These results compare to net income of $36,178 for the third quarter of 2007 and $3.49 million for the nine months ended Sept. 30, 2007.
Operating revenues were $105.96 million for the third quarter of 2008, a 4.7% increase compared to $101.17 million for the third quarter of 2007. Operating revenues were $322.71 million for the nine months ended Sept. 30, 2008, a 5.2% increase compared to $306.68 million for the first nine months of last year.
The $0.33 per share net loss for the quarter consists of net of tax, an $0.08 per share operating loss, a $0.21 per share non-operating loss from the write-down of equity stock holdings, and $0.04 per share interest expense, explains PAM President Robert W. Weaver. "The $0.21 non-operating loss is a non-cash charge due to a significant write-down of the company's stock portfolio to market value due to the hefty price declines experienced by the financial and banking sector. Once the value is written down, there can be no gains or write-ups in value until the securities are sold.
"Although both August and September posted a positive operating income, it was not enough to overcome the operating loss sustained in July," Weaver continued.
Revenue for the third quarter increased 4.7% compared to revenue for the same quarter in 2007. PAM's rate per total mile, before fuel surcharge, increased $0.06 per mile to $1.35 from $1.29 due to changes in the customer base and to rate increases negotiated with customers.
"However these improvements are offset by the current weakness in freight demand that has resulted in a 3.8% quarter over quarter decrease in tractor utilization, measured in miles per tractor per day," Weaver said. "A portion of the decrease in equipment utilization is also attributable to a decrease in the number of two-man driving teams required by automotive lanes that have been replaced by single drivers used in general commodity lanes. The company has decreased the average fleet size from 2,097 tractors during the third quarter 2007 to 1,971 tractors during the third quarter 2008 as we continue to balance fleet size to freight demand in an effort to improve equipment utilization."
Revenue derived from automotive customers continued to make up the largest sector of PAM's total revenue during the third quarter, but the company is continuing to work to dilute the percentage of its revenue generated by the hard-hit automotive industry. Total revenue from automotive decreased to 37.3% of revenue, before fuel surcharge, for the third quarter of 2008, compared to 48.5% the same time last year.