P.A.M. boosts revenue, posts 2011 income loss
by February 10, 2012 10:18 am 87 views
Tontitown-based P.A.M. Transportation Services boosted 2011 revenue by 8.2%, but posted a loss of $2.857 million compared to a 2010 loss of $654,728.
The trucking company posted fourth quarter net income of $133,037, up compared to the $1.11 million loss for the same quarter of 2010. Revenue during the fourth quarter was $89.388 million, well ahead of the $78.203 million during the 2010 period.
“While we will never be content with break even operating results, we were pleased with the year over year improvement and progress in many key areas,” Daniel Cushman, president of P.A.M. said in the earnings statement.
One of the key areas in which the company improved is in diversifying its revenue base. The company in years past derived most of its revenue from shipping goods within the auto industry.
“For the fourth quarter 2011, our top five customers comprised 39% of revenue, which represents a 17% decrease from the same period in 2010 when our top five customers comprised 56% of revenue and a 25% decrease from five years ago when revenue from our top five trucking customers represented 64% of trucking revenues for the fourth quarter of 2006,” Cushman noted in the report.
Cushman said the diversification also allows the company to pursue better pricing, better accounts and reduce the impact of seasonal plant shutdowns in the auto industry.
“The result of these improvements can be seen in the 4.6% growth in our rate per total mile to $1.38 for the fourth quarter 2011 compared to $1.32 for the same quarter in 2010, and an increase in truck utilization over the same period,” Cushman explained.
Company officials are also investing in newer, fuel-efficient tractors. At the end of 2011, the company acquired 510 new tractors and 400 new trailers, with plans to add equipment “at a similar pace throughout 2012.”
A combination of new equipment, “management of driving habits,” and route optimization improved fuel efficiency by a half mile per gallon, according to the company’s earnings report.
The results proved favorable in Friday morning action for the thinly traded shares of P.A.M. Transportation. Trading opened at $10.84, up from the Thursday close of $10.76., and the price was climbing in the morning trades. During the past 52 weeks the share price has ranged from a $13.14 high to a $9.03 low.