Dry van truckload carrier P.A.M. Transportation Services has reported a sharp upturn in profit for the second quarter of the year despite a small drop in revenue.
Net income totaled $4.9 million, or diluted and basic earnings per share of 62 cents for the quarter, compared to net income of $2.7 million a year earlier, or diluted and basic earnings per share of 31 cents for the Pennsylvania-based operation, a more than 80% increase.
For the first six months of the year net income totaled $6.3 million, or diluted earnings per share of 78 cents/79 cents basic, to net income of $2.3 million, or diluted and basic earnings per share of 26 cents, from the same time a year earlier.
Operating revenues, including revenue from fuel surcharges, was $104.3 million for the second quarter of 2014 compared to $104.4 million a year earlier. Operating revenues, including fuel surcharges, were $202.1 million for the six months of the year compared to $204.4 for the six months of 2013.
“The earnings per share results attained so far this year represent a 200% increase as compared to the same period last year and this quarter's earnings per share represents our highest single quarter earnings per share results on record,” said Daniel H. Cushman, president. “Also, considering that we are only halfway through the year and have already exceeded the net income posted for the entirety of last year, we are further satisfied that our strategic plans are maturing.”
He said P.A.M.’s automotive, Mexico, expedited, and dedicated divisions all continue to grow and improve financially.
"Our automotive strategy has been to diversify and we continue to do that. This freight is generally very consistent and we are able to recruit and maintain drivers in this division. Our expedited division continues to grow, and now comprises approximately 20% of our overall revenue,” said Cushman. “We've focused on loading the expedited loads where they land, and as a result, we are experiencing positive trends in reducing deadhead. Our Mexico division continues to grow, and because these lanes generally represent a long length of haul, drivers like it.”
He noted the company has always had a lot of automotive dedicated business, but in the past, it had limited success in securing dedicated business outside of the automotive area, however within the last nine months Cushman said P.A.M. has been more successful in the diversification of its dedicated customer base.