TONTITOWN, Ark., July 28 /PRNewswire-FirstCall/ -- P.A.M. Transportation Services, Inc. (Nasdaq: PTSI) today reported net income of $3,679,592 or diluted and basic earnings per share of $.33 for the quarter ended June 30, 2005 , and $6,582,979 or diluted and basic earnings per share of $.59 for the six month period then ended. These results compare to net income of $3,647,123 or diluted and basic earnings per share of $.32 , and $5,677,941 or diluted and basic earnings per share of $.50 , respectively, for the three and six months ended June 30, 2004 .
Operating revenues excluding fuel surcharges were $83,321,440 for the second quarter of 2005, a 5.4% increase compared to $79,070,723 for the second quarter of 2004. Operating revenues excluding fuel surcharges were $163,429,915 for the six months ended June 30, 2005 , a 4.3% increase compared to $156,744,158 for the six months ended June 30, 2004 .
Robert W. Weaver, President of the Company, commented, 'Results from our second quarter of 2005 showed modest improvement in earnings as compared to the second quarter of 2004. We achieved these results despite significant downtime at many of our automotive customers, a substantial driver pay increase, and overall softness in the general truckload sector as reported by some of our competitors. Revenue, before fuel surcharge, increased 5.4%. We feel our results for the quarter reflect the positive steps implemented to diversify our customer base allowing us the flexibility to respond to varying demand from the automobile industry. Projected downtime for the remainder of the year is currently expected to be minimal. Revenue per mile, before fuel surcharges, showed a strong increase of 10% from $1.11 in the second quarter of 2004 to $1.23 in the second quarter of 2005. Although collections from fuel surcharges increased from 4.06% of revenues, before fuel surcharges, in the second quarter of 2004 to 9.25% in the second quarter of 2005, the increased cost of fuel, net of fuel surcharges, had the effect of reducing earnings per share by $.09 for the quarter.'
P.A.M. Transportation Services, Inc. will be holding a live conference call with certain financial analysts to discuss the earnings release, the results of operations, and other matters on Friday, July 29, 2005 at 1:30 p.m. CDT (Please note that since the call will begin promptly at 1:30 p.m. , you will need to join at least ten minutes prior to that time.)
The public will be able to listen and participate in the conference telephonically by dialing (800) 289-0552. Please ask to be joined to the P.A.M. Transportation Services Second Quarter 2005 Earnings Release Conference call. An audio replay of the conference call will be posted on the Company's web site one day after the meeting (http://www.pamt.com/investing/audio.html ). In order to listen to the replay, you will need a PC that is internet enabled and capable of playing back MP3 audio files. The Company assumes no responsibility to update any information posted on its Web site.
The conference may contain forward-looking statements made by the Company that involve risks, assumptions and uncertainties that are difficult to predict. Investors are directed to the information contained in the forward- looking statement paragraph below and in the Company's Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission, for a discussion of the risks that may affect the Company's operating results. Actual results may differ.
P.A.M. Transportation Services, Inc. is a leading truckload dry van carrier transporting general commodities throughout the continental United States , as well as in the Canadian provinces of Ontario and Quebec . The Company also provides transportation services in Mexico through its gateways in Laredo and El Paso , Texas under agreements with Mexican carriers.
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 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; recessionary economic cycles and downturns in customers' business cycles; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, license and registration fees; 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; unanticipated 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; a significant reduction in or termination of the Company's trucking service by a key customer; and other factors, including risk factors, referred to from time to time in filings made by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
P.A.M. Transportation Services, Inc.
and Subsidiaries
Key Financial and Operating Statistics
(unaudited)
Quarter ended Six Months ended
June 30, June 30,
2005 2004 2005 2004
Revenue, before
fuel surcharge $83,321,440 $79,070,723 $163,429,915 $156,744,158
Fuel surcharge 7,705,844 3,212,797 13,789,161 5,660,135
91,027,284 82,283,520 177,219,076 162,404,293
Operating expenses:
Salaries, wages
and benefits 31,645,025 29,640,271 62,650,129 60,038,236
Operating
supplies 25,114,276 18,587,354 47,767,691 36,965,003
Rent/purchased
transportation 9,423,929 10,010,054 19,255,572 19,772,306
Depreciation/
amortization 7,655,598 7,415,966 15,122,468 14,884,837
Operating taxes
and licenses 4,050,020 3,944,629 8,003,792 7,955,923
Insurance and
claims 4,531,938 3,903,987 8,630,703 7,892,544
Communications
and utilities 642,738 658,091 1,341,828 1,365,676
Other 1,359,208 1,555,050 2,667,249 2,903,855
Loss on
disposition of
equipment 57,504 18,364 74,253 277,680
Total operating
expenses 84,480,236 75,733,766 165,513,685 152,056,060
Operating income 6,547,048 6,549,754 11,705,391 10,348,233
Other income/(expense):
Interest expense (365,881) (348,276) (619,723) (698,520)
Total other
income/(expense) (365,881) (348,276) (619,723) (698,520)
Income before
income taxes 6,181,167 6,201,478 11,085,668 9,649,713
Provision for
income taxes 2,501,575 2,554,355 4,502,689 3,971,772
Net income $3,679,592 $3,647,123 $6,582,979 $5,677,941
Diluted earnings
per share $0.33 $0.32 $.59 $.50
Average shares
o/s - Diluted 11,129,910 11,322,148 11,227,466 11,321,727
Quarter ended Six Months ended
June 30, June 30,
Truckload Operations
2005 2004 2005 2004
Total miles 59,929,150 61,235,656 117,448,781 122,364,021
Empty miles
factor 5.24% 4.95% 5.18% 4.85%
Revenue per total
mile, before fuel
surcharge $1.23 $1.11 $1.22 $1.11
Total loads 79,272 82,180 157,107 164,880
Revenue per truck
per work day $620 $580 $616 $571
Average company
trucks 1,780 1,742 1,778 1,757
Average owner
operator trucks 70 94 72 96
Quarter ended Six Months ended
June 30, June 30,
Logistics Operations
2005 2004 2005 2004
Total revenue $9,887,573 $10,873,483 $19,915,673 $21,417,542
Operating income $508,649 $427,076 $945,107 $931,696
As of
June 30,
2005 2004
Long-Term Debt
to Book
Capitalization 12.52% 12.63%
Shareholders'
Equity $168,258,823 $162,872,903
SOURCE P.A.M. Transportation Services, Inc.
