PTSI P A M Transport Services Inc

First Quarter 2024 Summary Results

• Total revenues of $182.6 million, down 17.6% YoY
• Operating loss of $0.7 million
• Operating ratio of 100.4%
• Diluted EPS of $0.01

In third paragraph, first sentence of quote should read: The truckload market continued to be extremely challenging during the first quarter of 2024, characterized by shippers’ continued success in leveraging an overcapacity market to their advantage to attain rates at or below cost. (instead of The truckload market continued to be extremely challenging during the first quarter of 2023, characterized by shippers continued success in leveraging an overcapacity market to their advantage to attain rates at or below cost.).

The updated release reads:

P.A.M. TRANSPORTATION SERVICES, INC. ANNOUNCES RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2024

First Quarter 2024 Summary Results

• Total revenues of $182.6 million, down 17.6% YoY
• Operating loss of $0.7 million
• Operating ratio of 100.4%
• Diluted EPS of $0.01

P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“the Company”) today reported net income of $0.3 million, or diluted and basic earnings per share of $0.01, for the quarter ended March 31, 2024. These results compare to net income of $5.2 million, or diluted earnings per share of $0.23 ($0.24 basic), for the quarter ended March 31, 2023.

Operating revenues decreased 17.6% to $182.6 million for the first quarter of 2024 compared to $221.7 million for the first quarter of 2023.

Joe Vitiritto, President of the Company, commented, “The truckload market continued to be extremely challenging during the first quarter of 2024, characterized by shippers’ continued success in leveraging an overcapacity market to their advantage to attain rates at or below cost. This market backdrop coupled with weather disruptions early in the quarter which drove cost increases and reductions in equipment utilization created a tough environment to get traction in efforts to improve earnings.

“We continue to intensely focus on cost reduction, opportunities to gain efficiency and market positioning to maximize the benefit of an improving freight environment when that occurs. We appreciate the hard work and dedication of our employees as we work through this tough economic cycle.”

Liquidity, Capitalization, and Cash Flow

As of March 31, 2024, we had an aggregate of $185.7 million of cash, marketable equity securities, and available liquidity under our line of credit and $314.6 million of stockholders’ equity. Outstanding debt was $271.6 million as of March 31, 2024, which represents a $9.9 million increase from December 31, 2023.

During the first quarter of 2024, we generated $9.6 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 March 31,

 

2024

 

2023

 

(in thousands, except per share amounts)

 

 

 

 

Revenue, before fuel surcharge

$ 160,969

 

$ 193,454

Fuel surcharge

21,623

 

28,270

Operating revenue

182,592

 

221,724

 

 

 

 

Operating expenses and costs:

 

 

 

Salaries, wages and benefits

44,063

 

48,278

Operating supplies and expenses

34,712

 

41,073

Rent and purchased transportation

73,279

 

87,096

Depreciation

18,935

 

16,497

Insurance and claims

4,861

 

15,435

Other

7,179

 

5,423

Loss(gain) on disposition of equipment

240

 

(577)

Total operating expenses and costs

183,269

 

213,225

 

 

 

 

Operating (loss)income

(677)

 

8,499

 

 

 

 

Interest expense

(2,883)

 

(2,356)

Non-operating income

3,938

 

899

 

 

 

 

Income before income taxes

378

 

7,042

Income tax expense

97

 

1,811

 

 

 

 

Net income

$281

 

$5,231

 

 

 

 

Diluted earnings per share

$0.01

 

$0.23

 

 

 

 

Average shares outstanding – Diluted

22,127

 

22,317

 

 

 

 

 

Quarter ended March 31,

Truckload Operations

2024

 

2023

Total miles

46,062

 

53,729

Operating ratio (1)

104.2%

 

99.3%

Empty miles factor

8.60%

 

8.96%

Revenue per total mile, before fuel surcharge

$2.22

 

$2.33

Total loads

102,200

 

102,430

Revenue per truck per work day

$729

 

$802

Revenue per truck per week

$3,645

 

$4,010

Average company-driver trucks

1,895

 

2,051

Average owner operator trucks

365

 

389

 

 

 

 

Logistics Operations

 

 

 

Total revenue (in thousands)

$58,769

 

$68,256

Operating ratio

93.9%

 

88.8%

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

Condensed Consolidated Balance Sheets

(unaudited)

 

 

March 31,

 

December 31,

 

2024

 

2023

 

(in thousands)

ASSETS

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$79,966

 

$100,614

Trade accounts receivable, net

95,548

 

80,604

Other receivables

6,776

 

7,203

Inventories

2,385

 

2,321

Prepaid expenses and deposits

10,820

 

13,213

Marketable equity securities

45,789

 

43,203

Income taxes refundable

3,804

 

3,883

Total current assets

245,088

 

251,041

 

 

 

 

Property and equipment

771,956

 

771,131

Less: accumulated depreciation

270,631

 

266,412

Total property and equipment, net

501,325

 

504,719

 

 

 

 

Other non-current assets

3,243

 

4,697

Total Assets

$749,656

 

$760,457

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$41,933

 

$62,652

Accrued expenses and other liabilities

16,695

 

16,799

Current portion of long-term debt

52,692

 

57,645

Total current liabilities

111,320

 

137,096

 

 

 

 

Long-term debt, net of current portion

218,870

 

204,064

Deferred income taxes

104,323

 

104,331

Other long-term liabilities

500

 

750

Total liabilities

435,013

 

446,241

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock

223

 

223

Additional paid-in capital

40,971

 

40,825

Treasury stock, at cost

(8,736)

 

(8,736)

Retained earnings

282,185

 

281,904

Total stockholders’ equity

314,643

 

314,216

Total liabilities and stockholders’ equity

$749,656

 

$760,457

 

 

 

 

 

 

 

 

_______________________________________

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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240418669879/en/

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