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FROM: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Allen W. West
P.A.M. TRANSPORTATION SERVICES, INC.
ANNOUNCES RESULTS FOR THE FIRST QUARTER
ENDED MARCH 31, 2018
Tontitown, Arkansas, April 30, 2018...... P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) today reported adjusted net income of $2,305,209 or adjusted diluted earnings per share of $0.37 for the quarter ended March 31, 2018. This compares to adjusted net income of $1,189,032 or adjusted diluted earnings per share of $0.19 for the quarter ended March 31, 2017. Adjusted net income and adjusted diluted earnings per share exclude the impact of recognized gains or losses that are associated with the Company’s investments in marketable equity securities. Including the impact of these gains or losses for each period resulted in net income of $1,387,308 or diluted earnings per share of $0.22 for the quarter ended March 31, 2018 and net income of $2,283,164 or diluted earnings per share of $0.36 for the quarter ended March 31, 2017.
Operating revenues, before fuel surcharge revenue, increased 5.9% to $99,103,824 for the first quarter of 2018 compared to $93,602,715 for the first quarter of 2017. Fuel surcharge revenue increased 28.8% to $20,354,323 for the first quarter of 2018 compared to $15,801,816 for the first quarter of 2017 as fuel prices were significantly higher year over year. Total operating revenues increased 9.2% to $119,458,147 for the first quarter of 2018 compared to $109,404,531 for the first quarter of 2017.
Daniel H. Cushman, President of the Company, commented, “We are pleased with operating results for first quarter of 2018, which improved considerably compared to the first quarter of 2017. This improvement in operating results was a positive move towards attaining our goal of record earnings for the Company, which we feel well positioned to achieve in the future.
“Several significant challenges existed during the first quarter 2018 that were not present during the first quarter of 2017. Winter weather persisted throughout the 2018 quarter, with prolonged major weather events that affected large portions of our operating area. These events negatively impact fuel expense, maintenance expenses, insurance claims and revenue, due to reduced equipment utilization. Many of our customers close on Good Friday, which was observed during the first quarter of 2018, but was observed in the second quarter of 2017. Also, in late December 2017 we gave a significant pay increase to company drivers, which increased driver per mile costs by an average of approximately 13%. These company driver pay raises were followed shortly thereafter by an increase in rates paid to certain owner operators within our network. These raises were long overdue and we believe they are necessary to experience the level of growth we anticipate for the year.
“While we did experience significant headwinds during this first quarter, the freight market was very strong and provided long overdue opportunities to secure customer rate increases. Over most of the last two years, the freight market had become very stagnant and many customers pushed rates lower at the same time many of our costs were rising. A favorable shift in freight demand began during the fourth quarter of 2017 and has strengthened throughout the first quarter of 2018.
“Unlike many of our competitors, a large percentage of our freight network consists of automotive related customers, with approximately 55% of our customer base comprised of a diversified mix of automotive OEM’s and their suppliers. Many of these customers have established contractual rates and capacity commitments that we have honored, which means that we have forgone other opportunities that take advantage of the rising freight rates witnessed in the spot market as capacity continued to constrict. While taking advantage of these spot market opportunities would have improved our results for the quarter, we did not feel that the risk of disrupting our current network was in either our customers’ or the Company’s best interests. As of the end of this year’s first quarter, we have only addressed rate increases on approximately 45% of our business, and will address the remainder as contractual commitments allow. We are excited about the prospect of the rate increases on the remaining 55% of our business and the resulting positive impact we expect to see in our operating results.
The following information was filed by Pam Transportation Services Inc (PTSI) on Monday, April 30, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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