P.A.M. Transportation Services, Inc. Announces Results for the First Quarter Ended March 31, 2024
First Quarter 2024 Summary Results
Total revenues of $182.6 million, down 17.6% YoY
Operating loss of $0.7 million
Operating ratio of 100.4%
Diluted EPS of $0.01
TONTITOWN, Ark., Apr. 18 /BusinessWire/ --
P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) ("the Company") today reported net income of $0.3 million, or diluted and basic earnings per share of $0.01, for the quarter ended March 31, 2024. These results compare to net income of $5.2 million, or diluted earnings per share of $0.23 ($0.24 basic), for the quarter ended March 31, 2023.
Operating revenues decreased 17.6% to $182.6 million for the first quarter of 2024 compared to $221.7 million for the first quarter of 2023.
Joe Vitiritto, President of the Company, commented, "The truckload market continued to be extremely challenging during the first quarter of 2023, characterized by shippers continued success in leveraging an overcapacity market to their advantage to attain rates at or below cost. This market backdrop coupled with weather disruptions early in the quarter which drove cost increases and reductions in equipment utilization created a tough environment to get traction in efforts to improve earnings.
"We continue to intensely focus on cost reduction, opportunities to gain efficiency and market positioning to maximize the benefit of an improving freight environment when that occurs. We appreciate the hard work and dedication of our employees as we work through this tough economic cycle."
Liquidity, Capitalization, and Cash Flow
As of March 31, 2024, we had an aggregate of $185.7 million of cash, marketable equity securities, and available liquidity under our line of credit and $314.6 million of stockholders' equity. Outstanding debt was $271.6 million as of March 31, 2024, which represents a $9.9 million increase from December 31, 2023.
During the first quarter of 2024, we generated $9.6 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 March 31,
2024
2023
(in thousands, except per share amounts)
Revenue, before fuel surcharge
$ 160,969
$ 193,454
Fuel surcharge
21,623
28,270
Operating revenue
182,592
221,724
Operating expenses and costs:
Salaries, wages and benefits
44,063
48,278
Operating supplies and expenses
34,712
41,073
Rent and purchased transportation
73,279
87,096
Depreciation
18,935
16,497
Insurance and claims
4,861
15,435
Other
7,179
5,423
Loss(gain) on disposition of equipment
240
(577)
Total operating expenses and costs
183,269
213,225
Operating (loss)income
(677)
8,499
Interest expense
(2,883)
(2,356)
Non-operating income
3,938
899
Income before income taxes
378
7,042
Income tax expense
97
1,811
Net income
$281
$5,231
Diluted earnings per share
$0.01
$0.23
Average shares outstanding - Diluted
22,127
22,317
Quarter ended March 31,
Truckload Operations
2024
2023
Total miles
46,062
53,729
Operating ratio (1)
104.2%
99.3%
Empty miles factor
8.60%
8.96%
Revenue per total mile, before fuel surcharge
$2.22
$2.33
Total loads
102,200
102,430
Revenue per truck per work day
$729
$802
Revenue per truck per week
$3,645
$4,010
Average company-driver trucks
1,895
2,051
Average owner operator trucks
365
389
Logistics Operations
Total revenue (in thousands)
$58,769
$68,256
Operating ratio
93.9%
88.8%
P.A.M. Transportation Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
March 31,
December 31,
2024
2023
(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents
$79,966
$100,614
Trade accounts receivable, net
95,548
80,604
Other receivables
6,776
7,203
Inventories
2,385
2,321
Prepaid expenses and deposits
10,820
13,213
Marketable equity securities
45,789
43,203
Income taxes refundable
3,804
3,883
Total current assets
245,088
251,041
Property and equipment
771,956
771,131
Less: accumulated depreciation
270,631
266,412
Total property and equipment, net
501,325
504,719
Other non-current assets
3,243
4,697
Total Assets
$749,656
$760,457
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$41,933
$62,652
Accrued expenses and other liabilities
16,695
16,799
Current portion of long-term debt
52,692
57,645
Total current liabilities
111,320
137,096
Long-term debt, net of current portion
218,870
204,064
Deferred income taxes
104,323
104,331
Other long-term liabilities
500
750
Total liabilities
435,013
446,241
STOCKHOLDERS' EQUITY
Common stock
223
223
Additional paid-in capital
40,971
40,825
Treasury stock, at cost
(8,736)
(8,736)
Retained earnings
282,185
281,904
Total stockholders' equity
314,643
314,216
Total liabilities and stockholders' equity
$749,656
$760,457
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1)
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.