P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
adjusted net income of $4,649,901 or adjusted diluted earnings per
share of $0.58 for the quarter ended December 31, 2014. Adjusted
net income and adjusted diluted earnings per share exclude the
negative impact of an estimated amount reserved in the fourth
quarter of 2014 for the anticipated settlement of a lawsuit which
claims that the Company was in violation of minimum wage laws with
regard to certain activities performed by employee drivers.
Including the negative impact of the charge for the anticipated
settlement, net income increased 64.6% to $2,132,541 or diluted and
basic earnings per share of $0.27 for the quarter ended December
31, 2014 as compared to net income of $1,295,393 or diluted and
basic earnings per share of $0.15 for the quarter ended December
31, 2013.
Net income for the year ended December 31, 2014 increased 128.1%
to $13,491,430 or diluted earnings per share of $1.68 ($1.69 basic)
compared to net income of $5,914,814 or diluted and basic earnings
per share of $0.68 for the year ended December 31, 2013. Excluding
the impact of the estimated amount reserved in the fourth quarter
for the anticipated lawsuit settlement, adjusted net income and
adjusted diluted earnings per share for the year ended December 31,
2014 were $15,958,341 and $1.99, respectively.
Operating revenues, including revenue from fuel surcharges,
increased 5.4% to $101,714,604 for the fourth quarter of 2014
compared to $96,545,594 for the fourth quarter of 2013. Operating
revenues, including fuel surcharges, were $410,937,229 for the year
ended December 31, 2014 compared to $402,813,020 for the year ended
December 31, 2013.
Daniel H. Cushman, President of the Company, commented, "We have
had an extremely satisfying year. Beginning with second quarter, we
had very consistent operating profits which averaged in the $8
million range for each quarter when excluding the fourth quarter
lawsuit settlement reserve. Our model, which consists of our
Automotive Division, Expedited Division, Dedicated Division, Mexico
Division and random Van Division, has been very consistent.
"We have also continued to diversify our customer base in each
division. One thing that we were not able to do, that we have done
in the past, is take advantage of seasonal opportunities in the
fourth quarter. This type of opportunity is generally a result of
utilizing a large random freight fleet, and according to our own
goals, we have reduced our random fleet in exchange for more driver
friendly freight and routes. We believe our random fleet is
currently right-sized for our immediate needs, which is to support
the backhaul needs of our other divisions as well as servicing our
customer base that only has one-way freight. We have also started
to focus more efforts into our brokerage division which has seen
considerable growth in the most recent 60 days and is gaining great
momentum.
"All of our key performance indicators, from an operating
standpoint, have improved quarter over quarter as well as year over
year. Empty miles improved 1.3% and revenue per truck each week
improved 7.4% in the fourth quarter. For the year, empty miles
improved 7.2% and revenue per truck each week improved 2.7%. We
continue to see an increase in our base rate per mile although the
increase is skewed lower due to our largest customer switching to a
different rate structure. Under this new rate structure, a portion
of the base rate has been pushed into the fuel surcharge category
which reduces the per mile base rate reported.
"We have increased driver pay by varying amounts in certain
divisions and continue to invest in and grow our student driver
solution. While the driver market remains very challenging, we feel
we offer driving professionals a great opportunity to make a good
living, experience some of the most driver friendly routes
available, and drive a newer model truck. We continue to offer our
drivers and customers one of the newest fleets in the industry and
as a result our drivers and customers recognize our commitment to
safety, reliability and service.
"We are very proud of the fact that the results for 2014 would
have been the best in the Company's 35 year history were it not for
the negative impact of the reserve for the lawsuit settlement. The
continued strong demand for our services and favorable fuel prices
are certainly encouraging as we set our sights on the remainder of
2015 for which we intend to focus on growth and continuous
profitability improvements."
In addition to our results under United States generally
accepted accounting principles (GAAP), this press release also
includes non-GAAP financial measures termed adjusted net income and
adjusted diluted earnings per share. The Company defines adjusted
net income and adjusted diluted earnings per share as GAAP net
income and GAAP diluted earnings per share, respectively, plus the
amount reserved for the anticipated settlement of the minimum wage
lawsuit, less the tax benefit associated with the settlement.
Management believes that reporting adjusted net income and adjusted
diluted earnings per share more clearly reflects the Company's
current operating results and provides investors with a better
understanding of the Company's overall financial performance. In
addition, the adjusted results, although not a financial measure
under GAAP, facilitate the ability to analyze the Company's
financial results in relation to those of its competitors and to
the Company's prior financial performance by excluding items which
otherwise would distort the comparison. However, because not all
companies use identical calculations, the Company's presentation of
adjusted results may not be comparable to similarly titled measures
of other companies. Adjusted net income or adjusted diluted
earnings per share are not recognized terms under GAAP, do not
purport to be alternatives to, and should be considered in addition
to, and not as a substitute for or superior to, net income or
diluted earnings per share as defined under GAAP.
Pursuant to the requirements of Regulation G, we have provided a
tabular reconciliation of GAAP net income to adjusted net income
and GAAP diluted earnings per share to adjusted diluted earnings
per share in this press release.
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 December 31, |
Twelve Months Ended December
31, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Revenue, before fuel surcharge |
$78,923,809 |
$75,469,175 |
$316,583,955 |
$313,116,995 |
Fuel surcharge |
22,790,795 |
21,076,419 |
94,353,274 |
89,696,025 |
|
101,714,604 |
96,545,594 |
410,937,229 |
402,813,020 |
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
Salaries, wages and
benefits |
26,971,358 |
25,967,999 |
108,370,974 |
107,037,366 |
Operating supplies and
expenses |
28,314,741 |
32,462,836 |
126,874,439 |
137,267,664 |
Rent and purchased
transportation |
25,075,271 |
20,716,991 |
90,831,124 |
85,225,650 |
Depreciation |
8,966,884 |
9,552,111 |
36,296,221 |
39,087,688 |
Insurance and claims |
8,148,524 |
3,621,365 |
20,273,664 |
14,586,585 |
Other |
2,289,316 |
2,188,674 |
9,871,459 |
8,956,502 |
Gain on disposition of
equipment |
(1,177,467) |
(31,903) |
(4,591,185) |
(854,491) |
Total operating expenses and costs |
98,588,627 |
94,478,073 |
387,926,696 |
391,306,964 |
|
|
|
|
|
Operating income |
3,125,977 |
2,067,521 |
23,010,533 |
11,506,056 |
|
|
|
|
|
Interest expense |
(659,535) |
(834,235) |
(2,897,272) |
(3,374,948) |
Non-operating income |
974,262 |
837,220 |
2,099,362 |
1,539,629 |
|
|
|
|
|
Income before income taxes |
3,440,704 |
2,070,506 |
22,212,623 |
9,670,737 |
Income tax expense |
1,308,163 |
775,113 |
8,721,193 |
3,755,923 |
|
|
|
|
|
Net income |
$2,132,541 |
$1,295,393 |
$13,491,430 |
$5,914,814 |
|
|
|
|
|
Diluted earnings per share |
$0.27 |
$0.15 |
$1.68 |
$0.68 |
|
|
|
|
|
Average shares outstanding – Diluted |
8,026,979 |
8,683,400 |
8,034,376 |
8,681,921 |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended December 31, |
Twelve Months Ended December
31, |
Truckload Operations |
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Total miles |
51,176,203 |
50,874,675 |
209,990,358 |
209,837,462 |
Operating ratio (1) |
95.91% |
97.21% |
92.42% |
96.24% |
Empty miles factor |
7.01% |
7.10% |
6.80% |
7.33% |
Revenue per total mile, before fuel
surcharge |
$1.40 |
$1.39 |
$1.39 |
$1.38 |
Total loads |
69,651 |
63,971 |
282,446 |
260,970 |
Revenue per truck per work day |
$657 |
$612 |
$650 |
$633 |
Revenue per truck per week |
$3,285 |
$3,060 |
$3,250 |
$3,165 |
Average company-driver trucks |
1,403 |
1,467 |
1,433 |
1,483 |
Average owner operator trucks |
333 |
365 |
340 |
322 |
|
|
|
|
|
Logistics Operations |
|
|
|
|
Total revenue |
$7,062,430 |
$4,856,509 |
$23,862,708 |
$23,033,491 |
Operating ratio |
97.37% |
97.96% |
96.53% |
97.35% |
|
|
|
|
|
P.A.M. Transportation Services, Inc. and
Subsidiaries |
|
|
|
|
Reconciliation of GAAP Measures to Non-GAAP
Amounts |
|
|
|
|
Reconciliation of Net Income to Adjusted Net
Income |
|
|
|
|
(unaudited) |
|
|
|
|
|
Quarter ended December 31, |
Twelve Months Ended December
31, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Net income (GAAP) |
$2,132,541 |
$1,295,393 |
$13,491,430 |
$5,914,814 |
|
|
|
|
|
Additions: |
|
|
|
|
Minimum wage lawsuit settlement
reserve estimate |
4,061,583 |
-- |
4,061,583 |
-- |
|
|
|
|
|
Reductions: |
|
|
|
|
Tax benefit of lawsuit
settlement deduction (2) |
1,544,223 |
-- |
1,594,672 |
-- |
|
|
|
|
|
Adjusted net income (non-GAAP) |
$4,649,901 |
$1,295,393 |
$15,958,341 |
$5,914,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P.A.M. Transportation Services, Inc. and
Subsidiaries |
|
|
|
|
Reconciliation of GAAP Measures to Non-GAAP
Amounts |
|
|
|
|
Reconciliation of Diluted Earnings Per Share
to |
|
|
|
|
Adjusted Diluted Earnings Per Share |
|
|
|
|
(unaudited) |
|
|
|
|
|
Quarter ended December 31, |
Twelve Months Ended December
31, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Diluted earnings per share (GAAP) |
$0.27 |
$0.15 |
$1.68 |
$0.68 |
|
|
|
|
|
Additions: |
|
|
|
|
Minimum wage lawsuit settlement
reserve estimate |
0.51 |
-- |
0.51 |
-- |
|
|
|
|
|
Reductions: |
|
|
|
|
Tax benefit of lawsuit
settlement deduction (2) |
0.20 |
-- |
0.20 |
-- |
|
|
|
|
|
Adjusted diluted earnings per share
(non-GAAP) |
$0.58 |
$0.15 |
$1.99 |
$0.68 |
|
|
|
|
|
_______________________________________ |
|
|
|
|
|
|
|
|
|
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. |
2) The tax benefit is calculated
using the effective tax rates for each respective period prior to
any adjustments for non-GAAP amounts. |
CONTACT: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111
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