P.A.M. Transportation Services Inc. on Tuesday, April 27, reported a net loss of $315,444 for the quarter ended March 31, 2010, compared to a net loss of $3,345,928 for the quarter ended March 31, 2009. Operating revenues were $81,846,822 compared to $65,818,035.
“The first quarter of 2010 exceeded our expectations,” said Daniel H. Cushman, president of the Tontitown, Ark.-based company. “ While we are optimistic that we are doing the necessary things to regain profitability, we really hadn’t anticipated being as close to profitability as we were at the end the first quarter. With the consolidation of all business operations under P.A.M. Transport, we have incurred costs due to this consolidation that are included in the first-quarter results. We also expect there will be further costs incurred in the second quarter due to these changes.”
Cushman said the benefits to those changes to date have been achieved sooner than anticipated. “At a time when many publicly held truckload carriers are reporting flat to single-digit percent revenue growth, excluding fuel surcharges, our truckload revenue was up over 16 percent,” he said. “This is a result of a structured sales and marketing effort focusing on our core competencies. We brought on new business with new customers at unprecedented levels.” Cushman said 20 percent of the company’s current top 100 customers are customers it did not do business with last year.
Cushman said the company’s ability to generate new business with new customers in the first quarter as a result of rebranding is validation of that decision. “Our ability to increase utilization as a result of new and better business is validation that our investment in an enhanced sales, marketing and pricing team was the right decision,” he said. “Getting back close to breakeven is validation to our customers and employees that we are focused on a strategic plan that will benefit us all.”