P.A.M. 3Q profit plunges 75% amid tepid market

Arkansas Transportation ReportLatest NewsNorthwest Arkansas

by Jeff Della Rosa ([email protected]) October 19, 2023 9:07 am 520 views 

Joe Vitiritto

For the second consecutive quarter, Tontitown-based carrier P.A.M. Transportation Services Inc. posted double-digit declines in earnings and revenue as market conditions remained soft.

After the markets closed Wednesday (Oct. 18), P.A.M. reported net income fell by 75.2% to $6.09 million, or 28 cents per share, from $24.56 million, or $1.09 per share, in the same period last year. Revenue declined by 20.2% to $201.5 million from $252.63 million.

In the earnings release, President Joe Vitiritto noted the difficult comparisons to the same period last year. The carrier’s earnings in the third quarter of 2022 exceeded its earnings through the first three quarters of this year.

“The third quarter of 2022 was one of the best in our company’s history, while the third quarter this year was faced with an unprecedented unfavorable truckload market,” Vitiritto said. “Despite market challenges, we did see improvement in factors that we believe will position the company favorably when truckload market conditions improve…

“We will continue to stay focused on investing in the areas of our business that will help us to consistently grow, increase efficiencies, and deliver value to our customers, shareholders and employees.”

Through three quarters, earnings declined by 71.6% to $20.64 million, or 93 cents per share, from $72.69 million, or $3.24 per share, in the same period last year.

Following are third-quarter comparisons to the same period last year:

  • Logistics operations revenue fell by 13.2% to $62.09 million from $71.49 million.
  • Empty miles factor, or driving without freight, decreased to 7.8% from 9.9%.
  • Revenue per mile fell by 30 cents to $2.26 from $2.56.
  • Total loads declined by 4.4% to 105,342 from 110,192.
  • Average company trucks decreased by 3.5% to 2,007 from 2,080.
  • Average owner-operator trucks declined by 19.1% to 326 from 403.

Shares of P.A.M. (NASDAQ: PTSI) closed Wednesday at $20.86, down $1.06 or 4.84%. In the past 52 weeks, the stock has ranged between $20.04 and $32.06.