P.A.M. Transportation Services, Inc. Announces Results for the First Quarter Ended March 31, 2013
April 24 2013 - 6:00PM
P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net loss of $456,267 or diluted and basic loss per share of $0.05
for the quarter ended March 31, 2013. These results compare to net
income of $674,193 or diluted and basic earnings per share of $0.08
for the quarter ended March 31, 2012. Operating revenues were
$99,981,938 for the first quarter of 2013, a 4.0% increase compared
to $96,155,411 for the first quarter of 2012.
Daniel H. Cushman, President of the Company, commented,
"Revenue, excluding fuel surcharge, grew by 3.5% for the first
quarter 2013 compared to the first quarter 2012. This growth was
driven by a 57 truck increase in our average fleet size, a 10%
reduction in uncompensated empty miles and 4.3% year over year
growth in our Supply Chain Solutions revenue and was accomplished
despite one less business day in the first quarter 2013 compared to
2012. We achieved virtually flat equipment utilization year to year
in spite of more challenging weather conditions in 2013 compared to
the relatively mild first quarter in 2012, and Easter and Good
Friday falling in the first quarter in 2013 compared to being in
the second quarter in 2012.
"However, growth in expenses outpaced year to year revenue
growth increasing to 100.3% of revenue in the first quarter 2013
from 98.6% of revenue in the first quarter 2012. The first quarter
2013 was burdened by an approximate $600,000 increase in workers
compensation reserve for a single accident. In total, workers
compensation increased by $1.0 million for the first quarter 2013
compared to 2012 and accounted for approximately 1.3% of the 1.8%
overall increase in operating expenses as a percentage of operating
revenue for the quarters compared.
"While we have been successful in keeping our trucks manned,
costs associated with attracting, training and qualifying enough
drivers to outpace turnover are increasing. As the economy
recovers, we not only see increasing competition from other
transportation providers, but also heightened demand from
construction, manufacturing and agriculture, among others. We ended
the quarter with 208 more drivers and 162 more owner operators than
we ended with in the first quarter 2012. We continue to focus on
programs and processes centered on our driving associates and our
dedication to creating value for them with PAM in an intensely
competitive market.
"Diesel fuel prices, as reported by the Department of Energy,
averaged approximately $0.06 higher during the first quarter 2013
than the first quarter 2012. The harsher weather conditions of the
first quarter 2013 increased the number of gallons used while
idling, which combined with the higher price, offset much of the
year over year improvement we have been seeing from our newer
equipment and fuel efficiency programs. We continue to focus on
fuel saving strategies involving equipment specifications, driver
performance bonuses, improving fuel surcharge coverage, and fuel
cost negotiation among others.
"The average age of our tractor fleet reached 1.50 years at the
end of the first quarter of 2013, which represents one of the
newest fleets in our peer group. Our current capital expenditure
plan would maintain this tractor age and includes fleet growth of
approximately 100 trucks. In addition to tractor purchases, we plan
to purchase 60 new trailers per month for the remainder of 2013
while retiring 60 old trailers to further reduce maintenance
expense, increase fuel efficiency, and increase customer and driver
satisfaction.
"We would like to commend our dedicated employees and thank our
customers, suppliers and shareholders for their continued
commitment and support."
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 March 31, |
|
2013 |
2012 |
|
|
|
Revenue, before fuel surcharge |
$77,827,949 |
$75,168,440 |
Fuel surcharge |
22,153,989 |
20,986,971 |
|
99,981,938 |
96,155,411 |
|
|
|
Operating expenses and costs: |
|
|
Salaries, wages and
benefits |
41,108,563 |
32,041,516 |
Fuel expense |
26,970,478 |
30,846,752 |
Operating supplies and
expenses |
8,848,910 |
9,325,103 |
Rent and purchased
transportation |
6,384,468 |
6,998,246 |
Depreciation |
10,093,574 |
9,247,024 |
Operating taxes and
licenses |
1,270,899 |
1,239,796 |
Insurance and claims |
3,437,991 |
3,334,881 |
Communications and
utilities |
600,749 |
589,917 |
Other |
1,660,107 |
1,409,851 |
(Gain) loss on disposition of
equipment |
(142,208) |
36,095 |
Total operating expenses and costs |
100,233,531 |
95,069,181 |
|
|
|
Operating (loss) income |
(251,593) |
1,086,230 |
|
|
|
Interest expense |
(815,242) |
(561,413) |
Non-operating income |
282,871 |
594,361 |
|
|
|
(Loss) income before income taxes |
(783,964) |
1,119,178 |
Income tax (benefit) expense |
(327,697) |
444,985 |
|
|
|
Net (loss) income |
$(456,267) |
$674,193 |
|
|
|
Diluted (loss) earnings per share |
$(0.05) |
$0.08 |
|
|
|
Average shares outstanding – Diluted |
8,688,433 |
8,698,393 |
|
|
|
|
Quarter ended March 31, |
Truckload Operations |
2013 |
2012 |
|
|
|
Total miles |
51,743,966 |
50,693,398 |
Operating ratio* |
100.71% |
98.67% |
Empty miles factor |
7.97% |
8.87% |
Revenue per total mile, before fuel
surcharge |
$1.37 |
$1.35 |
Total loads |
63,869 |
66,333 |
Revenue per truck per work day |
$624 |
$613 |
Revenue per truck per week |
$3,120 |
$3,065 |
Average company trucks |
1,546 |
1,651 |
Average owner operator trucks |
257 |
95 |
|
|
|
Logistics Operations |
|
|
Total revenue |
$6,919,794 |
$6,633,291 |
Operating ratio |
96.40% |
97.33% |
________________________________ |
|
|
* 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
Lance K. Stewart
(479) 361-9111
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