Fourth Quarter 2023 Summary
Results
- Total revenues of $180.2 million, down 24.2% YoY
- Operating loss of $0.8 million
- Operating ratio of 100.4%
- Diluted loss per share of $0.10
P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the
“Company”) today reported consolidated net loss of $2.2 million, or
diluted and basic loss per share of $0.10, for the quarter ended
December 31, 2023 and consolidated net income of $18.4 million, or
diluted and basic earnings per share of $0.83, for the year ended
December 31,2023. These results compare to consolidated net income
of $18.0 million, or diluted and basic earnings per share of $0.81,
for the quarter ended December 31, 2022, and consolidated net
income of $90.7 million, or diluted earnings per share of $4.04
($4.08 basic), for the year ended December 31, 2022.
Consolidated operating revenues decreased 24.2% to $180.2
million for the fourth quarter of 2023 compared to $237.6 million
for the fourth quarter of 2022. For the year ended December 31,
2023, consolidated operating revenues decreased 14.4% to $810.8
million compared to $946.9 million for the year ended December 31,
2022.
Joe Vitiritto, President of the Company, commented, “Our
consolidated operating results for the three and twelve months
ended December 31, 2023 reflect a continued weak freight
environment and the impact of the UAW strike against several
customers in the automotive sector in which the Company has
significant exposure. Unlike previous UAW strikes, the approach
taken in the 2023 strike was impactful to the majority of our auto
customer base including both auto manufacturers and suppliers.
While the strike ended by mid-November, the negative impact carried
on through the typical holiday shutdowns with no post-strike surge
in automotive business that we have sometimes experienced after
past UAW strikes.
“These factors combined to create a challenging backdrop for our
business for the quarter and year. Our team is working to
constantly keep improving our results and we will continue to take
advantage of opportunities to improve. We are staying focused on
our longer-term objectives and seeing sustainable progress in areas
that will put us in a position to get back to profitable growth
that aligns with our expectations.”
Liquidity, Capitalization, and Cash
Flow
As of December 31, 2023, we had an aggregate of $203.7 million
of cash, marketable equity securities, and available liquidity
under our line of credit and $314.2 million of stockholders’
equity. Outstanding debt was $261.7 million as of December 31,
2023, which represents a $2.6 million decrease from December 31,
2022.
During 2023, we generated $114.6 million in operating cash flow
while net capital expenditures resulted in a cash outflow of $11.4
million.
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 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, 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 December 31,
Twelve Months Ended December
31,
2023
2022
2023
2022
(in thousands, except earnings
per share)
(in thousands, except earnings
per share)
Revenue, before fuel surcharge
$156,229
$203,449
$706,114
$818,751
Fuel surcharge
23,939
34,167
104,693
128,111
Operating Revenue
180,168
237,616
810,807
946,862
Operating expenses and costs:
Salaries, wages and benefits
44,084
48,849
186,223
181,918
Operating supplies and expenses
36,939
42,849
160,527
166,005
Rent and purchased transportation
71,627
91,450
315,647
364,971
Depreciation
16,800
16,159
64,605
62,806
Insurance and claims
5,564
13,235
30,769
32,516
Other
5,833
5,415
23,769
18,128
Loss(gain) on disposition of equipment
132
(587)
(1,043)
(3,250)
Total operating expenses and costs
180,979
217,370
780,497
823,094
Operating (loss)income
(811)
20,246
30,310
123,768
Interest expense
(2,611)
(2,343)
(9,177)
(7,929)
Non-operating income
3,716
5,997
7,446
3,168
Income before income taxes
294
23,900
28,579
119,007
Income tax expense
2,525
5,917
10,163
28,334
Net (loss)income
($2,231)
$17,983
$18,416
$90,673
Diluted (loss)earnings per share
($0.10)
$0.81
$0.83
$4.04
Average shares outstanding – Diluted
22,021
22,319
22,197
22,436
Quarter Ended December 31,
Twelve Months Ended December
31,
2023
2022
2023
2022
Truckload
Operations
Total miles (in thousands)
43,970
52,451
200,867
203,982
Operating ratio (1)
103.7%
91.0%
97.7%
83.7%
Empty miles factor
8.6%
9.03%
8.51%
9.29%
Revenue per total mile, before fuel
surcharge
$2.35
$2.60
$2.30
$2.65
Total loads
94,776
104,719
411,548
406,053
Revenue per truck per workday
$744
$893
$772
$919
Revenue per truck per week
$3,722
$4,466
$3,861
$4,593
Average company-driver trucks
1,938
2,056
2,014
1,915
Average owner operator trucks
299
405
345
394
Logistics
Operations
Total revenue (in thousands)
$52,993
$67,172
$245,196
$277,816
Operating ratio
94.3%
88.1%
91.9%
87.2%
P.A.M. Transportation Services, Inc. and
Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
December 31,
December 31,
2023
2022
(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents
$100,614
$74,087
Trade accounts receivable, net
80,604
134,739
Other receivables
7,203
6,263
Inventories
2,321
2,570
Prepaid expenses and deposits
13,213
15,729
Marketable equity securities
43,203
41,728
Income taxes refundable
3,883
5,650
Total current assets
251,041
280,766
Property and equipment
771,131
705,919
Less: accumulated depreciation
266,412
242,324
Total property and equipment, net
504,719
463,595
Other non-current assets
4,697
4,801
Total Assets
$760,457
$749,162
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$62,652
$48,917
Accrued expenses and other liabilities
16,799
34,233
Current portion of long-term debt
57,645
58,815
Total current liabilities
137,096
141,965
Long-term debt, net of current portion
204,064
205,466
Deferred income taxes
104,331
101,445
Other long-term liabilities
750
103
Total liabilities
446,241
448,979
STOCKHOLDERS’ EQUITY
Common stock
223
223
Additional paid-in capital
40,825
40,472
Treasury stock, at cost
(8,736)
(4,000)
Retained earnings
281,904
263,488
Total stockholders’ equity
314,216
300,183
Total liabilities and stockholders’
equity
$760,457
$749,162
___________________________________________
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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version on businesswire.com: https://www.businesswire.com/news/home/20240201580782/en/
P.A.M. TRANSPORTATION SERVICES, INC. Lance K. Stewart (479)
361-9111
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