P.A.M. Transportation Services Inc. on Monday, Feb. 8, reported net loss of $3,915,329 for the quarter and net loss of $10,847,325 for the year ended Dec. 31, 2009. These results compare to net loss of $11,423,986 and net loss of $18,764,885, respectively, for the quarter and year ended Dec. 31, 2008.
Operating revenues were $80,871,818 for the fourth quarter of 2009, a 3.7 percent decrease compared to $84,014,264. Operating revenues were $291,909,653 for the year, a 28.2 percent decrease compared to $406,722,502.
“Despite progress made in several areas, there is no getting around the fact that we suffered a loss in the fourth quarter and for the year,” said Daniel H. Cushman, president of the Tontitown, Ark.-based company. “An approximate $4.2 million writedown on a group of tractors, and a single worker’s compensation claim for $750K, coupled with continued rate depression caused by industry overcapacity, and year-over-year increases in fuel costs, net of fuel surcharges, account for the majority of our fourth-quarter loss. While revenue before fuel surcharges was down 19.3 percent compared to 2008, revenue for the fourth quarter 2009 was flat compared to the fourth quarter of 2008.”
Cushman said encouraging progress has been made on several initiatives, including diversification with specific focus on retail, manufacturing and consumer product industries, while at the same time continuing to nurture relationships within the automotive sector; targeting Mexico and expedited services as areas of strategic growth; securing a team of experienced sales professionals with proven track records; and identification of opportunities to operate more efficiently and cut costs.
“I am pleased with the progress we have made during the year towards the accomplishment of these items,” Cushman said. “Another accomplishment was the rebranding of P.A.M. Transport, which effectively combines the operations of several companies acquired over the last several years under the P.A.M. Transport Inc. operating name. The benefits of communicating the services we provide in terms that customers, both existing and potential, understand outweigh any residual benefit of continued operations in the original names of the companies acquired. We appreciate our customers’ and employees’ support through this transition, as it will provide us greater market visibility, operating efficiencies and market position for 2010.”