TONTITOWN, Ark., Jan. 16, 2019 (GLOBE NEWSWIRE) -- P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) today reported net
income of $6.1 million, or diluted earnings per share of $1.01, for the fourth quarter of 2018, and net income of $24.0 million, or
diluted earnings per share of $3.90, for the year ended December 31, 2018. These results include non-cash, non-operating losses
associated with our investments in marketable equity securities which negatively impacted diluted earnings per share by $0.70 for
the fourth quarter of 2018 and by $0.71 for the year ended December 31, 2018. This non-cash charge was recognized as the result of
new accounting requirements which became effective for the Company during 2018 and required that changes in the fair value of
equity investments flow through earnings. These results compare to net income of $31.6 million, or diluted earnings per share of
$5.00 for the fourth quarter of 2017, and net income of $38.9 million, or diluted earnings per share of $6.08 for the year ended
December 31, 2017. The 2017 results include a non-cash income tax benefit as a result of the tax reform law enacted during the
fourth quarter of 2017. This tax benefit positively impacted diluted earnings per share by $4.72 and $4.65 for the fourth quarter
of 2017 and the year ended December 31, 2017, respectively.
Operating revenues increased 24.6% to $138.2 million for the fourth quarter of 2018 compared to $110.9 million
for the fourth quarter of 2017. The increase in operating revenues includes an increase in fuel surcharge revenue from $17.5
million for the fourth quarter of 2017 to $21.6 million for the fourth quarter of 2018 as fuel prices were higher during the fourth
quarter of 2018 compared to the fourth quarter of 2017. For the year ended December 31, 2018, operating revenues increased 21.8% to
$533.3 million compared to $437.8 million for the year ended December 31, 2017. The increase in operating revenues includes an
increase in fuel surcharge revenue from $64.3 million for the year ended December 31, 2017 to $87.4 million for the year ended
December 31, 2018 as fuel prices were higher during 2018 as compared to 2017.
Daniel H. Cushman, President of the Company, commented, “We were very pleased with the financial results for
both our fourth quarter and year ended December 31, 2018; each setting new operating records for best quarter and best year in the
Company’s history. As mentioned in earlier releases, 2018 began with a fairly significant challenge as recently implemented driver
pay increases immediately increased our expenses while customer rate increases would not take effect until later in the year. As a
result, we didn’t really begin to see the improvements we were expecting until the last half of 2018. Since then, we have
experienced seven consecutive months of record operating results.
“In the fourth quarter of 2018 we were faced with many of the usual challenges that occur in our fourth quarter
each year, including scheduled auto plant downtimes and customer holiday schedules which result in reduced business work days.
These hurdles often make the fourth quarter more difficult to achieve sequential growth. However, in 2018 we overcame these
headwinds and surpassed third quarter operating results, which had been our previous best quarter on record. Each month of the
fourth quarter individually broke previous operating records for that respective month, so we are encouraged by the continued
strong demand through year end.
“While a portion of our 2018 success is certainly attributable to a strong freight market in general, much of
our success came from our commitment to expand on business with customers where relationships were established during the weak
market periods of 2016 and early 2017. We participated in ‘peak business’ opportunities in the fourth quarter 2017, and saw an
expansion in this type of business during the fourth quarter 2018. We continue to apply the ‘best in class’ service levels demanded
by automotive shippers to these non-automotive customers with great results, as illustrated by Fed Ex awarding us their ‘Ground
Carrier of the Year’ award in 2018. We attribute much of our ability to overcome our typical fourth quarter hurdles to the new
business opportunities that have helped us mitigate the effect of the traditional automotive plant downtime.
“Despite ever increasing competition for professional drivers, we accomplished almost 20% growth in our truck
fleet count during 2018. Much of the success in this area is attributable to customer support for freight rate increases, which
facilitated both across-the-board and lane-specific rate increases to our drivers. Increasing density in key lanes and the
recurring nature of much of our dedicated business has also been key to our ability to offer predicable, recurring home time.
However, without the superb effort of our recruiting team in marketing to the diverse combination of driving jobs we offer, these
results would not have been possible.
“We continue to re-invest in the Company, with major 2018 investments in fleet renewal, fleet growth, and
real estate investments in Laredo, Nuevo Laredo, and expansion of our corporate headquarters, to name a few. These investments are
intended to maintain one of the newest fleets of trucks and trailers in the industry, and to support growth initiatives in
cross-border and brokerage operations. The expansion of our corporate headquarters includes the acquisition of neighboring
properties which are intended to allow for up to 200% growth in the size of our brokerage operations which achieved record revenues
and operating profitability during 2018 and included revenue growth of 75% and improvement in operating income of 146% for 2018 as
compared to 2017.
“We look forward to the opportunities which we believe 2019 holds, and believe we are well positioned for
success based on growth and cost control initiatives that we continue to pursue. We do not expect the driver market to suddenly
correct itself, so we believe that the driver shortage will continue to limit the industry’s ability to add truck capacity in the
near term.
“We thank our employees, customers, suppliers and shareholders for their continued support and eagerly turn the
page to what we believe will be another memorable year.”
About P.A.M. Transportation Services, Inc.
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.
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 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 Subsidiaries
Key Financial and Operating Statistics
(unaudited)
(in thousands, except earnings per share data) |
| |
|
|
|
| |
Quarter Ended December 31, |
|
Twelve Months Ended December 31, |
| |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue, before fuel surcharge |
$ |
116,611 |
|
|
$ |
93,366 |
|
|
$ |
445,855 |
|
|
$ |
373,523 |
|
| Fuel surcharge |
|
21,563 |
|
|
|
17,523 |
|
|
|
87,406 |
|
|
|
64,315 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenue |
|
138,174 |
|
|
|
110,889 |
|
|
|
533,261 |
|
|
|
437,838 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses and costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries, wages and benefits |
|
30,820 |
|
|
|
26,342 |
|
|
|
119,819 |
|
|
|
102,227 |
|
| Operating supplies and expenses |
|
22,927 |
|
|
|
20,361 |
|
|
|
93,130 |
|
|
|
79,505 |
|
| Rent and purchased transportation |
|
50,355 |
|
|
|
43,638 |
|
|
|
201,455 |
|
|
|
174,477 |
|
| Depreciation |
|
12,861 |
|
|
|
10,941 |
|
|
|
49,387 |
|
|
|
42,274 |
|
| Insurance and claims |
|
4,162 |
|
|
|
4,117 |
|
|
|
17,191 |
|
|
|
17,484 |
|
| Other |
|
3,074 |
|
|
|
2,457 |
|
|
|
11,983 |
|
|
|
9,249 |
|
| Gain on disposition of equipment |
|
(700 |
) |
|
|
(319 |
) |
|
|
(1,306 |
) |
|
|
(58 |
) |
| Total operating expenses and costs |
|
123,499 |
|
|
|
107,537 |
|
|
|
491,659 |
|
|
|
425,158 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
14,675 |
|
|
|
3,352 |
|
|
|
41,602 |
|
|
|
12,680 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
(2,019 |
) |
|
|
(1,070 |
) |
|
|
(6,245 |
) |
|
|
(3,902 |
) |
| Non-operating (loss) income |
|
(4,704 |
) |
|
|
384 |
|
|
|
(4,016 |
) |
|
|
5,853 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
7,952 |
|
|
|
2,666 |
|
|
|
31,341 |
|
|
|
14,631 |
|
| Income tax expense (benefit) |
|
1,882 |
|
|
|
(28,895 |
) |
|
|
7,347 |
|
|
|
(24,268 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
$ |
6,070 |
|
|
$ |
31,561 |
|
|
$ |
23,994 |
|
|
$ |
38,899 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share |
$ |
1.01 |
|
|
$ |
5.00 |
|
|
$ |
3.90 |
|
|
$ |
6.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average shares outstanding – Diluted |
|
6,029 |
|
|
|
6,312 |
|
|
|
6,159 |
|
|
|
6,398 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
P.A.M. Transportation Services, Inc. and Subsidiaries
Key Financial and Operating Statistics
(unaudited) |
| |
|
|
|
| |
Quarter Ended December 31, |
|
Twelve Months Ended December 31, |
| Truckload Operations |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total miles (in thousands) |
|
53,943 |
|
|
|
54,145 |
|
|
|
222,738 |
|
|
|
229,392 |
|
| Operating ratio (1) |
|
85.86 |
% |
|
|
96.71 |
% |
|
|
89.73 |
% |
|
|
96.70 |
% |
| Empty miles factor |
|
7.29 |
% |
|
|
6.91 |
% |
|
|
6.31 |
% |
|
|
6.77 |
% |
| Revenue per total mile, before fuel surcharge |
$ |
1.74 |
|
|
$ |
1.44 |
|
|
$ |
1.60 |
|
|
$ |
1.41 |
|
| Total loads |
|
98,786 |
|
|
|
86,094 |
|
|
|
398,080 |
|
|
|
339,182 |
|
| Revenue per truck per work day |
$ |
736 |
|
|
$ |
727 |
|
|
$ |
738 |
|
|
$ |
695 |
|
| Revenue per truck per week |
$ |
3,680 |
|
|
$ |
3,637 |
|
|
$ |
3,691 |
|
|
$ |
3,473 |
|
| Average company-driver trucks |
|
1,399 |
|
|
|
1,144 |
|
|
|
1,327 |
|
|
|
1,201 |
|
| Average owner operator trucks |
|
630 |
|
|
|
588 |
|
|
|
574 |
|
|
|
634 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Logistics Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue (in thousands) |
$ |
22,540 |
|
|
$ |
15,251 |
|
|
$ |
89,286 |
|
|
$ |
51,098 |
|
| Operating ratio |
|
93.90 |
% |
|
|
94.88 |
% |
|
|
94.41 |
% |
|
|
96.03 |
% |
______________________________________
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.
FROM: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111
