P.A.M. Transportation Services, Inc. Announces Results for the Third Quarter Ended September 30, 2023
Rhea-AI Summary
P.A.M. Transportation Services reports third quarter 2023 results with a decrease in revenues and income compared to the previous year.
Positive
The company had an aggregate of $203.5 million of cash, marketable equity securities, and available liquidity under their line of credit as of September 30, 2023.
Outstanding debt decreased by $36.7 million from December 31, 2022.
Generated $93.9 million in operating cash flow during the first nine months of 2023.
Negative
Total revenues decreased by 20.2% to $201.5 million for the third quarter of 2023 compared to the same quarter in 2022.
Operating income decreased by 75.1% YoY.
Diluted EPS decreased by 74.3% YoY.
10/18/2023 - 05:00 PM
Third Quarter 2023 Summary Results
Total revenues of $201.5 million , down 20.2% YoY
Operating income of $8.8 million , down 75.1% YoY
Operating ratio of 95.6%
Diluted EPS of $0.28 , down 74.3% YoY
TONTITOWN, Ark. --(BUSINESS WIRE)--
P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the “Company”) today reported consolidated net income of $6.1 million , or diluted and basic earnings per share of $0.28 , for the quarter ended September 30, 2023. These results compare to consolidated net income of $24.6 million , or diluted earnings per share of $1.09 ($1.10 basic), for the quarter ended September 30, 2022.
Consolidated operating revenues decreased 20.2% to $201.5 million for the third quarter of 2023 compared to $252.6 million for the third quarter of 2022.
Joe Vitiritto, President of the Company, commented, “The third quarter presented very challenging comparisons to the same quarter last year. The third quarter of 2022 was one of the best in our company’s history while the third quarter this year was faced with an unprecedented unfavorable truckload market. Despite market challenges, we did see improvement in factors that we believe will position the Company favorably when truckload market conditions improve. I am especially proud of the continued loyalty, dedication and outstanding contribution from our driving and non-driving associates as we continue to drive improvement in the Company.
“Looking ahead, we will continue to stay focused on investing in the areas of our business that will help us to consistently grow, increase efficiencies and deliver value to our customers, shareholders and employees.”
Liquidity, Capitalization, and Cash Flow
As of September 30, 2023, we had an aggregate of $203.5 million of cash, marketable equity securities, and available liquidity under our line of credit and $316.3 million of stockholders’ equity. Outstanding debt was $227.6 million as of September 30, 2023, which represents a $36.7 million decrease from December 31, 2022. During the first nine months of 2023, we generated $93.9 million in operating cash flow.
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 ongoing or future labor disruptions in the automotive industry; 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 outbreaks of the COVID-19 pandemic or other 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, 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 September 30,
Nine Months Ended September 30,
2023
2022
2023
2022
(in thousands, except earnings per share)
(in thousands, except earnings per share)
Revenue, before fuel surcharge
$174,348
$216,475
$549,885
$615,303
Fuel surcharge
27,154
36,155
80,754
93,943
Operating Revenue
201,502
252,630
630,639
709,246
Operating expenses and costs:
Salaries, wages and benefits
46,032
50,847
142,138
133,069
Operating supplies and expenses
42,378
48,071
123,589
123,156
Rent and purchased transportation
78,595
93,501
244,020
273,521
Depreciation
15,552
16,289
47,805
46,647
Insurance and claims
5,146
5,149
25,205
19,281
Other
5,305
4,579
17,936
12,712
Gain on disposition of equipment
(339
)
(1,301
)
(1,175
)
(2,662
)
Total operating expenses and costs
192,669
217,135
599,518
605,724
Operating income
8,833
35,495
31,121
103,522
Interest expense
(2,046
)
(1,922
)
(6,565
)
(5,587
)
Non-operating income(expense)
1,638
(1,886
)
3,729
(2,829
)
Income before income taxes
8,425
31,687
28,285
95,106
Income tax expense
2,328
7,121
7,637
22,416
Net income
$6,097
$24,566
$20,648
$72,690
Diluted earnings per share
$0.28
$1.09
$0.93
$3.24
Average shares outstanding – Diluted
22,139
22,440
22,219
22,468
Quarter Ended September 30,
Nine Months Ended September 30,
2023
2022
2023
2022
Truckload Operations
Total miles (in thousands)
49,745
56,624
156,897
151,531
Operating ratio (1)
95.8
%
82.6
%
96.0
%
81.3
%
Empty miles factor
7.84
%
9.92
%
8.48
%
9.37
%
Revenue per total mile, before fuel surcharge
$2.26
$2.56
$2.28
$2.67
Total loads
105,342
110,192
316,772
301,334
Revenue per truck per workday
$764
$912
$781
$933
Revenue per truck per week
$3,819
$4,562
$3,903
$4,665
Average company-driver trucks
2,007
2,080
2,038
1,868
Average owner operator trucks
326
403
360
391
Logistics Operations
Total revenue (in thousands)
$62,091
$71,493
$192,204
$210,645
Operating ratio
93.3
%
85.7
%
91.2
%
86.9
%
P.A.M. Transportation Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
September 30,
December 31,
2023
2022
(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents
$102,299
$74,087
Trade accounts receivable, net
96,456
134,739
Other receivables
7,639
6,263
Inventories
2,600
2,570
Prepaid expenses and deposits
10,932
15,729
Marketable equity securities
41,250
41,728
Income taxes refundable
8,423
5,650
Total current assets
269,599
280,766
Property and equipment
714,673
705,919
Less: accumulated depreciation
257,753
242,324
Total property and equipment, net
456,920
463,595
Other non-current assets
5,202
4,801
Total Assets
$731,721
$749,162
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$57,653
$48,917
Accrued expenses and other liabilities
22,054
34,233
Current portion of long-term debt
56,149
58,815
Total current liabilities
135,856
141,965
Long-term debt, net of current portion
171,418
205,466
Deferred income taxes
107,415
101,445
Other long-term liabilities
750
103
Total liabilities
415,439
448,979
STOCKHOLDERS’ EQUITY
Common stock
223
223
Additional paid-in capital
40,660
40,472
Treasury stock, at cost
(8,736
)
(4,000
)
Retained earnings
284,135
263,488
Total stockholders’ equity
316,282
300,183
Total liabilities and stockholders’ equity
$731,721
$749,162
_______________________________________
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.
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P.A.M. TRANSPORTATION SERVICES, INC.
Lance K. Stewart
(479) 361-9111
Source: P.A.M. Transportation Services, Inc.
What were the total revenues for the third quarter of 2023?
Total revenues for the third quarter of 2023 were $201.5 million.
How much did operating income decrease by compared to the previous year?
Operating income decreased by 75.1% compared to the previous year.
What was the diluted EPS for the third quarter of 2023?
The diluted EPS for the third quarter of 2023 was $0.28.
What was the consolidated net income for the third quarter of 2023?
The consolidated net income for the third quarter of 2023 was $6.1 million.
What is the outstanding debt as of September 30, 2023?
The outstanding debt as of September 30, 2023, was $227.6 million.
How much operating cash flow was generated during the first nine months of 2023?
During the first nine months of 2023, $93.9 million in operating cash flow was generated.