Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 or ☐ Transition Report Pursuant to the Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________to__________ P.A.M. TRANSPORTATION SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 0-1507 71-0633135 ( ...

Financial Performance - Consolidated net loss for Q2 2024 was $2.9 million, compared to a net income of $9.3 million in Q2 2023, resulting in a diluted loss per share of $0.13[2] - Total revenues decreased by 11.8% year-over-year to $182.9 million in Q2 2024, down from $207.4 million in Q2 2023[9] - Operating loss for the quarter was $0.7 million, with an operating ratio of 100.4%[9] - Logistics operations revenue was $53.7 million in Q2 2024, down from $61.9 million in Q2 2023[13] Cash and Liquidity - As of June 30, 2024, the company had $173.9 million in cash and available liquidity, and stockholders' equity of $306.7 million[3] - Operating cash flow generated in the first half of 2024 was $28.4 million[3] - Cash and cash equivalents decreased to $71,984,000 from $100,614,000, a decline of about 28.5%[14] Debt and Liabilities - Outstanding debt increased by $4.3 million to $266.0 million as of June 30, 2024[3] - Total liabilities decreased to $426,853,000 from $446,241,000, reflecting a reduction of approximately 4.3%[14] - Long-term debt increased to $211,140,000 from $204,064,000, an increase of approximately 3.3%[14] Assets and Equity - Total assets decreased to $733,527,000 from $760,457,000, a decline of approximately 3.1%[14] - Current liabilities reduced to $111,713,000 from $137,096,000, a decrease of about 18.5%[14] - Trade accounts receivable increased to $92,324,000 from $80,604,000, an increase of approximately 14.5%[14] - Retained earnings decreased to $279,275,000 from $281,904,000, a decline of about 0.9%[14] - Additional paid-in capital increased to $41,171,000 from $40,825,000, reflecting a growth of approximately 0.8%[14] - Total stockholders' equity decreased to $306,674,000 from $314,216,000, a decline of about 2.4%[14] - Marketable equity securities decreased to $42,005,000 from $43,203,000, a decline of about 2.8%[14] Operational Metrics - Average company-driver trucks decreased to 1,920 in Q2 2024 from 2,061 in Q2 2023[13] - Total miles driven in Q2 2024 were 45,829 thousand, down from 50,526 thousand in Q2 2023[13] - The company continues to focus on cost and efficiency measures to mitigate unfavorable market conditions and aims for a mid-80's operating ratio in the long term[3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2024 or ☐ Transition Report Pursuant to the Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________to__________ P.A.M. TRANSPORTATION SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 0-1507 71-0633135 (Stat ...

Financial Performance - Total revenues for the first quarter of 2024 were $182.6 million, a decrease of 17.6% compared to $221.7 million in the first quarter of 2023[16] - The company reported a net income of $0.3 million, or diluted earnings per share of $0.01, down from a net income of $5.2 million and diluted earnings per share of $0.23 in the same quarter last year[6][16] - Operating loss for the quarter was $0.7 million, with an operating ratio of 100.4%[1][16] - Total operating expenses for the quarter were $183.3 million, compared to $213.2 million in the first quarter of 2023[19] Cash Flow and Assets - Operating cash flow generated during the first quarter was $9.6 million[12] - As of March 31, 2024, the company had total current assets of $245.1 million and total assets of $749.7 million[9][17] - Outstanding debt increased to $271.6 million, representing a $9.9 million increase from December 31, 2023[17] Operational Metrics - Average revenue per truck per workday decreased to $729, down from $802 in the previous year[14] - The empty miles factor was reported at 8.60%, a slight improvement from 8.96% in the previous year[14] Market Conditions - The truckload market remains challenging, with shippers leveraging an overcapacity market to achieve rates at or below cost[11]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended December 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________to________ P.A.M. TRANSPORTATION SERVICES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited financial statements show decreased total assets and a significant decline in net income and cash from operations for the nine months ended September 30, 2023 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $731.7 million as of September 30, 2023, driven by lower receivables, while stockholders' equity increased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $269,599 | $280,766 | | **Net Property and Equipment** | $456,920 | $463,595 | | **TOTAL ASSETS** | **$731,721** | **$749,162** | | **Total Current Liabilities** | $135,856 | $141,965 | | **Long-term Debt** | $171,418 | $205,466 | | **TOTAL LIABILITIES** | **$415,439** | **$448,979** | | **Total Stockholders' Equity** | $316,282 | $300,183 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Operating revenues and net income declined sharply in Q3 and the first nine months of 2023, resulting in significantly lower earnings per share Key Operating Results (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $201,502 | $252,630 | $630,639 | $709,246 | | Operating Income | $8,833 | $35,495 | $31,121 | $103,522 | | Net Income | $6,097 | $24,566 | $20,648 | $72,690 | | Diluted EPS | $0.28 | $1.09 | $0.93 | $3.24 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased year-over-year, while cash used for investing was substantially lower due to a prior-year acquisition Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $93,804 | $120,073 | | Net cash used in investing activities | $(10,914) | $(95,620) | | Net cash used in financing activities | $(54,678) | $(155) | | **Net Increase in Cash** | **$28,212** | **$24,298** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail revenue recognition, a single reportable segment, a class action lawsuit settlement, and the company's stock repurchase program - The company has two operating segments, Truckload Services and Brokerage and Logistics Services, which are aggregated into a **single reportable segment**: Motor Carrier Operations[47](index=47&type=chunk) - A class action lawsuit regarding driver pay was settled for **$4,750,000**, with final approval granted on October 11, 2023, and the company does not expect this to be covered by insurance[64](index=64&type=chunk) - In July 2023, the Board reauthorized the repurchase of 500,000 shares of common stock, with **475,066 shares remaining authorized** for repurchase as of September 30, 2023[48](index=48&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes the significant decline in profitability to challenging market conditions, though liquidity remains solid despite lower cash from operations [Results of Operations – Truckload Services](index=21&type=section&id=Results%20of%20Operations%20%E2%80%93%20Truckload%20Services) Truckload services revenue fell 22.6% in Q3 2023, leading to a significant deterioration in the operating ratio to 95.8% from 82.6% - Q3 2023 truckload services revenue (before fuel surcharge) **decreased 22.6%** to $112.3 million from $145.0 million in Q3 2022[93](index=93&type=chunk) - The decline was caused by a market-driven decrease in average rate per mile, a **150-truck reduction** in average fleet size, and the impact of the UAW strike[93](index=93&type=chunk) - The truckload **operating ratio increased from 82.6%** in Q3 2022 to **95.8%** in Q3 2023[99](index=99&type=chunk) [Results of Operations – Logistics and Brokerage Services](index=24&type=section&id=Results%20of%20Operations%20%E2%80%93%20Logistics%20and%20Brokerage%20Services) Logistics and brokerage revenue decreased 13.2% in Q3 2023 due to lower rates, causing the operating ratio to worsen to 93.3% from 85.7% - Q3 2023 logistics and brokerage revenue (before fuel surcharge) **decreased 13.2%** to $62.1 million from $71.5 million in Q3 2022[110](index=110&type=chunk) - Rents and purchased transportation costs increased from 80.4% of revenue in Q3 2022 to **86.8% in Q3 2023**, indicating margin compression[111](index=111&type=chunk) - The logistics and brokerage **operating ratio increased from 85.7%** in Q3 2022 to **93.3%** in Q3 2023[112](index=112&type=chunk) [Results of Operations – Combined Services](index=26&type=section&id=Results%20of%20Operations%20%E2%80%93%20Combined%20Services) Combined net income for Q3 2023 fell sharply to $6.1 million from $24.6 million year-over-year, with diluted EPS dropping to $0.28 from $1.09 Combined Net Income and EPS | Period | Net Income | Diluted EPS | | :--- | :--- | :--- | | **Q3 2023** | $6.1 million | $0.28 | | **Q3 2022** | $24.6 million | $1.09 | | **Nine Months 2023** | $20.6 million | $0.93 | | **Nine Months 2022** | $72.7 million | $3.24 | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated $93.8 million in operating cash flow, plans $90.8 million in net capital expenditures, and maintains full availability on its credit line - Generated **$93.8 million in cash from operating activities** in the first nine months of 2023[119](index=119&type=chunk) - Expects to purchase approximately 330 trucks and 1,130 trailers during the remainder of 2023, resulting in **net capital expenditures of about $90.8 million**[121](index=121&type=chunk) - At September 30, 2023, there were **no borrowings against the line of credit**, with $59.6 million of availability[122](index=122&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) The company's primary market risks include equity prices, interest rates, diesel fuel prices, and foreign currency exchange rates - The company is exposed to equity price risk with a portfolio of marketable equity securities valued at $41.3 million; a hypothetical **10% price decrease would cause a $4.1 million reduction in value**[130](index=130&type=chunk) - The company is exposed to commodity price risk from diesel fuel; a **10% increase in the average annual price per gallon would increase annual fuel expenses by $9.7 million**[132](index=132&type=chunk) - The company is exposed to foreign currency risk from its Mexico operations; a **10% increase in the U.S. dollar to Mexican peso exchange rate would increase annual operating expenses by $0.6 million**[133](index=133&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal controls - The CEO and CFO concluded that as of September 30, 2023, the company's **disclosure controls and procedures are effective** at a reasonable assurance level[136](index=136&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal controls[138](index=138&type=chunk) [Part II. Other Information](index=29&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings.) The company settled a class action lawsuit concerning driver wages for $4.75 million, with final court approval granted in October 2023 - A class action lawsuit alleging failure to pay minimum wage and other violations was **settled for $4,750,000**, resolving all claims from January 1, 2020, through July 31, 2022[142](index=142&type=chunk) - The court granted **final approval of the settlement on October 11, 2023**, and the company does not admit liability for any claim[142](index=142&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors.) Key risks include the impact of customer labor disputes, such as the UAW strike, and the company's status as a "controlled company" - A significant labor dispute, such as the **UAW strike against Ford, General Motors, and Stellantis**, could negatively impact the company's revenue and profitability[144](index=144&type=chunk) - Family trusts associated with Chairman Matthew T. Moroun collectively own **over 50% of the company's outstanding common stock**, giving them control over shareholder actions[145](index=145&type=chunk) - Due to its **"controlled company" status** under NASDAQ rules, the company is exempt from requirements for a majority-independent board and fully independent nominating and compensation committees[147](index=147&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company repurchased 24,934 shares of its common stock for an average price of $25.73 per share during the third quarter of 2023 Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 1-31, 2023 | 24,934 | $25.73 | | August 1-31, 2023 | - | - | | September 1-30, 2023 | - | - | | **Total** | **24,934** | **$25.73** | [Exhibits](index=31&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including governance documents, agreements, certifications, and Inline XBRL data

Revenue Performance - Truckload services revenue, before fuel surcharges, decreased 10.7% to $120.2 million for Q2 2023 compared to $134.7 million in Q2 2022[96]. - For the six months ended June 30, 2023, truckload services revenue, before fuel surcharges, decreased 5.5% to $245.4 million compared to $259.7 million in the same period of 2022[102]. - Logistics and brokerage services revenue decreased by 9.1% to $61.9 million in Q2 2023 from $68.0 million in Q2 2022, attributed to lower average rates charged to customers despite an increase in loads serviced[110]. - For the first six months of 2023, logistics and brokerage services revenue fell by 6.5% to $130.1 million compared to $139.2 million in the same period of 2022[113]. - Approximately $25.3 million and $34.4 million of total revenue was generated from fuel surcharges in Q2 2023 and Q2 2022, respectively[91]. Operating Expenses - Salaries, wages, and benefits increased from 29.6% of revenues in Q2 2022 to 37.1% in Q2 2023, primarily due to a decrease in average rate per mile and increased driver pay[97]. - Operating supplies and expenses rose from 6.6% of revenues in Q2 2022 to 11.7% in Q2 2023, driven by higher average fuel prices[98]. - Rent and purchased transportation costs decreased from 25.5% of revenues in Q2 2022 to 21.7% in Q2 2023, attributed to lower rates charged by third-party carriers[99]. - Operating expenses as a percentage of revenues increased from 86.2% in Q2 2022 to 91.8% in Q2 2023, indicating a rise in operational costs[112]. Operating Ratios - The truckload services division operating ratio increased from 79.7% in Q2 2022 to 92.7% in Q2 2023, indicating higher operating expenses relative to revenues[100]. - The truckload services division operating ratio for the first six months of 2023 rose to 96.1% from 80.5% in the same period of 2022, reflecting increased operating costs[107]. - The operating ratio for the first six months of 2023 increased to 90.2% from 87.4% in the first six months of 2022, indicating higher operational costs relative to revenues[115]. Net Income and Earnings - Net income for all divisions dropped to approximately $9.3 million, or 5.1% of revenues, in Q2 2023, down from $24.2 million, or 11.9% of revenues, in Q2 2022[116]. - Diluted earnings per share decreased to $0.42 in Q2 2023 from $1.08 in Q2 2022, reflecting the decline in net income[116]. Cash Flow and Capital Expenditures - Cash generated from operating activities was $67.5 million in the first six months of 2023, while investing and financing activities used $4.4 million and $39.1 million, respectively[119]. - The company plans to purchase approximately 340 trucks and 1,000 trailers in 2023, with expected net capital expenditures of about $71.4 million[121]. Debt and Receivables - Trade accounts receivable decreased from $134.7 million at December 31, 2022, to $100.8 million at June 30, 2023, due to reduced freight revenues[124]. - Long-term debt decreased from $264.3 million at December 31, 2022, to $230.0 million at June 30, 2023, primarily due to not financing new equipment acquisitions[127]. Insurance and Claims - Insurance and claims expense increased from 5.4% of revenues in the first six months of 2022 to 8.2% in the first six months of 2023, due to higher accident reserves[106]. Non-Operating Income - Non-operating income improved from a loss of 1.6% of revenues in Q2 2022 to income of 0.7% in Q2 2023, driven by changes in marketable equity securities[101].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 or ☐ Transition Report Pursuant to the Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________to__________ P.A.M. TRANSPORTATION SERVICES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended December 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________to________ P.A.M. TRANSPORTATION SERVICES, INC. (Exact name of registrant as specified in its charter) Delaware 0-1507 71-0633135 (State or other ju ...

Part I [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited).) Unaudited financial statements for Q2 2022 reflect substantial growth in revenue and net income, driven by acquisitions and asset investments [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2022, shows increased total assets and stockholders' equity, primarily due to property and equipment growth Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $229,058 | $199,574 | | **Net Property and Equipment** | $449,326 | $384,179 | | **Total Assets** | **$683,135** | **$587,381** | | **Total Current Liabilities** | $128,218 | $111,403 | | **Long-Term Debt** | $196,787 | $172,733 | | **Total Liabilities** | **$421,548** | **$371,271** | | **Total Stockholders' Equity** | $261,587 | $216,110 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statements of operations reveal substantial year-over-year growth in Q2 and H1 2022 revenues and net income, with improved diluted EPS Key Operating Results (in thousands, except per share data) | Metric | Q2 2022 (in thousands) | Q2 2021 (in thousands) | Six Months 2022 (in thousands) | Six Months 2021 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $237,168 | $161,263 | $456,616 | $310,122 | | Operating Income | $36,683 | $21,019 | $68,027 | $34,672 | | Net Income | $24,182 | $15,317 | $48,124 | $27,266 | | Diluted EPS | $1.08 | $0.67 | $2.14 | $1.18 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statement shows increased operating cash, significant investing cash outflow due to acquisition, and a shift to cash inflow from financing Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $74,868 | $51,308 | | Net cash (used in) provided by investing activities | $(81,389) | $21,508 | | Net cash provided by (used in) financing activities | $4,576 | $(50,121) | | **Net (Decrease) Increase in Cash** | **$(1,945)** | **$22,695** | [Condensed Consolidated Statement of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Stockholders'%20Equity) Stockholders' equity increased significantly in H1 2022, driven by net income, a stock split, and treasury share adjustments - Total stockholders' equity increased by **$45.5 million** in the first six months of 2022, driven by strong net income[20](index=20&type=chunk) - The company retired **12,268,395 shares** of treasury stock in the first quarter of 2022, which had no effect on the overall equity position[54](index=54&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, the 2-for-1 stock split, the Metropolitan Trucking acquisition, revenue recognition, and a class-action lawsuit settlement - On March 8, 2022, the Board of Directors declared a **2-for-1 forward stock split**, effective March 29, 2022. All share and per-share amounts have been retrospectively adjusted[27](index=27&type=chunk) - The company acquired substantially all assets of Metropolitan Trucking, Inc. on June 14, 2022, for **$79.9 million**, including **$64.3 million** in cash and **$12.6 million** in assumed debt[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - A settlement agreement has been reached in a class-action lawsuit filed by a former driver regarding wage claims. The settlement has been **fully reserved** as of June 30, 2022[70](index=70&type=chunk) Revenue by Service (before fuel surcharge, in thousands) | Service | Q2 2022 (in thousands) | Q2 2021 (in thousands) | Six Months 2022 (in thousands) | Six Months 2021 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Truckload Services | $134,698 | $98,040 | $259,676 | $188,398 | | Brokerage & Logistics | $68,041 | $47,135 | $139,152 | $91,918 | | **Total** | **$202,739** | **$145,175** | **$398,828** | **$280,316** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses strong H1 2022 performance driven by rate increases and demand, improved operating ratios, and robust liquidity, despite challenges [Results of Operations – Truckload Services](index=27&type=section&id=Results%20of%20Operations%20%E2%80%93%20Truckload%20Services) Truckload services revenue grew significantly in Q2 and H1 2022 due to higher rates and fleet expansion, leading to improved operating ratios - Q2 2022 truckload revenue (ex-fuel) increased **37.4%** to **$134.7 million**, driven by higher rates and a larger fleet[109](index=109&type=chunk) - Insurance and claims expense increased to **5.4% of revenue** in Q2 2022 from 3.2% in Q2 2021, largely due to an increased litigation reserve for a lawsuit settlement[115](index=115&type=chunk) Truckload Services Operating Ratio | Period | 2022 | 2021 | Improvement | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | 79.7% | 84.0% | 4.3 pts | | Six Months Ended June 30 | 80.5% | 86.9% | 6.4 pts | [Results of Operations – Logistics and Brokerage Services](index=31&type=section&id=Results%20of%20Operations%20%E2%80%93%20Logistics%20and%20Brokerage%20Services) Logistics and brokerage services saw substantial revenue growth in Q2 and H1 2022, driven by increased loads and rates, improving the operating ratio - Q2 2022 logistics revenue (ex-fuel) increased **44.3%** to **$68.0 million**, driven by more loads and higher customer rates[129](index=129&type=chunk) Logistics and Brokerage Services Operating Ratio | Period | 2022 | 2021 | Improvement | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | 86.2% | 88.7% | 2.5 pts | | Six Months Ended June 30 | 87.4% | 89.1% | 1.7 pts | [Results of Operations – Combined Services](index=32&type=section&id=Results%20of%20Operations%20%E2%80%93%20Combined%20Services) Combined services show significant increases in net income and diluted EPS for both Q2 and H1 2022 compared to prior periods Combined Net Income and Diluted EPS | Period | Net Income (2022) | Diluted EPS (2022) | Net Income (2021) | Diluted EPS (2021) | | :--- | :--- | :--- | :--- | :--- | | Q2 | $24.2M | $1.08 | $15.3M | $0.67 | | H1 | $48.1M | $2.14 | $27.3M | $1.18 | [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity from operations, funding significant capital expenditures and acquisitions, with substantial credit availability - Generated **$74.9 million** in cash from operating activities in the first six months of 2022[138](index=138&type=chunk) - Utilized cash on hand, installment notes, and line of credit to finance approximately **$86.7 million** in purchases, including assets from the Metropolitan acquisition[139](index=139&type=chunk) - Expects to purchase approximately **250 new trucks** and **200 new trailers** during the remainder of 2022, with net capital expenditures of about **$44.7 million**[141](index=141&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) The company faces market risks from equity prices, interest rates, and diesel fuel costs, with potential impacts quantified, and does not use derivatives - A **10% decrease** in the market price of held marketable equity securities would decrease their carrying value by approximately **$3.7 million**[151](index=151&type=chunk) - A **10% increase** in the average annual price per gallon of diesel fuel would increase annual fuel expenses by **$5.2 million**, based on 2021 consumption[153](index=153&type=chunk) - A hypothetical **100 basis point increase** in LIBOR would result in approximately **$10,000** of additional annual interest expense per **$1.0 million** of outstanding variable rate debt[152](index=152&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management affirmed the effectiveness of disclosure controls and procedures as of June 30, 2022, with no material changes to internal controls - The CEO and CFO concluded that as of June 30, 2022, the company's disclosure controls and procedures are **effective at a reasonable assurance level**[156](index=156&type=chunk) - No changes occurred during the quarter ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[158](index=158&type=chunk) Part II [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in a class-action lawsuit regarding wage claims, with a settlement reached and fully reserved, pending court approval - A lawsuit filed on August 6, 2021, by a former driver alleges failure to pay minimum wage and other violations, and seeks class certification[162](index=162&type=chunk) - A settlement agreement has been reached and is pending court approval. The settlement was **fully reserved** as of June 30, 2022[70](index=70&type=chunk)[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No shares were repurchased under the company's stock repurchase program during Q2 2022, following a November 2021 reauthorization - No shares were purchased during the second quarter of 2022 under the company's stock repurchase program[166](index=166&type=chunk) - Since the November 2021 reauthorization, the company has repurchased **83,220 stock-split adjusted shares**[165](index=165&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits.) This section enumerates exhibits filed with the Form 10-Q, including acquisition agreements, corporate amendments, and officer certifications