Tontitown-based carrier P.A.M. Transportation Services Inc. announced Tuesday (July 27) the start of a modified Dutch auction tender to offer to purchase up to 200,000 shares, or about 1.7% of its outstanding common stock, at a price of between $32 and $37 per share.
The company previously announced a two-for-one forward 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.
The tender offer will expire at 4 p.m. Aug. 26, unless it’s extended or withdrawn. The company plans to pay for the shares tendered in the offer from its available cash and cash equivalents but may use money borrowed under its existing line of credit.
The company’s board of directors determined that repurchasing shares was in the best interest of the company as a result of its 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 they wish to tender their shares within the specified price range. Based on the number of shares tendered and the prices specified by the tendering stockholders, the company will determine the lower price per share within the range that will allow it to purchase up to 200,000 shares of its common stock or a lower amount depending on the number of shares tendered.
Stockholders whose shares are purchased in the offer will receive the determined purchase price per share in cash, without interest, after the expiration of the offer period. All shares tendered at prices higher than the purchase price will not be purchased and will be returned to stockholders. The tender offer is not conditioned on a minimum number of shares tendered; however, the tender offer is subject to other terms and conditions. These will be available in documents that are being mailed to stockholders, the release shows.
The company has retained Computershare Trust Company, N.A., and parent company, Computershare Inc., as the depositary for the tender offer and Georgeson LLC as the information agent.
On July 14, P.A.M. posted second-quarter earnings 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 rose by 73.4% to $161.3 million, from $93 million.
Shares of P.A.M. (NASDAQ: PTSI) closed Tuesday at $62.70, up $4.48 or 7.69%. In the past 52 weeks, the stock has ranged between $66.29 and $27.76.