P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) today reported
net income of $3,446,261, or diluted and basic earnings per share
of $0.54 for the quarter ended September 30, 2017, and net income
of $7,338,223, or diluted earnings per share of $1.14 ($1.15 basic)
for the nine month period then ended. These results compare to net
income of $3,451,178, or diluted earnings per share of $0.53 ($0.54
basic), and net income of $10,378,057, or diluted earnings per
share of $1.54 ($1.55 basic), respectively, for the three and nine
months ended September 30, 2016.
Operating revenues, including revenue from fuel
surcharges, were $108,898,918 for the third quarter of 2017
compared to $109,393,431 for the third quarter of 2016. Operating
revenues, including revenue from fuel surcharges, were $326,949,247
for the nine months ended September 30, 2017 compared to
$324,498,236 for the nine months ended September 30, 2016.
Daniel H. Cushman, President of the Company,
commented, “We have been pleased with the continued progress we
have made throughout 2017. When making year-over-year and
quarter-over-quarter comparisons in our performance, the third
quarter of this year was the start of what we expect to be the
turning point in these comparisons as we look forward to future
expectations. We are very confident that not only has our
performance gap closed, in the coming year we expect to exceed this
year’s results. We have made significant progress in our efforts to
increase our rate per mile charged to customers, and while our
progress shows minimal results this quarter, we expect that our
efforts will have a larger positive impact on future results. I am
now more optimistic about our ability to meet our performance
targets than I have been since coming here in 2009 as we are
beginning to see a growing sense of urgency from shippers to secure
capacity at rates that more fairly compensate us for the service
that we provide.
“The third quarter of 2017 was not without its
challenges as the month of July was unexpectedly difficult as some
of our automotive customers, which comprise a significant portion
of our customer base, initiated plant downtime schedules that
lasted longer than what we had experienced over the past several
years. This resulted in equipment productivity losses as we
scrambled to find acceptable short-term freight moves that would
keep our trucks productive. Both August and September of this year
were strong relative to the first seven months of 2017 as both
demand for capacity and rates began to rebound. The challenge
during these months related primarily to the disruptions in our
freight network caused by hurricanes Harvey and Irma, which also
resulted in productivity losses. Despite these disruptions, both
months reflected positive demand increase, particularly in our
Mexico and Random Freight Divisions.
“Our Mexico Division continues to be a growing
and profitable part of our portfolio. It is a service that our
customers gravitate towards, so opportunities continue to present
themselves. While there was extreme downward pressure on southbound
rates throughout 2016 and during the first half of 2017, we have
been able to create balance by applying upward pressure on
northbound rates. This was a situation that required customers to
accept higher northbound rates in order to retain capacity and our
customers responded accordingly. As a result, new awards at higher
rate levels have allowed us the ability to customize driver pay
packages on these lanes to help retain drivers, grow our service
offering, and achieve closer proximity to the profit levels we
expect in this division.
“Our Expedited and Random Freight Divisions have
been challenged the most over the last year and a half as demand
and rates have been particularly depressed in these divisions. The
Expedited Division, which is in large part comprised of
“substitute” linehaul for less-than-truckload companies, has
suffered from excess capacity in the market during the last couple
of years which resulted in less-than-truckload carriers hauling
this freight themselves. Now, with demand once again beginning to
exceed capacity, we are starting to see more opportunities to
perform substitute linehaul services for these carriers. In
addition, we are seeing more customers demanding a team driver
service, which our Expedited Division offers. Both growth and
profitability are beginning to improve in this division. Also, we
have successfully implemented a linehaul strategy conceived within
the last year that is bringing us productivity gains and great
success in both hiring and retaining drivers.
“We were very pleased with the improvements in
our Logistics Division in both revenue growth and improvement in
profitability. New leadership in this division combined with
improving spot market rates have provided a growth catalyst that we
expect to continue to yield positive results.
“The cost to attract, train and retain enough
qualified professional drivers to pursue growth continues to be one
of the biggest challenges for our industry. This challenge has
further intensified throughout 2017, pressured by increased
regulation, competition from other industries, and heightened
competition from both for hire and private fleets. We are
continuously challenged to find innovative solutions which provide
an advantage in this area. With the recent shift in market balance,
we are finally beginning to see opportunities to pass increased
driver related costs through to customers. Until this shift, the
driver market was pressuring pay rates higher at the same time
customers were pressuring freight rates lower. With the
quickly approaching deadline for compliance with the Electronic
Logging Device mandate, customers are becoming more receptive to
sharing in increased driver costs in order to secure
capacity. As this deadline nears, and for a period of time
following the deadline, we expect to see a decrease in both the
pool of available drivers and available truck capacity due to the
unwillingness or inability of some to attain compliance with this
new mandate.
“One of the advantages the Company has over many
of our competitors is the relatively new age of our fleet. We
maintain an average truck fleet age of 1.5 years and trailer fleet
age of 3.3 years, which represents one of the newest fleets in the
industry. This affords our drivers a very reliable truck with a
wide array of comforts and amenities. These late model trucks also
improve fuel efficiency metrics, reduce maintenance costs, and
contribute towards our ability to provide our customers with
superior service. Our customers, for the most part, realize that in
order to continue to hire and retain qualified drivers, we need
help. In order to continue to maintain our industry leading
equipment standards, we need help. This help comes in the form of
rate assistance. We absolutely understand that we must always be
cost conscious and take costs out of our system when appropriate,
and we strive to do so every day.
“We believe that we are positioned extremely
well for the 4th quarter of this year and for 2018, and I am as
pleased with my leadership team and our strategy as I have been
since I arrived in 2009.”
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.
P.A.M.
Transportation Services, Inc. and SubsidiariesKey Financial and
Operating Statistics(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Revenue, before fuel surcharge |
$ |
93,457,405 |
|
|
$ |
95,926,084 |
|
|
$ |
280,157,213 |
|
|
$ |
288,495,966 |
|
Fuel
surcharge |
|
15,441,513 |
|
|
|
13,467,347 |
|
|
|
46,792,034 |
|
|
|
36,002,270 |
|
|
|
108,898,918 |
|
|
|
109,393,431 |
|
|
|
326,949,247 |
|
|
|
324,498,236 |
|
|
|
|
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
|
|
|
Salaries, wages and benefits |
|
24,718,337 |
|
|
|
28,166,313 |
|
|
|
75,885,056 |
|
|
|
83,489,780 |
|
Operating supplies and expenses |
|
19,501,855 |
|
|
|
21,154,915 |
|
|
|
59,144,111 |
|
|
|
61,315,348 |
|
Rent and purchased transportation |
|
43,999,814 |
|
|
|
40,013,802 |
|
|
|
130,839,313 |
|
|
|
118,118,680 |
|
Depreciation |
|
10,177,057 |
|
|
|
10,166,226 |
|
|
|
31,333,063 |
|
|
|
29,011,407 |
|
Insurance and claims |
|
4,231,808 |
|
|
|
3,608,575 |
|
|
|
13,366,955 |
|
|
|
12,157,558 |
|
Other |
|
2,370,461 |
|
|
|
1,937,204 |
|
|
|
6,791,096 |
|
|
|
6,120,997 |
|
Loss (gain) on disposition of equipment |
|
131,487 |
|
|
|
(948,574 |
) |
|
|
261,301 |
|
|
|
(3,950,800 |
) |
Total
operating expenses and costs |
|
105,130,819 |
|
|
|
104,098,461 |
|
|
|
317,620,895 |
|
|
|
306,262,970 |
|
|
|
|
|
|
|
|
|
Operating income |
|
3,768,099 |
|
|
|
5,294,970 |
|
|
|
9,328,352 |
|
|
|
18,235,266 |
|
|
|
|
|
|
|
|
|
Interest expense |
|
(920,313 |
) |
|
|
(927,147 |
) |
|
|
(2,831,992 |
) |
|
|
(2,658,991 |
) |
Non-operating (loss) income |
|
2,767,281 |
|
|
|
1,235,584 |
|
|
|
5,468,787 |
|
|
|
1,203,123 |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
5,615,067 |
|
|
|
5,603,407 |
|
|
|
11,965,147 |
|
|
|
16,779,398 |
|
Income tax expense |
|
2,168,806 |
|
|
|
2,152,229 |
|
|
|
4,626,924 |
|
|
|
6,401,341 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
3,446,261 |
|
|
$ |
3,451,178 |
|
|
$ |
7,338,223 |
|
|
$ |
10,378,057 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
$ |
0.54 |
|
|
$ |
0.53 |
|
|
$ |
1.14 |
|
|
$ |
1.54 |
|
|
|
|
|
|
|
|
|
Average shares outstanding – Diluted |
|
6,373,261 |
|
|
|
6,458,358 |
|
|
|
6,412,796 |
|
|
|
6,724,676 |
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30, |
|
Nine Months Ended September 30, |
Truckload
Operations |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Total
miles |
|
56,400,847 |
|
|
|
60,779,414 |
|
|
|
175,247,238 |
|
|
|
178,824,146 |
|
Operating ratio (1) |
|
96.00 |
% |
|
|
93.92 |
% |
|
|
96.69 |
% |
|
|
93.19 |
% |
Empty
miles factor |
|
6.58 |
% |
|
|
6.93 |
% |
|
|
6.72 |
% |
|
|
6.59 |
% |
Revenue per total mile, before fuel surcharge |
$ |
1.41 |
|
|
$ |
1.40 |
|
|
$ |
1.39 |
|
|
$ |
1.42 |
|
Total
loads |
|
84,611 |
|
|
|
81,006 |
|
|
|
253,088 |
|
|
|
245,238 |
|
Revenue per truck per work day |
$ |
700 |
|
|
$ |
708 |
|
|
$ |
684 |
|
|
$ |
698 |
|
Revenue per truck per week |
$ |
3,500 |
|
|
$ |
3,540 |
|
|
$ |
3,422 |
|
|
$ |
3,490 |
|
Average company-driver trucks |
|
1,160 |
|
|
|
1,315 |
|
|
|
1,220 |
|
|
|
1,350 |
|
Average owner operator trucks |
|
648 |
|
|
|
567 |
|
|
|
650 |
|
|
|
546 |
|
|
|
|
|
|
|
|
|
Logistics
Operations |
|
|
|
|
|
|
|
Total
revenue |
$ |
13,721,019 |
|
|
$ |
10,640,438 |
|
|
$ |
35,846,362 |
|
|
$ |
34,233,571 |
|
Operating ratio |
|
95.77 |
% |
|
|
99.01 |
% |
|
|
96.52 |
% |
|
|
97.31 |
% |
___________________________
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.
Allen W. West
(479) 361-9111
P A M Transport Services (NASDAQ:PTSI)
Historical Stock Chart
From Mar 2024 to Apr 2024
P A M Transport Services (NASDAQ:PTSI)
Historical Stock Chart
From Apr 2023 to Apr 2024