P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) today reported a
14.6% increase in net income and a 27.0% increase in diluted
earnings per share for the third quarter of 2015 as net income
increased to $5,794,850, or $0.80 per diluted share, for the third
quarter of 2015 from net income of $5,056,978, or $0.63 per diluted
share, for the third quarter of 2014. For the nine months ended
September 30, 2015, net income increased 60.3% and diluted earnings
per share increased 74.5% as net income increased to $18,203,272,
or $2.46 per diluted share, for the first nine months of 2015 from
net income of $11,358,887, or $1.41 per diluted share, for the
first nine months of 2014.
Revenue, before fuel surcharge, increased 12.1%
to $92,076,036 for the third quarter of 2015 from $82,158,036 for
the third quarter of 2014, while fuel surcharge revenue decreased
39.6% to $15,033,696 for the third quarter of 2015 from $24,900,936
for the third quarter of 2014. As a result, total operating
revenues remained relatively flat at $107,109,732 for the third
quarter of 2015 compared to $107,058,972 for the third quarter of
2014. For the nine months ended September 30, 2015, revenue, before
fuel surcharge, increased 11.8% to $265,813,455 from $237,660,146
during the nine months ended September 30, 2014, while fuel
surcharge revenue decreased 31.8% to $48,812,558 for the first nine
months of 2015 from $71,562,479 for the first nine months of 2014.
As a result, total operating revenues increased 1.7% to
$314,626,013 for the first nine months of 2015 compared to
$309,222,625 for the first nine months of 2014. The decline in fuel
surcharge revenue for each of the periods was due to the
significant decline in retail fuel prices during the most recent
twelve months.
Daniel H. Cushman, President and Chief Executive
Officer of the Company, commented, “Although the third quarter
offered its fair share of challenges, we are extremely satisfied
with our results. The second quarter of this year was our best
earnings quarter on record and this quarter represents our second
best earnings quarter on record. Our goal this year was to grow
while continuing to operate at the same or better profitability
levels as those established in 2014. Growth has been difficult with
the challenging driver market, but we have had some success.
Although not up to our expectations, we did achieve 12.1% revenue
growth without considering the impact of fuel surcharge revenue. We
have also been able to not only maintain the operating levels
achieved in 2014, but improve upon them, as our trucking division
operating ratio in the third quarter of 2015 was 87.5% compared to
89.2% in 2014. We also continue to experience strong revenue growth
in our Logistics division, although margins declined throughout the
quarter as demand softened.
“We continue to focus on growth in those
divisions that allow us better opportunities to recruit and retain
drivers. We feel those opportunities exist within our Automotive,
Dedicated, Mexico and Expedited Divisions. We also continue to
create and develop engineered lanes within our Random fleet, which
drivers generally prefer over pure random lanes. Our recruiting and
retention efforts continue to be a primary focus, and we are doing
everything we can to nurture our relationships with our driving
schools, our recruiters, and most importantly our driving
professionals.
“Regarding growth, we have examined our existing
network of terminal locations and are considering additional
terminal locations based upon our existing footprint, customer
locations, and potential driver availability. We recently purchased
a terminal in Ohio and are also exploring terminal locations on the
West Coast. We continue to be open to growth by acquisitions and
believe our model allows us the ability to be selective in that
regard. Our overall goals remain the same in that we want to grow
and we want to be one of the best operating companies in the
industry. With the continued support of our customers and the
dedicated work of our employees, we believe these goals are
attainable.”
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, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
Revenue, before fuel surcharge |
$ |
92,076,036 |
|
|
$ |
82,158,036 |
|
|
$ |
265,813,455 |
|
|
$ |
237,660,146 |
|
Fuel surcharge revenue |
|
15,033,696 |
|
|
|
24,900,936 |
|
|
|
48,812,558 |
|
|
|
71,562,479 |
|
Total
operating revenues |
|
107,109,732 |
|
|
|
107,058,972 |
|
|
|
314,626,013 |
|
|
|
309,222,625 |
|
|
|
|
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
26,532,551 |
|
|
|
28,332,593 |
|
|
|
79,031,924 |
|
|
|
81,399,616 |
|
Operating supplies and
expenses |
|
21,911,638 |
|
|
|
31,695,926 |
|
|
|
69,202,419 |
|
|
|
98,559,698 |
|
Rent and purchased
transportation |
|
35,255,319 |
|
|
|
23,037,226 |
|
|
|
97,882,536 |
|
|
|
65,755,853 |
|
Depreciation |
|
8,452,146 |
|
|
|
9,037,086 |
|
|
|
23,752,859 |
|
|
|
27,329,337 |
|
Insurance and claims |
|
3,889,503 |
|
|
|
4,474,733 |
|
|
|
11,245,760 |
|
|
|
12,125,140 |
|
Other |
|
2,199,725 |
|
|
|
2,657,833 |
|
|
|
6,867,408 |
|
|
|
7,582,144 |
|
Gain on disposition of
equipment |
|
(1,357,020 |
) |
|
|
(626,270 |
) |
|
|
(4,611,380 |
) |
|
|
(3,413,718 |
) |
Total
operating expenses and costs |
|
96,883,862 |
|
|
|
98,609,127 |
|
|
|
283,371,526 |
|
|
|
289,338,070 |
|
|
|
|
|
|
|
|
|
Operating income |
|
10,225,870 |
|
|
|
8,449,845 |
|
|
|
31,254,487 |
|
|
|
19,884,555 |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(732,385 |
) |
|
|
(632,359 |
) |
|
|
(1,992,838 |
) |
|
|
(2,237,737 |
) |
Non-operating (expense) income |
|
(131,605 |
) |
|
|
594,562 |
|
|
|
385,372 |
|
|
|
1,125,099 |
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
9,361,880 |
|
|
|
8,412,048 |
|
|
|
29,647,021 |
|
|
|
18,771,917 |
|
Income
tax expense |
|
3,567,030 |
|
|
|
3,355,070 |
|
|
|
11,443,749 |
|
|
|
7,413,030 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
5,794,850 |
|
|
$ |
5,056,978 |
|
|
$ |
18,203,272 |
|
|
$ |
11,358,887 |
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
$ |
0.80 |
|
|
$ |
0.63 |
|
|
$ |
2.46 |
|
|
$ |
1.41 |
|
|
|
|
|
|
|
|
|
Average
shares outstanding – Diluted |
|
7,218,813 |
|
|
|
8,031,923 |
|
|
|
7,385,484 |
|
|
|
8,034,412 |
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
Truckload Operations |
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Total
miles |
|
56,260,140 |
|
|
|
54,115,283 |
|
|
|
163,700,636 |
|
|
|
158,814,155 |
|
Operating ratio (1) |
|
87.47 |
% |
|
|
89.24 |
% |
|
|
86.90 |
% |
|
|
91.29 |
% |
Empty
miles factor |
|
6.97 |
% |
|
|
6.65 |
% |
|
|
6.68 |
% |
|
|
6.73 |
% |
Revenue
per total mile, before fuel surcharge |
$ |
1.43 |
|
|
$ |
1.41 |
|
|
$ |
1.42 |
|
|
$ |
1.39 |
|
Total
loads |
|
79,864 |
|
|
|
72,287 |
|
|
|
229,903 |
|
|
|
212,795 |
|
Revenue
per truck per work day |
$ |
684 |
|
|
$ |
673 |
|
|
$ |
670 |
|
|
$ |
648 |
|
Revenue
per truck per week |
$ |
3,420 |
|
|
$ |
3,365 |
|
|
$ |
3,350 |
|
|
$ |
3,240 |
|
Average
company-driver trucks |
|
1,410 |
|
|
|
1,435 |
|
|
|
1,418 |
|
|
|
1,444 |
|
Average
owner operator trucks |
|
422 |
|
|
|
332 |
|
|
|
395 |
|
|
|
342 |
|
|
|
|
|
|
|
|
|
Logistics Operations |
|
|
|
|
|
|
|
Total
revenue |
$ |
11,855,964 |
|
|
$ |
6,122,046 |
|
|
$ |
33,552,544 |
|
|
$ |
16,800,277 |
|
Operating ratio |
|
98.52 |
% |
|
|
95.63 |
% |
|
|
97.55 |
% |
|
|
96.17 |
% |
_______________________________________
1) Operating ratio is calculated based upon
total operating expenses, net of fuel surcharge, as a percentage of
revenue, before fuel surcharge. We use 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.
FROM: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111
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