Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries P.A.M. Transportation Services, Inc. Announces Results for the First Quarter Ended March 31, 2023 By: P.A.M. Transportation Services, Inc. via Business Wire April 24, 2023 at 17:08 PM EDT First Quarter 2023 Summary Results Total revenues of $221.7 million, up 1.0% YoY Operating income of $8.5 million, down 72.9% YoY; non-GAAP adjusted operating income of $18.5 million, down 46.7% YoY Operating ratio of 96.2%, an increase of 1050 bps YoY; non-GAAP adjusted operating ratio of 90.4%, an increase of 810 bps YoY Diluted EPS of $0.23, down 78.3% YoY; non-GAAP adjusted diluted EPS of $0.57, down 51.7% YoY P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“the Company”) today reported net income of $5.2 million, or diluted earnings per share of $0.23 ($0.24 basic), for the quarter ended March 31, 2023. These results compare to net income of $23.9 million, or diluted earnings per share of $1.06 ($1.07 basic), for the quarter ended March 31, 2022. Net income and diluted earnings per share for both the first quarter ended March 31, 2023, and the first quarter ended March 31, 2022, include the negative impact of loss estimates for claims anticipated to settle in excess of insurance policy limits. Excluding the negative impact of these litigation charges, adjusted (non-GAAP) net income for the quarter ended March 31, 2023, was $12.7 million, or adjusted (non-GAAP) diluted and basic earnings per share of $0.57 compared to adjusted (non-GAAP) net income for the quarter ended March 31, 2022, of $26.5 million, or adjusted (non-GAAP) diluted earnings per share of $1.18 ($1.19 basic). Operating revenues increased 1.0% to $221.7 million for the first quarter of 2023 compared to $219.4 million for the first quarter of 2022. Liquidity, Capitalization, and Cash Flow As of March 31, 2023, we had an aggregate of $193.8 million of cash, marketable equity securities, and available liquidity under our line of credit and $302.1 million of stockholders’ equity. Outstanding debt was $251.3 million as of March 31, 2023, which represents a $13.0 million decrease from December 31, 2022. During the first quarter of 2023, we generated $34.2 million in operating cash flow. Non-GAAP Financial Measures In addition to our results under United States generally accepted accounting principles (GAAP), this press release also includes non-GAAP financial measures termed adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share. The Company defines adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share as GAAP operating income, GAAP operating ratio, GAAP net income and GAAP diluted earnings per share, respectively, excluding certain significant items, such as certain litigation-related charges, and any tax impact associated with such items. Management believes that reporting adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share more clearly reflects the Company’s current operating results and provides investors with a better understanding of the Company’s overall financial performance. Management also believes that adjusted operating ratio is more representative of our operations when excluding the volatility of fuel prices, which we cannot control. In addition, the adjusted results, although not a financial measure under GAAP, may facilitate the ability to analyze the Company’s financial results in relation to those of its competitors and to the Company’s prior financial performance by excluding items which otherwise would distort the comparison. However, because not all companies use identical calculations, the Company's presentation of these measures may not be comparable to similarly titled measures of other companies. Adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP, do not purport to be alternatives to, and should be considered in addition to, and not as a substitute for or superior to, operating income, operating ratio, net income and diluted earnings per share, respectively, as defined under GAAP. Pursuant to the requirements of Regulation G, we have provided a tabular reconciliation of GAAP operating income to adjusted operating income and adjusted operating ratio, GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share in this press release. 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; 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 outbreaks of the COVID-19 pandemic or other public health crises; 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; 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, tariffs, import/export, trade and immigration regulations or policies; 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 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 March 31, 2023 2022 (in thousands, except per share amounts) Revenue, before fuel surcharge $ 193,454 $196,089 Fuel surcharge 28,270 23,359 Operating revenue 221,724 219,448 Operating expenses and costs: Salaries, wages and benefits 48,278 39,275 Operating supplies and expenses 41,073 31,647 Rent and purchased transportation 87,096 91,376 Depreciation 16,497 14,877 Insurance and claims 15,435 6,863 Other 5,423 4,213 Gain on disposition of equipment (577) (147) Total operating expenses and costs 213,225 188,104 Operating income 8,499 31,344 Interest expense (2,356) (1,667) Non-operating income 899 1,929 Income before income taxes 7,042 31,606 Income tax expense 1,811 7,664 Net income $5,231 $23,942 Diluted earnings per share $0.23 $1.06 Average shares outstanding – Diluted 22,317 22,483 Quarter ended March 31, Truckload Operations 2023 2022 Total miles 53,729 45,256 Operating ratio (1) 99.3% 81.4% Empty miles factor 8.96% 9.16% Revenue per total mile, before fuel surcharge $2.33 $2.76 Total loads 102,430 91,555 Revenue per truck per work day $802 $947 Revenue per truck per week $4,010 $4,736 Average company-driver trucks 2,051 1,675 Average owner operator trucks 389 388 Logistics Operations Total revenue (in thousands) $68,256 $71,111 Operating ratio 88.8% 88.6% P.A.M. Transportation Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) March 31, December 31, 2023 2022 (in thousands) ASSETS Current Assets: Cash and cash equivalents $92,473 $74,087 Trade accounts receivable, net 131,431 134,739 Other receivables 7,443 6,263 Inventories 2,624 2,570 Prepaid expenses and deposits 14,136 15,729 Marketable equity securities 41,440 41,728 Income taxes refundable 3,280 5,650 Total current assets 292,827 280,766 Property and equipment 691,121 705,919 Less: accumulated depreciation 244,436 242,324 Total property and equipment, net 446,685 463,595 Other non-current assets 4,329 4,801 Total Assets $743,841 $749,162 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $46,229 $48,917 Accrued expenses and other liabilities 43,342 34,233 Current portion of long-term debt 58,735 58,815 Total current liabilities 148,306 141,965 Long-term debt, net of current portion 192,522 205,466 Deferred income taxes 100,885 101,445 Other long-term liabilities 22 103 Total liabilities 441,735 448,979 STOCKHOLDERS’ EQUITY Common stock 223 223 Additional paid-in capital 40,680 40,472 Treasury stock, at cost (7,516) (4,000) Retained earnings 268,719 263,488 Total stockholders’ equity 302,106 300,183 Total liabilities and stockholders’ equity $743,841 $749,162 P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Adjusted Operating Income and Adjusted Operating Ratio Quarter ended March 31, 2023 2022 (Dollars in thousands) GAAP Presentation Total operating revenue $221,724 $219,448 Total operating expenses (213,225) (188,104) Operating income $8,499 $31,344 Operating ratio 96.2% 85.7% Non-GAAP Presentation Total operating revenue $221,724 $219,448 Fuel surcharge (28,270) (23,359) Revenue, excluding fuel surcharge 193,454 196,089 Total operating expenses 213,225 188,104 Less: fuel surcharge (28,270) (23,359) Less: specific legal reserve increase (9,998) (3,335) Adjusted operating expenses 174,957 161,410 Adjusted Operating income $18,497 $34,679 Adjusted Operating ratio 90.4% 82.3% P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Reconciliation of Net Income to Adjusted Net Income Quarter ended March 31, 2023 2022 (in thousands) Net income (GAAP) $5,231 $23,942 Additions: Specific legal reserve increase 9,998 3,335 Reductions: Tax benefit of specific legal reserve increase (2) (2,570) (809) Adjusted Net income (non-GAAP) $12,659 $26,468 P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Quarter ended March 31, 2023 2022 Diluted earnings per share (GAAP) $0.23 $1.06 Additions: Specific legal reserve increase 0.45 0.15 Reductions: Tax benefit of specific legal reserve increase (2) (0.11) (0.03) Adjusted Diluted earnings per share (non-GAAP) $0.57 $1.18 _______________________________________ 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. The tax benefit is calculated using the effective tax rates for each respective period prior to any adjustments for non-GAAP amounts. View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005945/en/Contacts P.A.M. TRANSPORTATION SERVICES, INC. Lance K. Stewart (479) 361-9111 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
P.A.M. Transportation Services, Inc. Announces Results for the First Quarter Ended March 31, 2023 By: P.A.M. Transportation Services, Inc. via Business Wire April 24, 2023 at 17:08 PM EDT First Quarter 2023 Summary Results Total revenues of $221.7 million, up 1.0% YoY Operating income of $8.5 million, down 72.9% YoY; non-GAAP adjusted operating income of $18.5 million, down 46.7% YoY Operating ratio of 96.2%, an increase of 1050 bps YoY; non-GAAP adjusted operating ratio of 90.4%, an increase of 810 bps YoY Diluted EPS of $0.23, down 78.3% YoY; non-GAAP adjusted diluted EPS of $0.57, down 51.7% YoY P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“the Company”) today reported net income of $5.2 million, or diluted earnings per share of $0.23 ($0.24 basic), for the quarter ended March 31, 2023. These results compare to net income of $23.9 million, or diluted earnings per share of $1.06 ($1.07 basic), for the quarter ended March 31, 2022. Net income and diluted earnings per share for both the first quarter ended March 31, 2023, and the first quarter ended March 31, 2022, include the negative impact of loss estimates for claims anticipated to settle in excess of insurance policy limits. Excluding the negative impact of these litigation charges, adjusted (non-GAAP) net income for the quarter ended March 31, 2023, was $12.7 million, or adjusted (non-GAAP) diluted and basic earnings per share of $0.57 compared to adjusted (non-GAAP) net income for the quarter ended March 31, 2022, of $26.5 million, or adjusted (non-GAAP) diluted earnings per share of $1.18 ($1.19 basic). Operating revenues increased 1.0% to $221.7 million for the first quarter of 2023 compared to $219.4 million for the first quarter of 2022. Liquidity, Capitalization, and Cash Flow As of March 31, 2023, we had an aggregate of $193.8 million of cash, marketable equity securities, and available liquidity under our line of credit and $302.1 million of stockholders’ equity. Outstanding debt was $251.3 million as of March 31, 2023, which represents a $13.0 million decrease from December 31, 2022. During the first quarter of 2023, we generated $34.2 million in operating cash flow. Non-GAAP Financial Measures In addition to our results under United States generally accepted accounting principles (GAAP), this press release also includes non-GAAP financial measures termed adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share. The Company defines adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share as GAAP operating income, GAAP operating ratio, GAAP net income and GAAP diluted earnings per share, respectively, excluding certain significant items, such as certain litigation-related charges, and any tax impact associated with such items. Management believes that reporting adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share more clearly reflects the Company’s current operating results and provides investors with a better understanding of the Company’s overall financial performance. Management also believes that adjusted operating ratio is more representative of our operations when excluding the volatility of fuel prices, which we cannot control. In addition, the adjusted results, although not a financial measure under GAAP, may facilitate the ability to analyze the Company’s financial results in relation to those of its competitors and to the Company’s prior financial performance by excluding items which otherwise would distort the comparison. However, because not all companies use identical calculations, the Company's presentation of these measures may not be comparable to similarly titled measures of other companies. Adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP, do not purport to be alternatives to, and should be considered in addition to, and not as a substitute for or superior to, operating income, operating ratio, net income and diluted earnings per share, respectively, as defined under GAAP. Pursuant to the requirements of Regulation G, we have provided a tabular reconciliation of GAAP operating income to adjusted operating income and adjusted operating ratio, GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share in this press release. 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; 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 outbreaks of the COVID-19 pandemic or other public health crises; 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; 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, tariffs, import/export, trade and immigration regulations or policies; 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 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 March 31, 2023 2022 (in thousands, except per share amounts) Revenue, before fuel surcharge $ 193,454 $196,089 Fuel surcharge 28,270 23,359 Operating revenue 221,724 219,448 Operating expenses and costs: Salaries, wages and benefits 48,278 39,275 Operating supplies and expenses 41,073 31,647 Rent and purchased transportation 87,096 91,376 Depreciation 16,497 14,877 Insurance and claims 15,435 6,863 Other 5,423 4,213 Gain on disposition of equipment (577) (147) Total operating expenses and costs 213,225 188,104 Operating income 8,499 31,344 Interest expense (2,356) (1,667) Non-operating income 899 1,929 Income before income taxes 7,042 31,606 Income tax expense 1,811 7,664 Net income $5,231 $23,942 Diluted earnings per share $0.23 $1.06 Average shares outstanding – Diluted 22,317 22,483 Quarter ended March 31, Truckload Operations 2023 2022 Total miles 53,729 45,256 Operating ratio (1) 99.3% 81.4% Empty miles factor 8.96% 9.16% Revenue per total mile, before fuel surcharge $2.33 $2.76 Total loads 102,430 91,555 Revenue per truck per work day $802 $947 Revenue per truck per week $4,010 $4,736 Average company-driver trucks 2,051 1,675 Average owner operator trucks 389 388 Logistics Operations Total revenue (in thousands) $68,256 $71,111 Operating ratio 88.8% 88.6% P.A.M. Transportation Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) March 31, December 31, 2023 2022 (in thousands) ASSETS Current Assets: Cash and cash equivalents $92,473 $74,087 Trade accounts receivable, net 131,431 134,739 Other receivables 7,443 6,263 Inventories 2,624 2,570 Prepaid expenses and deposits 14,136 15,729 Marketable equity securities 41,440 41,728 Income taxes refundable 3,280 5,650 Total current assets 292,827 280,766 Property and equipment 691,121 705,919 Less: accumulated depreciation 244,436 242,324 Total property and equipment, net 446,685 463,595 Other non-current assets 4,329 4,801 Total Assets $743,841 $749,162 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $46,229 $48,917 Accrued expenses and other liabilities 43,342 34,233 Current portion of long-term debt 58,735 58,815 Total current liabilities 148,306 141,965 Long-term debt, net of current portion 192,522 205,466 Deferred income taxes 100,885 101,445 Other long-term liabilities 22 103 Total liabilities 441,735 448,979 STOCKHOLDERS’ EQUITY Common stock 223 223 Additional paid-in capital 40,680 40,472 Treasury stock, at cost (7,516) (4,000) Retained earnings 268,719 263,488 Total stockholders’ equity 302,106 300,183 Total liabilities and stockholders’ equity $743,841 $749,162 P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Adjusted Operating Income and Adjusted Operating Ratio Quarter ended March 31, 2023 2022 (Dollars in thousands) GAAP Presentation Total operating revenue $221,724 $219,448 Total operating expenses (213,225) (188,104) Operating income $8,499 $31,344 Operating ratio 96.2% 85.7% Non-GAAP Presentation Total operating revenue $221,724 $219,448 Fuel surcharge (28,270) (23,359) Revenue, excluding fuel surcharge 193,454 196,089 Total operating expenses 213,225 188,104 Less: fuel surcharge (28,270) (23,359) Less: specific legal reserve increase (9,998) (3,335) Adjusted operating expenses 174,957 161,410 Adjusted Operating income $18,497 $34,679 Adjusted Operating ratio 90.4% 82.3% P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Reconciliation of Net Income to Adjusted Net Income Quarter ended March 31, 2023 2022 (in thousands) Net income (GAAP) $5,231 $23,942 Additions: Specific legal reserve increase 9,998 3,335 Reductions: Tax benefit of specific legal reserve increase (2) (2,570) (809) Adjusted Net income (non-GAAP) $12,659 $26,468 P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Quarter ended March 31, 2023 2022 Diluted earnings per share (GAAP) $0.23 $1.06 Additions: Specific legal reserve increase 0.45 0.15 Reductions: Tax benefit of specific legal reserve increase (2) (0.11) (0.03) Adjusted Diluted earnings per share (non-GAAP) $0.57 $1.18 _______________________________________ 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. The tax benefit is calculated using the effective tax rates for each respective period prior to any adjustments for non-GAAP amounts. View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005945/en/Contacts P.A.M. TRANSPORTATION SERVICES, INC. Lance K. Stewart (479) 361-9111
First Quarter 2023 Summary Results Total revenues of $221.7 million, up 1.0% YoY Operating income of $8.5 million, down 72.9% YoY; non-GAAP adjusted operating income of $18.5 million, down 46.7% YoY Operating ratio of 96.2%, an increase of 1050 bps YoY; non-GAAP adjusted operating ratio of 90.4%, an increase of 810 bps YoY Diluted EPS of $0.23, down 78.3% YoY; non-GAAP adjusted diluted EPS of $0.57, down 51.7% YoY
P.A.M. Transportation Services, Inc. (NASDAQ: PTSI) (“the Company”) today reported net income of $5.2 million, or diluted earnings per share of $0.23 ($0.24 basic), for the quarter ended March 31, 2023. These results compare to net income of $23.9 million, or diluted earnings per share of $1.06 ($1.07 basic), for the quarter ended March 31, 2022. Net income and diluted earnings per share for both the first quarter ended March 31, 2023, and the first quarter ended March 31, 2022, include the negative impact of loss estimates for claims anticipated to settle in excess of insurance policy limits. Excluding the negative impact of these litigation charges, adjusted (non-GAAP) net income for the quarter ended March 31, 2023, was $12.7 million, or adjusted (non-GAAP) diluted and basic earnings per share of $0.57 compared to adjusted (non-GAAP) net income for the quarter ended March 31, 2022, of $26.5 million, or adjusted (non-GAAP) diluted earnings per share of $1.18 ($1.19 basic). Operating revenues increased 1.0% to $221.7 million for the first quarter of 2023 compared to $219.4 million for the first quarter of 2022. Liquidity, Capitalization, and Cash Flow As of March 31, 2023, we had an aggregate of $193.8 million of cash, marketable equity securities, and available liquidity under our line of credit and $302.1 million of stockholders’ equity. Outstanding debt was $251.3 million as of March 31, 2023, which represents a $13.0 million decrease from December 31, 2022. During the first quarter of 2023, we generated $34.2 million in operating cash flow. Non-GAAP Financial Measures In addition to our results under United States generally accepted accounting principles (GAAP), this press release also includes non-GAAP financial measures termed adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share. The Company defines adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share as GAAP operating income, GAAP operating ratio, GAAP net income and GAAP diluted earnings per share, respectively, excluding certain significant items, such as certain litigation-related charges, and any tax impact associated with such items. Management believes that reporting adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share more clearly reflects the Company’s current operating results and provides investors with a better understanding of the Company’s overall financial performance. Management also believes that adjusted operating ratio is more representative of our operations when excluding the volatility of fuel prices, which we cannot control. In addition, the adjusted results, although not a financial measure under GAAP, may facilitate the ability to analyze the Company’s financial results in relation to those of its competitors and to the Company’s prior financial performance by excluding items which otherwise would distort the comparison. However, because not all companies use identical calculations, the Company's presentation of these measures may not be comparable to similarly titled measures of other companies. Adjusted operating income, adjusted operating ratio, adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP, do not purport to be alternatives to, and should be considered in addition to, and not as a substitute for or superior to, operating income, operating ratio, net income and diluted earnings per share, respectively, as defined under GAAP. Pursuant to the requirements of Regulation G, we have provided a tabular reconciliation of GAAP operating income to adjusted operating income and adjusted operating ratio, GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share in this press release. 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; 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 outbreaks of the COVID-19 pandemic or other public health crises; 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; 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, tariffs, import/export, trade and immigration regulations or policies; 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 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 March 31, 2023 2022 (in thousands, except per share amounts) Revenue, before fuel surcharge $ 193,454 $196,089 Fuel surcharge 28,270 23,359 Operating revenue 221,724 219,448 Operating expenses and costs: Salaries, wages and benefits 48,278 39,275 Operating supplies and expenses 41,073 31,647 Rent and purchased transportation 87,096 91,376 Depreciation 16,497 14,877 Insurance and claims 15,435 6,863 Other 5,423 4,213 Gain on disposition of equipment (577) (147) Total operating expenses and costs 213,225 188,104 Operating income 8,499 31,344 Interest expense (2,356) (1,667) Non-operating income 899 1,929 Income before income taxes 7,042 31,606 Income tax expense 1,811 7,664 Net income $5,231 $23,942 Diluted earnings per share $0.23 $1.06 Average shares outstanding – Diluted 22,317 22,483 Quarter ended March 31, Truckload Operations 2023 2022 Total miles 53,729 45,256 Operating ratio (1) 99.3% 81.4% Empty miles factor 8.96% 9.16% Revenue per total mile, before fuel surcharge $2.33 $2.76 Total loads 102,430 91,555 Revenue per truck per work day $802 $947 Revenue per truck per week $4,010 $4,736 Average company-driver trucks 2,051 1,675 Average owner operator trucks 389 388 Logistics Operations Total revenue (in thousands) $68,256 $71,111 Operating ratio 88.8% 88.6% P.A.M. Transportation Services, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (unaudited) March 31, December 31, 2023 2022 (in thousands) ASSETS Current Assets: Cash and cash equivalents $92,473 $74,087 Trade accounts receivable, net 131,431 134,739 Other receivables 7,443 6,263 Inventories 2,624 2,570 Prepaid expenses and deposits 14,136 15,729 Marketable equity securities 41,440 41,728 Income taxes refundable 3,280 5,650 Total current assets 292,827 280,766 Property and equipment 691,121 705,919 Less: accumulated depreciation 244,436 242,324 Total property and equipment, net 446,685 463,595 Other non-current assets 4,329 4,801 Total Assets $743,841 $749,162 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $46,229 $48,917 Accrued expenses and other liabilities 43,342 34,233 Current portion of long-term debt 58,735 58,815 Total current liabilities 148,306 141,965 Long-term debt, net of current portion 192,522 205,466 Deferred income taxes 100,885 101,445 Other long-term liabilities 22 103 Total liabilities 441,735 448,979 STOCKHOLDERS’ EQUITY Common stock 223 223 Additional paid-in capital 40,680 40,472 Treasury stock, at cost (7,516) (4,000) Retained earnings 268,719 263,488 Total stockholders’ equity 302,106 300,183 Total liabilities and stockholders’ equity $743,841 $749,162 P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Adjusted Operating Income and Adjusted Operating Ratio Quarter ended March 31, 2023 2022 (Dollars in thousands) GAAP Presentation Total operating revenue $221,724 $219,448 Total operating expenses (213,225) (188,104) Operating income $8,499 $31,344 Operating ratio 96.2% 85.7% Non-GAAP Presentation Total operating revenue $221,724 $219,448 Fuel surcharge (28,270) (23,359) Revenue, excluding fuel surcharge 193,454 196,089 Total operating expenses 213,225 188,104 Less: fuel surcharge (28,270) (23,359) Less: specific legal reserve increase (9,998) (3,335) Adjusted operating expenses 174,957 161,410 Adjusted Operating income $18,497 $34,679 Adjusted Operating ratio 90.4% 82.3% P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Reconciliation of Net Income to Adjusted Net Income Quarter ended March 31, 2023 2022 (in thousands) Net income (GAAP) $5,231 $23,942 Additions: Specific legal reserve increase 9,998 3,335 Reductions: Tax benefit of specific legal reserve increase (2) (2,570) (809) Adjusted Net income (non-GAAP) $12,659 $26,468 P.A.M. Transportation Services, Inc. and Subsidiaries Reconciliation of GAAP Measures to Non-GAAP Amounts (unaudited) Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Quarter ended March 31, 2023 2022 Diluted earnings per share (GAAP) $0.23 $1.06 Additions: Specific legal reserve increase 0.45 0.15 Reductions: Tax benefit of specific legal reserve increase (2) (0.11) (0.03) Adjusted Diluted earnings per share (non-GAAP) $0.57 $1.18 _______________________________________ 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. The tax benefit is calculated using the effective tax rates for each respective period prior to any adjustments for non-GAAP amounts. View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005945/en/