P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported
net income of $880,907, or diluted and basic earnings per share of
$0.10 for the quarter ended September 30, 2012, and net income of
$2,489,890, or diluted and basic earnings per share of $0.29 for
the nine month period then ended. These results compare to net loss
of $1,704,894, or diluted and basic loss per share of $0.19, and
net loss of $2,990,408, or diluted and basic loss per share of
$0.33, respectively, for the three and nine months ended September
30, 2011.
Operating revenues, including revenue from fuel surcharges, were
$94,548,874 for the third quarter of 2012, a 6.3% increase compared
to $88,937,884 for the third quarter of 2011. Operating revenues,
including fuel surcharges, were $284,860,094 for the nine months
ended September 30, 2012, a 5.6% increase compared to $269,854,603
for the nine months ended September 30, 2011.
Daniel H. Cushman, President of the Company, commented, "PAM
extended the trend of year over year earnings growth during the
third quarter 2012, despite significant hurdles faced during the
quarter. This quarter completes four consecutive quarters of
positive earnings, with each month of 2012 contributing both
operating and net income. Another milestone reached during the
quarter was the achievement of operating and net income during the
month of July, which we have not done in a decade – even in years
like 2006 when we had an operating income of approximately $30
million for the year. These results further bolster our confidence
in the continued refinement of our freight network and strategic
expense control efforts.
"As we looked forward to the third quarter, we were apprehensive
about July, due to the history of losses during the month, and
September, due to it only having nineteen work days. July has
historically been a very challenging month due to scheduled
shutdown periods with automotive customers, however,
diversification of our customer base helped to mitigate the impact
of this cycle in 2012. In hindsight, August was the most
challenging month of the quarter with an approximate $0.33 increase
in the national average price of diesel fuel during the month,
coupled with a softening in freight demand during the month.
September 2012 was the first nineteen revenue day month,
considering only major holidays, since November 2008. Despite these
significant hurdles, we improved third quarter operating income by
$3.6 million compared to the same period last year.
"We continue to find new growth opportunities with customers
that we did little or no business with prior to my arrival in July
2010, and to refine our freight network to attain a favorable mix
of rate optimization and cost minimization. We are pleased with the
customer diversification we have achieved over the last two and
half years and plan to increase focus on growth within this
customer base by emphasizing our core business offerings and
proving the value of our service. We continue to grow and develop
our service offerings of Expedited, Mexico, Dedicated, and Supply
Chain Solutions.
"Our fleet replenishment cycle is on schedule and we remain very
pleased with customer and driver satisfaction, reduced costs, and
the contribution towards improving CSA scores achieved by this
investment. As of September 30, 2012, our average tractor age was
1.9 years old, down from a high of 3.5 years in April 2011. The
specifications of our new equipment coupled with various
operational fuel saving strategies greatly reduces the effect of
severe upside volatility in fuel prices similar to those
experienced in August of this year.
"We continue to intensify our focus on our driving professionals
and look for ways to improve their satisfaction with the company,
as well as, programs to attract drivers from an ever decreasing
pool of qualified candidates. We have added approximately 10% more
drivers as of September 30, 2012, compared to September 30,
2011.
"While we are still apprehensive as we approach months that
present significant profitability hurdles such as those faced in
each month of the third quarter 2012, we grow more confident in our
model with each passing profitable month achieved. We would like to
commend our dedicated employees, and 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.
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 September
30, |
Nine Months Ended
September 30, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Revenue, before fuel surcharge |
$74,431,498 |
$70,616,157 |
$223,299,708 |
$213,219,669 |
Fuel surcharge |
20,117,376 |
18,321,727 |
61,560,386 |
56,634,934 |
|
94,548,874 |
88,937,884 |
284,860,094 |
269,854,603 |
|
|
|
|
|
Operating expenses and costs: |
|
|
|
|
Salaries, wages and
benefits |
35,276,939 |
30,275,768 |
101,082,341 |
88,490,423 |
Fuel expense |
26,426,777 |
30,965,185 |
84,662,101 |
96,366,058 |
Operating supplies and
expenses |
10,302,930 |
10,363,520 |
29,746,415 |
28,848,040 |
Rent and purchased
transportation |
5,456,601 |
5,868,836 |
18,780,677 |
16,679,761 |
Depreciation |
9,638,665 |
8,071,219 |
28,192,850 |
24,745,428 |
Operating taxes and
licenses |
1,246,297 |
1,188,797 |
3,725,698 |
3,712,334 |
Insurance and claims |
3,487,272 |
3,113,108 |
10,082,119 |
9,825,635 |
Communications and
utilities |
532,901 |
554,990 |
1,659,690 |
1,904,760 |
Other |
1,087,826 |
1,228,189 |
3,720,573 |
4,160,647 |
Loss (gain) on disposition of
equipment |
153,727 |
4,123 |
(89,685) |
31,079 |
Total operating expenses and costs |
93,609,935 |
91,633,735 |
281,562,779 |
274,764,165 |
|
|
|
|
|
Operating income (loss) |
938,939 |
(2,695,851) |
3,297,315 |
(4,909,562) |
|
|
|
|
|
Interest expense |
(644,967) |
(375,179) |
(1,811,534) |
(1,356,708) |
Non-operating income |
1,188,283 |
172,609 |
2,677,219 |
1,325,080 |
|
|
|
|
|
Income (loss) before income taxes |
1,482,255 |
(2,898,421) |
4,163,000 |
(4,941,190) |
Income tax expense (benefit) |
601,348 |
(1,193,527) |
1,673,110 |
(1,950,782) |
|
|
|
|
|
Net income (loss) |
$880,907 |
$(1,704,894) |
$2,489,890 |
$(2,990,408) |
|
|
|
|
|
Diluted earnings (loss) per share |
$0.10 |
$(0.19) |
$0.29 |
$(0.33) |
|
|
|
|
|
Average shares outstanding – Diluted |
8,703,029 |
8,941,163 |
8,701,520 |
9,142,278 |
|
|
|
|
Quarter ended September
30, |
Nine Months Ended
September 30, |
Truckload Operations |
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Total miles |
49,757,225 |
48,178,945 |
150,523,395 |
147,188,224 |
Operating ratio* |
98.87% |
104.20% |
98.65% |
102.60% |
Empty miles factor |
8.60% |
9.12% |
8.79% |
7.95% |
Revenue per total mile, before fuel
surcharge |
$1.38 |
$1.38 |
$1.36 |
$1.36 |
Total loads |
63,140 |
68,704 |
195,199 |
209,384 |
Revenue per truck per work day |
$610 |
$584 |
$613 |
$592 |
Revenue per truck per week |
$3,050 |
$2,920 |
$3,065 |
$2,960 |
Average company trucks |
1,612 |
1,728 |
1,627 |
1,726 |
Average owner operator trucks |
170 |
47 |
129 |
40 |
|
|
|
|
|
Logistics Operations |
|
|
|
|
Total revenue |
$5,913,898 |
$4,266,822 |
$18,634,493 |
$13,417,421 |
Operating ratio |
97.23% |
97.92% |
97.14% |
97.92% |
|
|
|
|
|
* 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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