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, 2011
Tontitown, Arkansas, February 9, 2012......P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) today reported net income of $133,037 or diluted and basic earnings per share of $0.02 for the quarter ended December 31, 2011, and net loss of $2,857,371 or diluted and basic loss per share of $0.32 for the year ended December 31, 2011. These results compare to 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.
Operating revenues were $89,388,357 for the fourth quarter of 2011, a 14.3% increase compared to $78,203,070 for the fourth quarter of 2010. Operating revenues were $359,242,960 for the year ended December 31, 2011, an 8.2% increase compared to $331,993,826 for the year ended December 31, 2010.
Daniel H. Cushman, President of the Company, commented, “The focus of the Company since my arrival in July 2009 has been to build a sustainable profit model. While this sounds basic and fundamental, the execution of the concept requires discipline and perseverance, and often means forgoing short term profit opportunities in favor of investing in the long term sustainable profit plan. The evolution of our customer base continues to be one of the most evident success stories representing the result of our efforts.
For the fourth quarter 2011, our top five customers comprised 39% of revenue, which represents a 17% decrease from the same period in 2010 when our top five customers comprised 56% of revenue and a 25% decrease from five years ago when revenue from our top five trucking customers represented 64% of trucking revenues for the fourth quarter of 2006. The acceleration of our customer diversification clearly illustrates the success we are having in this area. Approximately $34.1 million of our 2011 revenue came from new customers that we began doing business with in 2011. While achievement of this diversification provides the obvious benefit of protecting us from dependency on any single customer, it has also unencumbered us from leverage that prevented us from pursuing pricing that more fairly compensates us for our services, it has provided a wider array of freight origins and destinations to choose from, and it has reduced the impact of seasonal plant shutdowns. The result of these improvements can be seen in the 4.6% growth in our rate per total mile to $1.38 for the fourth quarter 2011 compared to $1.32 for the same quarter in 2010, and an increase in truck utilization over the same period.
We continuously monitor expenditures to identify opportunities to do things better. Fuel, being our largest operating cost, has a very large potential for savings and we have made great progress in improving fuel efficiency and savings over the last year. Through management of driving habits, compliance with fuel and route optimization, tuning equipment specifications, and other efforts we have improved the fuel efficiency of our pre-2012 year model trucks (trucks manufactured prior to February 2011) by approximately a half mile per gallon for the quarter ended December 31, 2011 compared to December 31, 2010.
The following information was filed by Pam Transportation Services Inc (PTSI) on Thursday, February 9, 2012 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.