P.A.M. Transportation posts positive 2Q earnings
by July 28, 2010 10:04 pm 49 views
After more than two years of operating losses, P.A.M. Transportation Services finally turned a profit.
The Tontitown-based dry goods hauler reported net income of $1.26 million on revenue of $85.3 million, a 24.5% increase from last year’s second quarter.
One year ago, P.A.M. posted a $946,000 second quarter net loss on sales of $68.5 million.
“We were very pleased with our operating results for the quarter, which were not only favorable for obvious financial reasons, but also to reinforce to everyone in our organization that our focused efforts yielded the desired results," P.A.M. President Daniel Cushman said in an earnings statement released Wednesday (July 28) after the markets closed.
He also said that the return to profitability would result in the removal of a 5% pay reduction that was implemented last year.
Cushman cited a number of key performance indicators including better utilization of equipment, negotiated rates with customers, and capitalizing on new businesses.
"We are seeing a continued trend towards shipping capacity shortages in the marketplace. There are several ways to approach a market that has turned favorable to carriers after a long period of being at a dramatic disadvantage due to overcapacity," Cushman said in explaining how P.A.M. would chase new and existing opportunities.
P.A.M. shares (NASDAQ: PTSI) closed Wednesday at $14.95, up 10 cents. During the past 52 weeks the share price has ranged from a $18.60 high to a $6.31 low.