Tontitown-based carrier P.A.M. Transportation Services Inc. reported record revenue and operating income in the second quarter amid strong freight demand and tight capacity.
After the markets closed Wednesday (July 14), P.A.M. posted second-quarter net income of $15.3 million, or earnings per share of $2.66, compared to a net loss of $0.8 million, or a loss of 14 cents per share, in the same period in 2020.
Revenue increased 73.4% to $161.3 million, from $93 million in the same period in 2020.
For the first half of the year, earnings were $27.3 million, compared to a net loss of $2.1 million, or a loss of 37 cents per share, in the same period in 2020. Revenue rose 39.6% to $310.1 million, from $222.1 million.
“It was only one year ago that we were scrambling to find replacement freight as many of our largest customers reacted to the pandemic by completely suspending their operations,” President Joe Vitiritto said. “Now, just one year later and with a redesigned network, we are pleased to report record revenue and record operating income for the quarter.”
Vitiritto said he was impressed with the progress employees have achieved in a short time, while he recognized the opportunity to improve its operating results.
“We are also pleased that the Board of Directors has approved a stock split, which demonstrates their continued confidence in our long-term potential,” he added. “With this split, we will be able to increase the availability of our stock and enhance liquidity within the marketplace, allowing both current and new investors to share in our continued success.”
The company’s board of directors approved a 2-for-1 forward stock split of its common stock in the form of a 100% stock dividend, payable on Aug. 16 to stockholders of record as of July 30. Under the terms of the stock split, shareholders will receive a dividend of one share for every share held on the record date. The dividend will be paid in authorized but unissued shares of common stock. The additional shares will be distributed by the company’s transfer agent, Computershare, and the per-share price of the company’s common stock will adjust accordingly on the Nasdaq Stock Market. The company expects trading will begin on a split-adjusted basis on Aug. 17. The company has 5.7 million shares of common stock outstanding. After the stock split, the number of shares of common stock outstanding will rise to about 11.4 million shares.
Shares of P.A.M. (NASDAQ: PTSI) closed Wednesday at $54.99, down 85 cents, or 1.52%. In the past 52 weeks, the stock price has ranged between $66.29 and $27.76.
The capacity constraints that were in place at the start of the year are expected to continue into the second half of the year, according to recent research from Transportation Insight. Capacity is expected to tighten before the holiday shipping season, commonly referred to as peak season. The research shows the truckload sector faces multiple capacity issues and rate increases.
“All indicators point toward a full truckload environment with tighter capacity and elevated truckload contractual and spot rates continuing to third quarter,” said James Mathews, senior director of truckload procurement at Transportation Insight. According to the research, spot rates have already risen 61% across all equipment types and are expected to continue to increase.
“Truck and driver shortages make the situation even more complicated,” Mathews added.