P.A.M. Transportation Services, Inc. Announces Results for the Second Quarter Ended June 30, 2012
July 26 2012 - 3:00PM
P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net income of $934,791, or diluted and basic earnings per share of
$0.11 for the quarter ended June 30, 2012, and net income of
$1,608,984, or diluted and basic earnings per share of $0.18 for
the six month period then ended. These results compare to net
income of $692,763, or diluted and basic earnings per share of
$0.08, and net loss of $1,285,517, or diluted and basic loss per
share of $0.14, respectively, for the three and six months ended
June 30, 2011.
Operating revenues, including revenue from fuel surcharges, were
$94,155,811 for the second quarter of 2012, a 1.8% decrease
compared to $95,890,544 for the second quarter of 2011. Operating
revenues, including fuel surcharges, were $190,311,220 for the six
months ended June 30, 2012, a 5.2% increase compared to
$180,916,719 for the six months ended June 30, 2011.
Daniel H. Cushman, President of the Company, commented, "We are
very pleased to report our third consecutive quarter of sequential
earnings growth. We remain absolutely dedicated in our focus on the
goal of a sustainable profit model and are very pleased to see many
of our initiatives bearing fruit.
"We reduced our fleet count slightly from an average of 1,769
trucks in the second quarter of 2011 to 1,739 in the second quarter
of 2012 to align our fleet size with our freight network as we
continue to refine freight choices and to take advantage of the
opportunity to accelerate the disposal of our oldest, highest cost
equipment while the used equipment market remains strong. While the
number of company owned tractors was down 109 units for the
quarters compared, we continue to have success expanding our owner
operator fleet and increased our second quarter average by 79 year
over year. In addition to our owner operator fleet growth, we are
focused on increasing our number of team drivers to facilitate
growth in our Expedited Service offering, and were able to increase
our average team count by 117, from 206 in the second quarter of
2011 to 323 in the second quarter of 2012, and finished the quarter
with 139 more driving employees than the same period in the prior
year.
"Our equipment replenishment cycle remains on course, as we
replace approximately 50 trucks and 50 trailers with new equipment
each month. Our drivers and customers appreciate our new equipment
and we have been very pleased with the mechanical reliability, CSA
scores, and fuel economy. Since beginning our replenishment plan in
May 2011, we have reduced the average age of our tractor fleet from
3.4 years to 2.1 years as of June 30, 2012.
"Year over year our rate per total mile decreased by $.02 cents.
While we recognize the importance of rate growth, this decrease
resulted as we replaced business with slightly higher base rates
and lower fuel surcharges with business with a lower base rate and
significantly higher fuel surcharges. This allows us to better
address fuel costs in times of volatility, rather than building
fuel into our rates and hoping that we have future increases
covered.
"While we saw year over year decreases in various expenses, the
decrease in fuel expense provided the most notable contribution for
the quarter. Several factors contributed to this decrease including
a decrease in the national average cost of diesel from $4.02 per
gallon during the second quarter of 2011 to $3.93 during the second
quarter of 2012, a half mile per gallon year over year improvement
in our fleet fuel efficiency, and an increase of 79 owner operators
for the quarter ended June 30, 2012, over the quarter ended June
30, 2011.
"While we are pleased with our year over year improvement for
2012 compared to 2011, we will not be satisfied until we are able
to attain the goal of a sustainable profit model. We would like to
thank our customers, employees, shareholders and suppliers for
their continued 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.
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; terrorist attacks;
war; natural disasters; risk of doing business internationally; 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, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Revenue, before fuel surcharge |
$73,699,771 |
$74,480,054 |
$148,868,210 |
$142,603,512 |
Fuel surcharge |
20,456,040 |
21,410,490 |
41,443,010 |
38,313,207 |
|
94,155,811 |
95,890,544 |
190,311,220 |
180,916,719 |
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
Salaries, wages and benefits |
33,763,886 |
29,386,151 |
65,805,402 |
58,214,656 |
Fuel expense |
27,388,572 |
34,137,343 |
58,235,323 |
65,400,873 |
Operating supplies and expenses |
10,118,383 |
9,329,200 |
19,443,485 |
18,484,521 |
Rent and purchased transportation |
6,325,830 |
5,926,810 |
13,324,075 |
10,810,925 |
Depreciation |
9,307,161 |
8,642,336 |
18,554,185 |
16,674,210 |
Operating taxes and licenses |
1,239,605 |
1,257,107 |
2,479,401 |
2,523,537 |
Insurance and claims |
3,259,966 |
3,433,287 |
6,594,847 |
6,712,527 |
Communications and utilities |
536,872 |
628,447 |
1,126,789 |
1,349,770 |
Other |
1,222,896 |
1,548,634 |
2,632,747 |
2,932,458 |
(Gain) loss on disposition of
equipment |
(279,507) |
1,975 |
(243,412) |
26,956 |
Total operating expenses and costs |
92,883,664 |
94,291,290 |
187,952,842 |
183,130,433 |
|
|
|
|
|
Operating income (loss) |
1,272,147 |
1,599,254 |
2,358,378 |
(2,213,714) |
|
|
|
|
|
Interest expense |
(605,154) |
(491,064) |
(1,166,567) |
(981,529) |
Non-operating income |
894,576 |
25,977 |
1,488,936 |
1,152,471 |
|
|
|
|
|
Income (loss) before income taxes |
1,561,569 |
1,134,167 |
2,680,747 |
(2,042,772) |
Income tax expense (benefit) |
626,778 |
441,404 |
1,071,763 |
(757,255) |
|
|
|
|
|
Net income (loss) |
$934,791 |
$692,763 |
$1,608,984 |
$ (1,285,517) |
|
|
|
|
|
Diluted earnings (loss) per share |
$0.11 |
$0.08 |
$0.18 |
$ (0.14) |
|
|
|
|
|
Average shares outstanding – Diluted |
8,703,139 |
9,101,606 |
8,700,763 |
9,244,503 |
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30, |
Six Months Ended June 30, |
Truckload Operations |
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Total miles |
50,072,772 |
50,547,424 |
100,766,170 |
99,009,279 |
Operating ratio* |
98.40% |
97.82% |
98.54% |
101.80% |
Empty miles factor |
8.89% |
7.53% |
8.88% |
7.38% |
Revenue per total mile, before fuel
surcharge |
$1.35 |
$1.37 |
$1.35 |
$1.35 |
Total loads |
65,726 |
72,058 |
132,059 |
140,680 |
Revenue per truck per work day |
$617 |
$623 |
$615 |
$597 |
Revenue per truck per week |
$3,085 |
$3,115 |
$3,075 |
$2,985 |
Average company trucks |
1,617 |
1,726 |
1,634 |
1,724 |
Average owner operator trucks |
122 |
43 |
109 |
37 |
|
|
|
|
|
Logistics Operations |
|
|
|
|
Total revenue |
$6,087,304 |
$5,035,619 |
$12,720,596 |
$9,150,599 |
Operating ratio |
96.84% |
98.24% |
97.09% |
97.93% |
|
|
|
|
|
* 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
Lance K. Stewart
(479) 361-9111
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