Proficient Auto Logistics, Inc. (PAL) reported significant financial developments following its initial public offering (IPO) on May 13, 2024, during which it acquired five operating businesses: Delta Automotive Services, Deluxe Auto Carriers, Sierra Mountain Group, Proficient Auto Transport, and Tribeca Automotive. The acquisitions were accounted for as business combinations under ASC 805, with Proficient identified as the accounting acquirer.

For the three months ended September 30, 2024, PAL generated operating revenue of $91.5 million, a notable increase from $33.5 million in the same period of the previous year. However, the revenue for the nine months ended September 30, 2024, totaled $147.4 million, compared to $100.7 million for the same period in 2023. The predecessor period from January 1, 2024, to May 12, 2024, reported $41.2 million in operating revenue. The increase in revenue was attributed to the contributions from the acquired businesses, although the company faced challenges with flat year-over-year volumes and reduced revenue per unit.

Total operating expenses for the three months ended September 30, 2024, were $93.7 million, up from $31.2 million in the prior year, reflecting increased costs associated with the acquisitions and stock-based compensation expenses of $1.1 million for the quarter. The nine-month operating expenses reached $152.5 million, compared to $93.6 million in the previous year. Consequently, PAL reported an operating loss of $2.2 million for the third quarter and $5.1 million for the nine months ended September 30, 2024, compared to an operating income of $2.3 million for the same quarter in 2023.

Net losses for the three months and nine months ended September 30, 2024, were $1.4 million and $5.2 million, respectively, contrasting with net income of $1.6 million and $4.8 million in the prior year. The company’s total assets surged to $498.2 million as of September 30, 2024, compared to $43.0 million at the end of 2023, primarily due to the acquisitions.

PAL's total stockholders’ equity increased to $338.5 million as of September 30, 2024, from $7.8 million at the end of 2023. Long-term debt rose to $45.3 million, up from $5.0 million, reflecting financing activities related to the acquisitions. The company also reported cash and cash equivalents of $16.8 million, a significant increase from $4,273 at the end of 2023.

In addition to the acquisitions, PAL executed a merger agreement to acquire Auto Transport Group, LC, which closed on August 15, 2024. The company is actively assessing the impact of new accounting standards and has acknowledged a material weakness in internal controls over financial reporting, prompting remediation efforts to enhance oversight and controls.