P.A.M. Transportation Services Inc. said Wednesday that increasing operating and growth costs led to a 43 percent decrease in second-quarter earnings.
Reporting midmorning, the Tontitown-based carrier posted net income of $3.99 million, or 61 cents per share, for the quarter that ended June 30, compared to a net income of $7.04 million or 94 cents per share, in the same period a year ago.
Revenue, including fuel surcharges, increased more than 3 percent to $111.5 million.
P.A.M. president and CEO Dan Cushman said in a news release that “we continued to experience some weakness in the market for our services but were able to continue our positive trend of revenue growth.”
Fuel surcharge revenue was down nearly 26 percent as fuel prices have been lower.
“Our lower margins are not necessarily the result of less profitable freight selection but are primarily related to an increase in our normal operating costs, which cannot currently be passed on to customers, and to entry costs as we expand into new markets,” Cushman said in the release.
The company reported a $1 million increase in driver acquisition costs, expenses related to its growth in retail and manufacturing markets and health care cost increases.
P.A.M.’s shares closed Wednesday at $19.29 on the Nasdaq, up 31 cents or 1.63 percent. Shares have traded between $14.75 and $58.31 in the past year.