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, 2004
Tontitown, Arkansas, October 29, 2004.......P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $3,147,789 or diluted and basic
earnings per share of $.28 for the quarter ended September 30, 2004, and
$8,825,729 or diluted and basic earnings per share of $.78 for the nine month
period then ended. These results compare to net income of $2,964,507 or diluted
and basic earnings per share of $.26, and $9,828,644 or diluted and basic
earnings per share of $.87, respectively, for the three and nine months ended
September 30, 2003.
Operating revenues excluding fuel surcharges were $75,222,024 for the third
quarter of 2004, a 1.4% increase compared to $74,215,880 for the third quarter
of 2003. Operating revenues excluding fuel surcharges were $231,966,182 for the
nine months ended September 30, 2004, a 5.8% increase compared to $219,311,194
for the nine months ended September 30, 2003.
Robert W. Weaver, President of the Company, commented, "While gross revenue
remained relatively flat year to year, the Company's primary focus on rate
increases and cost containment become apparent in improvements realized in
average rate per mile and earnings per share. Average revenue per mile increased
7.5% for the quarter ended September 30, 2004 over the quarter ended September
30, 2003. Earnings per share increased 7.7% to $.28 per share for the third
quarter 2004 compared to the third quarter 2003. These results reflect the
continued efforts and progress to produce better financial results 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 Monday, November 1, 2004 at 2:00 p.m. CST
(Please note that since the call will begin promptly at 2:00 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 call
telephonically by dialing (800) 946-0716. The conference leader's name is Bob
Weaver. Please ask to be joined to the P.A.M. Transportation Services Third
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 Nine Months ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
Revenue, before fuel surcharge $75,222,024 $74,215,880 $231,966,182 $219,311,194
Fuel surcharge 3,857,495 1,298,846 9,517,630 5,782,664
----------- ----------- ------------ ------------
79,079,519 75,514,726 241,483,812 225,093,858
Operating expenses:
Salaries, wages and benefits 28,059,765 30,161,136 88,098,001 89,367,660
Operating supplies 19,030,304 15,586,124 55,995,307 46,940,975
Rent/purchased transportation 9,504,505 9,276,302 29,276,811 25,867,243
Depreciation/amortization 7,649,302 6,589,433 22,534,139 19,194,260
Operating taxes and licenses 3,708,274 3,686,289 11,664,198 10,890,090
Insurance and claims 3,848,246 3,088,555 11,740,790 10,219,835
Communications and utilities 639,362 624,225 2,005,038 1,860,526
Other 744,693 1,171,804 3,648,548 3,381,024
Loss on disposition of equipment 306,159 14,288 583,839 41,812
----------- ----------- ------------ ------------
Total operating expenses 73,490,610 70,198,156 225,546,671 207,763,425
Operating income 5,588,909 5,316,570 15,937,141 17,330,433
Other income/(expense):
Interest expense (305,518) (375,373) (1,004,038) (1,059,569)
----------- ----------- ------------ ------------
Total other income/(expense) (305,518) (375,373) (1,004,038) (1,059,569)
----------- ----------- ------------ ------------
Income before income taxes 5,283,391 4,941,197 14,933,103 16,270,864
Provision for income taxes 2,135,602 1,976,690 6,107,374 6,442,220
----------- ----------- ------------ ------------
Net income $ 3,147,789 $ 2,964,507 $ 8,825,729 $ 9,828,644
=========== =========== ============ ============
Diluted earnings per share $0.28 $0.26 $.78 $.87
=========== =========== ============ ============
Average shares o/s - Diluted 11,324,094 11,326,610 11,322,508 11,330,528
=========== =========== ============ ============
Quarter ended Nine Months ended
September 30, September 30,
Truckload Operations 2004 2003 2004 2003
- -------------------- ---- ---- ---- ----
Total miles 56,593,379 59,691,172 178,957,400 175,816,877
Empty miles factor 4.53% 4.62% 4.75% 4.52%
Revenue per total mile,
before fuel surcharge $1.15 $1.07 $1.12 $1.08
Total loads 74,959 77,946 239,839 232,517
Revenue per truck per work day $581 $575 $574 $558
Average company trucks 1,770 1,742 1,761 1,703
Average owner operator trucks 92 112 95 122
Quarter ended Nine Months ended
September 30, September 30,
Logistics Operations 2004 2003 2004 2003
- -------------------- ---- ---- ---- ----
Revenue, before fuel surcharge $10,296,848 $10,282,490 $31,714,390 $28,961,542
Fuel surcharge $167,825 $70,434 $404,552 $85,218
Operating income $476,895 $553,608 $1,408,591 $1,615,774
As of
September 30,
2004 2003
---- ----
Long-Term Debt to
Book Capitalization 12.24% 13.43%
Shareholders' Equity $166,157,604 $154,935,324