8-K
PAMT CORP (PAMT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 5, 2024
PAM TRANSPORTATION SERVICES, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 0-15057 | 71-0633135 |
|---|---|---|
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
297 West Henri De Tonti, Tontitown, Arkansas 72770
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (479) 361-9111
| N/A |
|---|
| (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $.01 par value | PTSI | NASDAQ Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
The information contained in this report and the exhibit hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The information herein (including the exhibit hereto) may contain "forward-looking statements" that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995 and otherwise may be protected. Such statements are made based on the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those anticipated by forward-looking statements.
Please refer to the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission for information concerning risks, uncertainties and other factors that may affect future results.
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On February 1, 2024, P.A.M. Transportation Services, Inc. issued a news release announcing its financial results for the fourth quarter and year ending December 31, 2024. A copy of the news release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits.
| 99.1 | News release issued by the Registrant on February 1, 2024. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| --- | --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| P.A.M. TRANSPORTATION SERVICES, INC. | ||
|---|---|---|
| (Registrant) | ||
| Date: February 5, 2024 | By: | /s/ Lance K. Stewart |
| Lance K. Stewart<br><br> <br>Vice President-Finance, Chief Financial Officer, and Treasurer |
EXHIBIT INDEX
| Exhibit<br><br> <br>Number | Exhibit Description |
|---|---|
| 99.1 | News release issued by the Registrant on February 1, 2024 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
ex_622653.htm
Exhibit 99.1
P.A.M. TRANSPORTATION SERVICES, INC.
ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND YEAR
ENDED DECEMBER 31, 2023
Fourth Quarter 2023 Summary Results
| ● | Total revenues of $180.2 million, down 24.2% YoY |
|---|---|
| ● | Operating loss of $0.8 million |
| --- | --- |
| ● | Operating ratio of 100.4% |
| --- | --- |
| ● | Diluted loss per share of $0.10 |
| --- | --- |
Tontitown, Arkansas, February 1, 2024...... P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“we” or the “Company”) today reported consolidated net loss of $2.2 million, or diluted and basic loss per share of $0.10, for the quarter ended December 31, 2023 and consolidated net income of $18.4 million, or diluted and basic earnings per share of $0.83, for the year ended December 31,2023. These results compare to consolidated net income of $18.0 million, or diluted and basic earnings per share of $0.81, for the quarter ended December 31, 2022, and consolidated net income of $90.7 million, or diluted earnings per share of $4.04 ($4.08 basic), for the year ended December 31, 2022.
Consolidated operating revenues decreased 24.2% to $180.2 million for the fourth quarter of 2023 compared to $237.6 million for the fourth quarter of 2022. For the year ended December 31, 2023, consolidated operating revenues decreased 14.4% to $810.8 million compared to $946.9 million for the year ended December 31, 2022.
Joe Vitiritto, President of the Company, commented, “Our consolidated operating results for the three and twelve months ended December 31, 2023 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. 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.”
Liquidity, Capitalization, and Cash Flow
As of December 31, 2023, we had an aggregate of $203.7 million of cash, marketable equity securities, and available liquidity under our line of credit and $314.2 million of stockholders’ equity. Outstanding debt was $261.7 million as of December 31, 2023, which represents a $2.6 million decrease from December 31, 2022.
During 2023, we generated $114.6 million in operating cash flow while net capital expenditures resulted in a cash outflow of $11.4 million.
About P.A.M. Transportation Services, Inc.
P.A.M. Transportation Services, Inc. is a holding company that owns subsidiaries engaged in providing truckload dry van carrier services transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec. The Company’s consolidated operating subsidiaries also provide transportation services in Mexico through its gateways in Laredo and El Paso, Texas, under agreements with Mexican carriers.
Forward-Looking Statements
Certain information included in this document contains or may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may relate to expected future financial and operating results, prospects, plans or events, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, excess capacity in the trucking industry; surplus inventories; general inflation, recessionary economic cycles and downturns in customers' business cycles; a significant reduction in or termination of the Company's trucking service by a key customer, including as a result of future labor disruptions; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, and license and registration fees; potential economic, business or operational disruptions or uncertainties that may result from any future public health crises; the resale value of the Company's used equipment and the price of new equipment; increases in compensation for and difficulty in attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts relating to accident, cargo, workers' compensation, health, and other claims; increases in the number or amount of claims for which the Company is self-insured; inability of the Company to continue to secure acceptable financing arrangements; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors including reductions in rates resulting from competitive bidding; the ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; the impact of pending or future litigation; general risks associated with doing business in Mexico, including, without
limitation, exchange rate fluctuations, inflation, import duties, tariffs, quotas, political and economic instability and terrorism; the potential impact of new laws, regulations or policy, including, without limitation, rules regarding the classification of independent contractors as employees, tariffs, import/export, trade and immigration regulations or policies; and other factors, including risk factors, included from time to time in filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise forward-looking statements, whether due to new information, future events or otherwise. Considering these risks and uncertainties, the forward-looking events and circumstances discussed above and in company filings might not transpire.
P.A.M. Transportation Services, Inc. and Subsidiaries
Key Financial and Operating Statistics
(unaudited)
| Quarter Ended December 31, | Twelve Months Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||||||
| (in thousands, except earnings per share) | (in thousands, except earnings per share) | |||||||||||
| Revenue, before fuel surcharge | $ | 156,229 | $ | 203,449 | $ | 706,114 | $ | 818,751 | ||||
| Fuel surcharge | 23,939 | 34,167 | 104,693 | 128,111 | ||||||||
| Operating Revenue | 180,168 | 237,616 | 810,807 | 946,862 | ||||||||
| Operating expenses and costs: | ||||||||||||
| Salaries, wages and benefits | 44,084 | 48,849 | 186,223 | 181,918 | ||||||||
| Operating supplies and expenses | 36,939 | 42,849 | 160,527 | 166,005 | ||||||||
| Rent and purchased transportation | 71,627 | 91,450 | 315,647 | 364,971 | ||||||||
| Depreciation | 16,800 | 16,159 | 64,605 | 62,806 | ||||||||
| Insurance and claims | 5,564 | 13,235 | 30,769 | 32,516 | ||||||||
| Other | 5,833 | 5,415 | 23,769 | 18,128 | ||||||||
| Loss(gain) on disposition of equipment | 132 | (587 | ) | (1,043 | ) | (3,250 | ) | |||||
| Total operating expenses and costs | 180,979 | 217,370 | 780,497 | 823,094 | ||||||||
| Operating (loss)income | (811 | ) | 20,246 | 30,310 | 123,768 | |||||||
| Interest expense | (2,611 | ) | (2,343 | ) | (9,177 | ) | (7,929 | ) | ||||
| Non-operating income | 3,716 | 5,997 | 7,446 | 3,168 | ||||||||
| Income before income taxes | 294 | 23,900 | 28,579 | 119,007 | ||||||||
| Income tax expense | 2,525 | 5,917 | 10,163 | 28,334 | ||||||||
| Net (loss)income | $ | (2,231 | ) | $ | 17,983 | $ | 18,416 | $ | 90,673 | |||
| Diluted (loss)earnings per share | $ | (0.10 | ) | $ | 0.81 | $ | 0.83 | $ | 4.04 | |||
| Average shares outstanding – Diluted | 22,021 | 22,319 | 22,197 | 22,436 | ||||||||
| Quarter Ended December 31, | Twelve Months Ended December 31, | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Truckload Operations | ||||||||||||
| Total miles (in thousands) | 43,970 | 52,451 | 200,867 | 203,982 | ||||||||
| Operating ratio (1) | 103.7 | % | 91.0 | % | 97.7 | % | 83.7 | % | ||||
| Empty miles factor | 8.6 | % | 9.03 | % | 8.51 | % | 9.29 | % | ||||
| Revenue per total mile, before fuel surcharge | $ | 2.35 | $ | 2.60 | $ | 2.30 | $ | 2.65 | ||||
| Total loads | 94,776 | 104,719 | 411,548 | 406,053 | ||||||||
| Revenue per truck per workday | $ | 744 | $ | 893 | $ | 772 | $ | 919 | ||||
| Revenue per truck per week | $ | 3,722 | $ | 4,466 | $ | 3,861 | $ | 4,593 | ||||
| Average company-driver trucks | 1,938 | 2,056 | 2,014 | 1,915 | ||||||||
| Average owner operator trucks | 299 | 405 | 345 | 394 | ||||||||
| Logistics Operations | ||||||||||||
| Total revenue (in thousands) | $ | 52,993 | $ | 67,172 | $ | 245,196 | $ | 277,816 | ||||
| Operating ratio | 94.3 | % | 88.1 | % | 91.9 | % | 87.2 | % |
P.A.M. Transportation Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
| December 31, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| (in thousands) | ||||||
| ASSETS | ||||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ | 100,614 | $ | 74,087 | ||
| Trade accounts receivable, net | 80,604 | 134,739 | ||||
| Other receivables | 7,203 | 6,263 | ||||
| Inventories | 2,321 | 2,570 | ||||
| Prepaid expenses and deposits | 13,213 | 15,729 | ||||
| Marketable equity securities | 43,203 | 41,728 | ||||
| Income taxes refundable | 3,883 | 5,650 | ||||
| Total current assets | 251,041 | 280,766 | ||||
| Property and equipment | 771,131 | 705,919 | ||||
| Less: accumulated depreciation | 266,412 | 242,324 | ||||
| Total property and equipment, net | 504,719 | 463,595 | ||||
| Other non-current assets | 4,697 | 4,801 | ||||
| Total Assets | $ | 760,457 | $ | 749,162 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 62,652 | $ | 48,917 | ||
| Accrued expenses and other liabilities | 16,799 | 34,233 | ||||
| Current portion of long-term debt | 57,645 | 58,815 | ||||
| Total current liabilities | 137,096 | 141,965 | ||||
| Long-term debt, net of current portion | 204,064 | 205,466 | ||||
| Deferred income taxes | 104,331 | 101,445 | ||||
| Other long-term liabilities | 750 | 103 | ||||
| Total liabilities | 446,241 | 448,979 | ||||
| STOCKHOLDERS’ EQUITY | ||||||
| Common stock | 223 | 223 | ||||
| Additional paid-in capital | 40,825 | 40,472 | ||||
| Treasury stock, at cost | (8,736 | ) | (4,000 | ) | ||
| Retained earnings | 281,904 | 263,488 | ||||
| Total stockholders’ equity | 314,216 | 300,183 | ||||
| Total liabilities and stockholders’ equity | $ | 760,457 | $ | 749,162 | ||
| 1) | The Truckload Operations operating ratio has been calculated based upon total operating expenses, net of fuel surcharge, as a percentage of revenue, before fuel surcharge. We used revenue, before fuel surcharge, and operating expenses, net of fuel surcharge, because we believe that eliminating this sometimes volatile source of revenue affords a more consistent basis for comparing our results of operations from period to period. | |||||
| --- | --- |
FROM: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. BOX 188
Tontitown, AR 72770
Lance K. Stewart
(479) 361-9111