Quality Distribution Posts Larger Yearly Profit, P.A.M. Transportation Back In The Black
February 22, 2013
Bulk chemical hauler, Quality Distribution, has released numbers showing it increased profit in 2012 compared to the year before, while the dry van truckload carrier, P.A.M. Transportation, posted a profit last year compared to a loss in 2011.
The Tampa-based company reported net income of $5.7 million, for the fourth quarter of 2012, compared to net income of $5.5 million from the same time a year earlier. Net income last year was $50.1 million, compared to net income of $23.4 million, for 2011.
Total revenue for the fourth quarter of 2012 was $215.4 million, an increase of 20.5% versus the same quarter last year. Excluding fuel surcharges, revenue for the fourth quarter of 2012 increased by $34.3 million, or 22.8% compared to the prior-year period. This revenue improvement was driven by a $29.1 million increase from the Energy Logistics business resulting primarily from the three acquisitions completed in 2012, $2.2 million of growth from Intermodal, and a $3 million increase from the Chemical Logistics business.
Quality Distribution also reported total revenue for the year ended Dec. 31, 2012 was $842.1 million, an increase of 12.9% versus the same period last year. Excluding fuel surcharges, revenue increased 14.3% for the full year compared to the prior year primarily driven by the acquired Energy Logistics businesses.
Revenues in the chemical logistics segment were $144.9 million in the fourth quarter of 2012, which was up 3.2% versus the fourth quarter of 2011. Excluding fuel surcharges, revenues increased $3 million, or 2.6%, primarily due to higher pricing and solid volumes.
Revenues in the intermodal segment were $31.4 million, up $2.8 million or 9.8% versus the prior-year period. Excluding fuel surcharges, revenues increased $2.2 million, or 8.6%,
Revenues in the energy logistics segment were $39.1 million, up $29.4 million versus the prior-year period, as higher revenues from the three acquisitions consummated in 2012 were partially offset by a 49% decline in revenues from the Marcellus shale region. The decline in Marcellus revenue was driven primarily by lower natural gas prices.
Arkansas-headquartered P.A.M. Transportation Services reported a net loss of $311,010 for the final quarter of 2012, and net income of $2.178 million for all of last year. These results compare to net income of $133,037 from the same quarter a year earlier and net loss of $2.857 million compared to all of 2011.
Operating revenues were $95.772 million for the fourth quarter of 2012, a 7.1% increase compared to $89.388 million for the fourth quarter of 2011. Operating revenues were $380,632,762 for 2012, a 6% increase compared to approximately $359 million for 2011.
In a statement, Daniel H. Cushman, president of the company, said, "We finished the year with eleven consecutive profitable months, followed by a single month of loss in December. Fourth quarter freight demand began up year-over-year and remained strong through the Friday before Christmas. However, demand fell off more drastically the last ten days of 2012 than in 2011, which is largely attributable to the mid-week holiday in 2012, compared to the weekend holiday in 2011. This had the effect of reducing the momentum of year-over-year revenue growth from 7.2% in October and November, to a slight decrease year-over-year in December.
He noted P.A.M. ended the year with 260 more drivers and 143 more owner-operators than it had at the end of 2011.