P.A.M. earnings double; revenue up 47% in ‘best first quarter’

by Jeff Della Rosa ([email protected]) 288 views 

PAM Transport CEO Joe Vitiritto

Tontitown-based carrier P.A.M. Transportation Services Inc. saw earnings double and revenue increase by double-digits in the first quarter amid strong growth that was limited by challenges, including the weather.

After the markets closed Tuesday (April 19), P.A.M. reported first-quarter earnings rose by 100.4% to $23.94 million, or $1.06 per share, from $11.94 million, or 52 cents per share. Revenue rose by 47.4% to $219.44 million, from $148.85 million.

According to the carrier, earnings were negatively affected by a claim settlement expected to exceed insurance policy limits. The claim is expected to have a $2.6 million, or 12 cents per share, impact on earnings.

The company also noted completing its second 2-for-1 forward stock split in the first quarter. This was the second stock split in less than a year.

“P.A.M. had its best first quarter in our history,” President Joe Vitiritto said. “We experienced significant challenges through the quarter, specifically on the weather front. The challenges made us leave something on the table in the quarter. However, I am proud of how our driving associates and office associates helped us navigate these challenges and move past them. We are continuing to demonstrate the resiliency in our business and at the same time we are seeing significant growth in all our business units.”

Following are highlights from the first quarter, compared to the same period in 2021:

  • Logistics operations revenue rose by 58.8% to $71.11 million, from $44.78 million.
  • Truckload operations revenue per mile increased by 43.8% to $2.76, from $1.92.
  • Average company trucks rose by 23 to 1,675.
  • Average owner-operator trucks increased by 20 to 388.

Shares of P.A.M. (NASDAQ: PTSI) were trading Wednesday (April 20) at $30.41, up $2.90 or 10.54%. In the past 52 weeks, the stock has ranged from $12.94 to $40.88.

BROADER TRENDS
The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index rose by 2.4% in March after rising by 0.7% in February. Also, the index was up 3.8% in March, from the same month in 2021.

“It is important to note that ATA’s for-hire tonnage data is dominated by contract freight with minimal amounts of spot market loads,” said ATA Chief Economist Bob Costello. “And clearly contract freight was solid in March, witnessing the largest sequential gain since May 2020. March was also the eighth straight month-to-month improvement, with a total increase of 7.4% over that period.

“During the first quarter, the index rose 2.4% from the final quarter of 2021 and increased 2.6% from a year earlier,” he added. “While there might be some recent softness in the spot market, for-hire contract freight tonnage remains solid and is only limited by lack of capacity, both drivers and equipment, at contract fleets.”