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, 2003
Tontitown, Arkansas, October 27, 2003 P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $2,964,507 or diluted and basic
earnings per share of $.26 for the quarter ended September 30, 2003, and
$9,828,644 or diluted and basic earnings per share of $.87 for the nine month
period then ended. These results compare to net income of $3,957,465 or diluted
and basic earnings per share of $.35, and $12,597,067 or diluted and basic
earnings per share of $1.20, respectively, for the three and the nine months
ended September 30, 2002.
Operating revenues of $74,215,880 were reported for the third quarter of 2003, a
14.1% increase compared to $65,033,997 for the third quarter of 2002. Operating
revenues for the nine months ended September 30, 2003 were $219,311,194, a 10.1%
increase compared to $199,188,301 for the nine months ended September 30, 2002.
Of these increases, $11,601,288 and $29,283,445, respectively, for the three-
and nine-month periods ended September 30, 2003, were the result of revenues
from entities acquired earlier in the year.
Robert W. Weaver, President of the Company, commented, "In light of the current
economic climate, I was generally pleased with our revenue increase for the
quarter but not so with the net income. Our driver recruiting results continue
to improve and we have successfully manned approximately one half of the
unmanned units we had at the close of our second quarter. These gains in manned
units were partially offset by a reduced rate per mile that came as a result of
a portion of our dedicated business experiencing rate reductions through a bid
process and conversion of "local" dedicated business into long haul dedicated
service. This bid process occurs from time to time as customers attempt to
manage transportation costs in reaction to general economic pressures. The
largest increases in expense as a percentage of revenue for the quarter were in
the areas of insurance - Workers Compensation and health insurance. In the area
of workers compensation we expect that some of the increased expense will be
recovered over time in subrogation although we none the less have the expense to
record. While these expenses are intensely managed, they have increased as the
result of unfavorable claims and rising health care cost in general. We will
continue to emphasize claims management in the areas of Worker's Compensation
and health insurance to mitigate the current negative trend in insurance losses.
Our immediate mission is to continue the recruiting progress for drivers and
strive to maintain our current rate of revenue growth while restoring freight
rates to more acceptable levels."
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 Tuesday, October 28, 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 Third Quarter 2003 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 capable of playing back
MP3 audio files. 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 including reductions in rates
resulting from competitive bidding; 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 Nine months ended
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
Operating revenues $74,215,880 $65,033,997 $219,311,194 $199,188,301
----------- ----------- ------------ ------------
Operating expenses:
Salaries, wages and benefits 30,161,136 27,678,860 89,367,660 87,666,148
Operating supplies 14,287,278 13,438,346 41,158,312 38,516,822
Rent/purchased transportation 9,276,302 1,910,491 25,867,243 7,584,483
Depreciation/amortization 6,589,433 6,700,720 19,194,260 17,676,038
Operating taxes and licenses 3,686,289 3,356,039 10,890,090 10,200,197
Insurance and claims 3,088,555 2,558,969 10,219,835 9,504,928
Communications and utilities 624,225 444,276 1,860,526 1,703,542
Other 1,171,804 1,925,501 3,381,024 3,527,197
Loss on disposition of equipment 14,288 47,949 41,812 95,564
----------- ----------- ------------ ------------
Total operating expenses 68,899,310 58,061,151 201,980,761 176,474,919
Operating income 5,316,570 6,972,846 17,330,433 22,713,382
Other income/(expense):
Interest expense (375,373) (377,070) (1,059,568) (1,718,270)
----------- ----------- ------------ ------------
Total other income/(expense) (375,373) (377,070) (1,059,568) (1,718,270)
----------- ----------- ------------ ------------
Income before income taxes 4,941,197 6,595,776 16,270,864 20,995,112
Provision for income taxes 1,976,690 2,638,311 6,442,220 8,398,045
----------- ----------- ------------ ------------
Net income $ 2,964,507 $ 3,957,465 $ 9,828,644 $ 12,597,067
=========== =========== ============ ============
Diluted earnings per share $0.26 $0.35 $0.87 $1.20
=========== =========== ============ ============
Average shares o/s - Diluted 11,326,610 11,306,778 11,330,528 10,514,705
=========== =========== ============ ============
Quarter ended Nine months ended
September 30, September 30,
Truckload Operations 2003 2002 2003 2002
- -------------------- ---- ---- ---- ----
Total miles 59,691,172 56,380,426 175,816,877 172,363,393
Empty miles factor 4.62% 4.34% 4.52% 4.33%
Revenue per total mile $1.07 $1.12 $1.08 $1.11
Total loads 77,946 72,717 232,517 228,764
Revenue per truck per work day $575 $598 $558 $592
Average company trucks 1,742 1,619 1,703 1,595
Average owner operator trucks 112 136 122 139
Quarter ended Nine months ended
September 30, September 30,
Logistics Operations 2003 2002 2003 2002
- -------------------- ---- ---- ---- ----
Total revenue $10,282,490 $ 2,101,990 $28,961,542 $ 8,170,868
Operating income $553,606 $(18,440) $1,615,772 $79,496