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P.A.M. Transportation Services, Inc. Announces Results for the Fourth Quarter and Year Ended December 31, 2023

P.A.M. Transportation Services, Inc. Announces Results for the Fourth Quarter and Year Ended December 31, 2023

Fourth Quarter 2023 Summary Results

  • Total revenues of $180.2 million, down 24.2% YoY
  • Operating loss of $0.8 million
  • Operating ratio of 100.4%
  • Diluted loss per share of $0.10

P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the “Company”) today reported consolidated net loss of $2.2 million, or diluted and basic loss per share of $0.10, for the quarter ended December 31, 2023 and consolidated net income of $18.4 million, or diluted and basic earnings per share of $0.83, for the year ended December 31,2023. These results compare to consolidated net income of $18.0 million, or diluted and basic earnings per share of $0.81, for the quarter ended December 31, 2022, and consolidated net income of $90.7 million, or diluted earnings per share of $4.04 ($4.08 basic), for the year ended December 31, 2022.

Consolidated operating revenues decreased 24.2% to $180.2 million for the fourth quarter of 2023 compared to $237.6 million for the fourth quarter of 2022. For the year ended December 31, 2023, consolidated operating revenues decreased 14.4% to $810.8 million compared to $946.9 million for the year ended December 31, 2022.

Joe Vitiritto, President of the Company, commented, “Our consolidated operating results for the three and twelve months ended December 31, 2023 reflect a continued weak freight environment and the impact of the UAW strike against several customers in the automotive sector in which the Company has significant exposure. Unlike previous UAW strikes, the approach taken in the 2023 strike was impactful to the majority of our auto customer base including both auto manufacturers and suppliers. While the strike ended by mid-November, the negative impact carried on through the typical holiday shutdowns with no post-strike surge in automotive business that we have sometimes experienced after past UAW strikes.

“These factors combined to create a challenging backdrop for our business for the quarter and year. Our team is working to constantly keep improving our results and we will continue to take advantage of opportunities to improve. We are staying focused on our longer-term objectives and seeing sustainable progress in areas that will put us in a position to get back to profitable growth that aligns with our expectations.”

Liquidity, Capitalization, and Cash Flow

As of December 31, 2023, we had an aggregate of $203.7 million of cash, marketable equity securities, and available liquidity under our line of credit and $314.2 million of stockholders’ equity. Outstanding debt was $261.7 million as of December 31, 2023, which represents a $2.6 million decrease from December 31, 2022.

During 2023, we generated $114.6 million in operating cash flow while net capital expenditures resulted in a cash outflow of $11.4 million.

About P.A.M. Transportation Services, Inc.

P.A.M. Transportation Services, Inc. is a holding company that owns subsidiaries engaged in providing truckload dry van carrier services transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec. The Company’s consolidated operating subsidiaries also provide transportation services in Mexico through its gateways in Laredo and El Paso, Texas, under agreements with Mexican carriers.

Forward-Looking Statements

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, prospects, plans 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; general inflation, recessionary economic cycles and downturns in customers' business cycles; a significant reduction in or termination of the Company's trucking service by a key customer, including as a result of future labor disruptions; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, and license and registration fees; potential economic, business or operational disruptions or uncertainties that may result from any future public health crises; 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; 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; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; the impact of pending or future litigation; general risks associated with doing business in Mexico, including, without

limitation, exchange rate fluctuations, inflation, import duties, tariffs, quotas, political and economic instability and terrorism; the potential impact of new laws, regulations or policy, including, without limitation, rules regarding the classification of independent contractors as employees, tariffs, import/export, trade and immigration regulations or policies; 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 due to new information, future events or otherwise. Considering 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 December 31,

 

Twelve Months Ended December 31,

 

2023

 

2022

 

2023

 

2022

 

(in thousands, except earnings per share)

 

(in thousands, except earnings per share)

 

 

 

 

Revenue, before fuel surcharge

$156,229

 

$203,449

 

$706,114

 

$818,751

Fuel surcharge

23,939

 

34,167

 

104,693

 

128,111

Operating Revenue

180,168

 

237,616

 

810,807

 

946,862

 

 

 

 

 

 

 

 

Operating expenses and costs:

 

 

 

 

 

 

 

Salaries, wages and benefits

44,084

 

48,849

 

186,223

 

181,918

Operating supplies and expenses

36,939

 

42,849

 

160,527

 

166,005

Rent and purchased transportation

71,627

 

91,450

 

315,647

 

364,971

Depreciation

16,800

 

16,159

 

64,605

 

62,806

Insurance and claims

5,564

 

13,235

 

30,769

 

32,516

Other

5,833

 

5,415

 

23,769

 

18,128

Loss(gain) on disposition of equipment

132

 

(587)

 

(1,043)

 

(3,250)

Total operating expenses and costs

180,979

 

217,370

 

780,497

 

823,094

 

 

 

 

 

 

 

 

Operating (loss)income

(811)

 

20,246

 

30,310

 

123,768

 

 

 

 

 

 

 

 

Interest expense

(2,611)

 

(2,343)

 

(9,177)

 

(7,929)

Non-operating income

3,716

 

5,997

 

7,446

 

3,168

 

 

 

 

 

 

 

 

Income before income taxes

294

 

23,900

 

28,579

 

119,007

Income tax expense

2,525

 

5,917

 

10,163

 

28,334

 

 

 

 

 

 

 

 

Net (loss)income

($2,231)

 

$17,983

 

$18,416

 

$90,673

 

 

 

 

 

 

 

 

Diluted (loss)earnings per share

($0.10)

 

$0.81

 

$0.83

 

$4.04

 

 

 

 

 

 

 

 

Average shares outstanding – Diluted

22,021

 

22,319

 

22,197

 

22,436

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31,

 

Twelve Months Ended December 31,

 

2023

 

2022

 

2023

 

2022

Truckload Operations

 

 

 

 

 

 

 

Total miles (in thousands)

43,970

 

52,451

 

200,867

 

203,982

Operating ratio (1)

103.7%

 

91.0%

 

97.7%

 

83.7%

Empty miles factor

8.6%

 

9.03%

 

8.51%

 

9.29%

Revenue per total mile, before fuel surcharge

$2.35

 

$2.60

 

$2.30

 

$2.65

Total loads

94,776

 

104,719

 

411,548

 

406,053

Revenue per truck per workday

$744

 

$893

 

$772

 

$919

Revenue per truck per week

$3,722

 

$4,466

 

$3,861

 

$4,593

Average company-driver trucks

1,938

 

2,056

 

2,014

 

1,915

Average owner operator trucks

299

 

405

 

345

 

394

 

 

 

 

 

 

 

 

Logistics Operations

 

 

 

 

 

 

 

Total revenue (in thousands)

$52,993

 

$67,172

 

$245,196

 

$277,816

Operating ratio

94.3%

 

88.1%

 

91.9%

 

87.2%

 

P.A.M. Transportation Services, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(unaudited)

 

 

December 31,

 

December 31,

 

2023

 

2022

 

(in thousands)

ASSETS

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$100,614

 

$74,087

Trade accounts receivable, net

80,604

 

134,739

Other receivables

7,203

 

6,263

Inventories

2,321

 

2,570

Prepaid expenses and deposits

13,213

 

15,729

Marketable equity securities

43,203

 

41,728

Income taxes refundable

3,883

 

5,650

Total current assets

251,041

 

280,766

 

 

 

 

Property and equipment

771,131

 

705,919

Less: accumulated depreciation

266,412

 

242,324

Total property and equipment, net

504,719

 

463,595

 

 

 

 

Other non-current assets

4,697

 

4,801

Total Assets

$760,457

 

$749,162

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$62,652

 

$48,917

Accrued expenses and other liabilities

16,799

 

34,233

Current portion of long-term debt

57,645

 

58,815

Total current liabilities

137,096

 

141,965

 

 

 

 

Long-term debt, net of current portion

204,064

 

205,466

Deferred income taxes

104,331

 

101,445

Other long-term liabilities

750

 

103

Total liabilities

446,241

 

448,979

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

Common stock

223

 

223

Additional paid-in capital

40,825

 

40,472

Treasury stock, at cost

(8,736)

 

(4,000)

Retained earnings

281,904

 

263,488

Total stockholders’ equity

314,216

 

300,183

Total liabilities and stockholders’ equity

$760,457

 

$749,162

___________________________________________

1)

The Truckload Operations 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.
Lance K. Stewart
(479) 361-9111

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