2022, compared to the first nine months of 2021. The Company had no outstanding borrowings under its revolving credit agreement, total outstanding letters of credit of $33.0 million and a cash and cash equivalents balance of $149.8 million at September 30, 2022. The Company also had $34.9 million in obligations under finance leases at September 30, 2022. At September 30, 2022, the Company had $268.8 million in availability under the revolving credit facility. The revolving credit facility also has an accordion feature that allows for an additional $100 million availability, subject to certain conditions and availability of lender commitments. The Company was in compliance with the debt covenants under its revolving credit agreement at September 30, 2022.

General

The following Management’s Discussion and Analysis describes the principal factors affecting the results of operations, liquidity and capital resources, as well as the critical accounting policies and estimates of Saia, Inc. and its wholly-owned subsidiaries (together, the Company or Saia).

Saia is a transportation company headquartered in Johns Creek, Georgia that provides national less-than-truckload (LTL) services through a single integrated organization. While more than 96 percent of revenue is historically derived from transporting LTL shipments across 45 states, the Company also offers customers a wide range of other value-added services, including non-asset truckload, expedited and logistics services across North America.

Our business is highly correlated to non-service sectors of the general economy. Our business also is impacted by a number of other factors as discussed under “Forward Looking Statements” and Part II, Item 1A. “Risk Factors.” The key factors that affect our operating results are the volumes of shipments transported through our network, as measured by our average daily shipments and tonnage; the prices we obtain for our services, as measured by revenue per hundredweight (a measure of yield) and revenue per shipment; our ability to manage our cost structure for capital expenditures and operating expenses such as salaries, wages and benefits; purchased transportation; claims and insurance expense; fuel and maintenance; and our ability to match operating costs to shifting volume levels.

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Results of Operations

Saia, Inc. and Subsidiaries

Selected Results of Operations and Operating Statistics

For the quarters ended September 30, 2022 and 2021

(unaudited)

							Percent
							Variance
	2022			2021			'22 v. '21
	(in thousands, except ratios, workdays, revenue per hundredweight, revenue per shipment and length of haul)
Operating Revenue	$	729,561		$	616,216			18.4		%
Operating Expenses:
Salaries, wages and employees’ benefits		297,247			277,087			7.3
Purchased transportation		85,452			72,193			18.4
Depreciation and amortization		40,682			35,742			13.8
Fuel and other operating expenses		177,825			125,077			42.2
Operating Income		128,355			106,117			21.0
Operating Ratio		82.4	%		82.8	%
Nonoperating Expense		649			791			(18.0	)
Working Capital (as of September 30, 2022 and 2021)		212,933			111,988
Cash Flows provided by Operating Activities (year to date)		344,074			267,686
Net Acquisitions of Property and Equipment (year to date)		277,996			148,424
Saia Motor Freight Operating Statistics:
Workdays		64			64			-
LTL Tonnage		1,397			1,402			(0.4	)
LTL Shipments		1,954			2,004			(2.5	)
LTL Revenue per hundredweight	$	25.10		$	21.36			17.5
LTL Revenue per shipment	$	359.04		$	299.02			20.1
LTL Pounds per shipment		1,431			1,400			2.2
LTL Length of haul		897			915			(2.0	)

Quarter and nine months ended September 30, 2022 compared to quarter and nine months ended September 30, 2021

Revenue and volume

Consolidated revenue for the quarter ended September 30, 2022 increased 18.4 percent to $729.6 million primarily as a result of increased revenue per shipment and fuel surcharge revenue. Saia’s revenue per shipment increased 20.1 percent to $359.04 per shipment for the third quarter of 2022 as a result of changes in business mix and pricing actions. Our service initiatives, including our network expansion, continue to allow us to support our improved pricing. For the third quarter of 2022, Saia’s LTL tonnage per workday was down 0.4 percent to 1.4 million tons, and LTL shipments per workday decreased 2.5 percent to 2.0 million shipments. Our organic network expansion continues to positively impact customer experience, as well as overall volume metrics. For the third quarter of 2022, approximately 75 to 80 percent of Saia’s operating revenue was subject to specific customer price negotiations that occur throughout the year. The remaining 20 to 25 percent of operating revenue was subject to a general rate increase which is based on market conditions. For these customers subject to a general rate increase, on January 24, 2022 and January 18, 2021, Saia implemented 7.5 and 5.9 percent general rate increases, respectively. Competitive factors, customer turnover and mix changes, impact the extent to which customer rate increases are retained over time.

Operating revenue includes fuel surcharge revenue from the Company’s fuel surcharge program, which is designed to reduce the Company’s exposure to fluctuations in fuel prices by adjusting total freight charges to account for changes in the price of fuel. The Company’s fuel surcharge is based on the average national price for diesel fuel (as estimated by the United States Energy Information Administration) and is typically reset weekly. Fuel surcharges are widely accepted in the industry and are a significant component of revenue and pricing. Fuel surcharges are an integral part of customer contract negotiations but represent only one portion of overall customer price negotiations, as customers may negotiate increases in base rates instead of increases in fuel surcharges or vice versa. Fuel surcharge revenue as a percentage of operating revenue increased to 20.5 percent for the quarter ended September 30, 2022 compared to 13.9 percent for the quarter ended September 30, 2021, as a result of increases in the cost of fuel.

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For the nine months ended September 30, 2022, operating revenues were $2.1 billion, up 27.8 percent from $1.7 billion for the nine months ended September 30, 2021. This increase is primarily due to increased revenue per shipment, fuel surcharge revenue and tonnage during the first nine months of 2022 compared to the comparable period last year. Fuel surcharge revenue as a percentage of operating revenue increased to 19.8 percent for the nine months ended September 30, 2022 compared to 13.8 percent for the nine months ended September 30, 2021, as a result of increases in the cost of fuel.

Operating expenses and margin

Consolidated operating income was $128.4 million in the third quarter of 2022 compared to $106.1 million in the prior year quarter. Overall, the increase in consolidated operating income was the result of improved pricing actions, the impact of our fuel surcharge program and business mix management during the third quarter of 2022. These actions in 2022, along with continued focus on cost controls and operational efficiencies drove improvement during the quarter. The third quarter of 2022 operating ratio (operating expenses divided by operating revenue) was 82.4 percent compared to 82.8 percent for the same period in 2021. A real estate gain resulted in a benefit of 70 basis points in the third quarter of 2021 operating ratio.

Salaries, wages and employees’ benefits increased $20.2 million in the third quarter of 2022 compared to the third quarter of 2021. This change was primarily driven by increased headcount required to support ongoing business growth and network expansion. In addition, in July 2022 the Company implemented a salary and wage increase of approximately 4.3 percent. Purchased transportation increased $13.3 million in the third quarter of 2022 compared to the third quarter of 2021 primarily due to higher rates for purchased miles, partially offset by a decrease in purchased transportation volume compared to the same period in the 2021. Fuel, operating expenses and supplies increased by $46.6 million, largely due to increased diesel fuel costs during the quarter. Claims and insurance expense was $0.5 million higher than the third quarter of 2021 primarily due to higher claims activity. Depreciation and amortization expense increased $4.9 million in the third quarter of 2022 compared to the same period in 2021 primarily due to revenue equipment, real estate and technology investments in late 2021 and throughout 2022.

For the nine months ended September 30, 2022, consolidated operating income was $377.8 million, up 58.9 percent compared to $237.8 million for the nine months ended September 30, 2021. This increase was largely due to pricing actions, improved fuel surcharge revenue and increased tonnage.

Salaries, wages and benefits increased $91.5 million during the first nine months of 2022 compared to the same period last year largely due to salary and wage increases that were effective in August of 2021 and July of 2022, and increases in overall headcount over the past twelve months. Purchased transportation increased $75.8 million for the first nine months of 2022 compared to the same period last year primarily due to higher rates for purchased miles during the first nine months of 2022 in addition to linehaul capacity expansion to support growth and customer service requirements. Fuel, operating expenses and supplies increased $139.4 million during the first nine months of 2022 compared to the same period last year largely due to higher fuel costs resulting from increases in the price per gallon of diesel and volume increases during the first nine months of 2022. During the first nine months of 2022, claims and insurance expense was $3.4 million lower than the same period last year primarily due to lower claims activity. Depreciation and amortization expense increased $11.8 million during the first nine months of 2022 compared to the same period in 2021 primarily due to revenue equipment, real estate and technology investments in late 2021 and throughout 2022.

Other

Interest expense in the third quarter of 2022 was lower than the same period in 2021 as the Company continued to pay down finance lease obligations.

The effective tax rate was 23.3 percent and 24.3 percent for the quarters ended September 30, 2022 and 2021, respectively. The decrease in the third quarter effective tax rate in 2022 is primarily due to the impact of tax credits related to alternative fuels enacted during the third quarter of 2022. For the nine months ended September 30, 2022 and September 30, 2021, the effective tax rates were 23.5 percent and 23.9 percent, respectively. For the nine months ended September 30, 2022 approximately $102.1 million in cash tax payments were made compared to $58.7 million in the nine months ended September 30, 2021.

Net income was $97.9 million, or $3.67 per diluted share, in the third quarter of 2022 compared to net income of $79.7 million, or $2.98 per diluted share, in the third quarter of 2021. Net income was $286.6 million, or $10.75 per diluted share, for the first nine months of 2022 compared to net income of $179.5 million, or $6.72 per diluted share, for the first nine months of 2021.

Working capital/capital expenditures

Working capital at September 30, 2022 was $212.9 million, an increase from $112.0 million at September 30, 2021.

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Current assets at September 30, 2022 increased by $100.8 million as compared to September 30, 2021 which includes an increase in cash and cash equivalents of $28.1 million and an increase in accounts receivable of $39.7 million. Current liabilities decreased by $0.2 million at September 30, 2022 compared to September 30, 2021 largely due to a decrease in accounts payable.

Cash flows provided by operating activities were $344.1 million for the nine months ended September 30, 2022 versus $267.7 million for the nine months ended September 30, 2021. The increase is primarily due to increased profitability, partially offset by a change in working capital compared to the prior year. For the nine months ended September 30, 2022, net cash used in investing activities was $278.0 million compared to $148.9 million in the same period last year, a $129.1 million increase. This increase resulted from increased capital expenditures related to real estate and revenue equipment acquisitions as the Company continues to expand its footprint and add density in markets. The Company currently expects that net capital expenditures in 2022 will be approximately $500 million. For the nine months ended September 30, 2022, net cash used in financing activities was $22.8 million compared to $18.7 million during the same period last year, as a result of equity based compensation shares withheld for taxes, partially offset by increased proceeds from stock option exercises during the first nine months of 2022 compared to the same period in 2021.

Outlook

Our business remains highly correlated to non-service sectors of the general economy and competitive pricing pressures, as well as the success of Company-specific improvement initiatives. Our outlook for 2022 is dependent on a number of external factors, including geopolitical developments, inflation, labor availability, fuel prices and supply chain constraints. The potential impact of these factors on our operations, financial performance and financial condition, as well as the impact on our ability to successfully execute our business strategies and initiatives, remains uncertain and difficult to predict. We are continuing initiatives to improve and enhance customer service in an effort to support our ongoing pricing and business mix optimization, while seeking to control costs and improve productivity. On January 24, 2022 and January 18, 2021, Saia implemented a 7.5 and 5.9 percent general rate increase, respectively, for customers comprising approximately 20 to 25 percent of Saia’s operating revenue. The success of cost improvement initiatives is impacted by the cost and availability of drivers, dock workers and other employees and purchased transportation, fuel, self-insurance claims and insurance expense, regulatory changes, successful expansion of our service geography throughout the United States, the COVID-19 pandemic and other factors discussed under “Forward-Looking Statements” and Part II, Item 1A. “Risk Factors.”

See “Forward-Looking Statements” and Part II, Item 1A. “Risk Factors” for a more complete discussion of potential risks and uncertainties that could materially affect our future performance.

Financial Condition, Liquidity and Capital Resources

The Company’s liquidity needs arise primarily from capital investment in new equipment, land and structures, information technology and letters of credit required under insurance programs, as well as funding working capital requirements.

The Company is party to a revolving credit agreement with a group of banks that is available to fund capital investments, letters of credit and working capital needs.

Credit Agreement

The Company is a party to a Sixth Amended and Restated Credit Agreement with its banking group (the Amended Credit Agreement), which provides up to a $300 million revolving line of credit through February 2024. The Amended Credit Agreement also has an accordion feature that allows for an additional $100 million availability, subject to certain conditions and availability of lender commitments. The Amended Credit Agreement provides for a LIBOR rate margin range from 100 basis points to 200 basis points, base rate margins from minus 50 basis points to plus 50 basis points, an unused portion fee from 17.5 basis points to 30 basis points and letter of credit fees from 100 basis points to 200 basis points, in each case based on the Company’s leverage ratio. Under the Amended Credit Agreement, the Company must maintain a minimum debt service coverage ratio set at 1.25 to 1.00 and a maximum leverage ratio set at 3.25 to 1.00. The Amended Credit Agreement provides for a pledge by the Company of certain land and structures, accounts receivable and other assets to secure indebtedness under this agreement. The Amended Credit Agreement contains certain customary representations and warranties, affirmative and negative covenants and provisions relating to events of default. Under the Amended Credit Agreement, if an event of default occurs, the banks will be entitled to take various actions, including the acceleration of amounts due.

At September 30, 2022, the Company had no outstanding borrowings and outstanding letters of credit of $31.2 million under the Amended Credit Agreement. At December 31, 2021, the Company had no outstanding borrowings and outstanding letters of credit of $29.3 million under the Amended Credit Agreement. The available portion of the Amended Credit Agreement may be used for general corporate purposes, including capital expenditures, working capital and letter of credit requirements as needed.

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Finance Leases

The Company is obligated under finance leases with seven-year original terms covering revenue equipment. Total liabilities recognized under finance leases were $34.9 million and $50.4 million as of September 30, 2022 and December 31, 2021, respectively. Amortization of assets held under the finance leases is included in depreciation and amortization expense. The weighted average interest rates for the finance leases at September 30, 2022 and December 31, 2021 were 3.7 percent and 3.6 percent, respectively.

Cash Flows and Expenditures

The Company has historically generated cash flows from operations to fund a large portion of its capital expenditure requirements. Cash flows from operating activities were $382.6 million for the year ended December 31, 2021, while net cash used in investing activities was $277.8 million. Cash flows provided by operating activities were $344.1 million for the nine months ended September 30, 2022, $76.4 million higher than the first nine months of the prior year. The increase in operating cash flows is primarily due to increased profitability, partially offset by a change in working capital, largely increases in accounts receivable compared to the prior year. The timing of capital expenditures can largely be managed around the seasonal working capital requirements of the Company. The Company believes it has significant sources of capital to meet short-term liquidity needs through its operating cash flows and availability under the Amended Credit Agreement. At September 30, 2022, the Company had $268.8 million in availability under the Amended Credit Agreement. The Company was in compliance with its debt covenants at September 30, 2022. Future operating cash flows are primarily dependent upon the Company’s profitability and its ability to manage its working capital requirements, primarily accounts receivable, accounts payable and wage and benefit accruals.

Net capital expenditures pertain primarily to investments in tractors and trailers and other revenue equipment, information technology, land and structures. Projected net capital expenditures for 2022 are expected to be approximately $500 million, which represents an increase from 2021 net capital expenditures of $277.3 million. Projected 2022 capital expenditures include a normal replacement cycle of revenue equipment and technology investment for our operations and purchases of real estate. Net capital expenditures were $278.0 million in the first nine months of 2022. Approximately $189.0 million of the 2022 remaining capital budget was committed as of September 30, 2022.

We are regularly subject to claims resulting from bodily injury, property damage, casualty and cargo losses, group healthcare costs, and workers' compensation. The Company has self-insured retention limits generally ranging from $250,000 to $1.0 million per occurrence for group healthcare, workers' compensation, casualty and cargo losses and certain property damage and from $2.0 million to $10.0 million for bodily injury and property damage related to auto liability. The Company’s automobile liability insurance policy for the four-year period ended March 1, 2023 provides coverage for a single loss of $8.0 million, an aggregate loss limit of $24.0 million for each policy year, and a $48.0 million aggregate loss limit for the four-year period, subject to risk retention of $2.0 million per occurrence. Under the policy, the Company is required to pay additional amounts of up to $11.5 million if losses paid by the insurer are greater than $18.4 million over the four-year policy period. Based on claims occurring since March 1, 2019, no additional amount was accrued as of September 30, 2022. Commencing on August 30, 2023, the Company may elect to commute the policy with respect to the insurer’s entire liability under the policy in which case the Company would be entitled to a return of a portion of the premium paid, up to $18.4 million, based on the amount of claims paid and the insurer would be released from all liability under the policy for the four-year period ending March 1, 2023. As a result, if the Company elects to commute the policy as to the entire policy term, the Company would be self-insured for $10.0 million per occurrence for the four years ended March 1, 2023. The Company is self-insured for auto liability for the first $10.0 million per occurrence for the one-year period ended March 1, 2019.

The Company also maintains an insurance policy covering the three-year period ending March 1, 2025 that provides $5.0 million of coverage per occurrence after an occurrence exceeds $10.0 million, subject to an aggregate loss limit of $10.0 million for each policy year, and a $20.0 million aggregate loss limit for the three-year term. Additionally, the Company is required to pay additional amounts of up to $7.5 million if losses paid by the insurer are greater than $1.4 million over the three-year policy period ending March 1, 2025. Based on claims occurring since March 1, 2022, no additional amounts were accrued at September 30, 2022. Under the policy, the Company may elect to commute the policy for the three-year term if losses incurred are less than $1.4 million and the Company does not elect to renew the policy. In the event the Company elects to commute the policy for such period, it will be entitled to a return of a portion of the premium paid, up to $1.1 million, based on the amount of claims paid and the insurer will be released from all liability under the policy in connection with such period. As a result, if the Company elects to commute the policy as to such period, the Company will be self-insured for the $10.0 million to $15.0 million loss layer per occurrence for the three years ended March 1, 2025. The election to commute the policy cannot be made before June 1, 2024 and must be made prior to December 1, 2025, unless the insurer agrees to extend such date.

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Contractual Obligations

Contractual obligations for the Company are comprised of lease agreements, purchase obligations and long-term debt obligations related to any outstanding balance under the Company’s revolving line of credit. Contractual obligations for operating leases at September 30, 2022 totaled $120.7 million, including operating leases with original maturities of less than one year, which are not recorded in our consolidated balance sheet in accordance with U.S. generally accepted accounting principles. Additionally, in April 2021, the Company committed to an additional terminal lease estimated to commence in 2023 of approximately $57 million with a lease term of 15 years with annual rent ranging from $3.1 million to $4.6 million. Annual rental payments under this lease are not included in the contractual obligations for operating leases at September 30, 2022. Contractual obligations in the form of finance leases were $36.6 million at September 30, 2022, which includes both principal and interest amounts. For the remainder of 2022, $2.1 million of interest payments are anticipated based on borrowings and commitments outstanding at September 30, 2022. See Note 5 to the accompanying condensed consolidated financial statements in this Current Report on Form 10-Q. Purchase obligations at September 30, 2022 were $198.7 million, including commitments of $196.5 million for capital expenditures. As of September 30, 2022, the revolving line of credit had no outstanding principal balance.

Other commercial commitments of the Company typically include letters of credit and surety bonds required for collateral towards insurance agreements and amounts outstanding under the revolving line of credit. As of September 30, 2022 the Company had total outstanding letters of credit of $33.0 million and $74.1 million in surety bonds. Additionally at September 30, 2022, the Company had $268.8 million available under its revolving credit facility, subject to existing debt covenants.

The Company has accrued approximately $3.9 million for uncertain tax positions and $0.4 million for interest and penalties related to the uncertain tax positions as of September 30, 2022. At September 30, 2022, the Company has accrued $127.8 million for claims and insurance liabilities.

Critical Accounting Policies and Estimates

There have been no significant changes to the application of the critical accounting policies and estimates contained in our Form 10-K at December 31, 2021. The reader should refer to the Notes to our Consolidated Financial Statements in our 2021 Annual Report on Form 10-K for a full disclosure of all critical accounting policies and estimates.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to a variety of market risks including the effects of interest rates and fuel prices. The detail of the Company’s debt structure is more fully described in the Notes to Consolidated Financial Statements set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. To help mitigate our risk to rising fuel prices, the Company has implemented a fuel surcharge program. This program is well established within the industry and customer acceptance of fuel surcharges remains high. Since the amount of fuel surcharge is based on average national diesel prices (as estimated by the United States Energy Information Administration) and is typically reset weekly, exposure of the Company to fuel price volatility is significantly reduced. However, the fuel surcharge may not fully offset fuel price fluctuations during periods of rapid increases or decreases in the price of fuel and is also subject to overall competitive pricing negotiations.

The following table provides information about the Company’s third-party financial instruments as of September 30, 2022. The table presents principal cash flows (in millions) and related weighted average interest rates by contractual maturity dates. The fair value of the fixed rate debt (in millions) was estimated based upon level two in the fair value hierarchy. The fair value of finance leases is based on current market interest rates for similar types of financial instruments.

	Expected maturity date																	2022
	2022			2023			2024			2025			2026			Thereafter		Total		Fair Value
Fixed rate debt	$	3.9		$	14.5		$	10.2		$	5.4		$	0.9		$	-	$	34.9	$	34.8
Average interest rate		3.7	%		3.7	%		3.7	%		3.7	%		3.7	%		-

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Item 4. Controls and Procedures

Quarterly Controls Evaluation and Related CEO and CFO Certifications

As of the end of the period covered by this Quarterly Report on Form 10-Q, the Company conducted an evaluation of the effectiveness of the design and operation of its “disclosure controls and procedures” (Disclosure Controls). The Disclosure Controls evaluation was performed under the supervision and with the participation of management, including the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO).

Based upon the controls evaluation, the Company’s CEO and CFO have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, the Company’s Disclosure Controls are effective to ensure that information the Company is required to disclose in reports that the Company files or submits under the Securities Exchange Act of 1934, as amended (the Exchange Act), is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

During the period covered by this Quarterly Report on Form 10-Q, there were no changes in internal control over financial reporting that materially affected, or that are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Attached as Exhibits 31.1 and 31.2 to this Quarterly Report on Form 10-Q are certifications of the CEO and the CFO, which are required in accordance with Rule 13a-14 of the Exchange Act. This Controls and Procedures section includes the information concerning the controls evaluation referred to in the certifications and it should be read in conjunction with the certifications.

Definition of Disclosure Controls

Disclosure Controls are controls and procedures designed to ensure that information required to be disclosed in the Company’s reports filed under the Exchange Act is recorded, processed, summarized and reported timely. Disclosure Controls are also designed to ensure that such information is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. The Company’s Disclosure Controls include components of its internal control over financial reporting which consists of control processes designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of financial statements in accordance with U.S. generally accepted accounting principles.

Limitations on the Effectiveness of Controls

The Company’s management, including the CEO and CFO, does not expect that its Disclosure Controls or its internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

20

PART II. OTHER INFORMATION

Item 1. Legal Proceedings — For a description of all material pending legal proceedings, see Note 3 “Commitments and Contingencies” of the accompanying unaudited condensed consolidated financial statements.

Item 1A. Risk Factors—Risk Factors are described in Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as updated by the risk factor set forth below. Other than the risk factor set forth below, which revises, among other things, the duration, layers, thresholds and applicable amounts payable under the Company’s automobile liability insurance, there have been no other material changes from the risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The risk factor below replaces in its entirety the risk factor found under “Business and Operational Risks” originally filed with the same title.

Ongoing insurance and claims expenses could significantly reduce and cause volatility in our earnings.

We are regularly subject to claims resulting from bodily injury, property damage, casualty and cargo losses, group healthcare costs, and workers' compensation. The Company has self-insured retention limits generally ranging from $250,000 to $1.0 million per occurrence for group healthcare, workers' compensation, casualty and cargo losses and certain property damage and from $2.0 million to $10.0 million for bodily injury and property damage related to auto liability. We also maintain insurance with licensed insurance companies above these self-insured retention limits. In recent years the trucking business has experienced significant increases in the cost of liability insurance, in the size of jury verdicts in personal injury cases arising from trucking accidents and in the cost of settling such claims. If the number or severity of future claims continues to increase, claim expenses might exceed historical levels or could exceed the amounts of our insurance coverage or the amount of our reserves for self-insured claims, which would adversely affect our financial condition, results of operations, liquidity and cash flows.

The Company is dependent on a limited number of third party insurance companies to provide insurance coverage in excess of its self-insured retention amounts. Recently, several insurance companies have completely stopped offering coverage to trucking companies or have significantly reduced the amount of coverage they offer or have significantly raised premiums as a result of increases in the severity of automobile liability claims and sharply higher costs of settlements and verdicts. To the extent that the third party insurance companies propose increases to their premiums for coverage of commercial trucking claims, the Company may decide to pay such increased premiums or increase its financial exposure on an aggregate or per occurrence basis, including by increasing the amount of its self-insured retention or reducing the amount of total coverage. This trend could adversely affect our ability to obtain suitable insurance coverage, could significantly increase our cost for obtaining such coverage, or could subject us to significant liabilities for which no insurance coverage is in place, which would adversely affect our financial condition, results of operations, liquidity and cash flows. Additionally, as the number of third party insurance companies willing to provide insurance coverage to trucking companies decreases, the risk of failure of one of these companies increases. In the event of the failure of one of the insurance companies, the Company may be faced with a situation where the insurance company may not be able to fund a catastrophic loss.

Our self-insured retention limits can make our insurance and claims expense higher and/or more volatile. We accrue for the costs of the uninsured portion of pending claims based on the nature and severity of individual claims and historical claims development trends. Estimating the number and severity of claims, as well as related judgment or settlement amounts is inherently difficult. This, along with legal expenses associated with claims, incurred but not reported claims, and other uncertainties can cause unfavorable differences between actual self-insurance costs and our reserve estimates.

The Company’s automobile liability insurance policy for the four-year period ended March 1, 2023 provides coverage for a single loss of $8.0 million, an aggregate loss limit of $24.0 million for each policy year, and a $48.0 million aggregate loss limit for the four-year period, subject to risk retention of $2.0 million per occurrence. Under the policy, the Company is required to pay additional amounts of up to $11.5 million if losses paid by the insurer are greater than $18.4 million over the four-year policy period. Commencing on August 30, 2023, the Company may elect to commute the policy with respect to the insurer’s entire liability under the policy in which case the Company would be entitled to a return of a portion of the premium paid, up to $18.4 million, based on the amount of claims paid and the insurer would be released from all liability under the policy for the four-year period ending March 1, 2023. As a result, if the Company elects to commute the policy as to the entire policy term, the Company would be self-insured for $10.0 million per occurrence for the four years ended March 1, 2023. The Company is self-insured for auto liability for the first $10.0 million per occurrence for the one-year period ended March 1, 2019.

The Company also maintains an insurance policy covering the three-year period ending March 1, 2025 that provides $5.0 million of coverage per occurrence after an occurrence exceeds $10.0 million, subject to an aggregate loss limit of $10.0 million for each policy year, and a $20.0 million aggregate loss limit for the three-year term. Additionally, the Company is required to pay additional amounts of up to $7.5 million if losses paid by the insurer are greater than $1.4 million over the three-year policy period ending March 1, 2025. Under the policy, the Company may elect to commute the policy for the three-year term if losses incurred are less than $1.4 million and the Company does not elect to renew the policy. In the event the Company elects to commute the policy for such period, it

21

will be entitled to a return of a portion of the premium paid, up to $1.1 million, based on the amount of claims paid and the insurer will be released from all liability under the policy in connection with such period. As a result, if the Company elects to commute the policy as to such period, the Company will be self-insured for the $10.0 million to $15.0 million loss layer per occurrence for the three years ended March 1, 2025.

To the extent the Company incurs one or more significant claims not covered by insurance, either because the claims are within our self-insured layer or because they exceed our total insurance coverage, our financial condition, results of operation, and liquidity could be materially and adversely affected.

Furthermore, insurance companies, as well as certain states, require collateral in the form of letters of credit or surety bonds for the estimated exposure of claims within our self-insured retentions. Their estimates of our future exposure as well as external market conditions could influence the amount and costs of additional letters of credit required under our insurance programs and thereby reduce capital available for future growth or adversely affect our financial condition, results of operations, liquidity and cash flows. In addition, insurance companies are increasingly encouraging or requiring trucking companies to increase the level of technology and safety measures used in their fleet, which could increase the costs of our fleet in order to obtain acceptable coverage or avoid rate hikes.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds —

Issuer Purchases of Equity Securities
Period	(a) Total Number of Shares (or Units) Purchased (1)			(b) Average Price Paid per Share (or Unit)			(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may Yet be Purchased under the Plans or Programs
July 1, 2022 through
July 31, 2022		—	(2)	$	—	(2)		—	$	—
August 1, 2022 through
August 31, 2022		—	(3)	$	—	(3)		—		—
September 1, 2022 through
September 30, 2022		450	(4)	$	206.53	(4)		—		—
Total		450						—

(1)	Shares purchased by the Saia, Inc. Executive Capital Accumulation Plan were open market purchases. For more information on the Saia, Inc. Executive Capital Accumulation Plan, see the Registration Statement on Form S-8 (No. 333-155805) filed on December 1, 2008.
(2)	The Saia, Inc. Executive Capital Accumulation Plan sold 950 shares of Saia stock at an average price of $218.18 during the period of July 1, 2022 through July 31, 2022.
(3)	The Saia, Inc. Executive Capital Accumulation Plan sold 12,119 shares of Saia stock at an average price of $239.76 during the period of August 1, 2022 through August 31, 2022.
(4)	The Saia, Inc. Executive Capital Accumulation Plan had no sales of Saia stock during the period of September 1, 2022 through September 30, 2022.

Item 3. Defaults Upon Senior Securities—None

Item 4. Mine Safety Disclosures—None

Item 5. Other Information—None

22

Item 6. Exhibits

Exhibit
Number	Description of Exhibit
3.1	Restated Certificate of Incorporation of Saia, Inc., as amended (incorporated herein by reference to Exhibit 3.1 of Saia, Inc.’s Form 8-K (File No. 0-49983) filed on July 26, 2006).
3.2	Certificate of Amendment to Restated Certificate of Incorporation of Saia, Inc. (incorporated herein by reference to Exhibit 3.1 of Saia, Inc.'s Form 8-K (File No. 0-49983) filed on July 2, 2021).
3.3	Certificate of Amendment to Restated Certificate of Incorporation of Saia, Inc. (incorporated herein by reference to Exhibit 3.1 of Saia, Inc.’s Form 8-K (File No. 0-49983) filed on June 9, 2022).
3.4	Certificate of Amendment to Restated Certificate of Incorporation of Saia, Inc. (incorporated herein by reference to Exhibit 3.2 of Saia, Inc.’s Form 8-K (File No. 0-49983) filed on June 9, 2022).
3.5	Amended and Restated By-laws of Saia, Inc. (incorporated herein by reference to Exhibit 3.1 of Saia, Inc.’s Form 8-K (File No. 0-49983) filed on July 29, 2008).
3.6	Certificate of Elimination filed with the Delaware Secretary of State on December 16, 2010 (incorporated herein by reference to Exhibit 3.1 of Saia, Inc.’s Form 8-K (File No. 0-49983) filed on December 20, 2010).
31.1	Certification of Principal Executive Officer Pursuant to Exchange Act Rule 13a-15(e).
31.2	Certification of Principal Financial Officer Pursuant to Exchange Act Rule 13a-15(e).
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial information from Saia, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in iXBRL (Inline Extensible Business Reporting Language) includes: (i) Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021 (unaudited), (ii) Condensed Consolidated Statements of Operations for the quarters and nine months ended September 30, 2022 and 2021 (unaudited), (iii) Consolidated Statements of Stockholders’ Equity for the quarters and nine months ended September 30, 2022 and 2021 (unaudited), (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (unaudited), and (v) the Notes to Condensed Consolidated Financial Statements (unaudited). XBRL Instance Document – the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
104	The cover page from Saia’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, formatted in Inline XBRL (included as Exhibit 101).

23

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SAIA, INC.
Date: November 1, 2022		/s/ Douglas L. Col
		Douglas L. Col
		Executive Vice President and Chief Financial Officer

24

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Frederick J. Holzgrefe, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Saia, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2022

/s/ Frederick J. Holzgrefe

Frederick J. Holzgrefe

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Douglas L. Col, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Saia, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 1, 2022

/s/ Douglas L. Col

Douglas L. Col

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Frederick J. Holzgrefe, President and Chief Executive Officer of Saia, Inc. (the “Company”), certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Frederick J. Holzgrefe

Frederick J. Holzgrefe

President and Chief Executive Officer

Saia, Inc.

November 1, 2022

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Saia, Inc. and will be retained by Saia, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Douglas L. Col, Executive Vice President and Chief Financial Officer of Saia, Inc. (the “Company”), certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Douglas L. Col

Douglas L. Col

Executive Vice President and Chief Financial Officer

Saia, Inc.

November 1, 2022

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Saia, Inc. and will be retained by Saia, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 27, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Registrant Name	Saia, Inc.
Entity Central Index Key	0001177702
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		26,462,463
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	0-49983
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	48-1229851
Document Quarterly Report	true
Document Transition Report	false
Entity Address, Address Line One	11465 Johns Creek Parkway
Entity Address, Address Line Two	Suite 400
Entity Address, City or Town	Johns Creek
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30097
City Area Code	770
Local Phone Number	232-5067
Title of each class	Common Stock, par value $.001 per share
Trading Symbol	SAIA
Security Exchange Name	NASDAQ

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current Assets:
Cash and cash equivalents	$ 149,825	$ 106,588
Accounts receivable, net	335,595	276,755
Income tax receivable	11,859	0
Prepaid expenses and other	54,123	32,912
Total current assets	551,402	416,255
Property and Equipment, at cost	2,403,702	2,144,528
Less: accumulated depreciation	964,533	864,074
Net property and equipment	1,439,169	1,280,454
Operating Lease Right-of-Use Assets	107,456	107,781
Goodwill and Identifiable Intangibles, net	18,362	19,157
Other Noncurrent Assets	23,935	21,603
Total assets	2,140,324	1,845,250
Current Liabilities:
Accounts payable	114,697	114,010
Wages, vacation and employees’ benefits	79,193	73,109
Claims and insurance accruals	74,799	54,717
Other current liabilities	31,116	38,551
Current portion of long-term debt	15,914	19,396
Current portion of operating lease liability	22,750	21,565
Total current liabilities	338,469	321,348
Other Liabilities:
Long-term debt, less current portion	18,936	31,008
Operating lease liability, less current portion	87,388	88,409
Deferred income taxes	124,960	124,137
Claims, insurance and other	64,089	60,015
Total other liabilities	295,373	303,569
Stockholders’ Equity:
Preferred stock, $0.001 par value, 50,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 26,462,463 and 26,336,589 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	26	26
Additional paid-in-capital	275,358	274,633
Deferred compensation trust, 70,578 and 94,627 shares of common stock at cost at September 30, 2022 and December 31, 2021, respectively	(5,237)	(4,101)
Retained earnings	1,236,335	949,775
Total stockholders’ equity	1,506,482	1,220,333
Total liabilities and stockholders’ equity	$ 2,140,324	$ 1,845,250

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000	50,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	26,462,463	26,336,589
Common stock, shares outstanding	26,462,463	26,336,589
Deferred compensation trust	70,578	94,627

XML

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Operating Revenue	$ 729,561	$ 616,216	$ 2,136,331	$ 1,671,623
Operating Expenses:
Salaries, wages and employees' benefits	297,247	277,087	881,762	790,310
Purchased Transportations	85,452	72,193	255,519	179,705
Fuel, operating expenses and supplies	145,461	98,834	413,762	274,399
Operating taxes and licenses	16,261	14,572	48,813	43,469
Claims and insurance	15,988	15,518	40,940	44,326
Depreciation and amortization	40,682	35,742	117,578	105,773
Loss (gain) from property disposals, net	115	(3,847)	160	(4,115)
Total operating expenses	601,206	510,099	1,758,534	1,433,867
Operating Income	128,355	106,117	377,797	237,756
Nonoperating Expenses (Income):
Interest expense	581	777	1,941	2,463
Other, net	68	14	1,072	(547)
Nonoperating expenses, net	649	791	3,013	1,916
Income Before Income Taxes	127,706	105,326	374,784	235,840
Income Tax Provision	29,815	25,617	88,224	56,366
Net Income	$ 97,891	$ 79,709	$ 286,560	$ 179,474
Weighted average common shares outstanding - basic	26,539	26,334	26,506	26,317
Weighted average common shares outstandin - diluted	26,676	26,713	26,663	26,699
Basic Earnings Per Share	$ 3.69	$ 3.03	$ 10.81	$ 6.82
Diluted Earnings Per Share	$ 3.67	$ 2.98	$ 10.75	$ 6.72

XML

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Deferred Compensation Trust [Member]	Retained Earnings [Member]
Beginning Balance at Dec. 31, 2020	$ 961,288	$ 26	$ 267,666	$ (2,944)	$ 696,540
Beginning Balance, Shares at Dec. 31, 2020		26,236,570
Stock compensation, including options and long-term incentives	1,711		1,711
Exercise of stock options less shares withheld for taxes	3,678		3,678
Exercise of stock options less shares withheld for taxes, Shares		46,741
Shares issued for long-term incentive awards, net of shares withheld for taxes, Shares		50,381
Shares issued for long-term incentive awards, net of shares withheld for taxes	(6,350)		6,350
Purchase of shares by Deferred Compensation Trust			(742)	742
Sale of shares by Deferred Compensation Trust			(17)	17
Net income	37,291				37,291
Ending Balance at Mar. 31, 2021	997,618	$ 26	267,430	(3,669)	733,831
Ending Balance, Shares at Mar. 31, 2021		26,333,692
Beginning Balance at Dec. 31, 2020	961,288	$ 26	267,666	(2,944)	696,540
Beginning Balance, Shares at Dec. 31, 2020		26,236,570
Net income	179,474
Ending Balance at Sep. 30, 2021	1,144,726	$ 26	272,545	(3,859)	876,014
Ending Balance, Shares at Sep. 30, 2021		26,336,589
Beginning Balance at Mar. 31, 2021	997,618	$ 26	267,430	(3,669)	733,831
Beginning Balance, Shares at Mar. 31, 2021		26,333,692
Stock compensation, including options and long-term incentives	1,810		1,810
Director deferred share activity	1,256		1,256
Director deferred share activity , Shares		1,404
Purchase of shares by Deferred Compensation Trust			(112)	112
Net income	62,474				62,474
Ending Balance at Jun. 30, 2021	1,063,158	$ 26	270,608	(3,781)	796,305
Ending Balance, Shares at Jun. 30, 2021		26,335,096
Stock compensation, including options and long-term incentives	1,878		1,878
Director deferred share activity	202		202
Director deferred share activity , Shares		294
Shares issued for long-term incentive awards, net of shares withheld for taxes, Shares		1,199
Shares issued for long-term incentive awards, net of shares withheld for taxes	(221)		(221)
Purchase of shares by Deferred Compensation Trust			(98)	98
Sale of shares by Deferred Compensation Trust			(20)	20
Net income	79,709				79,709
Ending Balance at Sep. 30, 2021	1,144,726	$ 26	272,545	(3,859)	876,014
Ending Balance, Shares at Sep. 30, 2021		26,336,589
Beginning Balance at Dec. 31, 2021	1,220,333	$ 26	274,633	(4,101)	949,775
Beginning Balance, Shares at Dec. 31, 2021		26,336,589
Stock compensation, including options and long-term incentives	2,056		2,056
Exercise of stock options less shares withheld for taxes	907		907
Exercise of stock options less shares withheld for taxes, Shares		10,992
Shares issued for long-term incentive awards, net of shares withheld for taxes, Shares		60,821
Shares issued for long-term incentive awards, net of shares withheld for taxes	(11,230)		11,230
Purchase of shares by Deferred Compensation Trust			(2,445)	2,445
Sale of shares by Deferred Compensation Trust			(1,066)	1,066
Net income	79,424				79,424
Ending Balance at Mar. 31, 2022	1,291,490	$ 26	267,745	(5,480)	1,029,199
Ending Balance, Shares at Mar. 31, 2022		26,408,402
Beginning Balance at Dec. 31, 2021	1,220,333	$ 26	274,633	(4,101)	949,775
Beginning Balance, Shares at Dec. 31, 2021		26,336,589
Net income	286,560
Ending Balance at Sep. 30, 2022	1,506,482	$ 26	275,358	(5,237)	1,236,335
Ending Balance, Shares at Sep. 30, 2022		26,462,463
Beginning Balance at Mar. 31, 2022	1,291,490	$ 26	267,745	(5,480)	1,029,199
Beginning Balance, Shares at Mar. 31, 2022		26,408,402
Stock compensation, including options and long-term incentives	1,756		1,756
Director deferred share activity	1,170		1,170
Director deferred share activity , Shares		2,327
Exercise of stock options less shares withheld for taxes	101		101
Exercise of stock options less shares withheld for taxes, Shares		1,007
Purchase of shares by Deferred Compensation Trust			(631)	631
Sale of shares by Deferred Compensation Trust			(8)	8
Net income	109,245				109,245
Ending Balance at Jun. 30, 2022	1,403,762	$ 26	271,395	(6,103)	1,138,444
Ending Balance, Shares at Jun. 30, 2022		26,411,736
Stock compensation, including options and long-term incentives	1,894		1,894
Exercise of stock options less shares withheld for taxes	3,408		3,408
Exercise of stock options less shares withheld for taxes, Shares		48,329
Shares issued for long-term incentive awards, net of shares withheld for taxes, Shares		2,398
Shares issued for long-term incentive awards, net of shares withheld for taxes	(473)		(473)
Purchase of shares by Deferred Compensation Trust			(93)	93
Sale of shares by Deferred Compensation Trust			(959)	959
Net income	97,891				97,891
Ending Balance at Sep. 30, 2022	$ 1,506,482	$ 26	$ 275,358	$ (5,237)	$ 1,236,335
Ending Balance, Shares at Sep. 30, 2022		26,462,463

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021
Operating Activities:
Net income		$ 286,560	$ 179,474
Noncash items included in net income:
Depreciation and amortization		117,578	105,773
Deferred income taxes		824	5,086
Other, net		268	4,290
Changes in operating assets and liabilities, net		(61,156)	(26,937)
Net cash provided by operating activities		344,074	267,686
Investing Activities:
Acquisition of property and equipment		(279,057)	(154,884)
Proceeds from disposal of property and equipment		1,061	6,460
Other		0	(500)
Net cash used in investing activities		(277,996)	(148,924)
Financing Activities:
Repayments of revolving credit agreement		(1,000)	(36,410)
Borrowings of revolving credit agreement		1,000	36,410
Proceeds from stock option exercises		4,416	3,678
Shares withheld for taxes		(11,703)	(6,571)
Repayment of finance leases		(15,554)	(15,805)
Net cash used in financing activities		(22,841)	(18,698)
Net Increase in Cash, Cash Equivalents and Restricted Cash	[1]	43,237	100,064
Cash, Cash Equivalents and Restricted Cash, beginning of period	[1]	106,588	25,308
Cash, Cash Equivalents and Restricted Cash, end of period	[1]	$ 149,825	$ 125,372

[1] Cash, cash equivalents and restricted cash at the end of the period includes $3.7 million of restricted cash included in accounts receivable, net on the Condensed Consolidated Balance Sheet ending September 30, 2021.

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Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Millions	Sep. 30, 2022 USD ($)
Accounts Receivable [Member]
Restricted Cash	$ 3.7

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

(1) Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Saia, Inc. and its wholly-owned subsidiaries (together, the Company or Saia). All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements.

The condensed consolidated financial statements have been prepared by the Company without audit by the independent registered public accounting firm. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, stockholders’ equity and cash flows for the interim periods included herein have been made. These interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information, the instructions to Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted from these statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the quarter and nine months ended September 30, 2022 are not necessarily indicative of the results of operations that may be expected for the year ended December 31, 2022.

Business

The Company provides national less-than-truckload (LTL) services through a single integrated organization. While more than 96 percent of its revenue has been derived from transporting LTL shipments across 45 states, the Company also offers customers a wide range of other value-added services, including non-asset truckload, expedited and logistics services across North America. The Company’s customer base is diversified across numerous industries.

Revenue Recognition

The Company’s revenues are derived primarily from the transportation of freight as it satisfies performance obligations that arise from contracts with its customers. The Company’s performance obligations arise when it receives a bill of lading (“BOL”) to transport a customer's commodities at negotiated prices contained in either a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received and accepted, a legally-enforceable contract is formed whereby the parties are committed to perform and the rights of the parties, shipping terms and conditions, and payment terms have been identified. A customer may submit many BOLs for transportation services at various times throughout a service agreement term but each shipment represents a distinct service that is a separately identified performance obligation.

The typical transit time to complete a shipment is from one to five days. Billing for transportation services normally occurs after completion of the service and payment is generally due within 30 days after the invoice date. The Company recognizes revenue related to the Company’s LTL, non-asset truckload and expedited services over the transit time of the shipment as it moves from origin to destination. Revenue for services is recognized based on transit status at the end of each reporting period.

Key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows:

•Revenue associated with shipments in transit is recognized ratably over transit time; and

•Adjustments to revenue for billing adjustments and collectability.

The portion of the gross invoice related to interline transportation services that involve the services of another party, such as another LTL service provider, is not recorded in the Company’s revenues. Revenue from logistics services is recognized as the services are provided.

Remaining performance obligations represent the transaction price allocated to future periods for freight services started but not completed at the reporting date. These amounts include the unearned portion of billed and unbilled amounts for freight shipments in transit that the Company expects to recognize as revenue in the period subsequent to the reporting date, which is generally less than one week. The Company has elected to apply the optional exemption in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, as it relates to additional quantitative disclosures pertaining to remaining performance obligations.

Claims and Insurance Accruals

We are regularly subject to claims resulting from bodily injury, property damage, casualty and cargo losses, group healthcare costs, and workers' compensation. The Company has self-insured retention limits generally ranging from $250,000 to $1.0 million per occurrence for group healthcare, workers' compensation, casualty and cargo losses and certain property damage and from $2.0 million to $10.0 million for bodily injury and property damage related to auto liability. The Company’s automobile liability insurance policy for the four-year period ended March 1, 2023 provides coverage for a single loss of $8.0 million, an aggregate loss limit of $24.0 million for each policy year, and a $48.0 million aggregate loss limit for the four-year period, subject to risk retention of $2.0 million per occurrence. Under the policy, the Company is required to pay additional amounts of up to $11.5 million if losses paid by the insurer are greater than $18.4 million over the four-year policy period. Based on claims occurring since March 1, 2019, no additional amount was accrued as of September 30, 2022. Commencing on August 30, 2023, the Company may elect to commute the policy with respect to the insurer’s entire liability under the policy in which case the Company would be entitled to a return of a portion of the premium paid, up to $18.4 million, based on the amount of claims paid and the insurer would be released from all liability under the policy for the four-year period ending March 1, 2023. As a result, if the Company elects to commute the policy as to the entire policy term, the Company would be self-insured for $10.0 million per occurrence for the four years ended March 1, 2023. The Company is self-insured for auto liability for the first $10.0 million per occurrence for the one-year period ended March 1, 2019.

The Company also maintains an insurance policy covering the three-year period ending March 1, 2025 that provides $5.0 million of coverage per occurrence after an occurrence exceeds $10.0 million, subject to an aggregate loss limit of $10.0 million for each policy year, and a $20.0 million aggregate loss limit for the three-year term. Additionally, the Company is required to pay additional amounts of up to $7.5 million if losses paid by the insurer are greater than $1.4 million over the three-year policy period ending March 1, 2025. Based on claims occurring since March 1, 2022, no additional amounts were accrued at September 30, 2022. Under the policy, the Company may elect to commute the policy for the three-year term if losses incurred are less than $1.4 million and the Company does not elect to renew the policy. In the event the Company elects to commute the policy for such period, it will be entitled to a return of a portion of the premium paid, up to $1.1 million, based on the amount of claims paid and the insurer will be released from all liability under the policy in connection with such period. As a result, if the Company elects to commute the policy as to such period, the Company will be self-insured for the $10.0 million to $15.0 million loss layer per occurrence for the three years ended March 1, 2025. The election to commute the policy cannot be made before June 1, 2024 and must be made prior to December 1, 2025, unless the insurer agrees to extend such date.

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Computation of Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Computation of Earnings Per Share

(2) Computation of Earnings Per Share

The calculation of basic earnings per common share and diluted earnings per common share was as follows (in thousands, except per share amounts):

	Third Quarter				Nine Months
	2022		2021		2022		2021
Numerator:
Net income	$	97,891	$	79,709	$	286,560	$	179,474
Denominator:
Denominator for basic earnings per share–weighted      average common shares		26,539		26,334		26,506		26,317
Dilutive effect of share-based awards		137		379		157		382
Denominator for diluted earnings per share–adjusted      weighted average common shares		26,676		26,713		26,663		26,699
Basic Earnings Per Share	$	3.69	$	3.03	$	10.81	$	6.82
Diluted Earnings Per Share	$	3.67	$	2.98	$	10.75	$	6.72

For the quarter and nine months ended September 30, 2022, options and restricted stock for 43,602 and 27,598 shares of common stock, respectively, were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive. For both the quarter

and nine months ended September 30, 2021, options and restricted stock for 19,250 shares of common stock were excluded from the calculation of diluted earnings per share because their effect was anti-dilutive.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(3) Commitments and Contingencies

The Company pays its pro rata share of the cost of letters of credit outstanding for certain workers’ compensation claims incurred prior to March 1, 2000 that Saia’s former parent maintains for insurance programs. The Company’s pro rata share of these outstanding letters of credit was $1.8 million at September 30, 2022.

The Company is subject to legal proceedings that arise in the ordinary course of its business. Management believes that adequate provisions for the resolution of all contingencies, claims and pending litigation have been made for probable and estimable losses and that the ultimate outcome of these actions will not have a material adverse effect on its financial condition but could have a material adverse effect on the results of operations in a given quarter or annual period.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

(4) Fair Value of Financial Instruments

The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payable and short-term debt approximated fair value as of September 30, 2022 and December 31, 2021, because of the relatively short maturity of these instruments. Based on the borrowing rates currently available to the Company for debt with similar terms and remaining maturities, the estimated fair value of total debt at September 30, 2022 and December 31, 2021 was $34.8 million and $50.8 million, respectively, based upon level two inputs in the fair value hierarchy. The carrying value of the debt was $34.9 million and $50.4 million at September 30, 2022 and December 31, 2021, respectively.

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Debt and Financing Arrangements

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt and Financing Arrangements

(5) Debt and Financing Arrangements

At September 30, 2022 and December 31, 2021, debt consisted of the following (in thousands):

	September 30, 2022		December 31, 2021
Credit Agreement with Banks, described below	$	—	$	—
Finance Leases, described below		34,850		50,404
Total debt		34,850		50,404
Less: current portion of long-term debt		15,914		19,396
Long-term debt, less current portion	$	18,936	$	31,008

The Company’s liquidity needs arise primarily from capital investment in new equipment, land and structures, information technology and letters of credit required under insurance programs, as well as funding working capital requirements.

The Company is party to a revolving credit agreement with a group of banks that is available to fund capital investments, letters of credit and working capital needs.

Credit Agreement

The Company is a party to a Sixth Amended and Restated Credit Agreement with its banking group (the Amended Credit Agreement), which provides up to a $300 million revolving line of credit through February 2024. The Amended Credit Agreement also has an accordion feature that allows for an additional $100 million availability, subject to certain conditions and availability of lender commitments. The Amended Credit Agreement provides for a LIBOR rate margin range from 100 basis points to 200 basis points, base rate margins from minus 50 basis points to plus 50 basis points, an unused portion fee from 17.5 basis points to 30 basis points and letter of credit fees from 100 basis points to 200 basis points, in each case based on the Company’s leverage ratio. Under the Amended Credit Agreement, the Company must maintain a minimum debt service coverage ratio set at 1.25 to 1.00 and a maximum leverage ratio set at 3.25 to 1.00. The Amended Credit Agreement provides for a pledge by the Company of certain land and structures, accounts receivable and other assets to secure indebtedness under this agreement. The Amended Credit Agreement contains certain customary representations and warranties, affirmative and negative covenants and provisions relating to events of default. Under the Amended Credit Agreement, if an event of default occurs, the banks will be entitled to take various actions, including the acceleration of amounts due.

At September 30, 2022, the Company had no outstanding borrowings and outstanding letters of credit of $31.2 million under the Amended Credit Agreement. At December 31, 2021, the Company had no outstanding borrowings and outstanding letters of credit of $29.3 million under the Amended Credit Agreement. The available portion of the Amended Credit Agreement may be used for general corporate purposes, including capital expenditures, working capital and letter of credit requirements as needed.

Finance Leases

The Company is obligated under finance leases with seven-year original terms covering revenue equipment. Total liabilities recognized under finance leases were $34.9 million and $50.4 million as of September 30, 2022 and December 31, 2021, respectively. Amortization of assets held under the finance leases is included in depreciation and amortization expense. As of September 30, 2022 and December 31, 2021, approximately $64.8 million and $85.1 million of finance leased assets, net of depreciation, were included in Property and Equipment, respectively. The weighted average interest rates for the finance leases at September 30, 2022 and December 31, 2021 were 3.7 percent and 3.6 percent, respectively.

Principal Maturities of Long-Term Debt

The principal maturities of long-term debt, including interest on finance leases, for the next five years (in thousands) are as follows:

	Amount
2022	$	4,229
2023		15,409
2024		10,606
2025		5,453
2026		919
Thereafter		—
Total		36,616
Less: Amounts Representing Interest on Finance Leases		1,766
Total	$	34,850

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Saia, Inc. and its wholly-owned subsidiaries (together, the Company or Saia). All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements.

The condensed consolidated financial statements have been prepared by the Company without audit by the independent registered public accounting firm. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, stockholders’ equity and cash flows for the interim periods included herein have been made. These interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information, the instructions to Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted from these statements. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the quarter and nine months ended September 30, 2022 are not necessarily indicative of the results of operations that may be expected for the year ended December 31, 2022.

Business

Business

The Company provides national less-than-truckload (LTL) services through a single integrated organization. While more than 96 percent of its revenue has been derived from transporting LTL shipments across 45 states, the Company also offers customers a wide range of other value-added services, including non-asset truckload, expedited and logistics services across North America. The Company’s customer base is diversified across numerous industries.

Revenue Recognition

Revenue Recognition

The Company’s revenues are derived primarily from the transportation of freight as it satisfies performance obligations that arise from contracts with its customers. The Company’s performance obligations arise when it receives a bill of lading (“BOL”) to transport a customer's commodities at negotiated prices contained in either a transportation services agreement or a publicly disclosed tariff rate. Once a BOL is received and accepted, a legally-enforceable contract is formed whereby the parties are committed to perform and the rights of the parties, shipping terms and conditions, and payment terms have been identified. A customer may submit many BOLs for transportation services at various times throughout a service agreement term but each shipment represents a distinct service that is a separately identified performance obligation.

The typical transit time to complete a shipment is from one to five days. Billing for transportation services normally occurs after completion of the service and payment is generally due within 30 days after the invoice date. The Company recognizes revenue related to the Company’s LTL, non-asset truckload and expedited services over the transit time of the shipment as it moves from origin to destination. Revenue for services is recognized based on transit status at the end of each reporting period.

Key estimates included in the recognition and measurement of revenue and related accounts receivable are as follows:

•Revenue associated with shipments in transit is recognized ratably over transit time; and

•Adjustments to revenue for billing adjustments and collectability.

The portion of the gross invoice related to interline transportation services that involve the services of another party, such as another LTL service provider, is not recorded in the Company’s revenues. Revenue from logistics services is recognized as the services are provided.

Remaining performance obligations represent the transaction price allocated to future periods for freight services started but not completed at the reporting date. These amounts include the unearned portion of billed and unbilled amounts for freight shipments in transit that the Company expects to recognize as revenue in the period subsequent to the reporting date, which is generally less than one week. The Company has elected to apply the optional exemption in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, as it relates to additional quantitative disclosures pertaining to remaining performance obligations.

Claims and Insurance Accruals

Claims and Insurance Accruals

We are regularly subject to claims resulting from bodily injury, property damage, casualty and cargo losses, group healthcare costs, and workers' compensation. The Company has self-insured retention limits generally ranging from $250,000 to $1.0 million per occurrence for group healthcare, workers' compensation, casualty and cargo losses and certain property damage and from $2.0 million to $10.0 million for bodily injury and property damage related to auto liability. The Company’s automobile liability insurance policy for the four-year period ended March 1, 2023 provides coverage for a single loss of $8.0 million, an aggregate loss limit of $24.0 million for each policy year, and a $48.0 million aggregate loss limit for the four-year period, subject to risk retention of $2.0 million per occurrence. Under the policy, the Company is required to pay additional amounts of up to $11.5 million if losses paid by the insurer are greater than $18.4 million over the four-year policy period. Based on claims occurring since March 1, 2019, no additional amount was accrued as of September 30, 2022. Commencing on August 30, 2023, the Company may elect to commute the policy with respect to the insurer’s entire liability under the policy in which case the Company would be entitled to a return of a portion of the premium paid, up to $18.4 million, based on the amount of claims paid and the insurer would be released from all liability under the policy for the four-year period ending March 1, 2023. As a result, if the Company elects to commute the policy as to the entire policy term, the Company would be self-insured for $10.0 million per occurrence for the four years ended March 1, 2023. The Company is self-insured for auto liability for the first $10.0 million per occurrence for the one-year period ended March 1, 2019.

The Company also maintains an insurance policy covering the three-year period ending March 1, 2025 that provides $5.0 million of coverage per occurrence after an occurrence exceeds $10.0 million, subject to an aggregate loss limit of $10.0 million for each policy year, and a $20.0 million aggregate loss limit for the three-year term. Additionally, the Company is required to pay additional amounts of up to $7.5 million if losses paid by the insurer are greater than $1.4 million over the three-year policy period ending March 1, 2025. Based on claims occurring since March 1, 2022, no additional amounts were accrued at September 30, 2022. Under the policy, the Company may elect to commute the policy for the three-year term if losses incurred are less than $1.4 million and the Company does not elect to renew the policy. In the event the Company elects to commute the policy for such period, it will be entitled to a return of a portion of the premium paid, up to $1.1 million, based on the amount of claims paid and the insurer will be released from all liability under the policy in connection with such period. As a result, if the Company elects to commute the policy as to such period, the Company will be self-insured for the $10.0 million to $15.0 million loss layer per occurrence for the three years ended March 1, 2025. The election to commute the policy cannot be made before June 1, 2024 and must be made prior to December 1, 2025, unless the insurer agrees to extend such date.

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Computation of Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Summary of Calculation of Basic Earnings Per Common Share and Diluted Earnings Per Common Share

The calculation of basic earnings per common share and diluted earnings per common share was as follows (in thousands, except per share amounts):

	Third Quarter				Nine Months
	2022		2021		2022		2021
Numerator:
Net income	$	97,891	$	79,709	$	286,560	$	179,474
Denominator:
Denominator for basic earnings per share–weighted      average common shares		26,539		26,334		26,506		26,317
Dilutive effect of share-based awards		137		379		157		382
Denominator for diluted earnings per share–adjusted      weighted average common shares		26,676		26,713		26,663		26,699
Basic Earnings Per Share	$	3.69	$	3.03	$	10.81	$	6.82
Diluted Earnings Per Share	$	3.67	$	2.98	$	10.75	$	6.72

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Debt and Financing Arrangements (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Summary of Reconciliation of Debt

At September 30, 2022 and December 31, 2021, debt consisted of the following (in thousands):

	September 30, 2022		December 31, 2021
Credit Agreement with Banks, described below	$	—	$	—
Finance Leases, described below		34,850		50,404
Total debt		34,850		50,404
Less: current portion of long-term debt		15,914		19,396
Long-term debt, less current portion	$	18,936	$	31,008

Schedule of Principal Maturities of Long-Term Debt Including Interest On Finance Leases

The principal maturities of long-term debt, including interest on finance leases, for the next five years (in thousands) are as follows:

	Amount
2022	$	4,229
2023		15,409
2024		10,606
2025		5,453
2026		919
Thereafter		—
Total		36,616
Less: Amounts Representing Interest on Finance Leases		1,766
Total	$	34,850

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Summary of Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2022 USD ($)
New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
New automobile liability insurance policy, term	3 years
Maximum amount received return on premium availability	$ 1,100,000
Accrued additional premium	0
New automobile liability insurance policy losses	1,400,000
First 12 months [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Aggregate loss limit for each policy year	10,000,000.0
Self insurance, per occurrence	10,000,000.0
Entire 36 Months [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Paid losses specified limit to pay additional premium	1,400,000
Additional premium to be paid, if losses are paid by insurer are greater than limit specified	20,000,000.0
Four Year Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Self insurance, per occurrence	10,000,000.0
Paid losses specified limit to pay additional premium	18,400,000
Additional premium to be paid, if losses are paid by insurer are greater than limit specified	11,500,000
Four Year Policy [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Risk retention amount per occurrence under new policy	$ 2,000,000.0
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Percentage of revenue derived from transporting	96.00%
Average transit time	1 day
Self insurance, per occurrence	$ 250,000
Minimum [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Risk retention amount per occurrence under new policy	2,000,000.0
Self insurance, per occurrence	10,000,000.0
Minimum [Member] | Entire 36 Months [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Returnable premium for changes in claims	$ 18,400,000
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Average transit time	5 days
Self insurance, per occurrence	$ 1,000,000.0
Maximum [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Risk retention amount per occurrence under new policy	10,000,000.0
Single loss limit	5,000,000.0
Aggregate loss limit for each policy year	10,000,000.0
Aggregate loss limit during policy period	48,000,000.0
Self insurance, per occurrence	15,000,000.0
Maximum [Member] | Entire 36 Months [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Additional Amount To Be Paid If Losses Are Greater Than Limit Specified	7,500,000
Maximum [Member] | Four Year Policy [Member] | New Automobile Liability Insurance Policy [Member]
Summary of Significant Accounting Policies [Line Items]
Single loss limit	8,000,000.0
Aggregate loss limit for each policy year	$ 24,000,000.0

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Summary of Significant Accounting Policies - Additional Information1 (Detail)	Sep. 30, 2022
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01
Summary of Significant Accounting Policies [Line Items]
Payment terms	30 days

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Schedule Of Computation of Earnings Per Share - Summary of Calculation of Basic Earnings Per Common Share and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income	$ 97,891	$ 109,245	$ 79,424	$ 79,709	$ 62,474	$ 37,291	$ 286,560	$ 179,474
Denominator:
Denominator for basic earnings per share-weighted average common shares	26,539			26,334			26,506	26,317
Dilutive effect of share-based awards	137			379			157	382
Denominator for diluted earnings per share-adjusted weighted average common shares	26,676			26,713			26,663	26,699
Basic Earnings Per Share	$ 3.69			$ 3.03			$ 10.81	$ 6.82
Diluted Earnings Per Share	$ 3.67			$ 2.98			$ 10.75	$ 6.72

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Computation of Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Common stock excluded from the calculation of diluted earnings per share	43,602	19,250	27,598	19,250

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	Sep. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Pro rata share of letters of credit outstanding	$ 1.8

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Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Estimated fair value of total debt	$ 34,800	$ 50,800
Total debt	$ 34,850	$ 50,404

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Debt and Financing Arrangements - Summary of Reconciliation of Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Finance Leases, described below	$ 34,850	$ 50,404
Total debt	34,850	50,404
Less: current portion of long-term debt	15,914	19,396
Long-term debt, less current portion	$ 18,936	$ 31,008

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Debt and Financing Arrangements - Additional Information (Detail) - USD ($)	Feb. 05, 2019	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Amendment line of credit facility expiration year and month	2024-02
Letter of credit facility outstanding amount		$ 1,800,000
Liabilities recognized under finance leases		$ 34,850,000	$ 50,404,000
Finance Lease Obligations [Member]
Debt Instrument [Line Items]
Weighted average interest rates for finance lease		3.70%	3.60%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Borrowing capacity under credit agreement	$ 300,000,000
Additional borrowing capacity under revolving credit facility	$ 100,000,000
Minimum debt service coverage ratio	125.00%
Maximum leverage ratio	325.00%
Revolving Credit Facility [Member] | Existing Credit Agreement [Member]
Debt Instrument [Line Items]
Borrowing capacity under credit agreement		$ 0	$ 0
Letter of credit facility outstanding amount		31,200,000	29,300,000
Revolving Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Rate margin	1.00%
Letter of credit unused portion fee	0.175%
Revolving Credit Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Rate margin	2.00%
Letter of credit unused portion fee	0.30%
Revolving Credit Facility [Member] | LIBOR Rate Margin [Member] | Minimum [Member]
Debt Instrument [Line Items]
Rate margin	1.00%
Revolving Credit Facility [Member] | LIBOR Rate Margin [Member] | Maximum [Member]
Debt Instrument [Line Items]
Rate margin	2.00%
Revolving Credit Facility [Member] | Base Rate Margin [Member] | Minimum [Member]
Debt Instrument [Line Items]
Rate margin	0.50%
Revolving Credit Facility [Member] | Base Rate Margin [Member] | Maximum [Member]
Debt Instrument [Line Items]
Rate margin	0.50%
Property and Equipment [Member]
Debt Instrument [Line Items]
Finance leased assets, net		$ 64,800,000	$ 85,100,000

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Debt and Financing Arrangements - Schedule of Principal Maturities of Long-Term Debt Including Interest On Finance Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instruments [Abstract]
2022	$ 4,229
2023	15,409
2024	10,606
2025	5,453
2026	919
Thereafter	0
Total	36,616
Less: Amounts Representing Interest on Finance Leases	1,766
Total	$ 34,850	$ 50,404