Business
P.A.M. Transportation Services, Inc. Announces Results for the Second Quarter Ended June 30, 2024
Second Quarter 2024 Summary Results Total revenues of $182.9 million, down 11.8% YoY Operating loss of $0.7 million Operating ratio of 100.4% Diluted loss
About this update from Pamt Corp
Second Quarter 2024 Summary Results Total revenues of $182.9 million , down 11.8% YoY Operating loss of $0.7 million Operating ratio of 100.4% Diluted loss per share of $0.13 TONTITOWN, Ark. --(BUSINESS WIRE)-- P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the “Company”) today reported consolidated net loss of $2.9 million , or diluted and basic loss per share of $0.13 , for the quarter ended June 30, 2024 . These results compare to consolidated net income of $9.3 million , or diluted and basic earnings per share of $0.42 for the quarter ended June 30, 2023 . Operating revenues decreased 11.8% to $182.9 million for the second quarter of 2024 compared to $207.4 million for the second quarter of 2023. Joe Vitiritto , President of the Company, commented, “Our consolidated operating results for the second quarter 2024 were very similar to the first quarter of the year. The quarter started off slower than anticipated but began to show signs of seasonal demand patterns that were more consistent with pre-covid periods and we saw capacity tightening some as we moved towards the end of the quarter. We continue to see downward rate pressure, but we are also seeing some opportunities that tell us we may be getting closer to a cycle change. Our continued focus on cost and efficiency measures helps us to mitigate the current unfavorable freight market as well as positioning us to meet our longer-term mid-80’s operating ratio expectation. I am pleased to see our team working together with our professional drivers to negotiate this environment and prepare us for opportunities that will come with an improved freight market.” Liquidity, Capitalization, and Cash Flow As of June 30, 2024 , we had an aggregate of $173.9 million of cash, marketable equity securities, and available liquidity under our line of credit and $306.7 million of stockholders’ equity. Outstanding debt was $266.0 million as of June 30, 2024 , which represents a $4.3 million increase from December 31, 2023 . During the first half of 2024, we generated $28.4 million in operating cash flow. About P.A.M. Transportation Services, Inc. P.A.M. Transportation Services, Inc. is a holding company that owns subsidiaries engaged in providing truckload dry van carrier services transporting general commodities throughout the continental United States , as well as in the Canadian provinces of Ontario and Quebec . The Company’s consolidated operating subsidiaries also provide transportation services in Mexico through its gateways in Laredo and El Paso, Texas , under agreements with Mexican carriers. Forward-Looking Statements Certain information included in this document contains or may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may relate to expected future financial and operating results, prospects, plans or events, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, excess capacity in the trucking industry; surplus inventories; general inflation, recessionary economic cycles and downturns in customers' business cycles; a significant reduction in or termination of the Company's trucking service by a key customer, including as a result of future labor disruptions; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, and license and registration fees; potential economic, business or operational disruptions or uncertainties that may result from any future public health crises; the resale value of the Company's used equipment; the price and availability of new equipment consistent with anticipated acquisitions and replacement plans; increases in compensation for and difficulty in attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts relating to accident, cargo, workers' compensation, health, and other claims; increases in the number or amount of claims for which the Company is self-insured; inability of the Company to continue to secure acceptable financing arrangements; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors including reductions in rates resulting from competitive bidding; the ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; the impact of pending or future litigation; general risks associated with doing business in Mexico , including, without limitation, exchange rate fluctuations, inflation, import duties, tariffs, quotas, political and economic instability and terrorism; the potential impact of new laws, regulations or policy, including, without limitation, rules regarding the classification of independent contractors as employees, tariffs, import/export, trade and immigration regulations or policies; and other factors, including risk factors, included from time to time in filings made by the Company with the Securities and Exchange Commission . The Company undertakes no obligation to publicly update or revise forward-looking statements, whether due to new information, future events or otherwise. Considering these risks and uncertainties, the forward-looking events and circumstances discussed above and in company filings might not transpire. P.A.M. Transportation Services, Inc. and Subsidiaries Key Financial and Operating Statistics (unaudited) Quarter Ended June 30 , Six Months Ended June 30 , 2024 2023 2024 2023 (in thousands, except earnings per share) (in thousands, except earnings per share) Revenue, before fuel surcharge $160,213 $182,082 $321,182 $375,536 Fuel surcharge 22,735 25,330 44,358 53,600 Operating Revenue 182,948 207,412 365,540 429,136 Operating expenses and costs: Salaries, wages and benefits 43,759 47,828 87,822 96,106 Operating supplies and expenses 35,309 39,716 70,020 81,210 Rent and purchased transportation 74,803 78,329 148,082 165,425 Depreciation 18,705 15,757 37,640 32,254 Insurance and claims 5,464 5,045 10,325 20,059 Other 5,752 7,208 12,931 12,631 Gain/(loss) on disposition of equipment (139) (260) 101 (836) Total operating expenses and costs 183,653 193,623 366,921 406,849 Operating (loss)/income (705) 13,789 (1,381) 22,287 Interest expense (3,284) (2,163) (6,167) (4,519) Non-operating income (expense) 209 1,192 4,147 2,091 (Loss)/income before income taxes (3,780) 12,818 (3,401) 19,859 Income tax (benefit)/expense (870) 3,499 (772) 5,309 Net (loss)/income ( $2,910 ) $9,319 ( $2,629 ) $14,550 Diluted (loss)/earnings per share ( $0.13 ) $0.42 ( $0.12 ) $0.65 Average shares outstanding – Diluted 21,932 22,182 21,981 22,253 Quarter Ended June 30 , Six Months Ended June 30 , 2024 2023 2024 2023 Truckload Operations Total miles (in thousands) (1) 45,829 50,526 89,894 101,095 Operating ratio (2) 103.7% 92.7% 103.9% 96.1% Empty miles factor 8.95% 8.60% 8.78% 8.78% Revenue per total mile, before fuel surcharge (1) $2.09 $2.17 $2.10 $2.19 Total loads 110,511 109,000 212,712 211,430 Revenue per truck per workday $714 $774 $710 $788 Revenue per truck per week $3,572 $3,868 $3,552 $3,939 Average company-driver trucks 1,920 2,061 1,912 2,056 Average owner operator trucks 413 367 389 378 Logistics Operations Total revenue (in thousands) $53,659 $61,856 $112,428 $130,113 Operating ratio 93.9% 91.8% 93.9% 90.2% P.A.M. Transportation Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) June 30 , December 31 , 2024 2023 (in thousands) ASSETS Current assets Cash and cash equivalents $71,984 $100,614 Trade accounts receivable, net 92,324 80,604 Other receivables 6,444 7,203 Inventories 2,326 2,321 Prepaid expenses and deposits 9,407 13,213 Marketable equity securities 42,005 43,203 Income taxes refundable 4,473 3,883 Total current assets 228,963 251,041 Property and equipment 781,296 771,131 Less: accumulated depreciation 279,527 266,412 Total property and equipment, net 501,769 504,719 Other non-current assets 2,795 4,697 Total assets $733,527 $760,457 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $40,034 $62,652 Accrued expenses and other liabilities 16,798 16,799 Current portion of long-term debt 54,881 57,645 Total current liabilities 111,713 137,096 Long-term debt, net of current portion 211,140 204,064 Deferred income taxes 103,500 104,331 Other long-term liabilities 500 750 Total liabilities 426,853 446,241 STOCKHOLDERS’ EQUITY Common stock 223 223 Additional paid-in capital 41,171 40,825 Treasury stock, at cost (13,995) (8,736) Retained earnings 279,275 281,904 Total stockholders’ equity 306,674 314,216 Total liabilities and stockholders’ equity $733,527 $760,457 _______________________________________ 1) Excludes miles driven by third party power only carriers. 2) The Truckload Operations operating ratio has been calculated based upon total operating expenses, net of fuel surcharge, as a percentage of revenue, before fuel surcharge. We used revenue, before fuel surcharge, and operating expenses, net of fuel surcharge, because we believe that eliminating this sometimes volatile source of revenue affords a more consistent basis for comparing our results of operations from period to period. View source version on businesswire.com : https://www.businesswire.com/news/home/20240724218715/en/ FROM: P.A.M. TRANSPORTATION SERVICES, INC. P.O. BOX 188 Tontitown, AR 72770 Lance K. Stewart (479) 361-9111 Source: P.A.M. Transportation Services, Inc.