P.A.M. Transportation Services, Inc. reported net income of $934,791 for the quarter ended June 30, 2012, an improvement from year-ago earnings when the Tontitown-based trucking firm posted a $692,000 profit.
For the first six months of 2012, P.A.M. is reporting net income of $1.6 million compared to a $1.28 million net loss during the first six months of 2011.
Revenues eclipsed $94.15 million during the quarter, down 1.8% compared to second quarter 2011 revenues of $95.89 million.
At the six-month mark, P.A.M. revenues are up 5.2% in 2012 versus $190.31 million in the 2011 comparable period.
“We are very pleased to report our third consecutive quarter of sequential earnings growth. We remain absolutely dedicated in our focus on the goal of a sustainable profit model and are very pleased to see many of our initiatives bearing fruit,” said P.A.M. President Daniel H. Cushman.
P.A.M.'s stock closed trading on Thursday (July 26) at $9.99 per share, up 25 cents. The company's stock has traded between a low of $9.03 and a high of $12.58 per share during the last 52 weeks.
Part of P.A.M.’s success may be tied to overall increases in U.S. tonnage.
Trucking Associations’ seasonally adjusted Truck Tonnage Index increased 1.2% in June after falling 1% in May. June’s increase was the largest month-to-month gain in 2012. Compared with June 2011, the SA index was 3.2% higher, the smallest year-over-year increase since March 2012.
Year-to-date, compared with the same period last year, tonnage was up 3.7%. Compared with the second quarter in 2011, the index was up 3.5%.
“June’s increase was a pleasant surprise, but the lower year-over-year gain fits with an economy that has slowed,” ATA Chief Economist Bob Costello said in a statement. “Manufacturing output was strong in June, which helped tonnage levels.”
Costello said he’s still concerned about businesses sitting on cash instead of hiring more workers or spending it on capital, both of which would give the economy and tonnage a shot in the arm. Costello said the business community is worried about Europe and the U.S. fiscal cliff at the end of the year.
Costello lowered his tonnage outlook for 2012 to the 3% to 3.5% range due to recent economic weakness.
Michael Tilley with our content partner, The City Wire, contributed to this report.
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