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, 2004
Tontitown, Arkansas, July 26, 2004..........P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $3,647,123 or diluted and basic
earnings per share of $.32 for the quarter ended June 30, 2004, and $5,677,941
or diluted and basic earnings per share of $.50 for the six month period then
ended. These results compare to net income of $4,046,569 or diluted and basic
earnings per share of $.36, and $6,864,138 or diluted and basic earnings per
share of $.61, respectively, for the three and six months ended June 30, 2003.
Operating revenues of $79,070,723 were reported for the second quarter of 2004,
a 5.5% increase compared to $74,956,404 for the second quarter of 2003.
Operating revenues for the six months ended June 30, 2004 were $156,744,158, an
8.0% increase compared to $145,095,314 for the six months ended June 30, 2003.
Robert W. Weaver, President of the Company, commented, "Comparisons made of our
second quarter 2004 results to the results of the second quarter of 2003 do not
adequately reflect the true improvements made by the company in the past four
quarters. A more accurate picture of the improvements in our operations is
apparent by comparing successive quarters. Increases in freight rates have
erased the decrease that was experienced in rate per mile during the second half
of 2003 and surpassed rate levels that were in place prior to that period. Cost
containment measures and programs put in place in workers compensation and
maintenance reflect improvement as well. As we have stated previously,
improvements in operations continues to be a work in process evidenced by more
improvement in each month of the quarter ending June 30, 2004."
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, July 27, 2004 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 call
telephonically by dialing (800) 289-0504. The conference leader's name is Bob
Weaver. Please ask to be joined to the P.A.M. Transportation Services Second
Quarter 2004 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 an internet enabled PC 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 Six Months ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Operating revenues $79,070,723 $74,956,404 $156,744,158 $145,095,314
----------- ----------- ------------ ------------
Operating expenses:
Salaries, wages and benefits 29,640,271 29,925,666 60,038,236 59,207,889
Operating supplies 15,374,557 12,711,627 31,304,868 26,871,034
Rent/purchased transportation 10,010,054 9,562,452 19,772,306 16,589,576
Depreciation/amortization 7,415,966 6,549,963 14,884,837 12,604,827
Operating taxes and licenses 3,944,629 3,669,092 7,955,923 7,203,802
Insurance and claims 3,903,987 3,642,730 7,892,544 7,131,279
Communications and utilities 658,091 635,027 1,365,676 1,236,301
Other 1,555,050 1,195,926 2,903,855 2,209,219
Loss on disposition of equipment 18,364 3,579 277,680 27,524
----------- ----------- ------------ ------------
Total operating expenses 72,520,969 67,896,062 146,395,925 133,081,451
Operating income 6,549,754 7,060,342 10,348,233 12,013,863
Other income/(expense):
Interest expense (348,276) (426,622) (698,520) (684,196)
----------- ----------- ------------ ------------
Total other income/(expense) (348,276) (426,622) (698,520) (684,196)
----------- ----------- ------------ ------------
Income before income taxes 6,201,478 6,633,720 9,649,713 11,329,667
Provision for income taxes 2,554,355 2,587,151 3,971,772 4,465,529
----------- ----------- ------------ ------------
Net income $ 3,647,123 $ 4,046,569 $ 5,677,941 $ 6,864,138
=========== =========== ============ ============
Diluted earnings per share $0.32 $0.36 $.50 $.61
=========== =========== ============ ============
Average shares o/s - Diluted 11,322,148 11,332,383 11,321,727 11,335,673
=========== =========== ============ ============
Quarter ended Six Months ended
June 30, June 30,
Truckload Operations 2004 2003 2004 2003
- -------------------- ---- ---- ---- ----
Total miles 61,235,656 58,902,908 122,364,021 116,125,705
Empty miles factor 4.95% 5.00% 4.85% 4.47%
Revenue per total mile $1.11 $1.09 $1.11 $1.09
Total loads 82,180 77,195 164,880 154,571
Revenue per truck per work day $580 $537 $571 $550
Average company trucks 1,742 1,740 1,757 1,685
Average owner operator trucks 94 124 96 127
Quarter ended Six Months ended
June 30, June 30,
Logistics Operations 2004 2003 2004 2003
- -------------------- ---- ---- ---- ----
Total revenue $10,873,483 $10,917,815 $21,417,542 $18,679,052
Operating income $427,076 $726,259 $931,696 $1,062,166
As of
June 30,
2004 2003
---- ----
Long-Term Debt to
Book Capitalization 12.63% 19.35%
Shareholders' Equity $162,872,903 $151,812,932