P.A.M. Q2 loss exceeds $2 million as freight market challenges persist

Tontitown-based carrier P.A.M. Transportation Services Inc. posted a net loss and a revenue decline in the second quarter amid a lingering freight downturn. P.A.M. previously had losses in the fourth quarter of 2023 and the first and second quarters of 2020.

After the markets closed Wednesday (July 24), P.A.M. reported a net loss of $2.91 million, or a loss of 13 cents per share, in the second quarter compared to net income of $9.31 million, or 42 cents per share, in the same period last year. Revenue fell by 11.8% to $182.94 million from $207.41 million.

“Our consolidated operating results for the second quarter 2024 were very similar to the first quarter of the year,” President Joe Vitiritto said. “The quarter started off slower than anticipated but began to show signs of seasonal demand patterns that were more consistent with pre-COVID periods, and we saw capacity tightening some as we moved towards the end of the quarter. We continue to see downward rate pressure, but we are also seeing some opportunities that tell us we may be getting closer to a cycle change.

“Our continued focus on cost and efficiency measures helps us to mitigate the current unfavorable freight market as well as positioning us to meet our longer-term mid-80s operating ratio expectation,” Vitiritto added. “I am pleased to see our team working together with our professional drivers to negotiate this environment and prepare us for opportunities that will come with an improved freight market.”

The company’s operating ratio for its truckload operations was 103.7% in the second quarter compared to 92.7% in the same period last year. Expressed as a percentage, operating ratio is a metric that compares operating expenses to revenue.

In the first half of the year, P.A.M. reported a net loss of $2.62 million, or a loss of 12 cents per share, compared to net income of $14.55 million, or 65 cents per share, in the same period last year. Revenue declined by 14.8% to $365.54 million from $429.13 million.

In logistics operations, total revenue fell by 13.3% to $53.65 million in the second quarter from $61.85 million in the same period last year. In the first half of the year, the revenue declined by 13.6% to $112.42 million from $130.11 million in the same period last year. The operating ratio for logistics operations rose to 93.9% in the second quarter from 91.8% in the same period last year.

Following are other results in the second quarter compared to the same period last year.
• Revenue per mile fell to $2.09 from $2.17.
• Total loads rose to 110,511 from 109,000.
• Average company-driver trucks fell to 1,920 from 2,061.
• Average owner-operator trucks rose to 413 from 367.

Shares of P.A.M. (NASDAQ: PTSI) were trading Thursday (July 25) at $19.55, down 61 cents or 3.03%. In the past 52 weeks, the stock has ranged between $13.51 and $26.38.