PTSI P A M Transport Services Inc

Second Quarter 2023 Summary Results

• Total revenues of $207.4 million, down 12.6% YoY
• Operating income of $13.8 million, down 62.4% YoY
• Operating ratio of 93.4%
• Diluted EPS of $0.42, down 61.1% YoY

P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the “Company”) today reported consolidated net income of $9.3 million, or diluted and basic earnings per share of $0.42, for the quarter ended June 30, 2023. These results compare to consolidated net income of $24.2 million, or diluted earnings per share of $1.08 ($1.09 basic), for the quarter ended June 30, 2022.

Consolidated operating revenues decreased 12.6% to $207.4 million for the second quarter of 2023 compared to $237.2 million for the second quarter of 2022.

Liquidity, Capitalization, and Cash Flow

As of June 30, 2023, we had an aggregate of $198.8 million of cash, marketable equity securities, and available liquidity under our line of credit and $310.9 million of stockholders’ equity. Outstanding debt was $230.0 million as of June 30, 2023, which represents a $34.3 million decrease from December 31, 2022. During the first half of 2023, we generated $68.5 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; 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; 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 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,

 

 

2023

 

2022

 

2023

 

2022

 

 

(in thousands, except earnings per share)

 

(in thousands, except earnings per share)

 

 

 

 

 

Revenue, before fuel surcharge

 

$182,082

 

$202,739

 

$375,536

 

$398,828

Fuel surcharge

 

25,330

 

34,429

 

53,600

 

57,788

Operating Revenue

 

207,412

 

237,168

 

429,136

 

456,616

 

 

 

 

 

 

 

 

 

Operating expenses and costs:

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

47,828

 

42,947

 

96,106

 

82,222

Operating supplies and expenses

 

39,716

 

43,454

 

81,210

 

75,101

Rent and purchased transportation

 

78,329

 

88,643

 

165,425

 

180,020

Depreciation

 

15,757

 

15,481

 

32,254

 

30,358

Insurance and claims

 

5,045

 

7,269

 

20,059

 

14,132

Other

 

7,208

 

3,905

 

12,631

 

8,117

Gain on disposition of equipment

 

(260)

 

(1,214)

 

(836)

 

(1,361)

Total operating expenses and costs

 

193,623

 

200,485

 

406,849

 

388,589

 

 

 

 

 

 

 

 

 

Operating income

 

13,789

 

36,683

 

22,287

 

68,027

 

 

 

 

 

 

 

 

 

Interest expense

 

(2,163)

 

(1,998)

 

(4,519)

 

(3,665)

Non-operating income(expense)

 

1,192

 

(2,872)

 

2,091

 

(943)

 

 

 

 

 

 

 

 

 

Income before income taxes

 

12,818

 

31,813

 

19,859

 

63,419

Income tax expense

 

3,499

 

7,631

 

5,309

 

15,295

 

 

 

 

 

 

 

 

 

Net income

 

$9,319

 

$24,182

 

$14,550

 

$48,124

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$0.42

 

$1.08

 

$0.65

 

$2.14

 

 

 

 

 

 

 

 

 

Average shares outstanding – Diluted

 

22,182

 

22,445

 

22,253

 

22,474

 

 

 

 

 

 

 

 

 

  

 

 

Quarter Ended June 30,

 

Six Months Ended June 30,

 

 

2023

 

2022

 

2023

 

2022

Truckload Operations

 

 

 

 

 

 

 

 

Total miles (in thousands)

 

53,391

 

49,652

 

107,124

 

94,908

Operating ratio (1)

 

92.7%

 

79.8%

 

96.1%

 

80.6%

Empty miles factor

 

8.60%

 

8.94%

 

8.78%

 

9.05%

Revenue per total mile, before fuel surcharge

 

$2.25

 

$2.72

 

$2.29

 

$2.74

Total loads

 

109,000

 

94,870

 

211,430

 

186,425

Revenue per truck per workday

 

$774

 

$948

 

$788

 

$947

Revenue per truck per week

 

$3,868

 

$4,738

 

$3,939

 

$4,735

Average company-driver trucks

 

2,061

 

1,847

 

2,056

 

1,761

Average owner operator trucks

 

367

 

381

 

378

 

385

 

 

 

 

 

 

 

 

 

Logistics Operations

 

 

 

 

 

 

 

 

Total revenue (in thousands)

 

$61,856

 

$68,041

 

$130,113

 

$139,152

Operating ratio

 

91.8%

 

86.2%

 

90.2%

 

87.4%

P.A.M. Transportation Services, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(unaudited)

 

 

 

June 30,

 

December 31,

 

 

2023

 

2022

 

 

(in thousands)

ASSETS

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$97,988

 

$74,087

Trade accounts receivable, net

 

100,812

 

134,739

Other receivables

 

6,992

 

6,263

Inventories

 

2,585

 

2,570

Prepaid expenses and deposits

 

11,901

 

15,729

Marketable equity securities

 

41,274

 

41,728

Income taxes refundable

 

2,997

 

5,650

Total current assets

 

264,549

 

280,766

 

 

 

 

 

Property and equipment

 

690,012

 

705,919

Less: accumulated depreciation

 

253,299

 

242,324

Total property and equipment, net

 

436,713

 

463,595

 

 

 

 

 

Other non-current assets

 

4,147

 

4,801

Total Assets

 

$705,409

 

$749,162

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$41,011

 

$48,917

Accrued expenses and other liabilities

 

20,775

 

34,233

Current portion of long-term debt

 

53,006

 

58,815

Total current liabilities

 

114,792

 

141,965

 

 

 

 

 

Long-term debt, net of current portion

 

176,963

 

205,466

Deferred income taxes

 

102,774

 

101,445

Other long-term liabilities

 

0

 

103

Total liabilities

 

394,529

 

448,979

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

Common stock

 

223

 

223

Additional paid-in capital

 

40,714

 

40,472

Treasury stock, at cost

 

(8,095)

 

(4,000)

Retained earnings

 

278,038

 

263,488

Total stockholders’ equity

 

310,880

 

300,183

Total liabilities and stockholders’ equity

 

$705,409

 

$749,162

 

 

 

 

 

 

 

 

 

 

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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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P.A.M. TRANSPORTATION SERVICES, INC. Lance K. Stewart (479) 361-9111