P.A.M. Transportation Services, Inc. Announces Results for the Third Quarter Ended September 30, 2013
October 25 2013 - 1:16PM
P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net income of $2,393,497, or diluted and basic earnings per share
of $0.28 for the quarter ended September 30, 2013, and net income
of $4,619,422, or diluted and basic earnings per share of $0.53 for
the nine month period then ended. These results compare to net
income of $880,907, or diluted and basic earnings per share of
$0.10, and net income of $2,489,890, or diluted and basic earnings
per share of $0.29, respectively, for the three and nine months
ended September 30, 2012.
Operating revenues, including revenue from fuel surcharges, were
$101,877,837 for the third quarter of 2013, a 7.8% increase
compared to $94,548,874 for the third quarter of 2012. Operating
revenues, including fuel surcharges, were $306,267,426 for the nine
months ended September 30, 2013, a 7.5% increase compared to
$284,860,094 for the nine months ended September 30, 2012.
Daniel H. Cushman, President of the Company, commented, "We are
pleased with our recent quarterly performance which affirms some of
the strategies we have implemented in order to achieve consistent
profitability. Operating income for the third quarter of 2013
increased almost 400% as compared to operating income for the third
quarter of 2012. In fact, operating income for each month of the
third quarter this year exceeded the entire third quarter 2012
operating income. As such, we have demonstrated improved
profitability each month versus the same month of the prior year.
Last year, we reported that during July 2012 we experienced the
first July of profitability in a decade as diversification of our
customer base helped mitigate the impact of scheduled shutdown
periods with automotive customers. This July, we more than tripled
that July 2012 profitability. Our goal has been and continues to be
the achievement of a sustainable profit model.
"We have stayed on course in terms of our strategic diversity
plan as we have continued to diversify our customer base and are
constantly in search of opportunities for growth. While we want to
achieve overall revenue growth and diversity, we are currently
focused on growth in our Mexico Division, Expedited Division,
Automotive Division, Dedicated Division and Supply Chain Solutions
offering. Along with growth in those areas, we are also
concentrated on efforts to reduce the portion of our business
represented by our random freight offering. Due to the
non-repetitive nature of the customers, routes, pickup and transit
times, we incur considerably more cost and driver dissatisfaction
with this random freight business. During the third quarter of
2013, we reduced the percentage of freight serviced by our random
freight division to 38.1% from 40.5% in the third quarter of 2012.
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 service in this division to
around 30% of the total freight services.
"Revenue, excluding revenue from fuel surcharges, grew by
approximately $5.0 million and represented a 6.4% increase compared
to the third quarter of 2012. The primary factors that contributed
to this improvement included improved tractor utilization of 4.5%
and a reduction of 1.5% in the empty miles ratio. Demand for our
services was relatively strong and steady throughout the third
quarter.
"The average age of our truck fleet improved from 1.9 years old
at the end of the third quarter 2012 to 1.3 years old at the end of
the third quarter 2013. A newer fleet generally contributes to
lower repair costs, fuel savings, unit utilization, and driver
satisfaction. We have generally experienced these positive
benefits.
"While we are pleased with our overall results to date, the
third quarter was not without its challenges, especially in the
area of driver recruiting and retention. We anticipate that this
challenge is not going to ease anytime in the near future. We know
that driver recruiting and retention is an industry wide challenge.
We will continue to strive to provide our driving professionals a
steady, predictable income, consistent and predictable home time,
quality equipment and the best support group in the industry.
"We would like to thank our employees for their hard work and
dedication, 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 September
30, |
Nine Months Ended September
30, |
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Revenue, before fuel surcharge |
$79,162,601 |
$74,431,498 |
$237,647,821 |
$223,299,708 |
Fuel surcharge |
22,715,236 |
20,117,376 |
68,619,605 |
61,560,386 |
|
101,877,837 |
94,548,874 |
306,267,426 |
284,860,094 |
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
Salaries, wages and benefits (1) |
26,288,240 |
26,345,215 |
81,069,366 |
81,728,297 |
Fuel expense |
23,499,758 |
26,426,777 |
74,701,721 |
84,662,101 |
Operating supplies and expenses |
8,779,431 |
10,302,930 |
26,440,717 |
29,746,415 |
Rent and purchased transportation
(1) |
22,217,014 |
14,388,325 |
64,508,659 |
38,134,721 |
Depreciation |
9,675,662 |
9,638,665 |
29,535,576 |
28,192,850 |
Operating taxes and licenses |
1,161,805 |
1,246,297 |
3,662,390 |
3,725,698 |
Insurance and claims |
3,717,365 |
3,487,272 |
10,965,220 |
10,082,119 |
Communications and utilities |
558,381 |
532,901 |
1,678,278 |
1,659,690 |
Other |
1,763,683 |
1,087,826 |
5,089,550 |
3,720,573 |
(Gain) loss on disposition of
equipment |
(467,600) |
153,727 |
(822,588) |
(89,685) |
Total operating expenses and costs |
97,193,739 |
93,609,935 |
296,828,889 |
281,562,779 |
|
|
|
|
|
Operating income |
4,684,098 |
938,939 |
9,438,537 |
3,297,315 |
|
|
|
|
|
Interest expense |
(845,859) |
(644,967) |
(2,540,713) |
(1,811,534) |
Non-operating income |
130,203 |
1,188,283 |
702,409 |
2,677,219 |
|
|
|
|
|
Income before income taxes |
3,968,442 |
1,482,255 |
7,600,233 |
4,163,000 |
Income tax expense |
1,574,945 |
601,348 |
2,980,811 |
1,673,110 |
|
|
|
|
|
Net income |
$2,393,497 |
$880,907 |
$4,619,422 |
$2,489,890 |
|
|
|
|
|
Diluted earnings per share |
$0.28 |
$0.10 |
$0.53 |
$0.29 |
|
|
|
|
|
Average shares outstanding – Diluted |
8,663,242 |
8,703,029 |
8,670,859 |
8,701,520 |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended September
30, |
Nine Months Ended September
30, |
Truckload Operations |
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
Total miles |
53,131,023 |
49,757,225 |
158,962,787 |
150,523,395 |
Operating ratio (2) |
93.78% |
98.87% |
95.93% |
98.65% |
Empty miles factor |
7.06% |
8.60% |
7.41% |
8.79% |
Revenue per total mile, before fuel
surcharge |
$1.39 |
$1.38 |
$1.38 |
$1.36 |
Total loads |
65,629 |
63,140 |
196,999 |
195,199 |
Revenue per truck per work day |
$644 |
$610 |
$640 |
$610 |
Revenue per truck per week |
$3,220 |
$3,050 |
$3,200 |
$3,050 |
Average company trucks |
1,445 |
1,612 |
1,493 |
1,627 |
Average owner operator trucks |
346 |
170 |
302 |
129 |
|
|
|
|
|
Logistics Operations |
|
|
|
|
Total revenue |
$5,305,786 |
$5,913,898 |
$18,176,982 |
$18,634,493 |
Operating ratio |
98.25% |
97.23% |
97.18% |
97.14% |
_______________________________________ |
|
|
|
|
|
|
|
|
|
1) In order to conform to
industry practice, the Company began to classify payments to
third-party owner operator drivers as purchased transportation
rather than as salaries, wages and benefits as had been presented
in reports prior to the period ended September 30, 2013. This
reclassification has no effect on operating income, net income or
earnings per share. The Company has made corresponding
reclassifications to comparative periods shown. |
|
|
|
|
|
2) 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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