TRANSPORTATION SERVICES, INC.
TRANSPORTATION SERVICES, INC.
RESULTS FOR THE FOURTH QUARTER
YEAR ENDED DECEMBER 31, 2008
Arkansas, February 20, 2009......P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net loss of $11,423,986 or diluted and
basic loss per share of $1.19 for the quarter ended December 31, 2008, and net
loss of $18,764,885 or diluted and basic loss per share of $1.94 for the year
ended December 31, 2008. These losses include significant non-cash write downs
of $11.9 million ($1.25 per share) during the fourth quarter and $14.2 million
($1.48 per share) for the 2008 year. These results compare to net loss of
$839,909 or diluted and basic loss per share of $0.08, and net income of
$2,653,491 or diluted and basic earnings per share of $0.26, respectively, for
the quarter and year ended December 31, 2007.
revenues were $84,014,264 for the fourth quarter of 2008, a 17.8% decrease
compared to $102,162,120 for the fourth quarter of 2007. Operating revenues were
$406,722,502 for the year ended December 31, 2008, a 0.5% decrease compared to
$408,841,190 for the year ended December 31, 2007.
Weaver, President of the Company, commented, “We are pleased to see that our
prior cost reduction efforts returned the trucking operation to operational
profitability before certain write downs in the fourth quarter of 2008. Net
income was $0.05 per share before non-cash charges. The Company’s fourth quarter
2008 loss per share of $1.19 included non-cash charges triggered by the current
equity market, including our own market capitalization, and general economic
conditions. These charges, net of tax, included:
one-time write off of the entire $10.2 million ($1.07 per share) balance
of goodwill on our balance sheet. This write off relates to an annual test
for goodwill impairment performed by the Company that is required by
Generally Accepted Accounting Standards and was the result of our market
capitalization falling significantly below our net asset
$0.9 million ($0.10 per share) write down of equity investments to market
$0.7 million ($0.07 per share) write down to market value of equipment
held for sale.
$0.1 million ($0.01 per share) write down of accounts receivable to net
realizable value due to customer
items, $11.9 ($1.25 per share) million in total, necessitated by fair value
financial reporting requirements, moved the Company from a positive net income,
to the loss ultimately reported. While these non-cash charges negatively
impacted our earnings and certain assets and equity, we remain confident with
the strength of our balance sheet. As of December 31, 2008, our debt to equity
ratio was 0.33:1 and our tangible book value per share was $16.52.
our fourth quarter was operationally profitable, we did experience a precipitous
decline in freight demand in November and December. In light of this
unprecedented decrease in freight demand, the Company has intensified its focus
on cost reduction and cash conservation measures including fleet size and
personnel reductions, decreasing capital expenditures, salary decreases for
management personnel, pay and hiring freezes on all non-driving staff and line
item focus on expense controls. While these are difficult decisions, they are
necessary due to what has proven to be an extremely persistent recessionary
The following information was filed by Pam Transportation Services Inc (PTSI) on Monday, February 23, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.