Part I. Financial Information Item 1. Financial Statements The company reported a Q1 2025 net loss of $8.1 million, a 15% revenue decline to $155.3 million, and decreased assets and operating cash flow Condensed Consolidated Balance Sheets Total assets decreased to $712.6 million by March 31, 2025, driven by lower property and equipment, impacting equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $712,641 | $741,654 | ($29,013) | | Cash and cash equivalents | $57,072 | $68,060 | ($10,988) | | Net property and equipment | $505,504 | $527,218 | ($21,714) | | Total Liabilities | $443,046 | $464,146 | ($21,100) | | Long-term debt (including current) | $309,238 | $325,582 | ($16,344) | | Total Stockholders' Equity | $269,595 | $277,508 | ($7,913) | Condensed Consolidated Statements of Operations Q1 2025 saw a net loss of $8.1 million and a 15% revenue decline to $155.3 million, resulting in a $9.2 million operating loss Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total operating revenues | $155,342 | $182,592 | -15.0% | | Operating Loss | ($9,191) | ($677) | -1257.6% | | Net (Loss)/Income | ($8,142) | $281 | -2997.5% | | Diluted (Loss)/Income Per Share | ($0.37) | $0.01 | -3800.0% | Condensed Consolidated Statements of Cash Flows Operating cash flow decreased to $5.0 million in Q1 2025, with overall cash and equivalents declining by $11.0 million Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,996 | $9,585 | | Net cash provided (used) by investing activities | $360 | ($9,802) | | Net cash used for financing activities | ($16,344) | ($20,431) | | Net Decrease in Cash | ($10,988) | ($20,648) | Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, revenue recognition, marketable securities, segment performance, and a $14.8 million share repurchase - The company's revenue is derived from a single performance obligation: transporting customers' freight. Revenue is recognized over time as the freight progresses towards its destination2531 Revenue Breakdown by Service (before fuel surcharge, in thousands) | Service | Q1 2025 Revenue | Q1 2024 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Truckload Services | $92,429 | $102,200 | -9.6% | | Brokerage and Logistics | $44,272 | $58,769 | -24.7% | - Marketable equity securities had a fair market value of $45.6 million as of March 31, 2025, with an unrealized gain of $16.8 million35 - Subsequent to the quarter end, the company repurchased 870,000 shares of its common stock for approximately $14.8 million through a tender offer78 Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes Q1 2025 decline to a challenging freight market, impacting Truckload and Brokerage revenues and operating ratios Results of Operations – Truckload Services Truckload revenue fell 9.6% to $92.4 million in Q1 2025 due to lower miles and rates, worsening the operating ratio to 110.9% - The decrease in truckload revenue was primarily due to a 6.5% decrease in total miles traveled and a 3.3% decrease in the rate per mile, from $2.11 to $2.0489 - Depreciation expense increased as a percentage of revenue, partly due to a change in accounting estimates in 2024 that reduced the useful lives and salvage values of revenue equipment93 - The truckload services operating ratio deteriorated to 110.9% for Q1 2025, up from 104.2% in Q1 202496 Results of Operations – Logistics and Brokerage Services Logistics and brokerage revenue declined 24.7% to $44.3 million due to fewer loads, increasing the operating ratio to 98.0% - The revenue decrease was primarily related to a 28.0% decrease in the number of brokered loads compared to the prior year's first quarter99 - The logistics and brokerage services operating ratio increased to 98.0% for Q1 2025, compared to 93.9% for Q1 2024101 Liquidity and Capital Resources Liquidity is supported by operations and credit facilities, with $30.2 million in planned capital expenditures and a $14.8 million share repurchase - The company expects to purchase 282 new trucks and 775 new trailers during the remainder of 2025, resulting in net capital expenditures of approximately $30.2 million106 - In May 2025, the company used available cash to purchase 870,000 shares of its common stock for approximately $14.8 million via a tender offer107 - As of March 31, 2025, the company had no outstanding borrowings against its $60.0 million line of credit, with $59.8 million available109 Quantitative and Qualitative Disclosures about Market Risk The company faces equity price, interest rate, and diesel fuel risks, with a 10% fuel price increase raising annual expenses by $6.4 million - A hypothetical 10% decrease in the market price of the company's marketable equity securities would result in a charge of approximately $4.6 million118 - Based on 2024 fuel consumption, a 10% increase in the average price of diesel fuel would increase annual fuel expenses by $6.4 million120 - A hypothetical 100 basis point increase in SOFR would result in approximately $120,000 of additional annual interest expense, assuming $12.0 million of variable rate debt was outstanding119 Controls and Procedures Management concluded disclosure controls were effective as of March 31, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level123 - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting125 Part II. Other Information Legal Proceedings The company is involved in ordinary course litigation, with management expecting no material financial impact - The company is involved in claims and litigation arising from the ordinary course of business and provides accruals for claims within its self-insured retention amounts128 Risk Factors No material changes to risk factors, except for a new risk concerning potential negative impacts of tariffs on trade - A new risk factor was added regarding the imposition of tariffs on Mexico and Canada, which could adversely affect business operations and financial results, particularly the cross-border and Mexico freight business130 Unregistered Sales of Equity Securities and Use of Proceeds No shares were repurchased under the stock repurchase program during Q1 2025 - No shares were repurchased under the stock repurchase program during Q1 2025132 Other Information No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended March 31, 2025133 Exhibits This section lists exhibits filed with Form 10-Q, including officer certifications and XBRL data files
P.A.M. Transportation(PTSI) - 2025 Q1 - Quarterly Report