P.A.M. Transportation: ‘Navigating the disruptions’ leads to a big Q3 – FreightWaves
P.A.M. Transportation Providers reported Thursday after the market shut that its third-quarter earnings Greater than tripled yr-over-yr. The Tontitown, Arkansas-based mostly truckload service posted earnings per share of $1.87, As in contrast with 52 cents per share Inside the identical quarter of 2020, a interval hindered by an industrial buyer base that was nonetheless digging out from COVID-associated shutdowns.
“We now have had one other doc quarter for income and working statistics at PAM. I am excited to see the work that proceeds To enter making PAM what our buyers and staff anticipate from a rising transportation agency,” said President Joe Vitiritto in the press launch.
Vitiritto said PAM (NASDAQ: PTSI) Continues to be working by way of the obstacles Launched on by a market that proceeds to expertise extreme freight demand alongside severely constrained transportation performance.
“We proceedd to see vital disruptions from A pair of of our largest buyers in the third quarter and it accelerated quarter-over-quarter, however We’re getting extremeer at navigating the disruptions and that reveals in our end outcomes this quarter,” he said.
Revenue in the TL division enhanced 34% yr-over-yr to $127 million as income per truck per week was up 30% at $4,512. Loaded miles have been off 8% with The typical truck rely inching 2% extremeer. However, The Most very important lever in the quarter acquired here from pricing, which Greater than offset decstrains in utilization.
Revenue per loaded mile excluding gasoline surcosts enhanced 45% yr-over-yr to $2.70. That provided the primeline enhance needed to drive working end outcomes extremeer. PAM doced a 77.9% working ratio in its TL division, 1,180 basis factors of enhancement.
Desk: PAM’s key efficiency indicators
Elevated income drove most expense strains decrease as a proportion of income.
Salaries, wages and advantages (-600 bps), depreciation (-400 bps) and working provides (-310 bps) have been The Most very important transferrs. The lease and purchased transportation expense line enhanced 580 bps however that line consists of The worth To accumulate performance in the brokerage division.
Logistics income Greater than doubled in the quarter to $56 million. Even with hovering spot costs, 20% to 30% extremeer yr-over-yr all by way of most weeks of the quarter, the half noticed OR enhance 570 bps to 88.6%.
“We nonetheless have An excellent deal of alternative to proceed To reinforce from right here and our group will proceed to press for worthwhile progress as we transfer by way of The The rest of the yr and into 2022,” Vitiritto said.
PAM ended the quarter with $58 million in money and marketable securities, double the stability On The prime of 2020. Internet debt has been lowered by $83 million to $186 million this yr.
The agency has generated $74 million in money circulate from operations So far in 2021. Internet capital expenditures have Outcomeed in almost $13 million of incoming money. PAM has acquired funds for its gear retirements however On The identical time has been unable to take supply Of latest gear As a Outcome of of producer delays.
PAM plans to take supply of solely 80% of its 2021 orderbook. The agency’s common tractor fleet age enhanced from 1.6 yrs to 1.8 yrs However it Does not anticipate supply delays to Finish in A supplies uptick in upkeep expense given the youthful age of the fleet.
Share repurchases have acrelyed for a money use of Lower than $11 million So far this yr.
PAM executed a 2-for-1 inventory Chop up Through the quarter and repurchased virtually 275,000 shares by way of a Dutch public sale, which represented 2.4% of its Chop up-adjusted share rely of Greater than 11 million models. The Chop up was facilitated To draw extra buyers to the inventory On the decrease share worth. The agency additionally purchased almost 13,000 shares beneath its open share repurchase authorization Through the quarter.
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