P.A.M. Transportation Services, Inc. returned to the black after several disappointing quarters of net losses and it reported its first positive first quarter of earnings in 5 years.
The Tontitown-based trucking firm reported first quarter net income of $674,193 for the quarter ended March 31, 2012. One year ago, P.A.M. posted a $1.98 million loss.
Revenues climbed signficantly higher in the quarter to $96.16 million. One year ago, quarterly revenues topped $85 million.
“We are very pleased to report positive earnings for the first quarter of 2012, and view our quarter as additional validation that the initiatives that have been put in place over the last several quarters are continuing to mature and positively impact both top line revenue growth and cost
control,” said President and CEO Daniel Cushman.
The first quarter of 2012 is the first time in five years that we have had a first quarter profit. However, this achievement does not represent a level of performance that we are satisfied with, but merely validates that our efforts are beginning to pay off,” he added.
Cushman said several factors contributed to the turnaround:
- Continued success in the growth and diversification of P.A.M.’s customer base “mitigated the negative impact of seasonal down time experienced with our largest customer during the first quarter of 2012.”
- Planning efficiencies gained through the integration of information provided by electronic on board recorders installed during 2011
- Improvements to its freight network
- Growth in the company’s “Expedited” and “Mexico” service offerings
- Less severe weather in the first quarter 2012 than in the first quarter 2011
“While we do see competition for qualified drivers becoming more intense, we have been able to increase our number of driving employees by 3.5% from the first quarter 2011 to the first quarter of 2012 and have more than tripled the number of independent contractors during the same period,” Cushman also disclosed.