8-K

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): April 24, 2023

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. ☐

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The information contained in this report and the exhibits 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 Exhibit 99.1) 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 April 24, 2023, P.A.M. Transportation Services, Inc. issued a news release announcing its financial results for the first quarter ending March 31, 2023. 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 April 24, 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
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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: April 25, 2023	By:	/s/ Lance K. Stewart
		Lance K. Stewart<br><br> <br>Vice President-Finance, Chief Financial Officer, and Treasurer

ex_506223.htm

Exhibit 99.1

P.A.M. TRANSPORTATION SERVICES, INC.

ANNOUNCES RESULTS FOR THE FIRST QUARTER

ENDED MARCH 31, 2023

First Quarter 2023 Summary Results

●	Total revenues of $221.7 million, up 1.0% YoY
●	Operating income of $8.5 million, down 72.9% YoY; non-GAAP adjusted operating income of $18.5 million, down 46.7% YoY
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●	Operating ratio of 96.2%, an increase of 1050 bps YoY; non-GAAP adjusted operating ratio of 90.4%, an increase of 810 bps YoY
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●	Diluted EPS of $0.23, down 78.3% YoY; non-GAAP adjusted diluted EPS of $0.57, down 51.7% YoY
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Tontitown, Arkansas, April 24, 2023...... P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“the Company”) today reported net income of $5.2 million, or diluted earnings per share of $0.23 ($0.24 basic), for the quarter ended March 31, 2023. These results compare to net income of $23.9 million, or diluted earnings per share of $1.06 ($1.07 basic), for the quarter ended March 31, 2022. Net income and diluted earnings per share for both the first quarter ended March 31, 2023, and the first quarter ended March 31, 2022, include the negative impact of loss estimates for claims anticipated to settle in excess of insurance policy limits. Excluding the negative impact of these litigation charges, adjusted (non-GAAP) net income for the quarter ended March 31, 2023, was $12.7 million, or adjusted (non-GAAP) diluted and basic earnings per share of $0.57 compared to adjusted (non-GAAP) net income for the quarter ended March 31, 2022, of $26.5 million, or adjusted (non-GAAP) diluted earnings per share of $1.18 ($1.19 basic).

Operating revenues increased 1.0% to $221.7 million for the first quarter of 2023 compared to $219.4 million for the first quarter of 2022.

Liquidity, Capitalization, and Cash Flow

As of March 31, 2023, we had an aggregate of $193.8 million of cash, marketable equity securities, and available liquidity under our line of credit and $302.1 million of stockholders’ equity. Outstanding debt was $251.3 million as of March 31, 2023, which represents a $13.0 million decrease from December 31, 2022. During the first quarter of 2023, we generated $34.2 million in operating cash flow.

Non-GAAP Financial Measures

In addition to our results under United States generally accepted accounting principles (GAAP), this press release also includes non-GAAP financial measures termed adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share. The Company defines adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share as GAAP operating income, GAAP operating ratio, GAAP net income and GAAP diluted earnings per share, respectively, excluding certain significant items, such as certain litigation-related charges, and any tax impact associated with such items. Management believes that reporting adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share more clearly reflects the Company’s current operating results and provides investors with a better understanding of the Company’s overall financial performance. Management also believes that adjusted operating ratio is more representative of our operations when excluding the volatility of fuel prices, which we cannot control. In addition, the adjusted results, although not a financial measure under GAAP, may facilitate the ability to analyze the Company’s financial results in relation to those of its competitors and to the Company’s prior financial performance by excluding items which otherwise would distort the comparison. However, because not all companies use identical calculations, the Company's presentation of these measures may not be comparable to similarly titled measures of other companies. Adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP, do not purport to be alternatives to, and should be considered in addition to, and not as a substitute for or superior to, operating income, operating ratio, net income and diluted earnings per share, respectively, as defined under GAAP.

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Pursuant to the requirements of Regulation G, we have provided a tabular reconciliation of GAAP operating income to adjusted operating income and adjusted operating ratio, GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share in this press release.

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; 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 outbreaks of the COVID-19 pandemic or other 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, tariffs, import/export, trade and immigration regulations or policies; a significant reduction in or termination of the Company's trucking service by a key customer; 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.

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P.A.M. Transportation Services, Inc. and Subsidiaries<br><br> <br>Key Financial and Operating Statistics<br><br> <br>(unaudited)
	Quarter ended March 31,
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	2023			2022
	(in thousands, except per share amounts)
Revenue, before fuel surcharge	$	193,454		$	196,089
Fuel surcharge		28,270			23,359
Operating revenue		221,724			219,448
Operating expenses and costs:
Salaries, wages and benefits		48,278			39,275
Operating supplies and expenses		41,073			31,647
Rent and purchased transportation		87,096			91,376
Depreciation		16,497			14,877
Insurance and claims		15,435			6,863
Other		5,423			4,213
Gain on disposition of equipment		(577	)		(147	)
Total operating expenses and costs		213,225			188,104
Operating income		8,499			31,344
Interest expense		(2,356	)		(1,667	)
Non-operating income		899			1,929
Income before income taxes		7,042			31,606
Income tax expense		1,811			7,664
Net income	$	5,231		$	23,942
Diluted earnings per share	$	0.23		$	1.06
Average shares outstanding – Diluted		22,317			22,483
	Quarter ended March 31,
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Truckload Operations	2023			2022
Total miles		53,729			45,256
Operating ratio (1)		99.3	%		81.4	%
Empty miles factor		8.96	%		9.16	%
Revenue per total mile, before fuel surcharge	$	2.33		$	2.76
Total loads		102,430			91,555
Revenue per truck per work day	$	802		$	947
Revenue per truck per week	$	4,010		$	4,736
Average company-driver trucks		2,051			1,675
Average owner operator trucks		389			388
Logistics Operations
Total revenue (in thousands)	$	68,256		$	71,111
Operating ratio		88.8	%		88.6	%

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P.A.M. Transportation Services, Inc. and Subsidiaries<br><br> <br>Condensed Consolidated Balance Sheets<br><br> <br>(unaudited)
	March 31,			December 31,
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	2023			2022
	(in thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	92,473		$	74,087
Trade accounts receivable, net		131,431			134,739
Other receivables		7,443			6,263
Inventories		2,624			2,570
Prepaid expenses and deposits		14,136			15,729
Marketable equity securities		41,440			41,728
Income taxes refundable		3,280			5,650
Total current assets		292,827			280,766
Property and equipment		691,121			705,919
Less: accumulated depreciation		244,436			242,324
Total property and equipment, net		446,685			463,595
Other non-current assets		4,329			4,801
Total Assets	$	743,841		$	749,162
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	46,229		$	48,917
Accrued expenses and other liabilities		43,342			34,233
Current portion of long-term debt		58,735			58,815
Total current liabilities		148,306			141,965
Long-term debt, net of current portion		192,522			205,466
Deferred income taxes		100,885			101,445
Other long-term liabilities		22			103
Total liabilities		441,735			448,979
STOCKHOLDERS’ EQUITY
Common stock		223			223
Additional paid-in capital		40,680			40,472
Treasury stock, at cost		(7,516	)		(4,000	)
Retained earnings		268,719			263,488
Total stockholders’ equity		302,106			300,183
Total liabilities and stockholders’ equity	$	743,841		$	749,162

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P.A.M. Transportation Services, Inc. and Subsidiaries<br><br> <br>Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited)<br><br> <br>Adjusted Operating Income and Adjusted Operating Ratio
	Quarter ended March 31,
---	---	---	---	---	---	---
	2023			2022
	(Dollars in thousands)
GAAP Presentation	****	****	****	****	****	****
Total operating revenue	$	221,724		$	219,448
Total operating expenses		(213,225	)		(188,104	)
Operating income	$	8,499		$	31,344
Operating ratio		96.2	%		85.7	%
Non-GAAP Presentation	****	****	****	****	****	****
Total operating revenue	$	221,724		$	219,448
Fuel surcharge		(28,270	)		(23,359	)
Revenue, excluding fuel surcharge		193,454			196,089
Total operating expenses		213,225			188,104
Less: fuel surcharge		(28,270	)		(23,359	)
Less: specific legal reserve increase		(9,998	)		(3,335	)
Adjusted operating expenses		174,957			161,410
Adjusted Operating income	$	18,497		$	34,679
Adjusted Operating ratio		90.4	%		82.3	%
P.A.M. Transportation Services, Inc. and Subsidiaries<br><br> <br>Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited)<br><br> <br>Reconciliation of Net Income to Adjusted Net Income
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	Quarter ended March 31,
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	2023			2022
	(in thousands)
Net income (GAAP)	$	5,231		$	23,942
Additions:
Specific legal reserve increase		9,998			3,335
Reductions:
Tax benefit of specific legal reserve increase (2)		(2,570	)		(809	)
Adjusted Net income (non-GAAP)	$	12,659		$	26,468

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P.A.M. Transportation Services, Inc. and Subsidiaries<br><br> <br>Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited)<br><br> <br>Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share
	Quarter ended March 31,
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	2023			2022
Diluted earnings per share (GAAP)	$	0.23		$	1.06
Additions:
Specific legal reserve increase		0.45			0.15
Reductions:
Tax benefit of specific legal reserve increase (2)		(0.11	)		(0.03	)
Adjusted Diluted earnings per share (non-GAAP)	$	0.57		$	1.18

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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.
2)	The tax benefit is calculated using the effective tax rates for each respective period prior to any adjustments for non-GAAP amounts.
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FROM: P.A.M. TRANSPORTATION SERVICES, INC.

P.O. BOX 188

Tontitown, AR 72770

Lance K. Stewart

(479) 361-9111