P.A.M.’s 4Q net almost doubles

$27.9M increase beats forecasts

P.A.M. Transport Services Inc. on Wednesday reported strong fourth quarter 2021 gains in revenue and income compared with the previous year and beat analyst expectations.

The Tontitown-based trucker posted net income of $27.9 million, nearly doubling what it made in the same quarter of 2020.

Total revenue increased 50% to $213.9 million. It was $194.6 million excluding fuel surcharges.

P.A.M. President Joe Vitiritto said in a written statement Wednesday how proud he was of the company’s teamwork and drivers who navigated through the many challenges brought on by the coronavirus pandemic.

“We couldn’t be doing what we are [doing] here at PAM without their commitment to our company, customers and our country,” Vitiritto said. “As we move into 2022, our team is ready to continue to build off what we learned from and executed in 2021.”

A lawsuit settlement negatively affected earnings for the three months that ended Dec. 31. According to the report, adjusted net income was $32.1 million without the losses.

During the quarter, P.A.M. received 60% of its 2021 equipment order and expects

the remaining deliveries to arrive in the coming months. The company said it did not incur significant maintenance costs from delivery delays because of the young age of its equipment fleet, which on average is between 1.8 and 5.5 years.

During the quarter, truckload operations logged 3.1 million fewer miles than the previous year as revenue per mile increased by nearly $1, offsetting any potential losses. Revenue per truck per work day was $1,077 compared with $758 the year before.

The company’s logistics operations generated total revenue of $63.9 million, a 67% increase.

Operating ratio in the quarter improved to 79.2% from 86.8% in the previous year. The company handled 2,918 more loads.

The company posted earnings per share of $2.48, surpassing Wall Street analyst expectations. A Yahoo Finance Consensus estimated it to be closer to $1.28.

Last year, P.A.M. participated in a number of special investor deals, including a 2-for-1 stock split that doubled the company’s shares to 11.5 million. It also completed a “Dutch auction” tender offer to purchase up to 200,000 shares. The company’s board of directors approved the repurchase of 500,000 shares in the fourth quarter.

Earnings also had sizeable growth in the 12 months that ended Dec. 31. Net income surged to $76.5 million, quadrupling 2020 income.

Total revenue climbed 45% to $707.1 million. It was $641.3 million excluding fuel surcharges.

Operating ratio improved to 82.3% in 2021 compared with 92% in the year prior. Total loads increased to 357,090 from 349,803.

As of Dec. 31, P.A.M. had $223.5 million in outstanding debt, representing a $73.9 million decrease from the previous year. It had $117.6 million in cash and cash equivalents.

During 2021, the company generated $101.7 million in cash flow and returned $10.8 million to shareholders in the form of share repurchases.

The shares fell $3.89, or 5.4%, to close Wednesday at $68.14.

Shares of P.A.M. fell more than 5%, or $3.89, to close Wednesday at $68.14 on the Nasdaq stock exchange.