P.A.M. Transportation Services profit falls by 78% in 1Q

Arkansas Transportation ReportNorthwest Arkansas

by Jeff Della Rosa ([email protected]) April 24, 2023 6:06 pm 1,002 views 

PAM Transport CEO Joe Vitiritto

Tontitown-based carrier P.A.M. Transportation Services Inc. posted a double-digit earnings decline and a narrow rise in revenue amid a soft freight market in the first quarter.

After the markets closed Monday (April 24), P.A.M. reported first-quarter earnings declined by 78.2% to $5.23 million, or 23 cents per share, from $23.94 million, or $1.06 per share in the same period last year. Revenue rose by 1% to $221.72 million from $219.44 million.

In the carrier’s logistics operations, first-quarter revenue fell by 4% to $68.25 million from $71.11 million in the same period last year.

Following are first-quarter metrics compared to the same period in 2022:

  • Total loads rose to 102,430 from 91,555
  • Revenue per mile declined to $2.33 from $2.76
  • Company-driver trucks rose to 2,051 from 1,675
  • Owner-operator trucks were flat at 389.

Shares of P.A.M. (NASDAQ: PTSI) closed Monday at $24.90, down 29 cents or 1.15%. In the past 52 weeks, the stock has ranged between $24.41 and $37.45.

BROADER TRENDS
According to DAT Freight & Analytics, spot rates for dry van and temperature-controlled freight declined to two-and-a-half-year lows in March. Meanwhile, the DAT Truckload Volume Index rose for the first time since July 2022 for dry van, temperature-controlled and flatbed freight.

“While shippers are taking advantage of the current situation to stabilize their carrier base and bring their contract rates back in line, the spread between spot and contract rates was historically large – 59 cents a mile for van freight, 57 cents for reefers and 66 cents for flatbed freight,” said Ken Adamo, DAT chief of analytics. “We expect spot rates to remain at ‘touch-bottom’ levels until retailers start replenishing inventory for the end-of-the-year holidays.”

Spot rates for dry van and temperature-controlled fell to their lowest levels since July 2020. The average spot rate for dry van was $2.16 per mile in March, down 8 cents from February. The average contract rate was $2.75 per mile, down 12 cents. The temperature-controlled spot rate fell 9 cents to $2.50 per mile in March from February. The contract rate also fell 9 cents to $3.07 a mile.