P.A.M. 4Q loss tops $2 million; revenue drops 24%

Tontitown-based carrier P.A.M. Transportation Services Inc. posted a fourth-quarter loss amid a weak freight market and an automotive workers strike. P.A.M. previously had losses in the first and second quarters of 2020.

Before the markets closed Thursday (Feb. 1), P.A.M. reported a net loss of $2.23 million, or a loss of 10 cents per share, in the fourth quarter from earnings of $17.98 million, or 83 cents per share, in the same period in 2022. Revenue fell by 24.2% to $180.16 million from $237.61 million.

For 2023, net income declined by 79.7% to $18.41 million from $90.67 million in 2022. Revenue fell by 14.4% to $810.8 million from $946.86 million.

President Joe Vitiritto said the company’s operating results “reflect a continued weak freight environment and the impact of the UAW strike against several customers in the automotive sector in which the company has significant exposure. Unlike previous UAW strikes, the approach taken in the 2023 strike was impactful to the majority of our auto customer base including both auto manufacturers and suppliers. While the strike ended by mid-November, the negative impact carried on through the typical holiday shutdowns with no post-strike surge in automotive business that we have sometimes experienced after past UAW strikes.

“These factors combined to create a challenging backdrop for our business for the quarter and year,” Vitiritto added. “Our team is working to constantly keep improving our results, and we will continue to take advantage of opportunities to improve. We are staying focused on our longer-term objectives and seeing sustainable progress in areas that will put us in a position to get back to profitable growth that aligns with our expectations.”

In the company’s logistics operations, revenue declined by 21.1% to $52.99 million in the fourth quarter from $67.17 million in the same period in 2022. For 2023, logistics operations revenue fell by 11.8% to $245.19 million from $277.81 million in 2022.

Following are fourth-quarter comparisons to the same period in 2022:

• Empty miles factor, or driving without freight, fell to 8.6% from 9%
• Revenue per mile fell by 25 cents to $2.35 from $2.60
• Total loads decreased by 9.5% to 94,776 from 104,719
• Average company trucks fell by 5.7% to 1,938 from 2,056
• Average owner-operator trucks fell by 26.2% to 299 from 405.

P.A.M.’s losses in the first and second quarters of 2020 were $1.3 million and $823,000, respectively.

Shares of P.A.M. (NASDAQ: PTSI) closed Thursday at $20.85, up 14 cents or 0.68%. In the past 52 weeks, the stock has ranged between $15.66 and $31.36.