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 SECOND QUARTER
ENDED JUNE 30, 2003
Tontitown, Arkansas, July 24, 2003 P.A.M. Transportation Services, Inc. (NASDAQ:
PTSI) today reported net income of $4,046,569 or diluted and basic earnings per
share of $.36 for the quarter ended June 30, 2003, and $6,864,138 or diluted and
basic earnings per share of $.61 for the six month period then ended. These
results compare to net income of $5,033,512 or diluted and basic earnings per
share of $.45, and $8,639,602 or diluted earnings per share of $.85 ($.86
basic), respectively, for the three and the six months ended June 30, 2002.
Operating revenues of $74,956,404 were reported for the second quarter of 2003,
a 5.8% increase compared to $70,840,825 for the second quarter of 2002.
Operating revenues for the six months ended June 30, 2003 were $145,095,314, an
8.2% increase compared to $134,154,304 for the six months ended June 30, 2002.
Robert W. Weaver, President of the Company, commented, "Revenue and earnings
were good but not up to the desired expectations for the quarters compared.
Consideration should be given to the tornado that struck Oklahoma City on May 8
which destroyed a portion of the Oklahoma General Motors facility which resulted
in a complete plant shutdown for the remainder of the quarter. Although drivers
and equipment were repositioned to other business, the disruption caused both a
decrease in utilization from dedicated to non-dedicated freight but also the
loss of a number of drivers that opted not to run a non-dedicated lane. While
results were improved from the first quarter of 2003, they are down when they
are compared to our second quarter 2002 which was a record quarter for the
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 Friday, July 25, 2003 at 10:00 a.m. CDT (Please
note that since the call will begin promptly at 10:00 a.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 Second 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. The Company assumes no responsibility to update any information
posted on its Web site.
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 June 30, Six months ended June 30,
2003 2002 2003 2002
---- ---- ---- ----
Operating revenues $74,956,404 $70,840,825 $145,095,314 $134,154,304
----------- ----------- ------------ ------------
Operating expenses:
Salaries, wages and benefits 29,925,666 32,006,755 59,207,889 59,987,288
Operating supplies 12,711,627 13,065,313 26,871,034 25,078,477
Rent/purchased transportation 9,562,452 2,879,238 16,589,576 5,673,992
Depreciation/amortization 6,549,963 5,698,461 12,604,827 10,975,318
Operating taxes and licenses 3,669,092 3,522,816 7,203,802 6,844,158
Insurance and claims 3,642,730 3,431,926 7,131,279 6,945,959
Communications and utilities 635,027 643,173 1,236,301 1,259,265
Other 1,195,926 820,057 2,209,219 1,601,695
Loss on disposition of equipment 3,579 14,673 27,524 47,616
----------- ----------- ------------ ------------
Total operating expenses 67,896,062 62,082,412 133,081,451 118,413,768
Operating income 7,060,342 8,758,413 12,013,863 15,740,536
Other income/(expense):
Interest expense (426,622) (369,227) (684,196) (1,341,200)
----------- ----------- ------------ ------------
Total other income/(expense) (426,622) (369,227) (684,196) (1,341,200)
----------- ----------- ------------ ------------
Income before income taxes 6,633,720 8,389,186 11,329,667 14,399,336
Provision for income taxes 2,587,151 3,355,674 4,465,529 5,759,734
----------- ----------- ------------ ------------
Net income $ 4,046,569 $ 5,033,512 $ 6,864,138 $ 8,639,602
=========== =========== ============ ============
Diluted earnings per share $0.36 $0.45 $0.61 $0.85
=========== =========== ============ ============
Average shares o/s - Diluted 11,332,383 11,237,739 11,335,673 10,112,415
=========== =========== ============ ============
Quarter ended June 30, Six months ended June 30,
Truckload Operations 2003 2002 2003 2002
- -------------------- ---- ---- ---- ----
Total miles 58,902,908 61,365,501 116,125,705 115,982,967
Empty miles factor 5.00% 3.75% 4.47% 4.33%
Revenue per total mile $1.09 $1.11 $1.09 $1.10
Total loads 77,195 81,875 154,571 156,047
Revenue per truck per work day $537 $599 $550 $589
Average company trucks 1,740 1,623 1,685 1,584
Average owner operator trucks 124 145 127 141
Quarter ended June 30, Six months ended June 30,
Logistics Operations 2003 2002 2003 2002
- -------------------- ---- ---- ---- ----
Total revenue $10,917,815 $ 3,038,283 $18,679,052 $ 6,068,878
Operating income $726,259 $45,384 $1,062,166 $97,934