P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net income of $2,682,191, or diluted and basic earnings per share
of $0.31 for the quarter ended June 30, 2013, and net income of
$2,225,923, or diluted and basic earnings per share of $0.26 for
the six month period then ended. These results compare to net
income of $934,791, or diluted and basic earnings per share of
$0.11, and net income of $1,608,984, or diluted and basic earnings
per share of $0.18, respectively, for the three and six months
ended June 30, 2012.
Operating revenues, including revenue from fuel surcharges, were
$104,407,650 for the second quarter of 2013, a 10.9% increase
compared to $94,155,811 for the second quarter of 2012. Operating
revenues, including fuel surcharges, were $204,389,588 for the six
months ended June 30, 2013, a 7.4% increase compared to
$190,311,220 for the six months ended June 30, 2012.
Daniel H. Cushman, President of the Company, commented, "Second
quarter operating income of $5.0 million was very satisfying and
represents the highest quarterly operating income that we have
reported since the fourth quarter of 2006.
"Revenue, excluding revenue from fuel surcharges, grew by
approximately $7.0 million and represented a 9.4% increase from
second quarter 2012 revenues. The factors that contributed to this
improvement included fleet growth of 3.1%, improved tractor
utilization of 4.7%, a reduction of 1.7% in the empty miles ratio,
and a 2.3% increase in our rate per total mile charged to
customers. Demand for our services was relatively strong and steady
through the second quarter with the exception of a couple of
valuable 'project lanes' that transitioned back to intermodal
suppliers and away from our trucks. However, our success in
securing new business was strong enough in the quarter to replace
these lost lanes and achieve year over year revenue growth.
"As with most other carriers, our random freight division
presents one of our greatest challenges. Due to the non-repetitive
nature of the customers, routes, pickup and transit times, among
other factors, we incur considerably more cost and driver
dissatisfaction with this category of freight. One of our primary
initiatives includes reducing the significance of our random
freight service offering as a percentage of our total freight
service. The percentage of freight serviced by our random freight
division decreased from 45.2% of our total freight in the second
quarter 2012 to 38.7% of our total freight in the second quarter
2013. Providing random freight services is an essential support
function for our other, more profitable divisions, however, our
goal for the random freight division is to reduce its impact to
around 30% of the total freight serviced. We continuously explore
the network availability of random freight service opportunities
and seek to improve profitability through more disciplined choices,
better planning, and more efficient execution.
"Fuel costs were down as the U.S. average price per gallon of
diesel decreased for the second quarter 2013 as compared to the
second quarter 2012. Also contributing to the reduction in fuel
costs were gains in truck fuel efficiency experienced as we
continued to replace older trucks with new, more efficient trucks.
These efficiency gains contributed to a reduction in fuel costs of
approximately $700,000 for the second quarter 2013 as compared to
the second quarter of 2012.
"The average age of our truck fleet improved from 2.0 years at
the end of the second quarter 2012 to 1.5 years at the end of the
second quarter 2013. A newer fleet generally contributes to lower
repair costs, fuel savings, unit utilization, and driver
satisfaction. Our current capital expenditures program is designed
to maintain the 1.5 year average truck age and includes fleet
growth of approximately 100 trucks. In addition, our program
includes the replacement of 60 trailers each month for the
remainder of 2013.
"While we are pleased with our overall results to date, the
second quarter was not without its challenges, especially in the
driver recruiting and retention arena. We, like many of our peers,
continue to grapple with the challenge of acquiring and retaining
professional truck drivers which has hindered our ability for
planned internal growth. We are currently experiencing increased
competition from other transportation providers over a shrinking
pool of qualified professional truck drivers as other industries
such as construction, manufacturing, and agriculture appear as
attractive alternatives to the challenging lifestyle of a
professional truck driver. Despite this challenge, we were able to
end the second quarter of 2013 with 127 more drivers and 203 more
owner operators than those at the end of the second quarter of
2012. However, sustained intense competition for a dwindling pool
of qualified drivers coupled with more stringent governmental
regulations could severely impact our future ability to recruit and
retain qualified professional drivers.
"We would like to congratulate our employees for their hard work
and dedication reflected in our quarterly results, and to 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 June 30, |
Six Months Ended June 30, |
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Revenue, before fuel surcharge |
$80,657,270 |
$73,699,771 |
$158,485,219 |
$148,868,210 |
Fuel surcharge |
23,750,380 |
20,456,040 |
45,904,369 |
41,443,010 |
|
104,407,650 |
94,155,811 |
204,389,588 |
190,311,220 |
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
Salaries, wages and
benefits |
43,846,857 |
33,763,886 |
84,955,420 |
65,805,402 |
Fuel expense |
24,231,485 |
27,388,572 |
51,201,963 |
58,235,323 |
Operating supplies and
expenses |
8,812,376 |
10,118,383 |
17,661,286 |
19,443,485 |
Rent and purchased
transportation |
5,732,884 |
6,325,830 |
12,117,353 |
13,324,075 |
Depreciation |
9,766,340 |
9,307,161 |
19,859,914 |
18,554,185 |
Operating taxes and
licenses |
1,229,685 |
1,239,605 |
2,500,584 |
2,479,401 |
Insurance and claims |
3,809,864 |
3,259,966 |
7,247,855 |
6,594,847 |
Communications and
utilities |
519,147 |
536,872 |
1,119,896 |
1,126,789 |
Other |
1,665,760 |
1,222,896 |
3,325,868 |
2,632,747 |
Gain on disposition of
equipment |
(212,779) |
(279,507) |
(354,988) |
(243,412) |
Total operating expenses and costs |
99,401,619 |
92,883,664 |
199,635,151 |
187,952,842 |
|
|
|
|
|
Operating income |
5,006,031 |
1,272,147 |
4,754,437 |
2,358,378 |
|
|
|
|
|
Interest expense |
(879,612) |
(605,154) |
(1,694,853) |
(1,166,567) |
Non-operating income |
289,335 |
894,576 |
572,205 |
1,488,936 |
|
|
|
|
|
Income before income taxes |
4,415,754 |
1,561,569 |
3,631,789 |
2,680,747 |
Income tax expense |
1,733,563 |
626,778 |
1,405,866 |
1,071,763 |
|
|
|
|
|
Net income |
$2,682,191 |
$934,791 |
$2,225,923 |
$1,608,984 |
|
|
|
|
|
Diluted earnings per share |
$0.31 |
$0.11 |
$0.26 |
$0.18 |
|
|
|
|
|
Average shares outstanding – Diluted |
8,659,472 |
8,703,139 |
8,674,600 |
8,700,763 |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30, |
Six Months Ended June 30, |
Truckload Operations |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Total miles |
54,087,798 |
50,072,772 |
105,831,764 |
100,766,170 |
Operating ratio* |
93.53% |
98.40% |
97.02% |
98.54% |
Empty miles factor |
7.21% |
8.89% |
7.58% |
8.88% |
Revenue per total mile, before fuel
surcharge |
$1.38 |
$1.35 |
$1.38 |
$1.35 |
Total loads |
67,501 |
65,726 |
131,370 |
132,059 |
Revenue per truck per work day |
$651 |
$607 |
$637 |
$610 |
Revenue per truck per week |
$3,255 |
$3,035 |
$3,185 |
$3,050 |
Average company trucks |
1,471 |
1,617 |
1,509 |
1,634 |
Average owner operator trucks |
321 |
122 |
289 |
109 |
|
|
|
|
|
Logistics Operations |
|
|
|
|
Total revenue |
$5,951,402 |
$6,087,304 |
$12,871,196 |
$12,720,596 |
Operating ratio |
97.14% |
96.84% |
96.74% |
97.09% |
|
|
|
|
|
___________________________________________________________ |
|
|
* 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
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