Tontitown-based carrier P.A.M. Transportation Services announced Monday (May 13) plans to purchase up to 200,000 shares, or about 3.4% of its outstanding common stock, at a price between $55 and $60 per share. The shares will be purchased through a modified Dutch auction, and the deadline is June 11 for shareholders to provide an offer to sell up to $12 million in shares.
The company plans to pay for the shares with its cash and cash equivalents and from money borrowed under its existing line of credit. “The Board of Directors determined that it is in the company’s best interest to repurchase shares at this time given P.A.M.’s financial condition and stock price,” according to a news release. “A modified ‘Dutch auction’ tender offer allows stockholders to indicate how many shares and at what price(s) they wish to tender their shares within the specified price range.”
The company will determine the lowest price per share within the range to purchase up to 200,000 shares of its common stock, based on the number of shares tendered and the prices offer by shareholders. Shareholders whose shares are purchased will receive the determined purchase price per share in cash, without interest, after the tender offer deadline. Shares tendered at prices higher than the purchase price will not be purchased and will be returned to stockholders. The tender offer isn’t subject to a minimum number of shares being tendered, but terms and conditions related to the tender are included in documents to be sent to shareholders.
P.A.M. has retained Computershare Trust Co. as the depositary for the tender offer and Georgeson LLC as the information agent.
P.A.M. on April 15 reported net income rose 498.5% to $8.3 million, or $1.39 per share, in the first quarter, from $1.39 million, or 22 cents per share, in the same quarter in 2018. Revenue rose 7.7% to $128.69 million.
Shares of P.A.M. (NASDAQ: PTSI) were trading noon Monday at $54.66, up $8.21, or 17.67%. In the past 52 weeks, the stock has ranged between $70 and $34.31.