P.A.M. Transportation Services, Inc. Announces Results for the Second Quarter Ended June 30, 2010
July 27 2010 - 12:00PM
P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net income of $1,261,577 or diluted and basic earnings per share of
$0.13 for the quarter ended June 30, 2010, and net income of
$946,134 or diluted and basic earnings per share of $0.10 for the
six month period then ended. These results compare to a net loss of
$2,356,317 or diluted and basic loss per share of $0.25, and net
loss of $5,702,244 or diluted and basic loss per share of $0.61,
respectively, for the three and six months ended June 30, 2009.
Operating revenues, including revenue from fuel surcharges, were
$85,237,911 for the second quarter of 2010, a 24.5% increase
compared to $68,476,476 for the second quarter of 2009. Operating
revenues, including fuel surcharges, were $167,084,734 for the six
months ended June 30, 2010, a 24.4% increase compared to
$134,294,511 for the six months ended June 30, 2009.
Daniel H. Cushman, President of the Company, commented, "We were
very pleased with our operating results for the quarter, which were
not only favorable for obvious financial reasons, but also to
reinforce to everyone in our organization that our focused efforts
yielded the desired results. Our operating income for the quarter
was $2.3 million versus an operating loss of $3.6 million for the
second quarter of 2009, which is a $5.9 million improvement quarter
over quarter. Year to date operating income improved $9.5 million,
from an operating loss of $7.2 million as of June 30, 2009 to
operating income of $2.3 million as of June 20, 2010. To our
shareholders, this improvement translates to a $0.38 improvement in
quarterly earnings per share from a $0.25 loss to a $0.13 gain, and
a $0.71 improvement in year over year earnings per share from a
$0.61 net loss per share as of June 30, 2009 to $0.10 earnings per
share as of June 30, 2010. To our employees this means the removal
of the five percent pay reduction that was implemented last
year.
"Improvements in several of our key performance indicators
contributed to our improved results. Equipment utilization improved
14.5%, from 392 miles per truck per day in the second quarter 2009
to 449 miles per truck per day for the second quarter 2010. We
were able to reduce the percentage of empty miles by 30.8% from
8.5% for the second quarter of 2009 to 5.9% for the second quarter
of 2010. Our rate per mile was $1.23 for the second quarter 2010
compared to $1.24 for the second quarter 2009, which by itself
appears to be a negative trend. However, this is actually a
positive when the quarter over quarter reduction in our dependence
on brokerage freight from 8.4% for the second quarter 2009 compared
to 1.7% for the second quarter 2010 is considered. The reason this
is important is because the majority of brokerage freight is hauled
for a flat fee which includes fuel surcharge, making the rate per
mile appear more favorable. Non-brokerage freight includes both a
rate component that is included in our rate per mile calculation
and a fuel surcharge which is not included in our rate per mile.
Therefore, the fact that our rate per mile went down $0.01 while
reducing our brokerage freight by 79.8% was a noteworthy factor in
our improved operating results. We believe this trend will continue
into the second half of the year.
"We are seeing a continued trend towards shipping capacity
shortages in the marketplace. There are several ways to approach a
market that has turned favorable to carriers after a long period of
being at a dramatic disadvantage due to overcapacity. We have
chosen an approach of 'rate corrections' as opposed to 'rate
increases'. Our rate corrections are based on supportable facts
that we can sit down with our customers and discuss. This
information has become available through our continued investment
in a yield management team and tools that allow us to determine the
right freight at the right price going to the right place. We have
found both our existing customers and our new customers to be
supportive of this approach in a market place proliferated with
carriers aggressively seeking rate increases based on the maximum
amounts that various markets will tolerate. We see our approach as
a sustainable opportunity to gain market share through growth in
business with existing customers and gaining business with new
customers as others impose aggressive rate increases on the
marketplace. Results of these efforts are highlighted by the fact
that 20% of customers in our top one hundred customer list were
added in the last 12 months.
"We are very pleased by our return to profitability for each
month of the second quarter and thank our customers for their
support and our employees for their hard work and dedication in
positioning PAM Transport for success."
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.
The PAM Transportation Services, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5148
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 update or clarify
forward-looking statements, whether as a result of new information,
future events or otherwise.
P.A.M. Transportation Services,
Inc. and Subsidiaries |
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Key Financial and Operating Statistics |
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(unaudited) |
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Quarter ended June 30, |
Six Months Ended June 30, |
|
2010 |
2009 |
2010 |
2009 |
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Revenue, before fuel surcharge |
$71,939,526 |
$62,367,050 |
$142,298,461 |
$122,636,632 |
Fuel surcharge |
13,298,385 |
6,109,426 |
24,786,273 |
11,657,879 |
|
85,237,911 |
68,476,476 |
167,084,734 |
134,294,511 |
Operating expenses and costs: |
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Salaries, wages and benefits |
26,974,312 |
24,011,960 |
53,970,159 |
48,085,009 |
Fuel expense |
24,692,341 |
16,560,352 |
48,991,723 |
31,483,186 |
Operating supplies and expenses |
7,126,732 |
6,823,616 |
14,090,177 |
13,225,772 |
Rent and purchased transportation |
11,285,405 |
9,544,575 |
22,322,386 |
18,620,406 |
Depreciation |
6,505,440 |
8,569,755 |
13,041,467 |
17,380,058 |
Operating taxes and licenses |
1,272,680 |
1,402,107 |
2,321,046 |
2,695,966 |
Insurance and claims |
3,194,700 |
3,130,613 |
6,433,267 |
6,172,820 |
Communications and utilities |
664,353 |
637,662 |
1,369,689 |
1,335,800 |
Other |
1,229,576 |
1,291,954 |
2,283,851 |
2,449,538 |
(Gain) loss on disposition of
equipment |
(27,704) |
67,501 |
(29,383) |
24,252 |
Total operating expenses and costs |
82,917,835 |
72,040,095 |
164,794,382 |
141,472,807 |
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Operating income (loss) |
2,320,076 |
(3,563,619) |
2,290,352 |
(7,178,296) |
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Interest expense |
(606,441) |
(629,268) |
(1,106,921) |
(1,292,923) |
Non-operating income (expense) |
378,890 |
199,880 |
387,959 |
(666,993) |
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Income (loss) before income taxes |
2,092,525 |
(3,993,007) |
1,571,390 |
(9,138,212) |
Income tax expense (benefit) |
830,948 |
(1,636,690) |
625,256 |
(3,435,968) |
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Net income (loss) |
$1,261,577 |
$(2,356,317) |
$946,134 |
$(5,702,244) |
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Diluted earnings (loss) per share |
$0.13 |
$(0.25) |
$0.10 |
$(0.61) |
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Average shares outstanding – Diluted |
9,420,600 |
9,412,292 |
9,419,134 |
9,412,356 |
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Quarter ended June 30, |
Six Months Ended June 30, |
Truckload Operations |
2010 |
2009 |
2010 |
2009 |
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Total miles |
49,472,218 |
42,912,482 |
98,177,299 |
83,490,826 |
Operating ratio* |
96.38% |
107.12% |
98.42% |
107.35% |
Empty miles factor |
5.89% |
8.51% |
6.16% |
8.32% |
Revenue per total mile, before fuel
surcharge |
$1.23 |
$1.24 |
$1.23 |
$1.26 |
Total loads |
73,817 |
68,621 |
146,201 |
133,567 |
Revenue per truck per work day |
$552 |
$486 |
$550 |
$474 |
Revenue per truck per week |
$2,760 |
$2,430 |
$2,735 |
$2,370 |
Average company trucks |
1,723 |
1,679 |
1,712 |
1,711 |
Average owner operator trucks |
27 |
33 |
30 |
33 |
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Logistics Operations |
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Total revenue |
$11,127,754 |
$9,112,546 |
$21,505,876 |
$17,732,534 |
Operating ratio |
98.90% |
97.48% |
98.22% |
96.91% |
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* 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.
Larry J. Goddard
(479) 361-9111
P.O. BOX 188
Tontitown, AR 72770
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