P.A.M. announces lower 2Q net income

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Pam Transport

P.A.M. Transportation Services Inc. on Wednesday, July 27, reported net income of $692,763 for the quarter ended June 30 and a net loss of $1.28 million for the six-month period then ended. These results compare to net income of $1.26 million and net income of $946,134, respectively, for the three and six months ended June 30, 2010.

Operating revenues, including revenue from fuel surcharges, were $95.9 million for the second quarter of 2011, a 12.5 percent increase compared to $85.2 million for the second quarter of 2010. Operating revenues, including fuel surcharges, were $180.9 million for the six months ended June 30, 2011, an 8.3 percent increase compared to $167.1 million for the six months ended June 30, 2010.

“While we reported a profit for the second quarter in 2010, we benefited during that period because many of our core expenses had not yet rebounded from their recessionary lows, while at the same time revenue and equipment utilization for the 2010 quarter benefited from a short-term demand upturn,” said Daniel Cushman, president of the Tontitown, Ark.-based company. ” As we progressed into the second half of 2010, we knew we were facing hurdles as demand receded and expenses, especially in the areas of drivers, maintenance and fuel, increased.”

Cushman said the company also has also seen competition for drivers, and the expenses associated with recruiting and retaining them, returning to levels more consistent with pre-recession periods. “We were very pleased to see that the overall improvements that we have made to our business, both in revenue growth and expense controls, have contributed enough to overcome the quarter-over-quarter expense increases,” he said. “When I joined P.A.M. two years ago, it was obvious that we needed to expand and improve our customer base, and I have reported each quarter our various successes in doing that. We continue to achieve success in this area, with 36 of our top 100 customers being new for the second quarter of 2011.”