Profit revenue

PAM profit, revenue increase in the second quarter

Tontitown-based carrier PAM Transportation Services Inc. posted double-digit increases in revenue and profit as it weathered disruption and experienced organic growth in the second quarter.

After markets closed Thursday, July 28, PAM reported second-quarter earnings rose 57.9% to $24.18 million, or $1.08 per share, from $15.31 million, or 67 cents per share, at the same time last year. Revenue rose 47.1% to $237.16 million from $161.26 million.

In the first half of the year, earnings rose 76.5% to $48.12 million, or $2.14 per share, from $27.26 million, or $1.19 per share, at the same time last year. Revenue rose 47.2% to $456.61 million from $310.12 million.

In the second quarter, logistics operations revenue increased 44.4% to $68.04 million from $47.13 million. In the first half, revenue rose 51.4% to $139.15 million from $91.91 million in the same period last year.

“There was significant disruption during the quarter due to customer downtime, supplier parts/labor issues and high-profile changes to the overall truck freight market,” said President Joe Vitiritto. “Even with these challenges, our people did a solid job of navigating through the quarter. We continue to demonstrate the resilience of our model while growing the business organically.

“We are also excited about our first acquisition in nearly two decades,” he added. “We look forward to working with the high quality team at Met Express and seeing this team exceed expectations.”

On June 14, the PAM subsidiary completed the purchase of family hauler Metropolitan Trucking Inc. of Saddle Brook, NJ, for approximately $79.8 million, including debt. In a 12-month period ending March 31, the dry-van hauler of nearly 320 trucks generated approximately $83.3 million in revenue and operating profit of $13.5 million.

PAM had 1,847 company trucks at the end of the second quarter, compared to 1,602 at the same period in 2021. During the same period, the number of owner-operator trucks increased by 10 to 381. The average age trucks and trailers increased to 2.1 and 6.2 years, at the end of the second quarter, from 1.8 years and 5.5 years, respectively, at the end of 2021.

Here are more second quarter numbers versus the same period in 2021:

  • Total charges increased to 94,870 from 89,840
  • Revenue per mile rose to $2.72 from $2.11

Shares of PAM (NASDAQ: PTSI) closed Thursday at $32.82, up $1.16 or 3.66%. Over the past 52 weeks, the stock has hovered between $15.41 and $40.88.

WIDER TRENDS
According to DAT Freight & Analytics, truck freight volumes remained strong in June, while spot market prices were impacted by rising capacity levels.

The average U.S. price for moving cargo from dry vans in the spot market fell 1 cent to $2.68 per mile in June, compared with May. Meanwhile, the average price in the United States to move contract dry-van freight rose 1 cent to $3.29 per mile.

“The downward pressure on spot rates in June was driven by a combination of high fuel prices and a record number of trucks available for work,” said Ken Adamo, chief analyst for DAT. “As small trucking companies and independent operators are exiting the market, it’s not for lack of freight. Overall, truckload volumes were strong in June, as they have been throughout the second quarter and now in the first half of July. »