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P.A.M. Transportation Services, Inc. Announces Results for the First Quarter Ended March 31, 2024
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:
44,063 48,278
Salaries, wages and benefits
34,712 41,073
Operating supplies and expenses
73,279 87,096
Rent and purchased transportation
18,935 16,497
Depreciation
4,861 15,435
Insurance and claims
7,179 5,423
Other
240 (577)
Loss(gain) on disposition of equipment
-------------------- --------------------
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
P.A.M. Transportation Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
March 31, December 31,
2024 2023
-------------------- --------------------
(in thousands)
ASSETS
Current Assets:
$79,966 $100,614
Cash and cash equivalents
95,548 80,604
Trade accounts receivable, net
6,776 7,203
Other receivables
2,385 2,321
Inventories
10,820 13,213
Prepaid expenses and deposits
45,789 43,203
Marketable equity securities
3,804 3,883
Income taxes refundable
-------------------- --------------------
245,088 251,041
Total current assets
-------------------- --------------------
Property and equipment 771,956 771,131
Less: accumulated depreciation 270,631 266,412
-------------------- --------------------
501,325 504,719
Total property and equipment, net
-------------------- --------------------
Other non-current assets 3,243 4,697
-------------------- --------------------
Total Assets $749,656 $760,457
==================== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
$41,933 $62,652
Accounts payable
16,695 16,799
Accrued expenses and other liabilities
52,692 57,645
Current portion of long-term debt
-------------------- --------------------
111,320 137,096
Total current liabilities
-------------------- --------------------
218,870 204,064
Long-term debt, net of current portion
104,323 104,331
Deferred income taxes
500 750
Other long-term liabilities
-------------------- --------------------
435,013 446,241
Total liabilities
-------------------- --------------------
STOCKHOLDERS' EQUITY
Common stock 223 223
Additional paid-in capital 40,971 40,825
Treasury stock, at cost (8,736) (8,736)
282,185 281,904
Retained earnings
-------------------- --------------------
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.
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SOURCE: P.A.M. Transportation Services, Inc.
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P.A.M. TRANSPORTATION SERVICES, INC. Lance K. Stewart (479) 361-9111
COMTEX_451045406/1006/2024-04-18T15:00:01