P.A.M. Transportation Services Reports Decline in Financial Performance for Nine Months Ended September 30, 2024

P.A.M. Transportation Services, Inc. reported a decline in financial performance for the nine months ended September 30, 2024, compared to the same period in 2023. Operating revenues decreased to $548.1 million from $630.6 million, reflecting a 13.0% drop. For the third quarter, revenues were $182.6 million, down from $201.5 million in the prior year. The decrease in revenue was attributed to lower freight volumes and reduced rates per mile, which fell from $2.14 to $2.10 year-over-year.

Operating expenses also decreased, totaling $547.2 million for the nine months ended September 30, 2024, compared to $599.5 million in 2023. However, the company reported an operating income of $928,000 for the nine-month period, a significant decline from $31.1 million in the previous year. The net income for the nine months ended September 30, 2024, was a loss of $217,000, contrasting sharply with a net income of $20.6 million in 2023.

The company’s cash and cash equivalents decreased to $48.1 million from $100.6 million at the end of 2023. Total current assets also fell to $208.1 million from $251.0 million. Despite these declines, total liabilities remained relatively stable, increasing slightly to $447.8 million from $446.2 million. Stockholders’ equity decreased to $308.9 million from $314.2 million.

In terms of operational metrics, truckload services revenue for the third quarter was $110.6 million, a slight decrease from $112.3 million in the same quarter of 2023. The average number of trucks operated decreased from 2,007 to 1,820, while the average number of third-party trucks increased from 326 to 481. The company also reported a significant increase in rent and purchased transportation costs as a percentage of revenues, rising from 22.6% to 26.7%.

P.A.M. Transportation Services continued to invest in its fleet, with revenue equipment increasing to $726.2 million from $689.2 million. The company financed approximately $75.0 million in equipment purchases during the first nine months of 2024. Additionally, the company adopted a new 2024 Equity Incentive Plan, reserving 1.6 million shares for stock awards, pending shareholder approval.

Overall, the company faced challenges in revenue generation and profitability, primarily due to market conditions affecting freight rates and volumes, while continuing to invest in its operational capabilities.