P.A.M. Transportation Services, Inc. Announces Final Results of its Self Tender Offer

Rhea-AI Summary

P.A.M. Transportation Services announced the final results of its modified Dutch auction tender offer to repurchase up to 550,000 shares of its common stock. The offer, which expired on May 22, 2024, concluded with the company purchasing 284,206 shares at $18.00 per share, totaling $5.11 million. This represents approximately 1.3% of the company's issued and outstanding shares. Post-transaction, the company has 21,755,186 shares outstanding. P.A.M. Transportation may repurchase additional shares in the future, subject to market conditions and other relevant factors. However, no additional shares can be repurchased until June 7, 2024.

Positive

• Repurchased 284,206 shares at $18.00 each, totaling $5.11 million.
• Approximately 1.3% of outstanding shares repurchased.
• Post-transaction share count is 21,755,186.
• Potential for future share repurchases based on market conditions.

Negative

• Only 284,206 out of 550,000 planned shares were repurchased.
• Total expenditure of $5.11 million on share buyback.
• No additional share repurchases until June 7, 2024.

Insights

Financial Analyst

P.A.M. Transportation Services, Inc. has recently concluded a modified Dutch auction tender offer to repurchase its shares. The tender offer ended with the company purchasing a total of 284,206 shares, representing approximately 1.3% of its issued and outstanding shares, at a price of $18.00 per share. This transaction cost the company about $5,115,708.

From a financial perspective, share repurchase programs are often seen as a positive move by investors, indicating the company’s confidence in its own financial health and future prospects. By reducing the number of outstanding shares, earnings per share (EPS) could potentially improve, which might lead to a higher stock price in the long term. However, this also depends significantly on the company's ability to generate consistent earnings and manage its cash flow effectively post buyback.

One key point to consider is that the company did not purchase the maximum number of shares they initially intended (550,000), which could suggest a more conservative approach or indicate that fewer shareholders were willing to sell at the tender price. Additionally, the company is restricted from making further repurchases until after June 7, 2024, which might limit immediate further buyback actions.

For retail investors, understanding share buybacks as a tool for potentially enhancing shareholder value is crucial. While the immediate impact might be neutral, the long-term effect could be beneficial if the company continues to perform well financially. Monitoring the company’s financial health and market conditions will be essential.

TONTITOWN, Ark.--(BUSINESS WIRE)-- P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (the “Company”) today announced the final results of its modified “Dutch auction” tender offer to repurchase up to 550,000 shares of its outstanding common stock, which expired at 5:00 p.m., Eastern Time, on Wednesday, May 22, 2024.

In accordance with the terms and conditions of the tender offer, the Company has accepted for purchase a total of 284,206 shares of its common stock, representing approximately 1.3% of the Company’s issued and outstanding shares, at a purchase price of $18.00 per share. Payment for the shares accepted for purchase under the tender offer will be made promptly, at a total cost to the Company of $5,115,708, excluding fees and expenses related to the offer.

Based on the final count by Computershare Trust Company, N.A. (“Computershare”), the depositary for the tender offer, an aggregate of 284,206 shares were properly tendered and not properly withdrawn at or below the final purchase price of $18.00 per share. The Company will promptly pay for the shares accepted for purchase and return to tendering shareholders any shares tendered and not purchased.

The Company expects to have approximately 21,755,186 shares of its common stock outstanding immediately following consummation of the tender offer.

The Company may purchase additional shares in the future in the open market subject to market conditions and through private transactions, tender offers or otherwise. Under applicable securities laws, however, the Company may not repurchase any shares until June 7, 2024. Whether the Company makes additional repurchases in the future will depend on many factors, including the number of shares purchased in this tender offer, its business and financial performance and situation, the business and market conditions at the time, including the price of the shares, and other factors the Company considers relevant.

The Company has retained Georgeson LLC as the information agent for the tender offer. All questions regarding the tender offer should be directed to the information agent (888) 680-1529 (toll free).

P.A.M. Transportation Services, Inc. is a holding company that owns subsidiaries engaged in providing truckload dry van carrier transporting general commodities throughout the continental United States, as well as 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.

Note Regarding 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 the expiration of the tender offer, the Company’s payment for the shares tendered in the offer, the terms and conditions of the tender offer, and other 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; 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 future 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; the price and availability of new equipment consistent with anticipated acquisitions and replacement plans; 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240528965562/en/

Lance K. Stewart

(479) 361-9111

Source: P.A.M. Transportation Services, Inc.

FAQ

What were the final results of PTSI's Dutch auction tender offer on May 22, 2024?

P.A.M. Transportation repurchased 284,206 shares at $18.00 per share, totaling $5.11 million.

How many shares did PTSI repurchase in its Dutch auction tender offer?

P.A.M. Transportation repurchased 284,206 shares.

What is the value of shares PTSI repurchased in its tender offer?

The company spent $5.11 million to repurchase shares.

What percentage of PTSI's outstanding shares were repurchased in the tender offer?

Approximately 1.3% of the company's outstanding shares were repurchased.

How many shares does PTSI have outstanding after the tender offer?

P.A.M. Transportation has 21,755,186 shares outstanding following the tender offer.

When can PTSI repurchase additional shares after the tender offer?

The company can repurchase additional shares starting June 7, 2024.