P.A.M. Transportation Services Inc. (PTSI, Financial) filed Quarterly Report for the period ended 2009-06-30.
P.A.M. Transportation Services Inc. is an irregular route common and contract motor carrier authorized to transport general commodities. The freight consists primarily of automotive parts consumer goods such as general retail store merchandise and products from the manufacturing sector such as heating and air conditioning units. All freight is transported as truckload quantities. P.A.M. Transportation Services Inc. has a market cap of $69.9 million; its shares were traded at around $7.42 with and P/S ratio of 0.2. P.A.M. Transportation Services Inc. had an annual average earning growth of 2% over the past 5 years.
Salaries, wages and benefits increased from 41.4% of revenues, before fuel surcharges, in the second quarter of 2008 to 44.1% of revenues, before fuel surcharges, during the second quarter of 2009. The increase, as a percentage of revenue, relates to the interaction of expenses with fixed-cost characteristics, such as general and administrative wages, maintenance wages, operations wages, and payroll taxes, with a decrease in revenues for the periods compared. On a dollar basis, salaries, wages and benefits decreased from $31.1 million during the second quarter of 2008 to $23.5 million during the second quarter of 2009 as the number of company driver compensated miles decreased from 57.6 million miles during the second quarter of 2008 to 42.9 million miles during the second quarter of 2009. Also contributing to the decrease on a dollar basis was a decrease in amounts paid for driver lease expense, a gain related to life insurance proceeds, and a pay rate cut for all employees. Driver lease expense, which is a component of salaries, wages and benefits, decreased as the average number of owner-operators under contract decreased from 46 during the second quarter of 2008 to 33 during the second quarter of 2009. During June 2009, the Company recorded a one-time gain related to life insurance proceeds of $0.8 million due to the death of one of its former officers. Also, during June 2009, the Company implemented an across-the-board 5% employee pay rate reduction.
Fuel expense, net of fuel surcharge, decreased from 22.6% of revenues, before fuel surcharges, during the second quarter of 2008 to 16.1% of revenues, before fuel surcharges, during the second quarter of 2009, which, on a dollar basis, represented a decrease from $17.0 million during the second quarter of 2008 to $8.6 million during the second quarter of 2009. The decrease was related to a decrease in the average surcharge-adjusted fuel price paid per gallon of diesel fuel from $1.81 during the second quarter of 2008 to an average cost of $1.33 during the second quarter of 2009. Fuel surcharge collections vary from period to period as they are generally based on changes in fuel prices from period to period so that during periods of rising fuel prices fuel surcharge collections increase while fuel surcharge collections decrease during periods of falling fuel prices.
For the first six months ended June 30, 2009, truckload services revenue, before fuel surcharges, decreased 31.7% to $104.9 million as compared to $153.5 million for the first six months ended June 30, 2008. The decrease was primarily due to a decrease in the number of miles traveled from 119.7 million miles during the first six months of 2008 to 83.5 million miles during the first six months of 2009 resulting largely from a decrease in the average number of revenue generating trucks from 2,042 during the first six months of 2008 to 1,744 during the first six months of 2009. Also contributing to the decrease in revenues and resulting from the continued weakness in the truckload freight market during the first six months of 2009 as compared to the first six months of 2008 was both a decrease in the average rate per total mile charged to customers from approximately $1.28 during the first six months 2008 to approximately $1.26 during the first six months of 2009 and lower equipment utilization as the average miles traveled each work day per truck decreased from 458 miles each work day in the first six months of 2008 to 377 miles each work day in the first six months of 2009.
Salaries, wages and benefits increased from 42.4% of revenues, before fuel surcharges, in the first six months of 2008 to 44.9% of revenues, before fuel surcharges, during the first six months of 2009. The increase, as a percentage of revenue, relates to the interaction of expenses with fixed-cost characteristics, such as general and administrative wages, maintenance wages, operations wages, and payroll taxes with a decrease in revenues for the periods compared. Based on a dollar comparison, salaries, wages and benefits decreased from $65.1 million during the first six months of 2008 to $47.1 million during the first six months of 2009 as the number of driver compensated miles decreased from 119.7 million miles during the first six months of 2008 to 83.5 million miles during the first six months of 2009. Also contributing to the decrease on a dollar basis was a decrease in amounts paid for driver lease expense, a gain related to life insurance proceeds, and a pay rate cut for all employees. Driver lease expense, which is a component of salaries, wages and benefits, decreased as the average number of owner-operators under contract decreased from 50 during the first six months of 2008 to 33 during the first six months of 2009. During June 2009, the Company recorded a one-time gain related to life insurance proceeds of $0.8 million due to the death of one of its former officers. Also, during June 2009, the Company implemented an across-the-board 5% employee pay rate reduction plan.
Fuel expense, net of fuel surcharge, decreased from 22.9% of revenues, before fuel surcharges, during the first six months of 2008 to 15.3% of revenues, before fuel surcharges, during the first six months of 2009 which, on a dollar basis, represented a decrease from $35.2 million during the first six months of 2008 to $16.1 million during the first six months of 2009. The decrease was related to a decrease in the average surcharge-adjusted fuel price paid per gallon of diesel fuel from $1.79 during the first six months of 2008 to an average cost of $1.26 during the first six months of 2009. Fuel surcharge collections vary from period to period as they are generally based on changes in fuel prices from period to period so that during periods of rising fuel prices fuel surcharge collections increase while fuel surcharge collections decrease during periods of declining fuel prices.
Read the The complete Report
P.A.M. Transportation Services Inc. is an irregular route common and contract motor carrier authorized to transport general commodities. The freight consists primarily of automotive parts consumer goods such as general retail store merchandise and products from the manufacturing sector such as heating and air conditioning units. All freight is transported as truckload quantities. P.A.M. Transportation Services Inc. has a market cap of $69.9 million; its shares were traded at around $7.42 with and P/S ratio of 0.2. P.A.M. Transportation Services Inc. had an annual average earning growth of 2% over the past 5 years.
Highlight of Business Operations:
In discussing our results of operations we use revenue, before fuel surcharge, (and fuel expense, net of surcharge), because management believes that eliminating the impact of this sometimes volatile source of revenue allows a more consistent basis for comparing our results of operations from period to period. During the three and six months ending June 30, 2009, approximately $6.1 million and $11.7 million, respectively, of the Company s total revenue was generated from fuel surcharges. During the three and six months ending June 30, 2008 approximately $26.3 million and $45.6 million, respectively, of the Company s total revenue was generated from fuel surcharges. We may also discuss certain changes in our expenses as a percentage of revenue, before fuel surcharge, rather than absolute dollar changes. We do this because we believe the high variable cost nature of certain expenses makes a comparison of changes in expenses as a percentage of revenue more meaningful than absolute dollar changes.Salaries, wages and benefits increased from 41.4% of revenues, before fuel surcharges, in the second quarter of 2008 to 44.1% of revenues, before fuel surcharges, during the second quarter of 2009. The increase, as a percentage of revenue, relates to the interaction of expenses with fixed-cost characteristics, such as general and administrative wages, maintenance wages, operations wages, and payroll taxes, with a decrease in revenues for the periods compared. On a dollar basis, salaries, wages and benefits decreased from $31.1 million during the second quarter of 2008 to $23.5 million during the second quarter of 2009 as the number of company driver compensated miles decreased from 57.6 million miles during the second quarter of 2008 to 42.9 million miles during the second quarter of 2009. Also contributing to the decrease on a dollar basis was a decrease in amounts paid for driver lease expense, a gain related to life insurance proceeds, and a pay rate cut for all employees. Driver lease expense, which is a component of salaries, wages and benefits, decreased as the average number of owner-operators under contract decreased from 46 during the second quarter of 2008 to 33 during the second quarter of 2009. During June 2009, the Company recorded a one-time gain related to life insurance proceeds of $0.8 million due to the death of one of its former officers. Also, during June 2009, the Company implemented an across-the-board 5% employee pay rate reduction.
Fuel expense, net of fuel surcharge, decreased from 22.6% of revenues, before fuel surcharges, during the second quarter of 2008 to 16.1% of revenues, before fuel surcharges, during the second quarter of 2009, which, on a dollar basis, represented a decrease from $17.0 million during the second quarter of 2008 to $8.6 million during the second quarter of 2009. The decrease was related to a decrease in the average surcharge-adjusted fuel price paid per gallon of diesel fuel from $1.81 during the second quarter of 2008 to an average cost of $1.33 during the second quarter of 2009. Fuel surcharge collections vary from period to period as they are generally based on changes in fuel prices from period to period so that during periods of rising fuel prices fuel surcharge collections increase while fuel surcharge collections decrease during periods of falling fuel prices.
For the first six months ended June 30, 2009, truckload services revenue, before fuel surcharges, decreased 31.7% to $104.9 million as compared to $153.5 million for the first six months ended June 30, 2008. The decrease was primarily due to a decrease in the number of miles traveled from 119.7 million miles during the first six months of 2008 to 83.5 million miles during the first six months of 2009 resulting largely from a decrease in the average number of revenue generating trucks from 2,042 during the first six months of 2008 to 1,744 during the first six months of 2009. Also contributing to the decrease in revenues and resulting from the continued weakness in the truckload freight market during the first six months of 2009 as compared to the first six months of 2008 was both a decrease in the average rate per total mile charged to customers from approximately $1.28 during the first six months 2008 to approximately $1.26 during the first six months of 2009 and lower equipment utilization as the average miles traveled each work day per truck decreased from 458 miles each work day in the first six months of 2008 to 377 miles each work day in the first six months of 2009.
Salaries, wages and benefits increased from 42.4% of revenues, before fuel surcharges, in the first six months of 2008 to 44.9% of revenues, before fuel surcharges, during the first six months of 2009. The increase, as a percentage of revenue, relates to the interaction of expenses with fixed-cost characteristics, such as general and administrative wages, maintenance wages, operations wages, and payroll taxes with a decrease in revenues for the periods compared. Based on a dollar comparison, salaries, wages and benefits decreased from $65.1 million during the first six months of 2008 to $47.1 million during the first six months of 2009 as the number of driver compensated miles decreased from 119.7 million miles during the first six months of 2008 to 83.5 million miles during the first six months of 2009. Also contributing to the decrease on a dollar basis was a decrease in amounts paid for driver lease expense, a gain related to life insurance proceeds, and a pay rate cut for all employees. Driver lease expense, which is a component of salaries, wages and benefits, decreased as the average number of owner-operators under contract decreased from 50 during the first six months of 2008 to 33 during the first six months of 2009. During June 2009, the Company recorded a one-time gain related to life insurance proceeds of $0.8 million due to the death of one of its former officers. Also, during June 2009, the Company implemented an across-the-board 5% employee pay rate reduction plan.
Fuel expense, net of fuel surcharge, decreased from 22.9% of revenues, before fuel surcharges, during the first six months of 2008 to 15.3% of revenues, before fuel surcharges, during the first six months of 2009 which, on a dollar basis, represented a decrease from $35.2 million during the first six months of 2008 to $16.1 million during the first six months of 2009. The decrease was related to a decrease in the average surcharge-adjusted fuel price paid per gallon of diesel fuel from $1.79 during the first six months of 2008 to an average cost of $1.26 during the first six months of 2009. Fuel surcharge collections vary from period to period as they are generally based on changes in fuel prices from period to period so that during periods of rising fuel prices fuel surcharge collections increase while fuel surcharge collections decrease during periods of declining fuel prices.
Read the The complete Report
