P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) today reported
net income of $722,842, or diluted and basic earnings per share of
$0.11 for the fourth quarter of 2016, and net income of
$11,100,901, or diluted earnings per share of $1.67 ($1.68 basic)
for the year ended December 31, 2016. These results compare to net
income of $3,232,616, or diluted and basic earnings per share of
$0.45 for the fourth quarter of 2015, and net income of
$21,435,891, or diluted earnings per share of $2.93 ($2.94 basic)
for the year ended December 31, 2015.
Base revenue, which excludes fuel surcharge
revenue, increased 5.2% to $94,240,713 for the fourth quarter of
2016 compared to $89,589,226 for the fourth quarter of 2015, while
fuel surcharge revenue increased 10.0% to $14,113,334 for the
fourth quarter of 2016 compared to $12,835,181 for the fourth
quarter of 2015. As a result, total operating revenues increased to
$108,354,047 for the fourth quarter of 2016 compared to
$102,424,407 for the fourth quarter of 2015. For the twelve months
ended December 31, 2016, base revenue, which excludes fuel
surcharge revenue, increased 7.7% to $382,736,679 compared to
$355,402,681 for the twelve months ended December 31, 2015, while
fuel surcharge revenue decreased 18.7% to $50,115,605 for the
twelve months ended December 31, 2016 compared to $61,647,740 for
the twelve months ended December 31, 2015. As a result, total
operating revenues increased 3.8% to $432,852,284 for the twelve
months ended December 31, 2016 compared to $417,050,421 for the
twelve months ended December 31, 2015.
Daniel H. Cushman, President of the Company,
commented, “2016 was a very challenging year. Overcapacity in the
industry resulted in sustained downward rate pressure while cost
increases in our operating costs, particularly in the areas of
employee health insurance and driver acquisition costs, continued
to plague us throughout the year. The year-over-year increase in
just these two costs was $7.3 million for the year and $1.6 million
for this quarter and had a negative impact on our earnings per
share of $0.69 for the year and $0.19 for this quarter. The
increase in operating costs and our inability to pass these cost
increases on through rate increases played a large part in our miss
of profitability goals for the year. We did, however, meet the low
end of our revenue growth goal as our base trucking revenue grew by
almost 9% this year compared to the previous year.
“Early in 2016, we made a strategic decision to
expand our footprint in the retail and manufacturing sectors and we
are pleased with our progress. We saw the success of that strategy
not just by our ability to begin participating in dedicated bids
within this new customer base but also by our securing new
dedicated business from within these sectors. We also experienced
success during the fourth quarter in the spot market with this
customer base. We expect that we will see future growth in
dedicated business from within these two sectors.
“Our Expedited Division was especially
challenged throughout the year, as this division is in large part a
‘substitute line-haul’ provider for less-than-truckload companies
who have been negatively impacted by the same overcapacity issues
that we have experienced on the truckload side. As a result, these
carriers had enough capacity in their own fleets to haul available
freight, which significantly reduced the demand for our expedited
service offering. However, we did see growth in retail customers
who required our expedited team service, and we believe this will
carry over into 2017.
“The demand from automotive customers remained
healthy throughout 2016 and we believe that we provide a premium
service with unique expertise in this market and expect to see
additional opportunities to grow this sector of our business in
2017. Much of the automotive demand relates to our Mexico Division,
which remains strong in both growth and margin. We are also seeing
new opportunities with new retail and manufacturing customers as
well, most of which either have facilities or suppliers in
Mexico.
“We did not reach the anticipated levels of
growth in revenue or margin from our Logistics Division during
2016. While there was marginal improvement in both areas, we
plan to be more aggressive in our approach during 2017 and feel
that we are well-positioned to take advantage of any tightening of
capacity that may occur.
“While our financial performance for 2016 fell
short of our record-setting 2015 performance, we did make
significant progress in many areas. We believe that 2016 can be
summed up as a strong positioning year in which we grew divisions
where we perform the best, added many new shippers with significant
growth potential in new markets, reduced the average age of our
tractor and trailer fleets to one of the newest in the industry,
grew base trucking revenue by almost 9% and, despite the
significant industry challenges, finished the year as one of the
top four in the Company’s history from an earnings per share
standpoint.”
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, and
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.
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P.A.M.
Transportation Services, Inc. and SubsidiariesKey Financial and
Operating Statistics(unaudited) |
|
|
|
|
|
Quarter ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Revenue, before fuel surcharge |
$ |
94,240,713 |
|
|
$ |
89,589,226 |
|
|
$ |
382,736,679 |
|
|
$ |
355,402,681 |
|
Fuel
surcharge |
|
14,113,334 |
|
|
|
12,835,181 |
|
|
|
50,115,605 |
|
|
|
61,647,740 |
|
|
|
108,354,047 |
|
|
|
102,424,407 |
|
|
|
432,852,284 |
|
|
|
417,050,421 |
|
|
|
|
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
28,745,912 |
|
|
|
26,910,459 |
|
|
|
112,235,691 |
|
|
|
105,942,384 |
|
Operating supplies and expenses |
|
21,677,384 |
|
|
|
20,675,425 |
|
|
|
82,992,732 |
|
|
|
89,877,843 |
|
Rent and purchased transportation |
|
40,179,903 |
|
|
|
36,304,819 |
|
|
|
158,298,583 |
|
|
|
134,187,353 |
|
Depreciation |
|
10,102,387 |
|
|
|
8,593,580 |
|
|
|
39,113,795 |
|
|
|
32,346,438 |
|
Insurance and claims |
|
4,474,285 |
|
|
|
4,069,103 |
|
|
|
16,631,843 |
|
|
|
15,314,863 |
|
Other |
|
2,230,621 |
|
|
|
2,037,512 |
|
|
|
8,351,617 |
|
|
|
8,904,921 |
|
Gain on disposition of equipment |
|
(749,584 |
) |
|
|
(1,142,149 |
) |
|
|
(4,700,384 |
) |
|
|
(5,753,529 |
) |
Total
operating expenses and costs |
|
106,660,908 |
|
|
|
97,448,749 |
|
|
|
412,923,877 |
|
|
|
380,820,273 |
|
|
|
|
|
|
|
|
|
Operating income |
|
1,693,139 |
|
|
|
4,975,658 |
|
|
|
19,928,407 |
|
|
|
36,230,148 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
(982,206 |
) |
|
|
(825,113 |
) |
|
|
(3,641,196 |
) |
|
|
(2,817,951 |
) |
Non-operating income |
|
281,619 |
|
|
|
1,130,400 |
|
|
|
1,484,741 |
|
|
|
1,515,772 |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
992,552 |
|
|
|
5,280,945 |
|
|
|
17,771,952 |
|
|
|
34,927,969 |
|
Income tax expense |
|
269,710 |
|
|
|
2,048,329 |
|
|
|
6,671,051 |
|
|
|
13,492,078 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
722,842 |
|
|
$ |
3,232,616 |
|
|
$ |
11,100,901 |
|
|
$ |
21,435,891 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.11 |
|
|
$ |
0.45 |
|
|
$ |
1.67 |
|
|
$ |
2.93 |
|
|
|
|
|
|
|
|
|
Average shares outstanding – Diluted |
|
6,424,655 |
|
|
|
7,144,142 |
|
|
|
6,648,881 |
|
|
|
7,324,962 |
|
|
|
|
|
|
|
|
|
|
Quarter ended December 31, |
|
Twelve Months Ended December 31, |
Truckload
Operations |
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Total
miles |
|
58,441,578 |
|
|
|
54,717,397 |
|
|
|
237,265,724 |
|
|
|
218,418,033 |
|
Operating ratio (1) |
|
98.15 |
% |
|
|
93.96 |
% |
|
|
94.42 |
% |
|
|
88.69 |
% |
Empty
miles factor |
|
7.44 |
% |
|
|
7.10 |
% |
|
|
6.80 |
% |
|
|
6.78 |
% |
Revenue per total mile, before fuel surcharge |
$ |
1.44 |
|
|
$ |
1.44 |
|
|
$ |
1.43 |
|
|
$ |
1.43 |
|
Total
loads |
|
77,973 |
|
|
|
76,650 |
|
|
|
323,211 |
|
|
|
306,553 |
|
Revenue per truck per work day |
$ |
724 |
|
|
$ |
669 |
|
|
$ |
705 |
|
|
$ |
670 |
|
Revenue per truck per week |
$ |
3,620 |
|
|
$ |
3,345 |
|
|
$ |
3,525 |
|
|
$ |
3,350 |
|
Average company-driver trucks |
|
1,284 |
|
|
|
1,405 |
|
|
|
1,334 |
|
|
|
1,415 |
|
Average owner operator trucks |
|
589 |
|
|
|
470 |
|
|
|
557 |
|
|
|
414 |
|
|
|
|
|
|
|
|
|
Logistics
Operations |
|
|
|
|
|
|
|
Total
revenue |
$ |
10,179,138 |
|
|
$ |
10,608,963 |
|
|
$ |
44,412,709 |
|
|
$ |
44,161,507 |
|
Operating ratio |
|
98.65 |
% |
|
|
98.08 |
% |
|
|
97.62 |
% |
|
|
97.68 |
% |
_______________________________________
1) 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.
P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111
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