P.A.M. Transportation Services, Inc. Announces Results for the Second Quarter Ended June 30, 2014
July 28 2014 - 11:34AM
P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net income of $4,945,299, or diluted and basic earnings per share
of $0.62 for the quarter ended June 30, 2014, and net income of
$6,301,907, or diluted earnings per share of $0.78 ($0.79 basic)
for the six month period then ended. These results compare to net
income of $2,682,191, or diluted and basic earnings per share of
$0.31, and net income of $2,225,923, or diluted and basic earnings
per share of $0.26, respectively, for the three and six months
ended June 30, 2013.
Operating revenues, including revenue from fuel surcharges, were
$104,343,260 for the second quarter of 2014 compared to
$104,407,650 for the second quarter of 2013. Operating revenues,
including fuel surcharges, were $202,163,653 for the six months
ended June 30, 2014 compared to $204,389,588 for the six months
ended June 30, 2013.
Daniel H. Cushman, President of the Company, commented, "We are
very pleased to announce another quarter of improved results. The
earnings per share results attained so far this year represent a
200% increase as compared to the same period last year and this
quarter's earnings per share represents our highest single quarter
earnings per share results on record. Also, considering that we are
only halfway through the year and have already exceeded the net
income posted for the entirety of last year, we are further
satisfied that our strategic plans are maturing.
"We continue to focus on doing the things that make us special
to our customers. Our Automotive, Mexico, Expedited, and Dedicated
divisions all continue to grow and improve financially. We continue
to seek opportunities that we believe are driver friendly and as a
result, we have increased our driver count despite the difficulties
in the driver market.
"Our strategy remains consistent. Our automotive strategy has
been to diversify and we continue to do that. This freight is
generally very consistent and we are able to recruit and maintain
drivers in this division. Our Expedited Division continues to grow,
and now comprises approximately 20% of our overall revenue. This
division is very diverse and very service sensitive. By the nature
of the business, we keep drivers moving and they get the miles they
desire. We've focused on loading the expedited loads where they
land, and as a result, we are experiencing positive trends in
reducing deadhead. Our Mexico division continues to grow, and
because these lanes generally represent a long length of haul,
drivers like it. The ability to successfully manage this business
so that drivers get to and from the border is imperative in order
to maintain driver satisfaction.
"We have always had a lot of automotive dedicated business. In
the past, we have had limited success in securing dedicated
business outside of the automotive area, but within the last nine
months we have been more successful in the diversification of our
dedicated customer base. Again, this is freight that typically
appeals to drivers.
"Our random freight business is generally our lowest performing
division due to the non-repetitive nature of the customers, routes,
and transit times. We continue to successfully move assets to
better performing divisions and continue to experience growth in
our more profitable divisions as a result. The majority of the
growth in our more profitable divisions has come primarily at the
expense of our random fleet. The resulting decrease in our random
fleet has made it difficult to support our customer base that only
has one way business. We are working hard to find ways to bring
this type of customer more solutions.
"Our brokerage division is obviously one way that we can support
our customers. We are making progress but this continues to be a
great opportunity."
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.
P.A.M. Transportation
Services, Inc. and Subsidiaries |
|
|
|
|
Key Financial and
Operating Statistics |
|
|
|
|
(unaudited) |
|
|
|
|
|
Quarter ended June 30, |
Six Months Ended June 30, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Revenue, before fuel surcharge |
$80,606,497 |
$80,657,270 |
$155,502,109 |
$158,485,219 |
Fuel surcharge |
23,736,763 |
23,750,380 |
46,661,544 |
45,904,369 |
|
104,343,260 |
104,407,650 |
202,163,653 |
204,389,588 |
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
Salaries, wages and benefits
(1) |
27,032,250 |
27,385,801 |
53,067,022 |
54,781,126 |
Fuel expense |
23,425,325 |
24,231,485 |
48,223,174 |
51,201,963 |
Operating supplies and
expenses |
8,155,623 |
8,812,376 |
16,348,600 |
17,661,286 |
Rent and purchased
transportation (1) |
21,956,713 |
22,193,940 |
42,718,627 |
42,291,647 |
Depreciation |
9,166,415 |
9,766,340 |
18,292,252 |
19,859,914 |
Operating taxes and
licenses |
1,117,235 |
1,229,685 |
2,292,000 |
2,500,584 |
Insurance and claims |
3,908,169 |
3,809,864 |
7,650,407 |
7,247,855 |
Communications and
utilities |
585,399 |
519,147 |
1,208,764 |
1,119,896 |
Other |
1,927,868 |
1,665,760 |
3,715,547 |
3,325,868 |
Gain on disposition of
equipment |
(1,521,221) |
(212,779) |
(2,787,448) |
(354,988) |
Total operating expenses and costs |
95,753,776 |
99,401,619 |
190,728,945 |
199,635,151 |
|
|
|
|
|
Operating income |
8,589,484 |
5,006,031 |
11,434,708 |
4,754,437 |
|
|
|
|
|
Interest expense |
(743,144) |
(879,612) |
(1,605,378) |
(1,694,853) |
Non-operating income |
258,901 |
289,335 |
530,537 |
572,205 |
|
|
|
|
|
Income before income taxes |
8,105,241 |
4,415,754 |
10,359,867 |
3,631,789 |
Income tax expense |
3,159,942 |
1,733,563 |
4,057,960 |
1,405,866 |
|
|
|
|
|
Net income |
$4,945,299 |
$2,682,191 |
$6,301,907 |
$2,225,923 |
|
|
|
|
|
Diluted earnings per share |
$0.62 |
$0.31 |
$0.78 |
$0.26 |
|
|
|
|
|
Average shares outstanding – Diluted |
8,034,537 |
8,659,472 |
8,032,801 |
8,674,600 |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30, |
Six Months Ended June 30, |
Truckload Operations |
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Total miles |
53,676,567 |
54,087,798 |
104,698,872 |
105,831,764 |
Operating ratio (2) |
88.85% |
93.53% |
92.36% |
97.02% |
Empty miles factor |
6.63% |
7.21% |
6.77% |
7.58% |
Revenue per total mile, before fuel
surcharge |
$1.40 |
$1.38 |
$1.38 |
$1.38 |
Total loads |
73,268 |
67,501 |
140,508 |
131,370 |
Revenue per truck per work day |
$662 |
$651 |
$635 |
$637 |
Revenue per truck per week |
$3,310 |
$3,255 |
$3,175 |
$3,185 |
Average company-driver trucks |
1,437 |
1,471 |
1,448 |
1,509 |
Average owner operator trucks |
341 |
321 |
347 |
289 |
|
|
|
|
|
Logistics Operations |
|
|
|
|
Total revenue |
$5,229,251 |
$5,951,402 |
$10,678,231 |
$12,871,196 |
Operating ratio |
96.53% |
97.14% |
96.48% |
96.74% |
_______________________________________ |
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
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
P A M Transport Services (NASDAQ:PTSI)
Historical Stock Chart
From Aug 2024 to Sep 2024
P A M Transport Services (NASDAQ:PTSI)
Historical Stock Chart
From Sep 2023 to Sep 2024