Business
P.A.M. Transportation Services, Inc. Announces Results for the Third Quarter Ended September 30, 2024
Third Quarter 2024 Summary Results Total revenues of $182.6 million, down 9.4% YoY Operating income of $2.3 million Operating ratio of 98.7% Diluted earnings
About this update from Pamt Corp
Third Quarter 2024 Summary Results Total revenues of $182.6 million , down 9.4% YoY Operating income of $2.3 million Operating ratio of 98.7% Diluted earnings per share of $0.11 TONTITOWN, Ark. --(BUSINESS WIRE)-- P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the “Company”) today reported consolidated net income of $2.4 million , or diluted and basic earnings per share of $0.11 , for the quarter ended September 30, 2024 . These results compare to consolidated net income of $6.1 million , or diluted and basic earnings per share of $0.28 for the quarter ended September 30, 2023 . Operating revenues decreased 9.4% to $182.6 million for the third quarter of 2024 compared to $201.5 million for the third quarter of 2023. Joe Vitiritto , President of the Company, commented, “Our consolidated operating results for the third quarter of 2024 improved sequentially. The quarter started off slow because of extended, but planned, down time from some of our biggest customers and ended slower than expected as we saw impacts to our business and volumes prior to Hurricane Helene. Inflationary operating costs continue to materialize, but we are determined to minimize the impact to our business and focus on factors that we can control. We continue to see signs that the market is improving, and I am confident that we are moving closer to a more normal truckload market. In these times, I am thankful for our whole team, especially all of our professional driving associates as they continue to demonstrate resiliency even in the face of challenges brought about from this tough environment.” Liquidity, Capitalization, and Cash Flow As of September 30, 2024 , we had an aggregate of $152.2 million of cash, marketable equity securities, and available liquidity under our line of credit and $308.9 million of stockholders’ equity. Outstanding debt was $288.7 million as of September 30, 2024 , which represents a $27.0 million increase from December 31, 2023 . During the first nine months of 2024, we generated $43.8 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 September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 (in thousands, except earnings per share) (in thousands, except earnings per share) Revenue, before fuel surcharge $160,799 $174,348 $481,980 $549,885 Fuel surcharge 21,778 27,154 66,136 80,754 Operating Revenue 182,577 201,502 548,116 630,639 Operating expenses and costs: Salaries, wages and benefits 44,736 46,032 132,559 142,138 Operating supplies and expenses 34,982 42,378 105,002 123,589 Rent and purchased transportation 73,129 78,595 221,210 244,020 Depreciation 17,741 15,552 55,381 47,805 Insurance and claims 4,768 5,146 15,093 25,205 Other 5,121 5,305 18,052 17,936 Gain on disposition of equipment (209) (339) (109) (1,175) Total operating expenses and costs 180,268 192,669 547,188 599,518 Operating income 2,309 8,833 928 31,121 Interest expense (2,936) (2,046) (9,104) (6,565) Non-operating income 3,744 1,638 7,891 3,729 Income/(loss) before income taxes 3,117 8,425 (285) 28,285 Income tax expense/(benefit) 705 2,328 (68) 7,637 Net income/(loss) $2,412 $6,097 ( $217 ) $20,648 Diluted earnings/(loss) per share $0.11 $0.28 ( $0.01 ) $0.93 Average shares outstanding – Diluted 21,825 22,139 21,911 22,219 Quarter Ended September 30 , Nine Months Ended September 30 , 2024 2023 2024 2023 Truckload Operations Total miles (in thousands) (1) 46,503 47,209 136,397 148,304 Operating ratio (2) 100.5% 95.8% 102.8% 96.0% Empty miles factor 8.89% 7.84% 8.82% 8.48% Revenue per total mile, before fuel surcharge (1) $2.10 $2.14 $2.10 $2.17 Total loads 106,061 105,342 319,081 316,772 Revenue per truck per workday $751 $764 $724 $781 Revenue per truck per week $3,757 $3,819 $3,620 $3,903 Average company-driver trucks 1,820 2,007 1,842 2,038 Average owner operator trucks 481 326 455 360 Logistics Operations Total revenue (in thousands) $50,190 $62,091 $162,618 $192,204 Operating ratio 94.3% 93.3% 94.0% 91.2% P.A.M. Transportation Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) September 30 , December 31 , 2024 2023 (in thousands) ASSETS Current assets Cash and cash equivalents $48,078 $100,614 Trade accounts receivable, net 93,673 80,604 Other receivables 5,954 7,203 Inventories 2,332 2,321 Prepaid expenses and deposits 9,499 13,213 Marketable equity securities 44,205 43,203 Income taxes refundable 4,324 3,883 Total current assets 208,065 251,041 Property and equipment 828,473 771,131 Less: accumulated depreciation 282,451 266,412 Total property and equipment, net 546,022 504,719 Other non-current assets 2,655 4,697 Total assets $756,742 $760,457 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $37,898 $62,652 Accrued expenses and other liabilities 16,776 16,799 Current portion of long-term debt 61,170 57,645 Total current liabilities 115,844 137,096 Long-term debt, net of current portion 227,539 204,064 Deferred income taxes 104,195 104,331 Other long-term liabilities 250 750 Total liabilities 447,828 446,241 STOCKHOLDERS’ EQUITY Common stock 224 223 Additional paid-in capital 40,999 40,825 Treasury stock, at cost (13,996) (8,736) Retained earnings 281,687 281,904 Total stockholders’ equity 308,914 314,216 Total liabilities and stockholders’ equity $756,742 $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/20241024279063/en/ 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.