P.A.M. Transportation Services, Inc. Announces Results for the Fourth Quarter and Year Ended December 31, 2020
P.A.M. Transportation Services reported a net income of $14.0 million, or $2.43 per share, for the fourth quarter of 2020, compared to a net loss of $13.6 million in the same quarter of 2019. For the full year, net income rose to $17.8 million, up from $7.9 million in 2019. Operating revenues increased by 15.6% to $142.8 million in Q4 2020, despite a significant decline in fuel surcharge revenue. The company noted challenges in the driver market but achieved record revenue and operating results, particularly in its logistics division.
- Net income for Q4 2020 is $14.0 million, improving from a loss of $13.6 million in Q4 2019.
- Full-year net income increased to $17.8 million from $7.9 million in 2019.
- Operating revenues rose 15.6% to $142.8 million for Q4 2020 compared to Q4 2019.
- Operating revenues for the full year decreased 5.3% to $486.8 million from $514.2 million in 2019.
- Fuel surcharge revenue declined 35.9% year-over-year, from $74.7 million in 2019 to $47.8 million in 2020.
- Challenges in driver acquisition and retention continue to impact operations.
TONTITOWN, AR / ACCESSWIRE / January 20, 2021 / P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) today reported net income of
Operating revenues increased
Joe Vitiritto, President of the Company, commented, "I am proud of our team and these results reflect the progress made during the fourth quarter with some of our pricing goals and our ability to sustain most of our cost savings initiatives implemented earlier in the year. These quarterly results represent a record quarter for us as it relates to revenue and operating income, so it is satisfying for our hardworking drivers, shop and office teams to experience record results this early into implementing our improvement processes. Another highlight, despite the COVID related setbacks experienced earlier in the year, our logistics division was able to achieve record revenue and operating results on a full-year basis.
Although we implemented steps that allowed us to make progress in the quarter, the challenging driver market continues to be one of our biggest areas of focus. We were able to grow our manned truck count in the 4th quarter, but the driver market remained tight and it was difficult to both acquire and retain driving professionals at the levels we expect."
Non-GAAP Financial Measures
In addition to our results under United States generally accepted accounting principles (GAAP), this press release also includes non-GAAP financial measures termed adjusted net income and adjusted diluted earnings per share. The Company defines adjusted net income and adjusted diluted earnings per share as GAAP net income and GAAP diluted earnings per share, respectively, excluding certain significant items, such as expenses and reserves associated with certain litigation settlements and unrealized gains and losses on marketable equity securities, and any tax benefit associated with such items. Management believes that reporting adjusted net income and adjusted diluted earnings per share more clearly reflects the Company's current operating results and provides investors with a better understanding of the Company's overall financial performance. In addition, the adjusted results, although not a financial measure under GAAP, facilitate the ability to analyze the Company's financial results in relation to those of its competitors and to the Company's prior financial performance by excluding items which otherwise would distort the comparison. However, because not all companies use identical calculations, the Company's presentation of adjusted results may not be comparable to similarly titled measures of other companies. Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP, do not purport to be alternatives to, and should be considered in addition to, and not as a substitute for or superior to, net income and diluted earnings per share, respectively, as defined under GAAP.
Pursuant to the requirements of Regulation G, we have provided a tabular reconciliation of GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share in this press release.
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, 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, ongoing and potential future economic, business and operational disruptions and uncertainties due to the COVID-19 pandemic or other public health crises; 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; 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; 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.
Quarter Ended | Twelve Months Ended | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue, before fuel surcharge | $ | 131,546 | $ | 106,665 | $ | 438,987 | $ | 439,511 | ||||||||
Fuel surcharge | 11,204 | 16,832 | 47,838 | 74,666 | ||||||||||||
Operating Revenues | 142,750 | 123,497 | 486,825 | 514,177 | ||||||||||||
Operating expenses and costs: | ||||||||||||||||
Salaries, wages and benefits | 33,107 | 35,152 | 124,098 | 129,738 | ||||||||||||
Operating supplies and expenses | 21,409 | 24,933 | 84,275 | 98,420 | ||||||||||||
Rent and purchased transportation | 51,296 | 39,752 | 165,984 | 168,399 | ||||||||||||
Depreciation | 14,232 | 14,133 | 56,168 | 55,107 | ||||||||||||
Insurance and claims | 3,165 | 23,750 | 8,866 | 35,622 | ||||||||||||
Other | 2,727 | 3,440 | 13,138 | 13,761 | ||||||||||||
Loss on disposition of equipment | 444 | 221 | 373 | 583 | ||||||||||||
Total operating expenses and costs | 126,380 | 141,381 | 452,902 | 501,630 | ||||||||||||
Operating income (loss) | 16,370 | (17,884) | 33,923 | 12,547 | ||||||||||||
Interest expense | (2,214) | (2,377) | (8,815) | (8,654) | ||||||||||||
Non-operating income (expense) | 4,510 | 2,457 | (1,699 | ) | 6,222 | |||||||||||
Income (loss) before income taxes | 18,666 | (17,804) | 23,409 | 10,115 | ||||||||||||
Income tax expense (benefit) | 4,713 | (4,168) | 5,582 | 2,215 | ||||||||||||
Net income (loss) | $ | 13,953 | $ | (13,636) | $ | 17,827 | $ | 7,900 | ||||||||
Diluted earnings (loss) per share | $ | 2.43 | $ | (2.37) | $ | 3.09 | $ | 1.34 | ||||||||
Average shares outstanding - Diluted | 5,752 | 5,751 | 5,768 | 5,880 | ||||||||||||
Quarter Ended | Twelve Months Ended | |||||||||||||||
Truckload Operations | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Total miles (in thousands) | 47,539 | 50,597 | 193,481 | 213,048 | ||||||||||||
Operating ratio (1) | 86.78 | % | 120.95 | % | 91.97 | % | 97.67 | % | ||||||||
Empty miles factor | 8.67 | % | 7.78 | % | 8.83 | % | 7.34 | % | ||||||||
Revenue per total mile, before fuel surcharge | $ | 1.96 | $ | 1.75 | $ | 1.75 | $ | 1.71 | ||||||||
Total loads | 87,017 | 92,878 | 349,803 | 396,465 | ||||||||||||
Revenue per truck per work day | $ | 758 | $ | 663 | $ | 663 | $ | 690 | ||||||||
Revenue per truck per week | $ | 3,788 | $ | 3,317 | $ | 3,317 | $ | 3,449 | ||||||||
Average company-driver trucks | 1,606 | 1,566 | 1,567 | 1,525 | ||||||||||||
Average owner operator trucks | 350 | 546 | 429 | 550 | ||||||||||||
Logistics Operations | ||||||||||||||||
Total revenue (in thousands) | $ | 38,234 | $ | 18,394 | $ | 101,458 | $ | 75,917 | ||||||||
Operating ratio | 89.46 | % | 96.66 | % | 93.28 | % | 94.65 | % | ||||||||
| Quarter Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) (GAAP) | $ | 13,953 | $ | (13,636) | $ | 17,827 | $ | 7,900 | ||||||||
Adjustments: | ||||||||||||||||
Adjustment to exclude unrealized (gain) loss recognized on marketable equity securities | (3,475) | (1,810) | 3,345 | (3,698) | ||||||||||||
Adjustment to exclude lawsuit settlement and reserve | - | 19,901 | - | 19,901 | ||||||||||||
Tax (expense) benefit of adjustment (2): | ||||||||||||||||
Exclusion of unrealized loss (gain) recognized | 877 | 424 | (798) | 810 | ||||||||||||
Exclusion of lawsuit settlement and reserve deduction | - | (4,659) | - | (4,358) | ||||||||||||
Adjusted net income (non-GAAP) | $ | 11,355 | $ | 220 | $ | 20,374 | $ | 20,555 | ||||||||
| Quarter Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) (GAAP) | $ | 2.43 | $ | (2.37) | $ | 3.09 | $ | 1.34 | ||||||||
Adjustments: | ||||||||||||||||
Adjustment to exclude unrealized (gain) loss recognized on marketable equity securities | (0.60) | (0.31) | 0.58 | (0.63) | ||||||||||||
Adjustment to exclude lawsuit settlement and reserve | - | 3.46 | - | 3.39 | ||||||||||||
Tax (expense) benefit of adjustment (2): | ||||||||||||||||
Exclusion of unrealized loss (gain) recognized | 0.15 | 0.07 | (0.14 | ) | 0.14 | |||||||||||
Exclusion of lawsuit settlement and reserve deduction | - | (0.81) | - | (0.74) | ||||||||||||
Adjusted diluted earnings per share (non-GAAP) | $ | 1.98 | $ | 0.04 | $ | 3.53 | $ | 3.50 | ||||||||
- 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.
- The tax benefit is calculated using the effective tax rates for each respective period prior to any adjustments for non-GAAP amounts.
Contact:
P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111
SOURCE: P.A.M. Transportation Services, Inc.
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FAQ
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What challenges did PTSI face in the driver market?
