P.A.M. Transportation Services, Inc. Announces Results for the First Quarter Ended March 31, 2014
April 23 2014 - 3:40PM
P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net income of $1,356,607 or diluted and basic earnings per share of
$0.17 for the quarter ended March 31, 2014. These results compare
to net loss of $456,267 or diluted and basic loss per share of
$0.05 for the quarter ended March 31, 2013. Operating revenues were
$97,820,394 for the first quarter of 2014 compared to $99,981,938
for the first quarter of 2013.
Daniel H. Cushman, President of the Company, commented, "We are
very pleased with our operating profit of $2.8 million, which
represents a $3.1 million improvement over the comparable period
last year. The first quarter was very challenging due to the severe
winter weather conditions, which made it extremely difficult to
maintain positive momentum. The ability to post positive results,
despite the significant weather related delays and added costs, was
satisfying and is an indicator of the success of the profit model
we continue to develop.
"Industry capacity continues to tighten, which was primarily
weather related in January and February, but we haven't seen any
indication that this tightening will be short-lived. Indications
from our customers and other shippers point to a growing concern
over the long-term availability of capacity and the need to lock-in
what capacity remains available.
"Just as significant, the weather made our driver recruiting
results very inconsistent as potential new drivers were unable to
travel to our training and orientation facilities. Our goal is to
grow this year so adding drivers and reducing driver turnover is
imperative to accomplishing that goal. We believe that our ability
for growth hinges on our ability to provide our drivers with
opportunities that help maximize their earnings and allow for their
desired home time. Developing a freight base that attracts drivers
and reduces turnover has been a top priority and we are beginning
to see positive trends as we continue to secure freight that is
driver-friendly.
"We continue to grow our Mexico, Expedited, Dedicated and
Automotive Divisions. All of these divisions are profitable and we
are also able to attract and keep drivers in these divisions. The
random fleet is shrinking and I don't see that changing anytime
soon. If drivers can't utilize their hours and get home they won't
continue to perform in that business segment.
"This quarter also marks the three year anniversary date of
moving forward with our goal of converting our truck fleet from one
of the oldest in the industry to one of the newest. We have now met
that goal as the average age of our truck fleet is 1.5 years which
equals the age goal we set in 2011, when the average age was 3.5
years. We continue to experience increased performance and lower
operating costs and plan to continue our three year replacement
cycle going forward."
P.A.M. Transportation Services, Inc. is a leading truckload dry
van carrier transporting general commodities throughout the
continental United States, as well as in the Canadian provinces of
Ontario and Quebec. The Company also provides transportation
services in Mexico through its gateways in Laredo and El Paso,
Texas under agreements with Mexican carriers.
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 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; recessionary economic cycles and downturns in
customers' business cycles; increases or rapid fluctuations in fuel
prices, interest rates, fuel taxes, tolls, license and registration
fees; the resale value of the Company's used equipment and the
price of new equipment; 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; unanticipated 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; a significant reduction in or termination of the
Company's trucking service by a key customer; 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 as a result of new information,
future events or otherwise. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed above and in company filings might not transpire.
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P.A.M. Transportation Services, Inc. and
Subsidiaries |
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Key Financial and Operating Statistics |
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(unaudited) |
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Quarter ended March 31, |
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2014 |
2013 |
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Revenue, before fuel surcharge |
$74,895,613 |
$77,827,949 |
Fuel surcharge |
22,924,781 |
22,153,989 |
Total operating revenues |
97,820,394 |
99,981,938 |
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Operating expenses and costs: |
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Salaries, wages and benefits
(1) |
26,034,773 |
27,395,325 |
Fuel expense |
24,797,850 |
26,970,478 |
Operating supplies and
expenses |
8,192,976 |
8,848,910 |
Rent and purchased
transportation (1) |
20,761,914 |
20,097,706 |
Depreciation |
9,125,837 |
10,093,574 |
Operating taxes and
licenses |
1,174,765 |
1,270,899 |
Insurance and claims |
3,742,238 |
3,437,991 |
Communications and
utilities |
623,366 |
600,749 |
Other |
1,787,678 |
1,660,107 |
Gain on disposition of
equipment |
(1,266,226) |
(142,208) |
Total operating expenses and costs |
94,975,171 |
100,233,531 |
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Operating income (loss) |
2,845,223 |
(251,593) |
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Interest expense |
(862,234) |
(815,242) |
Non-operating income |
271,636 |
282,871 |
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Income (loss) before income taxes |
2,254,625 |
(783,964) |
Income tax expense (benefit) |
898,018 |
(327,697) |
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Net income (loss) |
$1,356,607 |
$ (456,267) |
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Diluted earnings (loss) per share |
$0.17 |
$ (0.05) |
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Average shares outstanding – Diluted |
8,032,937 |
8,688,433 |
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Quarter ended March 31, |
Truckload Operations |
2014 |
2013 |
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Total miles |
51,022,305 |
51,743,966 |
Operating ratio (2) |
96.18% |
100.71% |
Empty miles factor |
6.92% |
7.97% |
Revenue per total mile, before fuel
surcharge |
$1.36 |
$1.37 |
Total loads |
67,240 |
63,869 |
Revenue per truck per work day |
$608 |
$624 |
Revenue per truck per week |
$3,040 |
$3,120 |
Average company trucks |
1,459 |
1,546 |
Average owner operator trucks |
352 |
257 |
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Logistics Operations |
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Total revenue |
$5,448,980 |
$6,919,794 |
Operating ratio |
96.44% |
96.40% |
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1) In order to conform to
industry practice, the Company began to classify payments to
third-party owner operator drivers as purchased transportation
rather than as salaries, wages and benefits as had been presented
in reports prior to the period ended September 30, 2013. This
reclassification has no effect on operating income, net income or
earnings per share. The Company has made corresponding
reclassifications to comparative periods shown. |
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2) 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. |
CONTACT: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111
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