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 FIRST QUARTER
ENDED MARCH 31, 2003
Tontitown, Arkansas, April 24, 2003....P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $2,817,568 or diluted and basic
earnings per share of $.25 for the quarter ended March 31, 2003 compared to net
income of $3,606,090 or diluted and basic earnings per share of $.40 for the
quarter ended March 31, 2002. Revenues for the first quarter of 2003 increased
10.8% to $70,138,910 compared to $63,313,480 in the same quarter of 2002.
Robert W. Weaver, President of the Company, commented, "The quarter ended March
31, 2003, although respectable, was not the kind of results to which we have
grown accustomed. Net income was down less than $800,000 compared to the same
quarter in 2002, but resulted in a $.15 decline in earnings per share as the
number of shares outstanding increased by 26%.
"Three significant factors contributed to the reduced earnings per share during
the quarter. The first and foremost was the significant increase in fuel cost.
Unfortunately, a large portion of our customer base is very reluctant to share
in the nationwide rise in fuel costs and pay a fuel surcharge that would allow
us to recover the total increased expense. Couple that with the time lag
involved, and those payments do not contribute significantly to the bottom line.
The net result of our increased fuel cost standing alone was $.10 per share,
after tax.
"The second contributing factor was the severe weather that we experienced
during the quarter. Severe weather has the ability to affect results in both
quantifiable and non-quantifiable areas. We experienced decreased utilization,
higher repair and accident costs and a sizable increase in our group health and
Workers Compensation claims. The net result of increased claims expense impacted
earnings per share by $.04, after tax.
"The third contributing factor was the impact of the cost of new equipment
increasing our depreciation expense. Historically, it has been our practice to
have our equipment supplier guarantee a residual price on all power equipment
purchases. We depreciate our equipment to that residual price over the
equipment's life cycle. Due to the increased costs of new tractors and reduced
residual values passed on by the equipment suppliers, we have experienced an
increase in the overall cost for new equipment. The increase in our depreciation
costs caused a $.04 decline in earnings per share, after tax.
"These three factors collectively combined to negatively impact earnings per
share a total of $.18. On the positive side we were able to reduce our empty
mile factor 27% to 3.87% and our decreased debt level allowed for a $715,000
savings in interest expense."
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 Friday, April 25, 2003 at 1:00 p.m. CDT (Please
note that, since the call will begin promptly at 1:00 p.m., you will need to
join at least ten 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 First 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 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; 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; a significant reduction in or termination of the Company's trucking
service by a key customer; and other factors, including risk factors, referred
to from time to time in filings made by the Company with the Securities and
Exchange Commission. The Company undertakes no obligation to update or clarify
forward-looking statements, whether as a result of new information, future
events or otherwise.
P.A.M. Transportation Services, Inc.
and Subsidiaries
Key Financial and Operating Statistics
(unaudited)
Quarter ended March 31,
2003 2002
---- ----
Operating revenues $70,138,910 $63,313,480
----------- -----------
Operating expenses:
Salaries, wages and benefits 29,282,223 27,980,534
Operating supplies 14,159,408 12,013,164
Rent/purchased transportation 7,027,123 2,794,753
Depreciation/amortization 6,054,864 5,276,857
Operating taxes and licenses 3,534,710 3,321,341
Insurance and claims 3,488,548 3,514,033
Communications and utilities 601,274 616,093
Other 1,013,294 781,639
Loss on disposition of equipment 23,945 32,943
----------- -----------
Total operating expenses 65,185,389 56,331,357
Operating income 4,953,521 6,982,123
Other income/(expense):
Interest expense (257,575) (971,973)
----------- -----------
Total other income/(expense) (257,575) (971,973)
----------- -----------
Income before income taxes 4,695,946 6,010,150
Provision for income taxes 1,878,378 2,404,060
----------- -----------
Net income $ 2,817,568 $ 3,606,090
=========== ===========
Diluted earnings per share $0.25 $0.40
=========== ===========
Average shares o/s - Diluted 11,338,463 8,973,551
=========== ===========
Quarter ended March 31,
Truckload Operations 2003 2002
- -------------------- ---- ----
Total miles 58,036,938 55,289,010
Empty miles factor 3.87% 4.91%
Revenue per total mile $1.08 $1.09
Total loads 77,376 74,172
Revenue per truck per work day $563 $579
Average company trucks 1,628 1,543
Average owner operator trucks 129 137
Quarter ended March 31,
Logistics Operations 2003 2002
- -------------------- ---- ----
Total revenue $7,761,237 $3,030,595
Operating income $347,779 $52,550