LITTLE ROCK — P.A.M. Transportation Services Inc. exceeded expectations Tuesday when it reported second-quarter net income of $1.26 million, or 13 cents per share.
The Tontitown-based carrier posted a net loss of $2.36 million, or 25 cents per share, for the same quarter last year.
The results for the quarter that ended June 30 were more than three times the average earnings estimate of 4 cents per share from two analysts surveyed by Thomson Reuters.
Total revenue, which includes fuel surcharges, rose 24.47 percent to $85.24 million, compared with $68.48 million in the second quarter of 2009.
Company President Daniel H. Cushman said in a news release that because of the improved results, a 5 percent employee pay cut put in place last year will be removed.
Several key factors played a role in the turnaround, Cushman said.
Equipment utilization improved 14.5 percent year over year, from 392 miles per truck per day to 449. Also, the percentage of empty miles, which go uncompensated, fell 30.8 percent.
Although P.A.M.’s rate per mile fell by a penny, from $1.24 in the second quarter of 2009 to $1.23 for the quarter that just ended, Cushman said that is a positive development which represents less dependence on brokerage freight, or cargo shipments arranged by independent agents.
“The reason this is important is because the majority of brokerage freight is hauled for a flat fee which includes fuel surcharge, making the rate per mile appear more favorable,” he said in the news release.
“The fact that our rate per mile went down one cent while reducing our brokerage freight by 79.8 percent was a noteworthy factor in our improved operating results. We believe this trend will continue into the second half of the year.”
P.A.M.’s shares lost 10 cents, or 0.67 percent, to close Tuesday at $14.85 on the Nasdaq. Shares have traded between $6.31 and $18.60 in the last year.
Business, Pages 27 on 07/28/2010