PTSI P A M Transport Services Inc

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

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