FROM: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Lance K. Stewart
P.A.M. TRANSPORTATION SERVICES, INC.
ANNOUNCES RESULTS FOR THE FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 2010
Tontitown, Arkansas, February 8, 2011......P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) today reported net loss of $1,110,135 or diluted and basic loss per share of $0.12 for the quarter ended December 31, 2010, and net loss of $654,728 or diluted and basic loss per share of $0.07 for the year ended December 31, 2010. These results compare to net loss of $3,915,329 or diluted and basic loss per share of $0.42, and net loss of $10,847,325 or diluted and basic loss per share of $1.15, respectively, for the quarter and year ended December 31, 2009.
Operating revenues were $78,203,070 for the fourth quarter of 2010, a 3.3% decrease compared to $80,871,818 for the fourth quarter of 2009. Operating revenues were $331,993,826 for the year ended December 31, 2010, a 13.7% increase compared to $291,909,653 for the year ended December 31, 2009.
Daniel H. Cushman, President of the Company, commented, “The fourth quarter, like our third quarter, was met with mixed emotions. While we are pleased that financial results for each quarter in 2010 improved over the same quarter in 2009 and that we have dramatically reduced the 2010 loss as compared to that experienced in 2009, several factors contributed to a loss of momentum in the third and fourth quarters.
As the year progressed, we continued to improve our freight mix, walking away from some undesirable freight that we were not able to immediately replace. The freight we walked away from required a one year commitment so we had to make a decision, continue to haul it or walk away and replace it as quickly and efficiently as possible. We hoped we could do both, and replace it immediately with better paying freight. We eventually got the better paying freight, it just took longer than we would have liked. We were successful in the fact that we increased our rate per total mile by 5.6% to $1.32 in the fourth quarter 2010, up from $1.25 in the same quarter 2009.
We continue to have success in diversifying our customer base, with 72 of our top 200 customers being new in 2010. Our challenge remains replacing some very large customers with a larger number of smaller customers, which takes time. Several of the customers that are currently small in terms of revenue have significant growth potential. Next year, our growth with these existing customers will be as important, if not more important, than development of additional “new” new business.
Our operation in Mexico has been a great success, with 35% growth for the year. Mexico revenue has gone from being almost exclusively automotive in prior years to being approximately 50% automotive in 2010. The establishment of our Mexican offices during the fourth quarter demonstrates our commitment to customers operating in the region by allowing us to quickly respond to their needs, as well as capitalize on new business opportunities.
We remain focused on expense control, with intensified emphasis on maintenance costs, driver recruitment/retention and fuel.
We deferred the purchase of new tractors during 2010 while new engine technology could be tested by the industry. This increased the average age of our fleet by approximately one year, resulting in increased maintenance costs and the addition of maintenance technicians to keep our revenue producing units in service and compliant with the new Comprehensive Safety Analysis (CSA 2010) regulations issued by the Federal Motor Carrier Administration. In 2011 we plan to begin retiring older high mileage equipment and return to a regular equipment replacement cycle. Maintenance costs were up $.02 cents per mile for the fourth quarter 2010 compared to the fourth quarter of 2009.
In August of 2010 we rescinded a 5% pay reduction that had been in effect since June 2009, resulting in increased driver payroll costs in the third and fourth quarters of 2010. While necessary for driver recruitment and retention, this increase combined with increased recruiting and advertising expenses had a negative impact of $.02 cents per mile in the fourth quarter 2010 compared to the same quarter 2009.
The following information was filed by Pam Transportation Services Inc (PTSI) on Wednesday, February 9, 2011 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.