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 FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 2004
Tontitown, Arkansas, February 8, 2005......P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $1,829,955 or diluted and basic
earnings per share of $.16 for the quarter ended December 31, 2004, and
$10,655,684 or diluted and basic earnings per share of $.94 for the year ended
December 31, 2004. These results compare to net income of $1,662,080 or diluted
and basic earnings per share of $.15, and $11,490,725 or diluted earnings per
share of $1.01 ($1.02 basic), respectively, for the quarter and year ended
December 31, 2003.
Operating revenues excluding fuel surcharges were $77,508,358 for the fourth
quarter of 2004, a 4.4% increase compared to $74,235,660 for the fourth quarter
of 2003. Operating revenues excluding fuel surcharges for the year ended
December 31, 2004 were $309,474,540, a 5.4% increase compared to $293,546,854
for the year ended December 31, 2003.
Robert W. Weaver, President of the Company, commented, "Earnings per share
reflect a year over year improvement for the fourth quarter but were not what we
had expected. There is however, evidence of continued positive change in our
operating fundamentals in driver recruiting and retention, utilization, and
revenue per mile.
The October driver pay increase and training incentive had a significant impact
on both retention and recruitment. The student training program is running at
full capacity. The driver recruiting department produced a net increase of 130
drivers in the fourth quarter. Driver wage increased three cents per mile,
resulting in an approximate $1,000,000 after tax increase in driver wages for
the quarter. Training cost increased significantly and is expected to benefit
the Company in subsequent months.
Revenue per total mile climbed from $1.08 per mile in the fourth quarter of 2003
to $1.18 per mile in fourth quarter of 2004. The increase in the fourth quarter
of 2004 as compared to the third quarter 2004 was approximately 3.5 cents. A
portion of this increase was the result of efforts to pass along the driver pay
increase to the customer base and did not immediately coincide with the increase
in cost.
Fluctuations in fuel prices and the addition of new trucks utilizing the less
efficient Federally mandated EGR engines caused our overall fuel expense to
increase by 10.6% on a cost per mile basis. Fourth quarter 2003 cost per mile
was 19.66 cents compared to a fourth quarter 2004 cost of 21.75 cents per mile.
We expect that our continued focus on driver recruiting, freight rates, and
utilization will contribute to improved earnings."
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 Wednesday, February 9, 2005 at 2:00 p.m. CDT
(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) 310-1961. Please ask to be joined to the P.A.M.
Transportation Services Fourth Quarter and Year End 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 Year ended
December 31, December 31,
2004 2003 2004 2003
---- ---- ---- ----
Revenue, before fuel surcharge $77,508,358 $74,235,660 $309,474,540 $293,546,854
Fuel surcharge 6,073,895 1,708,349 15,591,525 7,491,013
----------- ----------- ------------ ------------
83,582,253 75,944,009 325,066,065 301,037,867
Operating expenses:
Salaries, wages and benefits 31,310,630 29,982,569 119,408,631 119,350,229
Operating supplies 21,367,808 16,299,725 77,363,115 63,240,701
Rent/purchased transportation 9,661,546 9,419,259 38,938,357 35,286,502
Depreciation/amortization 7,482,216 7,407,085 30,016,355 26,601,345
Operating taxes and licenses 3,823,854 3,819,610 15,488,051 14,709,700
Insurance and claims 4,078,880 3,279,678 15,819,670 13,499,513
Communications and utilities 684,855 679,464 2,689,893 2,539,989
Other 1,478,921 1,374,365 5,127,470 4,755,388
Loss on disposition of equipment 331,263 326,426 915,102 368,239
----------- ----------- ------------ ------------
Total operating expenses 80,219,973 72,588,181 305,766,644 280,351,606
Operating income 3,362,280 3,355,828 19,299,421 20,686,261
Other income/(expense):
Interest expense (289,721) (331,136) (1,293,759) (1,390,704)
----------- ----------- ------------ ------------
Total other income/(expense) (289,721) (331,136) (1,293,759) (1,390,704)
----------- ----------- ------------ ------------
Income before income taxes 3,072,559 3,024,692 18,005,662 19,295,557
Provision for income taxes 1,242,604 1,362,612 7,349,978 7,804,832
----------- ----------- ------------ ------------
Net income $ 1,829,955 $ 1,662,080 $ 10,655,684 $ 11,490,725
=========== =========== ============ ============
Diluted earnings per share $0.16 $0.15 $.94 $1.01
=========== =========== ============ ============
Average shares o/s - Diluted 11,327,182 11,323,289 11,323,696 11,327,060
=========== =========== ============ ============
Quarter ended Year ended
December 31, December 31,
Truckload Operations 2004 2003 2004 2003
- -------------------- ---- ---- ---- ----
Total miles 56,936,914 59,665,602 235,894,314 235,482,479
Empty miles factor 4.70% 4.64% 4.74% 4.55%
Revenue per total mile,
before fuel surcharge $1.18 $1.08 $1.13 $1.08
Total loads 75,794 79,958 315,633 312,475
Revenue per truck per work day $648 $595 $591 $567
Average company trucks 1,766 1,789 1,762 1,723
Average owner operator trucks 86 104 93 118
Quarter ended Year ended
December 31, December 31,
Logistics Operations 2004 2003 2004 2003
- -------------------- ---- ---- ---- ----
Total revenue $10,252,275 $ 9,992,071 $41,966,665 $38,955,016
Operating income $408,606 $313,492 $1,817,197 $1,756,147
As of
December 31,
2004 2003
---- ----
Long-Term Debt to
Book Capitalization 12.11% 14.56%
Shareholders' Equity $168,611,462 $156,874,166