P.A.M. Transportation Profits Double
by October 28, 2014 5:27 pm 80 views
Tontitown trucker P.A.M. Transportation posted higher quarterly revenue and net income from the previous year as company officials said strong freight demand and declining fuel prices were fueling margins.
P.A.M. Transportation, a dry goods hauler with operations across the U.S. and Mexico, reported third quarter net income of $5.056 million on revenue of $107.059 million. One year ago, quarterly profits topped $2.393 million on revenue of $101.878 million.
“We are very pleased to announce another quarter of record-breaking earnings results for the company,” said P.A.M. Transportation president Daniel H. Cushman. “The earnings per share achieved so far this year represent a 166% increase as compared to the same period last year and this quarter’s earnings per share results represent our highest single quarter of earnings per share attained, surpassing the previous record which was just set in the second quarter of this year.”
He also emphasized several factors working favorably to improve profitability, including a rebound in demand and lower fuel prices.
“Strong freight demand and favorable fuel prices were significant contributing factors to our success in the quarter,” he said. “The current level of demand allows us to be more selective in choosing lanes which offer both driver satisfaction and higher returns. As a result, we have been able to further reduce the number of empty miles driven as well as recognize an increase in the average revenue per truck each day. These efficiency gains have a significant impact on bottom line results.”
Still, Cushman cited a variety of potential trouble spots that could impact future results. He said that driver recruitment and pay remains a challenge.
“We continue to be very focused on growing the company. To this point, our focus has been to achieve that internally, but we are extremely challenged by the driver market,” he said. “However, we do feel that we have a competitive advantage in the driver market because we have business that is driver friendly in terms of pay, miles, and home time as well as one of the newest truck fleets in the industry at an average age of 1.6 years old… Our ability to attain our driver recruitment and driver retention goals will be vital to growth in top-line revenues. We have had success in both areas and we expect that positive trend to continue.”
Cushman also said that diversification of clients and more emphasis in its fledgling logistics division remain high priorities.
Shares of P.A.M. Transportation (NASDAQ: PTSI) closed trading on Tuesday at $40.53. The company’s stock has traded between $16.01 and $41.23 per share during the past year.