TONTITOWN, Ark.,
Operating revenues excluding fuel surcharges were
Robert W. Weaver, President of the Company, commented, "The fourth quarter
financial results continued to reflect the difficult operating environment we
have experienced throughout 2007. The weakness in truck freight demand was
most evident in
"Controlling the escalation of fuel costs through the recovery of fuel
surcharges from our customers has also continued to be pressured by current
market conditions, resulting in a
"The Company incurred two large non-recurring expense items during the
fourth quarter of 2007. The first of these items was attributable to the
closure of the Company's Parsippany, New Jersey terminal, and consisted of
approximately
"The second item stems from an adverse settlement that arose from a 1986
environmental remediation claim in which the Company was assessed and ordered
to pay approximately
"Our dedicated business continues to represent the largest portion of our revenue at 54.1% of total revenue for the fourth quarter of 2007, down slightly from 55.3% for the third quarter of 2007. Revenue derived from the automotive industry decreased from 48.5% in the third quarter of 2007 to 46.0% in the fourth quarter of 2007. The decrease in the percentage of automotive business was predominantly attributable to the Company not renewing certain contracts that did not adequately compensate us for our services.
"We do not see indications that our current market environment will improve significantly in the short term and intend to continue to focus on cost control while seeking to mitigate the effect of the continued downward pressure on rates in the freight market."
P.A.M. Transportation Services, Inc. is a leading truckload dry van
carrier transporting general commodities throughout the continental
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, included 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 December 31, Year Ended December 31, 2007 2006 2007 2006 Revenue, before fuel surcharge $84,985,721 $85,329,448 $351,701,108 $351,372,974 Fuel surcharge 17,176,399 11,175,357 57,140,082 48,895,589 102,162,120 96,504,805 408,841,190 400,268,563 Operating expenses: Salaries, wages and benefits 34,282,069 30,964,571 135,605,769 127,538,805 Fuel expense 32,077,856 22,865,543 114,241,966 97,286,538 Operating supplies 7,382,804 6,392,783 30,845,136 25,681,683 Rent and purchased transportation 9,472,002 9,919,581 38,717,543 43,844,054 Depreciation and amortization 9,173,789 8,741,648 38,759,047 33,929,107 Operating taxes and license 4,311,350 4,136,560 17,520,558 16,420,587 Insurance and claims 4,305,447 3,879,737 17,590,666 16,388,700 Communications and utilities 799,467 680,825 3,113,378 2,642,420 Other 2,001,685 1,603,327 7,129,738 5,425,503 (Gain) loss on disposition of equipment (21,267) (30,607) (48,449) 47,176 Total operating expenses 103,785,202 89,153,968 403,475,352 369,204,573 Operating (loss) income (1,623,082) 7,350,837 5,365,838 31,063,990 Other income (expense): Interest expense (669,958) (357,158) (2,453,090) (1,474,434) Other 1,099,384 133,884 1,707,211 447,849 Total other income (expense) 429,426 (223,274) (745,879) (1,026,585) (Loss) income before income taxes (1,193,656) 7,127,563 4,619,959 30,037,405 Income tax (benefit) expense (353,747) 2,856,744 1,966,468 12,073,647 Net (loss) income $(839,909) $4,270,819 $2,653,491 $17,963,758 Diluted (loss) earnings per share $(0.08) $0.41 $0.26 $1.74 Average shares outstanding -- Diluted 10,077,287 10,307,929 10,238,706 10,301,806 Quarter ended December 31, Year Ended December 31, Truckload Operations 2007 2006 2007 2006 Total miles 60,311,315 56,978,780 246,800,564 229,809,624 Operating ratio* 102.22% 90.90% 98.56% 90.63% Empty miles factor 6.71% 6.32% 6.50% 5.86% Revenue per total mile, before fuel surcharge $1.28 $1.33 $1.29 $1.34 Total loads 90,688 79,004 355,694 315,379 Revenue per truck per work day $659 $690 $628 $684 Revenue per truck per week $3,295 $3,450 $3,140 $3,420 Average company trucks 1,996 1,917 2,027 1,820 Average owner operator trucks 56 44 57 45 Logistics Operations Total revenue $7,868,956 $9,521,403 $33,786,056 $42,718,353 Operating ratio 98.84% 95.21% 97.68% 94.99% As of December 31, 2007 2006 Long-term debt to book capitalization 19.58% 10.19% Shareholders' equity $179,376,671 $185,028,065 * 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.
SOURCE P.A.M. Transportation Services, Inc.