Fourth Quarter Loss Dents P.a.m. Transportation Year

The fourth quarter wasn’t kind to P.A.M. Transportation’s 2010.

Tontitown-based P.A.M. posted a $1.1 million quarterly loss, which drove the trucking company to a full year loss of $654,000.

One year ago, however, P.A.M. suffered a $3.9 million fourth quarter loss as it skid to a $10.8 million full year loss.

Fourth quarter revenues slipped 3.3% to $78.2 million in the fourth quarter compared to a year ago. For the year, P.A.M.’s revenues rose 13.7% to $331.99 million.

"The fourth quarter, like our third quarter, was met with mixed emotions," said P.A.M. President Daniel H. Cushman. "While we are pleased that financial results for each quarter in 2010 improved over the same quarter in 2009 and that we have dramatically reduced the 2010 loss as compared to that experienced in 2009, several factors contributed to a loss of momentum in the third and fourth quarters."

Cushman said that P.A.M. walked away from "some undesirable freight" as it worked to improve its freight mix. He said efforts to diversify the company’s customer base was working, but taking longer than expected.

"Several of the customers that are currently small in terms of revenue have significant growth potential. Next year, our growth with these existing customers will be as important, if not more important, than development of additional ‘new’ new business," Cushman said.

He also touted growth in P.A.M.’s Mexico operations, which have grown by 35% in the past year.

Cushman said that negatives hurting the company’s bottom line in the fourth quarter included higher driver pay, rapidly escalating fuel prices and uncooperative weather conditions.