Carrier's quarterly revenue slips 38%
Posted: July 31, 2009 at 5:12 a.m.
LITTLE ROCK — P.A.M. Transportation Services Inc. on Thursday kept the tone of a news release positive even though the Tontitown carrier widened a second-quarter net loss.
The business reported a net loss of $2.36 million, or 25 cents per share, for the quarter that ended June 30 compared with a net loss of $1.33 million, or 14 cents a share in the same period a year ago.
Daniel H. Cushman, its recently appointed president, said he was excited about the opportunity to reverse the carrier's financial health.
P.A.M. Transportation Services "offers the portfolio of service that we believe shippers are looking for,'' said Cushman in the release. And the carrier continues to diversify its client base, he said.
It missed the average net loss estimate of 13 cents per share from two analysts surveyed by Thomson Reuters. The second quarter loss represented the company's seventh consecutive negative earnings result.
P.A.M. reported a 38 percent drop in revenue at $68.48 million compared with $110.93 million in the second quarter of 2008.
Cushman called the quarterly results disappointing but said the carrier has done a good job keeping its costs under control.
The holding company reported a 36 percent drop in its total operating costs, its most dramatic reduction in expense being fuel.
Compared with the year-ago period, fuel prices have declined dramatically. Diesel ranged in price between $3.95 to $4.72 per gallon in the year-ago quarter, according to Energy Information Administration data.
The average diesel fuel prices during the second quarter of 2009 ranged between $2.18 and $2.61 per gallon.
P.A.M.'s fuel expenses were $14.63 million for the second quarter of 2009 compared with $43.12 million in 2008.
Cushman, a trucking industry veteran, joined the Tontitown business earlier this year and last worked for CRST International Inc. of Cedar Rapids, Iowa.
Previously he was a sales and marketing executive with Omaha-based Werner Enterprises Inc.
The new chief said his company will continue to pursue Mexico service offerings, expedited loads and brokerage offerings.
P.A.M. shares closed down 54 cents or 7.35 percent at $6.81 in Nasdaq trading Thursday. Shares have traded between $15.82 and $2.71 over the past year.
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Northwest Arkansas, Pages 16 on 07/31/2009
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