PTSI P A M Transport Services Inc

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

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

 

 

 

 

 

 

 

 

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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.

 

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P.A.M. TRANSPORTATION SERVICES, INC. P.O. BOX 188 Tontitown, AR 72770 Lance K. Stewart (479) 361-9111