P.A.M. Transportation Services, Inc. Announces Results for the First Quarter Ended March 31, 2016
April 29 2016 - 12:25PM
P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) today reported
net income of $2,934,651 or diluted and basic earnings per share of
$0.41 for the quarter ended March 31, 2016. These results compare
to net income of $5,369,218 or diluted and basic earnings per share
of $0.72 for the quarter ended March 31, 2015.
Operating revenues, before fuel surcharge
revenue, increased 13.3% to $93,648,947 for the first quarter of
2016 compared to $82,684,570 for the first quarter of 2015. Fuel
surcharge revenue decreased to $9,940,274 for the first quarter of
2016 from $16,798,584 for the first quarter of 2015 as fuel prices
were significantly lower during the first quarter of 2016. Total
operating revenues increased to $103,589,221 for the first quarter
of 2016 compared to $99,483,154 for the first quarter of 2015.
Daniel H. Cushman, President of the Company,
commented, “Despite the softer freight environment, we were able to
achieve base revenue growth of over 13% during the first quarter of
2016. This growth came primarily from an increase in our overall
fleet size and from growth in our Dedicated and Mexico divisions.
Fuel surcharge revenue continued to be lower on a year-over-year
basis as fuel prices remained lower in 2016. While revenue growth
was positive, it was not enough to overcome the many cost
challenges we faced in year-over-year cost comparables, primarily
as they relate to fuel costs, driver acquisition costs, and health
care costs.
“We experienced a $1.2 million increase in net
fuel costs as a result of relatively stable fuel prices during the
first quarter of 2016 as compared to the steady decline in fuel
prices during the first quarter of 2015.
“Throughout 2015, we began to make certain
changes to our driver recruiting and retention programs which had
the effect of increasing our driver acquisition costs incrementally
throughout 2015 and into 2016. The impact of the cost increase was
approximately $1.4 million in additional driver acquisition costs
during the first quarter of 2016 as compared to the first quarter
of 2015. Due to the incremental nature of costs under these
programs, we expect the year over year impact to lessen throughout
the remainder of 2016.
“We also had a difficult first quarter in health
care claims cost. This is something that is difficult to both
predict and control. During the first quarter of 2016, we
experienced a larger number of high-dollar health care claims which
resulted in an increase of $1.0 million, or 87%, in health care
costs for the first quarter of 2016 as compared to the first
quarter of 2015.
“While we are not satisfied with our earnings
results for the first quarter of 2016, they do represent one of our
top three best reported results for a first quarter. We remain
optimistic that our business model will allow us the flexibility to
quickly adapt to changing market conditions so that we can advance
our goal of continuous improvement.
“Following the close of the first quarter of
2016, we finalized the modified Dutch auction tender offer that was
initiated during the first quarter of 2016. As a result of the
Dutch auction, the Company repurchased 567,413 shares of its common
stock in April 2016. A total of approximately 2.2 million shares of
common stock have been repurchased by the Company since its first
Dutch auction in 2013. Additionally, approximately 435,000 shares
remain available for purchase under our previously authorized stock
repurchase program.
“For the remainder of 2016, we will continue to
focus on revenue growth opportunities which are driver friendly and
provide a reasonable rate of return. Given the current state of the
driver market, we expect that we will continue to see driver pay
pressure during the remainder of 2016 and the near future. Many of
our competitors have announced significant across-the-board driver
pay increases over the last few years while we have limited our
driver pay increases to select drivers based on lane-by-lane
profitability and desirability. We cannot rule out the possibility
of a future broad based pay rate increase to our drivers and
third-party owner operators.”
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 SubsidiariesKey Financial and
Operating Statistics(unaudited) |
|
|
|
|
Quarter ended March 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
Revenue,
before fuel surcharge |
|
|
|
$ |
93,648,947 |
|
|
$ |
82,684,570 |
|
Fuel
surcharge |
|
|
|
|
9,940,274 |
|
|
|
16,798,584 |
|
|
|
|
|
|
103,589,221 |
|
|
|
99,483,154 |
|
|
|
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
|
|
Salaries, wages and benefits |
|
|
|
|
27,482,330 |
|
|
|
25,933,323 |
|
Operating supplies and
expenses |
|
|
|
|
19,118,663 |
|
|
|
23,165,278 |
|
Rent and purchased
transportation |
|
|
|
|
37,387,040 |
|
|
|
29,056,876 |
|
Depreciation |
|
|
|
|
9,176,736 |
|
|
|
7,557,202 |
|
Insurance and claims |
|
|
|
|
4,058,436 |
|
|
|
3,405,632 |
|
Other |
|
|
|
|
2,169,614 |
|
|
|
2,379,486 |
|
Gain on disposition of
equipment |
|
|
|
|
(1,389,834 |
) |
|
|
(1,161,412 |
) |
Total
operating expenses and costs |
|
|
|
|
98,002,985 |
|
|
|
90,336,385 |
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
5,586,236 |
|
|
|
9,146,769 |
|
|
|
|
|
|
|
|
Interest
expense |
|
|
|
|
(822,322 |
) |
|
|
(616,782 |
) |
Non-operating (loss) income |
|
|
|
|
(22,266 |
) |
|
|
244,678 |
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
|
|
4,741,648 |
|
|
|
8,774,665 |
|
Income
tax expense |
|
|
|
|
1,806,997 |
|
|
|
3,405,447 |
|
|
|
|
|
|
|
|
Net
income |
|
|
|
$ |
2,934,651 |
|
|
$ |
5,369,218 |
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
|
|
$ |
0.41 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
Average
shares outstanding – Diluted |
|
|
|
|
7,144,196 |
|
|
|
7,467,405 |
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended March 31, |
Truckload Operations |
|
|
|
|
2016 |
|
|
|
2015 |
|
Total
miles |
|
|
|
|
57,362,679 |
|
|
|
51,836,268 |
|
Operating ratio (1) |
|
|
|
|
93.72 |
% |
|
|
87.71 |
% |
Empty
miles factor |
|
|
|
|
6.55 |
% |
|
|
6.59 |
% |
Revenue per total mile,
before fuel surcharge |
|
|
|
$ |
1.43 |
|
|
$ |
1.40 |
|
Total
loads |
|
|
|
|
79,692 |
|
|
|
72,136 |
|
Revenue
per truck per work day |
|
|
|
$ |
678 |
|
|
$ |
642 |
|
Revenue
per truck per week |
|
|
|
$ |
3,390 |
|
|
$ |
3,210 |
|
Average
company-driver trucks |
|
|
|
|
1,379 |
|
|
|
1,430 |
|
Average
owner operator trucks |
|
|
|
|
511 |
|
|
|
362 |
|
|
|
|
|
|
|
|
Logistics Operations |
|
|
|
|
|
|
Total
revenue |
|
|
|
$ |
11,541,840 |
|
|
$ |
10,155,167 |
|
Operating ratio |
|
|
|
|
96.24 |
% |
|
|
97.72 |
% |
_____________________________________
1) 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.
P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111
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