Third Quarter 2023 Summary
Results
- Total revenues of $201.5 million, down 20.2% YoY
- Operating income of $8.8 million, down 75.1% YoY
- Operating ratio of 95.6%
- Diluted EPS of $0.28, down 74.3% YoY
P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the
“Company”) today reported consolidated net income of $6.1 million,
or diluted and basic earnings per share of $0.28, for the quarter
ended September 30, 2023. These results compare to consolidated net
income of $24.6 million, or diluted earnings per share of $1.09
($1.10 basic), for the quarter ended September 30, 2022.
Consolidated operating revenues decreased 20.2% to $201.5
million for the third quarter of 2023 compared to $252.6 million
for the third quarter of 2022.
Joe Vitiritto, President of the Company, commented, “The third
quarter presented very challenging comparisons to the same quarter
last year. The third quarter of 2022 was one of the best in our
company’s history while the third quarter this year was faced with
an unprecedented unfavorable truckload market. Despite market
challenges, we did see improvement in factors that we believe will
position the Company favorably when truckload market conditions
improve. I am especially proud of the continued loyalty, dedication
and outstanding contribution from our driving and non-driving
associates as we continue to drive improvement in the Company.
“Looking ahead, we will continue to stay focused on investing in
the areas of our business that will help us to consistently grow,
increase efficiencies and deliver value to our customers,
shareholders and employees.”
Liquidity, Capitalization, and Cash
Flow
As of September 30, 2023, we had an aggregate of $203.5 million
of cash, marketable equity securities, and available liquidity
under our line of credit and $316.3 million of stockholders’
equity. Outstanding debt was $227.6 million as of September 30,
2023, which represents a $36.7 million decrease from December 31,
2022. During the first nine months of 2023, we generated $93.9
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 ongoing or
future labor disruptions in the automotive industry; 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 outbreaks of the COVID-19 pandemic or other
public health crises; 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; 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, 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,
2023
2022
2023
2022
(in thousands, except earnings
per share)
(in thousands, except earnings
per share)
Revenue, before fuel surcharge
$174,348
$216,475
$549,885
$615,303
Fuel surcharge
27,154
36,155
80,754
93,943
Operating Revenue
201,502
252,630
630,639
709,246
Operating expenses and costs:
Salaries, wages and benefits
46,032
50,847
142,138
133,069
Operating supplies and expenses
42,378
48,071
123,589
123,156
Rent and purchased transportation
78,595
93,501
244,020
273,521
Depreciation
15,552
16,289
47,805
46,647
Insurance and claims
5,146
5,149
25,205
19,281
Other
5,305
4,579
17,936
12,712
Gain on disposition of equipment
(339
)
(1,301
)
(1,175
)
(2,662
)
Total operating expenses and costs
192,669
217,135
599,518
605,724
Operating income
8,833
35,495
31,121
103,522
Interest expense
(2,046
)
(1,922
)
(6,565
)
(5,587
)
Non-operating income(expense)
1,638
(1,886
)
3,729
(2,829
)
Income before income taxes
8,425
31,687
28,285
95,106
Income tax expense
2,328
7,121
7,637
22,416
Net income
$6,097
$24,566
$20,648
$72,690
Diluted earnings per share
$0.28
$1.09
$0.93
$3.24
Average shares outstanding – Diluted
22,139
22,440
22,219
22,468
Quarter Ended September 30,
Nine Months Ended September
30,
2023
2022
2023
2022
Truckload
Operations
Total miles (in thousands)
49,745
56,624
156,897
151,531
Operating ratio (1)
95.8
%
82.6
%
96.0
%
81.3
%
Empty miles factor
7.84
%
9.92
%
8.48
%
9.37
%
Revenue per total mile, before fuel
surcharge
$2.26
$2.56
$2.28
$2.67
Total loads
105,342
110,192
316,772
301,334
Revenue per truck per workday
$764
$912
$781
$933
Revenue per truck per week
$3,819
$4,562
$3,903
$4,665
Average company-driver trucks
2,007
2,080
2,038
1,868
Average owner operator trucks
326
403
360
391
Logistics
Operations
Total revenue (in thousands)
$62,091
$71,493
$192,204
$210,645
Operating ratio
93.3
%
85.7
%
91.2
%
86.9
%
P.A.M. Transportation Services, Inc. and
Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
September 30,
December 31,
2023
2022
(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents
$102,299
$74,087
Trade accounts receivable, net
96,456
134,739
Other receivables
7,639
6,263
Inventories
2,600
2,570
Prepaid expenses and deposits
10,932
15,729
Marketable equity securities
41,250
41,728
Income taxes refundable
8,423
5,650
Total current assets
269,599
280,766
Property and equipment
714,673
705,919
Less: accumulated depreciation
257,753
242,324
Total property and equipment, net
456,920
463,595
Other non-current assets
5,202
4,801
Total Assets
$731,721
$749,162
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$57,653
$48,917
Accrued expenses and other liabilities
22,054
34,233
Current portion of long-term debt
56,149
58,815
Total current liabilities
135,856
141,965
Long-term debt, net of current portion
171,418
205,466
Deferred income taxes
107,415
101,445
Other long-term liabilities
750
103
Total liabilities
415,439
448,979
STOCKHOLDERS’ EQUITY
Common stock
223
223
Additional paid-in capital
40,660
40,472
Treasury stock, at cost
(8,736
)
(4,000
)
Retained earnings
284,135
263,488
Total stockholders’ equity
316,282
300,183
Total liabilities and stockholders’
equity
$731,721
$749,162
_______________________________________
- 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/20231018988913/en/
P.A.M. TRANSPORTATION SERVICES, INC. Lance K. Stewart (479)
361-9111
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