Exhibit 99.1
FROM: P.A.M. TRANSPORTATION SERVICES, INC.
P.O. Box 188
Tontitown, AR 72770
Robert W. Weaver
(479) 361-9111
P.A.M. TRANSPORTATION SERVICES, INC.
ANNOUNCES RESULTS FOR THE THIRD QUARTER
ENDED SEPTEMBER 30, 2002
Tontitown, Arkansas, November 1, 2002...P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $3,957,465 or diluted and basic
earnings per share of $.35 for the quarter ended September 30, 2002, and
$12,597,067 or diluted and basic earnings per share of $1.20, for the nine month
period then ended. These results compare to net income of $2,001,587 or diluted
and basic earnings per share of $.23, and $7,525,621 or diluted and basic
earnings per share of $.88, respectively, for the three and the nine months
ended September 30, 2001.
Operating revenues of $65,033,997 were reported for the third quarter of 2002, a
21.2% increase compared to $53,662,065 for the third quarter of 2001. Operating
revenues for the nine months ended September 30, 2002 were $199,188,301, a 17.5%
increase compared to $169,529,997 for the nine months ended September 30, 2001.
Operating income for the quarter ended September 30, 2002 was $6,972,847, a
56.0% increase compared to operating income of $4,469,915 for the prior year's
third quarter. For the nine months ended September 30, 2002, operating income of
$22,713,382 represented a 42.2% increase compared to operating income of
$15,975,857 for the same period in 2001.
The Company's operating ratios for the three and nine month periods ended
September 30, 2002 were 89.3% and 88.6%, respectively, as compared to 91.7% and
90.6% for the three and nine month periods ended September 30, 2001.
Robert W. Weaver, President of the Company, commented, "Increases in three
important categories, earnings per share, revenue and operating income were 52%,
21% and 56%, respectively. A very solid quarter for the Company and results we
are certainly proud of."
"There are other events which occurred during the quarter which we are equally
proud of. We were once again named as one of the best 200 small companies by
Forbes Magazine. We came in number 90 on their list and this made three out of
the last four years we have enjoyed this honor. During the quarter we also added
two new directors, Tom Cooke and Frank Conner, which we feel greatly enhances
our Board."
"Mr. Cooke worked for Ford Motor Company for 33 years, during which he served in
various managerial capacities. He was responsible for the supervision of
personnel, financial analysis, financial controls, performance reporting and
division auditing, among other things, in the Product Development Group, several
manufacturing divisions, and Finance staff. Mr. Cooke also served for more than
three years as global manager for Ford's Customs Compliance and Analysis
activity, exercising corporate-wide responsibility for legal and financial
customs compliance in 23 countries."
"Mr. Conner has been Executive Vice President, Accounting & Finance and Chief
Financial Officer of American Freightways since 1995, and was also a director of
that company prior to its purchase by Federal Express in February 2001. Mr.
Conner has since served as Executive Vice President, Accounting and Finance, for
FedEx Freight East."
"Last but certainly not least, as of September 30, 2002 our cash on hand
exceeded total debt for the Company which would allow us to be debt free if we
chose to pay off the debt. An accomplishment we are extremely proud of and one
that places us in very elite company."
P.A.M. Transportation Services, Inc. will be holding a live conference call with
certain financial analysts to discuss the earnings release, the results of
operations, and other matters on Monday, November 4, 2002 at 1:00 p.m. CST
(Please note that, since the call will begin promptly at 1:00 p.m., you will
need to join at least five minutes prior to that time.)
The public will be able to listen and participate in the conference
telephonically by dialing (800) 915-4836. Please ask to be joined to the P.A.M.
Transportation Services Third Quarter Earnings Release Conference call. An audio
replay of the conference call will be posted on the company's web site after the
meeting (www.pamt.com/investing/audio.html). In order to listen to the replay,
you will need a PC that is internet enabled and have Real Player software and an
internet browser such as Netscape or Microsoft Internet Explorer.
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, 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; the ability to identify acceptable acquisition candidates,
consummate acquisitions, and integrate acquired operations; and a significant
reduction in or termination of the Company's trucking service by a key customer.
Readers should review and consider the various disclosures made by the Company
in its press releases, stockholder reports, and public filings, as well as the
factors explained in greater detail in the Company's annual report on Form 10-K.
P.A.M. TRANSPORTATION SERVICES, INC.
EARNINGS REPORT
Quarter Ended Nine Months Ended
September 30 September 30
2002 2001 2002 2001
Operating Revenue $65,033,997 $53,662,065 $199,188,301 $169,529,997
Operating Expenses 58,061,150 49,192,151 176,474,919 153,554,141
Operating Income 6,972,847 4,469,914 22,713,382 15,975,856
Federal & State
Income Taxes 2,638,311 1,320,549 8,298,045 4,995,239
Net Income 3,957,465 2,001,586 12,597,067 7,525,621
Average Shares
Outstanding - Basic 11,263,392 8,525,334 10,466,381 8,524,546
Average Shares
Outstanding -
Diluted 11,306,778 8,537,286 10,514,705 8,559,263
Earnings Per Share -
Basic $0.35 $0.23 $1.20 $0.88
Earnings Per Share -
Diluted $0.35 $0.23 $1.20 $0.88
Operating ratio -
Company 89.3% 91.7% 88.6% 90.6%