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, 2005
Tontitown, Arkansas, October 27, 2005...P.A.M. Transportation Services, Inc.
(NASDAQ: PTSI) today reported net income of $2,213,089 or diluted and basic
earnings per share of $.20 for the quarter ended September 30, 2005, and
$8,796,068 or diluted and basic earnings per share of $.79 for the nine month
period then ended. These results compare to net income of $3,147,789 or diluted
and basic earnings per share of $.28, and $8,825,729 or diluted and basic
earnings per share of $.78, respectively, for the three and nine months ended
September 30, 2004.
Operating revenues excluding fuel surcharges were $79,061,734 for the third
quarter of 2005, a 5.1% increase compared to $75,222,024 for the third quarter
of 2004. Operating revenues excluding fuel surcharges were $242,491,649 for the
nine months ended September 30, 2005, a 4.5% increase compared to $231,966,182
for the nine months ended September 30, 2004.
Robert W. Weaver, President of the Company, commented, "I was very encouraged by
the results posted for both August and September. Unfortunately, these
favorable months were not enough to completely overcome the typical July revenue
reduction that results each year when certain of the Company's largest customers
schedule plant shutdowns.
The increased cost of fuel, net of fuel surcharge reduced earnings per share
$.14 and was the single largest factor that adversely affected earnings when
comparing the third quarter of 2005 to the third quarter of 2004. While the
Company strives to immediately cover fuel cost increases, we continue to be
temporarily exposed to additional expense during times of upside volatility due
to the lag between increases in fuel price and increases in fuel surcharge.
During the quarter the Company aggressively sought to modify surcharge
agreements with customers to eliminate as much of this lag as possible. In
addition we were successful in continuing improvement in freight rates on many
key traffic lanes. These rate increases resulted in a $.08 per mile improvement
in rate per mile before fuel surcharges. We attribute a large portion of the
improved results in August and September to successes achieved in these areas.
Additional factors that should be considered when comparing the third quarter of
2005 to the third quarter of 2004 include the three cent per mile driver pay
increase implemented in October 2004, and the favorable disposition of a
preferential transfer suit that resulted in a pre-tax increase to earnings of
$635,000, or three cents per share net of tax, during the third quarter of 2004.
Overall I am more satisfied with the state of our operations at end of the third
quarter 2005, particularly when viewed in the context of a year to year increase
of $.68 in the average cost of diesel fuel, before fuel surcharges, for the
third quarter. We continue to experience good demand for our services, and are
optimistic that the successes achieved during the third quarter will contribute
to our efforts to attain favorable fourth quarter results."
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, October 28, 2005 at 10:00 a.m. CDT
(Please note that since the call will begin promptly at 10:00 a.m., you should
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)231-9012. Please ask to be joined to the P.A.M.
Transportation Services Third Quarter 2005 Earnings Release Conference call. An
audio replay of the conference call will be posted on the Company's web site one
day 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.
The conference may contain forward-looking statements made by the Company that
involve risks, assumptions and uncertainties that are difficult to predict.
Investors are directed to the information contained in the forward-looking
statement paragraph below and in the Company's Annual Report on Form 10-K, filed
with the U.S. Securities and Exchange Commission, for a discussion of the risks
that may affect the Company's operating results. Actual results may differ.
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,
2005 2004 2005 2004
---- ---- ---- ----
Revenue, before fuel surcharge $79,061,734 $75,222,024 $242,491,649 $231,966,182
Fuel surcharge 9,422,167 3,857,495 23,211,328 9,517,630
----------- ----------- ------------ ------------
88,483,901 79,079,519 265,702,977 241,483,812
Operating expenses:
Salaries, wages and benefits 29,991,254 28,059,765 92,641,383 88,098,001
Operating supplies 27,589,464 19,030,304 75,357,155 55,995,307
Rent/purchased transportation 9,494,838 9,504,505 28,750,410 29,276,811
Depreciation/amortization 7,662,207 7,649,302 22,784,675 22,534,139
Operating taxes and licenses 3,907,169 3,708,274 11,910,961 11,664,198
Insurance and claims 3,584,093 3,848,246 12,214,796 11,740,790
Communications and utilities 638,169 639,362 1,979,997 2,005,038
Other 1,697,583 744,693 4,364,832 3,648,548
(Gain)/loss on disposition
of equipment (94,167) 306,159 (19,914) 583,839
----------- ----------- ------------ ------------
Total operating expenses 84,470,610 73,490,610 249,984,295 225,546,671
Operating income 4,013,291 5,588,909 15,718,682 15,937,141
Other income/(expense):
Interest expense (267,348) (305,518) (887,071) (1,004,038)
----------- ----------- ------------ ------------
Total other income/(expense) (267,348) (305,518) (887,071) (1,004,038)
----------- ----------- ------------ ------------
Income before income taxes 3,745,943 5,283,391 14,831,611 14,933,103
Provision for income taxes 1,532,854 2,135,602 6,035,543 6,107,374
----------- ----------- ------------ ------------
Net income $ 2,213,089 $ 3,147,789 $ 8,796,068 $ 8,825,729
=========== =========== ============ ============
Diluted earnings per share $0.20 $0.28 $.79 $.78
=========== =========== ============ ============
Average shares o/s - Diluted 10,821,065 11,324,094 11,090,483 11,322,508
=========== =========== ============ ============
Quarter ended Nine Months ended
September 30, September 30,
Truckload Operations 2005 2004 2005 2004
- -------------------- ---- ---- ---- ----
Total miles 56,334,157 56,593,379 173,782,938 178,957,400
Empty miles factor 5.70% 4.53% 5.35% 4.75%
Revenue per total mile,
before fuel surcharge $1.23 $1.15 $1.23 $1.12
Total loads 74,414 74,959 231,521 239,839
Revenue per truck per work day $641 $581 $624 $574
Average company trucks 1,743 1,770 1,766 1,761
Average owner operator trucks 65 92 70 95
Quarter ended Nine Months ended
September 30, September 30,
Logistics Operations 2005 2004 2005 2004
- -------------------- ---- ---- ---- ----
Total revenue $9,912,947 $10,464,673 $30,261,699 $32,118,942
Operating income $452,643 $476,895 $1,397,750 $1,408,591
As of
September 30,
2005 2004
---- ----
Long-Term Debt to
Book Capitalization 12.46% 12.24%
Shareholders' Equity $168,133,940 $166,157,604