P.A.M. Transportation Services, Inc. Announces Results for the Third Quarter Ended September 30, 2013

P.A.M. Transportation Services, Inc. Announces Results for the Third Quarter
Ended September 30, 2013

TONTITOWN, Ark., Oct. 25, 2013 (GLOBE NEWSWIRE) -- P.A.M. Transportation
Services, Inc. (Nasdaq:PTSI) today reported net income of $2,393,497, or
diluted and basic earnings per share of $0.28 for the quarter ended September
30, 2013, and net income of $4,619,422, or diluted and basic earnings per
share of $0.53 for the nine month period then ended. These results compare to
net income of $880,907, or diluted and basic earnings per share of $0.10, and
net income of $2,489,890, or diluted and basic earnings per share of $0.29,
respectively, for the three and nine months ended September 30, 2012.

Operating revenues, including revenue from fuel surcharges, were $101,877,837
for the third quarter of 2013, a 7.8% increase compared to $94,548,874 for the
third quarter of 2012. Operating revenues, including fuel surcharges, were
$306,267,426 for the nine months ended September 30, 2013, a 7.5% increase
compared to $284,860,094 for the nine months ended September 30, 2012.

Daniel H. Cushman, President of the Company, commented, "We are pleased with
our recent quarterly performance which affirms some of the strategies we have
implemented in order to achieve consistent profitability. Operating income for
the third quarter of 2013 increased almost 400% as compared to operating
income for the third quarter of 2012. In fact, operating income for each month
of the third quarter this year exceeded the entire third quarter 2012
operating income. As such, we have demonstrated improved profitability each
month versus the same month of the prior year. Last year, we reported that
during July 2012 we experienced the first July of profitability in a decade as
diversification of our customer base helped mitigate the impact of scheduled
shutdown periods with automotive customers. This July, we more than tripled
that July 2012 profitability. Our goal has been and continues to be the
achievement of a sustainable profit model.

"We have stayed on course in terms of our strategic diversity plan as we have
continued to diversify our customer base and are constantly in search of
opportunities for growth. While we want to achieve overall revenue growth and
diversity, we are currently focused on growth in our Mexico Division,
Expedited Division, Automotive Division, Dedicated Division and Supply Chain
Solutions offering. Along with growth in those areas, we are also concentrated
on efforts to reduce the portion of our business represented by our random
freight offering. Due to the non-repetitive nature of the customers, routes,
pickup and transit times, we incur considerably more cost and driver
dissatisfaction with this random freight business. During the third quarter of
2013, we reduced the percentage of freight serviced by our random freight
division to 38.1% from 40.5% in the third quarter of 2012. Providing random
freight services is an essential support function for our other more
profitable divisions; however, our goal for the random freight division is to
reduce service in this division to around 30% of the total freight services.

"Revenue, excluding revenue from fuel surcharges, grew by approximately $5.0
million and represented a 6.4% increase compared to the third quarter of 2012.
The primary factors that contributed to this improvement included improved
tractor utilization of 4.5% and a reduction of 1.5% in the empty miles ratio.
Demand for our services was relatively strong and steady throughout the third

"The average age of our truck fleet improved from 1.9 years old at the end of
the third quarter 2012 to 1.3 years old at the end of the third quarter 2013.
A newer fleet generally contributes to lower repair costs, fuel savings, unit
utilization, and driver satisfaction. We have generally experienced these
positive benefits.

"While we are pleased with our overall results to date, the third quarter was
not without its challenges, especially in the area of driver recruiting and
retention. We anticipate that this challenge is not going to ease anytime in
the near future. We know that driver recruiting and retention is an industry
wide challenge. We will continue to strive to provide our driving
professionals a steady, predictable income, consistent and predictable home
time, quality equipment and the best support group in the industry.

"We would like to thank our employees for their hard work and dedication, and
to thank our customers, suppliers and shareholders for their continued
commitment and support."

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, 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 as a result
of new information, future events or otherwise. In light of 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
                                       Quarter ended September Nine Months Ended
                                        30,                     September 30,
                                       2013        2012        2013         2012
Revenue, before fuel surcharge          $79,162,601 $74,431,498 $237,647,821 $223,299,708
Fuel surcharge                          22,715,236  20,117,376  68,619,605   61,560,386
                                       101,877,837 94,548,874  306,267,426  284,860,094
Operating expenses and costs:                                             
Salaries, wages and benefits (1)        26,288,240  26,345,215  81,069,366   81,728,297
Fuel expense                            23,499,758  26,426,777  74,701,721   84,662,101
Operating supplies and expenses         8,779,431   10,302,930  26,440,717   29,746,415
Rent and purchased transportation (1)   22,217,014  14,388,325  64,508,659   38,134,721
Depreciation                            9,675,662   9,638,665   29,535,576   28,192,850
Operating taxes and licenses            1,161,805   1,246,297   3,662,390    3,725,698
Insurance and claims                    3,717,365   3,487,272   10,965,220   10,082,119
Communications and utilities            558,381     532,901     1,678,278    1,659,690
Other                                   1,763,683   1,087,826   5,089,550    3,720,573
(Gain) loss on disposition of equipment (467,600)   153,727     (822,588)    (89,685)
Total operating expenses and costs      97,193,739  93,609,935  296,828,889  281,562,779
Operating income                        4,684,098   938,939     9,438,537    3,297,315
Interest expense                        (845,859)   (644,967)   (2,540,713)  (1,811,534)
Non-operating income                    130,203     1,188,283   702,409      2,677,219
Income before income taxes              3,968,442   1,482,255   7,600,233    4,163,000
Income tax expense                      1,574,945   601,348     2,980,811    1,673,110
Net income                              $2,393,497  $880,907    $4,619,422   $2,489,890
Diluted earnings per share              $0.28       $0.10       $0.53        $0.29
Average shares outstanding – Diluted    8,663,242   8,703,029   8,670,859    8,701,520
                                       Quarter ended September Nine Months Ended
                                        30,                     September 30,
Truckload Operations                    2013        2012        2013         2012
Total miles                             53,131,023  49,757,225  158,962,787  150,523,395
Operating ratio (2)                     93.78%      98.87%      95.93%       98.65%
Empty miles factor                      7.06%       8.60%       7.41%        8.79%
Revenue per total mile, before fuel     $1.39       $1.38       $1.38        $1.36
Total loads                             65,629      63,140      196,999      195,199
Revenue per truck per work day          $644        $610        $640         $610
Revenue per truck per week              $3,220      $3,050      $3,200       $3,050
Average company trucks                  1,445       1,612       1,493        1,627
Average owner operator trucks           346         170         302          129
Logistics Operations                                                      
Total revenue                           $5,305,786  $5,913,898  $18,176,982  $18,634,493
Operating ratio                         98.25%      97.23%      97.18%       97.14%
1) In order to conform to industry practice, the Company began to classify payments to
third-party owner operator drivers as purchased transportation rather than as salaries,
wages and benefits as had been presented in reports prior to the period ended September
30, 2013. This reclassification has no effect on operating income, net income or earnings
per share. The Company has made corresponding reclassifications to comparative periods
2) 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.

         P.O. BOX 188
         Tontitown, AR 72770
         Allen W. West
         (479) 361-9111

company logo
Press spacebar to pause and continue. Press esc to stop.