P.A.M. TRANSPORTATION SERVICES, INC. ANNOUNCES RESULTS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2024 Form 8 K

P.A.M. TRANSPORTATION SERVICES, INC.

ANNOUNCES RESULTS FOR THE THIRD QUARTER

ENDED SEPTEMBER 30, 2024

Third Quarter 2024 Summary Results

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Total revenues of $182.6 million, down 9.4% YoY

●

Operating income of $2.3 million

●

Operating ratio of 98.7%

●

Diluted earnings per share of $0.11

Tontitown, Arkansas, October 24, 2024...... P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) ("we" or the "Company") today reported consolidated net income of $2.4 million, or diluted and basic earnings per share of $0.11, for the quarter ended September 30, 2024. These results compare to consolidated net income of $6.1 million, or diluted and basic earnings per share of $0.28 for the quarter ended September 30, 2023.

Operating revenues decreased 9.4% to $182.6 million for the third quarter of 2024 compared to $201.5 million for the third quarter of 2023.

Joe Vitiritto, President of the Company, commented, "Our consolidated operating results for the third quarter of 2024 improved sequentially. The quarter started off slow because of extended, but planned, down time from some of our biggest customers and ended slower than expected as we saw impacts to our business and volumes prior to Hurricane Helene. Inflationary operating costs continue to materialize, but we are determined to minimize the impact to our business and focus on factors that we can control. We continue to see signs that the market is improving, and I am confident that we are moving closer to a more normal truckload market. In these times, I am thankful for our whole team, especially all of our professional driving associates as they continue to demonstrate resiliency even in the face of challenges brought about from this tough environment."

Liquidity, Capitalization, and Cash Flow

As of September 30, 2024, we had an aggregate of $152.2 million of cash, marketable equity securities, and available liquidity under our line of credit and $308.9 million of stockholders' equity. Outstanding debt was $288.7 million as of September 30, 2024, which represents a $27.0 million increase from December 31, 2023. During the first nine months of 2024, we generated $43.8 million in operating cash flow.

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; a significant reduction in or termination of the Company's trucking service by a key customer, including as a result of future labor disruptions; 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 public health crises; the resale value of the Company's used equipment; the price and availability of new equipment consistent with anticipated acquisitions and replacement plans; 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, rules regarding the classification of independent contractors as employees, tariffs, import/export, trade and immigration regulations or policies; 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.

P.A.M. Transportation Services, Inc. and Subsidiaries

Key Financial and Operating Statistics

(unaudited)

		Quarter Ended September 30,			Nine Months Ended September 30,
		2024			2023			2024			2023
		(in thousands, except earnings per share)			(in thousands, except earnings per share)
Revenue, before fuel surcharge		$	160,799			$	174,348			$	481,980			$	549,885
Fuel surcharge			21,778				27,154				66,136				80,754
Operating Revenue			182,577				201,502				548,116				630,639
Operating expenses and costs:
Salaries, wages and benefits			44,736				46,032				132,559				142,138
Operating supplies and expenses			34,982				42,378				105,002				123,589
Rent and purchased transportation			73,129				78,595				221,210				244,020
Depreciation			17,741				15,552				55,381				47,805
Insurance and claims			4,768				5,146				15,093				25,205
Other			5,121				5,305				18,052				17,936
Gain on disposition of equipment			(209	)			(339	)			(109	)			(1,175	)
Total operating expenses and costs			180,268				192,669				547,188				599,518
Operating income			2,309				8,833				928				31,121
Interest expense			(2,936	)			(2,046	)			(9,104	)			(6,565	)
Non-operating income			3,744				1,638				7,891				3,729
Income/(loss) before income taxes			3,117				8,425				(285	)			28,285
Income tax expense/(benefit)			705				2,328				(68	)			7,637
Net income/(loss)		$	2,412			$	6,097			$	(217	)		$	20,648
Diluted earnings/(loss) per share		$	0.11			$	0.28			$	(0.01	)		$	0.93
Average shares outstanding - Diluted			21,825				22,139				21,911				22,219

		Quarter Ended September 30,			Nine Months Ended September 30,
		2024			2023			2024			2023
Truckload Operations
Total miles (in thousands) (1)			46,503				47,209				136,397				148,304
Operating ratio (2)			100.5	%			95.8	%			102.8	%			96.0	%
Empty miles factor			8.89	%			7.84	%			8.82	%			8.48	%
Revenue per total mile, before fuel surcharge (1)		$	2.10			$	2.14			$	2.10			$	2.17
Total loads			106,061				105,342				319,081				316,772
Revenue per truck per workday		$	751			$	764			$	724			$	781
Revenue per truck per week		$	3,757			$	3,819			$	3,620			$	3,903
Average company-driver trucks			1,820				2,007				1,842				2,038
Average owner operator trucks			481				326				455				360
Logistics Operations
Total revenue (in thousands)		$	50,190			$	62,091			$	162,618			$	192,204
Operating ratio			94.3	%			93.3	%			94.0	%			91.2	%

P.A.M. Transportation Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)

		September 30,			December 31,
		2024			2023
		(in thousands)
ASSETS
Current assets
Cash and cash equivalents		$	48,078			$	100,614
Trade accounts receivable, net			93,673				80,604
Other receivables			5,954				7,203
Inventories			2,332				2,321
Prepaid expenses and deposits			9,499				13,213
Marketable equity securities			44,205				43,203
Income taxes refundable			4,324				3,883
Total current assets			208,065				251,041
Property and equipment			828,473				771,131
Less: accumulated depreciation			282,451				266,412
Total property and equipment, net			546,022				504,719
Other non-current assets			2,655				4,697
Total assets		$	756,742			$	760,457
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	37,898			$	62,652
Accrued expenses and other liabilities			16,776				16,799
Current portion of long-term debt			61,170				57,645
Total current liabilities			115,844				137,096
Long-term debt, net of current portion			227,539				204,064
Deferred income taxes			104,195				104,331
Other long-term liabilities			250				750
Total liabilities			447,828				446,241
STOCKHOLDERS' EQUITY
Common stock			224				223
Additional paid-in capital			40,999				40,825
Treasury stock, at cost			(13,996	)			(8,736	)
Retained earnings			281,687				281,904
Total stockholders' equity			308,914				314,216
Total liabilities and stockholders' equity		$	756,742			$	760,457

1)

Excludes miles driven by third party power only carriers.

2)

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.

FROM: P.A.M. TRANSPORTATION SERVICES, INC.

P.O. BOX 188

Tontitown, AR 72770

Lance K. Stewart

(479) 361-9111

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