P.A.M. Transportation Services late Friday, Feb. 20, reported net loss of $11.42 million for the quarter ended Dec. 31 and net loss of $18.76 million for the year. These losses include significant noncash writedowns of $11.9 million during the fourth quarter and $14.2 million for 2008. These results compare to net loss of $839,909 and net income of $2.65 million, respectively, for the quarter and year ended Dec. 31, 2007.
Operating revenues were $84.01 million for the fourth quarter, a 17.8 percent decrease compared to $102.16 million. Operating revenues were $406.72 million for the year, a 0.5 percent decrease compared to $408.84 million.
“We are pleased to see that our prior cost-reduction efforts returned the trucking operation to operational profitability before certain writedowns in the fourth quarter of 2008,” said Robert W. Weaver, president of Tontitown, Ark.-based P.A.M. Transportation. “These items, necessitated by fair value financial reporting requirements, moved the company from a positive net income to the loss ultimately reported.” Weaver said that while these noncash charges negatively impacted the company’s earnings and certain assets and equity, it remains confident with the strength of its balance sheet; as of Dec. 31, its debt-to-equity ratio was 0.33:1.
“Although our fourth quarter was operationally profitable, we did experience a precipitous decline in freight demand in November and December,” Weaver said. “In light of this unprecedented decrease in freight demand, the company has intensified its focus on cost-reduction and cash-conservation measures, including fleet size and personnel reductions, decreasing capital expenditures, salary decreases for management personnel, pay and hiring freezes on all nondriving staff, and line-item focus on expense controls. While these are difficult decisions, they are necessary due to what has proven to be an extremely persistent recessionary economy.”