P.A.M. Transportation(PTSI) - 2024 Q2 - Quarterly Report

Revenue Performance - Truckload services revenue, before fuel surcharges, decreased 11.4% to $106.6 million in Q2 2024 compared to$120.2 million in Q2 2023[64] - Truckload services revenue, before fuel surcharges, decreased 15.0% to $208.8 million for the six months ended June 30, 2024, compared to$245.4 million for the same period in 2023[68] - Logistics and brokerage services revenue decreased by 13.3% to $53.7 million in Q2 2024 from$61.9 million in Q2 2023, attributed to lower average rates charged to customers[75] - For the first six months of 2024, logistics and brokerage services revenue decreased by 13.6% to $112.4 million compared to$130.1 million in the same period of 2023[77] Operating Expenses - Salaries, wages, and benefits increased from 37.1% of revenues in Q2 2023 to 38.6% in Q2 2024[65] - Rent and purchased transportation increased from 21.7% of revenues in Q2 2023 to 26.7% in Q2 2024, attributed to a rise in third-party carrier miles[66] - Depreciation as a percentage of revenues rose from 12.8% in Q2 2023 to 17.3% in Q2 2024 due to increased costs for replacement equipment[66] - The truckload services division operating ratio increased from 92.7% in Q2 2023 to 103.7% in Q2 2024, indicating a rise in operating expenses relative to revenues[67] - The operating ratio for the logistics and brokerage services division increased from 91.8% in Q2 2023 to 93.9% in Q2 2024, indicating higher operating expenses relative to revenues[76] Financial Position - The combined net loss for all divisions in Q2 2024 was approximately $2.9 million, resulting in a diluted loss per share of$(0.13), compared to net income of $9.3 million and earnings per share of$0.42 in Q2 2023[80] - The company generated $28.3 million in cash from operating activities during the first six months of 2024, while investing activities used$16.1 million and financing activities used $40.8 million[82] - Trade accounts receivable increased from$80.6 million at December 31, 2023, to $92.3 million at June 30, 2024, due to increased revenues[85] - Long-term debt increased from$261.7 million at December 31, 2023, to $266.0 million at June 30, 2024, primarily due to financing additional revenue equipment[87] - The recorded value of marketable equity securities decreased to$42.0 million at June 30, 2024, from $43.2 million at December 31, 2023[90] Capital Expenditures - The company plans to purchase approximately 430 trucks and 1,000 trailers in 2024, with expected net capital expenditures of approximately$66.5 million[83] Market Risks - A 10% increase in the average annual price per gallon of diesel fuel would increase annual fuel expenses by $8.2 million, highlighting the company's exposure to commodity price risk[92] Operational Metrics - Total miles traveled decreased by 9.3% from 50.5 million in Q2 2023 to 45.8 million in Q2 2024, driven by a 4.0% reduction in the average number of trucks operated[64] - The average number of trucks operated decreased by 5.9% in the first half of 2024 compared to the first half of 2023[68] - Non-operating income increased from 0.7% of revenues in the first half of 2023 to 1.8% in the first half of 2024, driven by an increase in the market value of marketable equity securities[70] - Interest expense increased from 1.4% of revenues in Q2 2023 to 2.9% in Q2 2024, attributed to higher equipment note debt and borrowing rates[67]