Financial Performance - Proficient's total operating revenue for the three months ended March 31, 2025, was $95,206,021, a significant increase from $27,826,592 for the same period in 2024[17] - The net loss for Proficient for the three months ended March 31, 2025, was $3,191,685, compared to a net income of $1,184,632 for the same period in 2024[17] - Proficient's operating loss for the three months ended March 31, 2025, was $(2,362,506), compared to an operating income of $2,025,900 for the same period in 2024[17] - The company reported a loss per share of $(0.12) for the three months ended March 31, 2025[17] - For the three months ended March 31, 2025, the net loss was $3,191,685 compared to a net income of $1,184,632 for the same period in 2024[24] - Total operating revenue for the three months ended March 31, 2025, was $95,206,000, a decrease of 6.1% from $102,345,000 in the same period of 2024[63] - The company reported a total operating loss of $2,363,000 for the three months ended March 31, 2025, compared to an operating income of $6,062,000 in the prior year[63] Cash and Assets - Cash and cash equivalents decreased to $10,910,825 as of March 31, 2025, down from $15,398,714 as of December 31, 2024[15] - Accounts receivable increased to $47,161,777 as of March 31, 2025, compared to $37,394,656 as of December 31, 2024[15] - Total current assets rose to $69,269,300 as of March 31, 2025, from $67,687,442 as of December 31, 2024[15] - Cash flows provided by operating activities were $1,633,024, a significant increase from a cash outflow of $382,135 in the prior year[24] - Cash and cash equivalents at the end of the period were $10,910,825, down from $15,398,714 at the beginning of the period[24] - The company reported cash paid for interest was $1,558,106 during the period, highlighting its financing costs[24] Liabilities and Debt - Total liabilities decreased slightly to $169,300,048 as of March 31, 2025, from $170,107,421 as of December 31, 2024[15] - Total long-term debt decreased to $52,953,684 as of March 31, 2025, from $56,336,911 at the end of 2024[73] - The company had $8,000,000 outstanding on its revolving line of credit as of March 31, 2025, with $12,000,000 available to be drawn[72] - Future maturities of long-term debt for the year ending December 31, 2025, are projected to be $14,516,189[74] Acquisitions and Growth Strategy - The company completed its IPO on May 13, 2024, and acquired five operating businesses as part of its growth strategy[29] - Subsequent to the IPO, the company acquired Auto Transport Group for approximately $28.9 million and Utah Truck & Trailer Repair for $4.5 million, expanding its geographic presence[30] - Proficient Auto Logistics, Inc. completed the acquisition of five operating businesses, including Delta, Deluxe, Sierra, Proficient Transport, and Tribeca, on May 13, 2024, concurrent with its IPO[48] - The total purchase price for all acquisitions recognized was $289,275,386, with cash consideration of $183,448,307 and stock consideration of $102,731,965[58] - The acquisition of Auto Transport Group resulted in a total purchase price of $49,480,431, with cash consideration of $28,938,295 and stock consideration of $20,542,136[59] - The company is focused on expanding its market presence through strategic acquisitions and enhancing operational capabilities[48] Goodwill and Intangible Assets - The acquisition of Delta resulted in recognized goodwill of $27,558,000[50] - The acquisition of Deluxe resulted in recognized goodwill of $34,555,987[52] - The acquisition of Proficient Transport resulted in recognized goodwill of $58,332,452[53] - Goodwill from the acquisitions totaled $141,946,652, primarily due to expected synergies and workforce value[58] - The total balance of goodwill increased to $170,900,127 from $169,056,675 as of December 31, 2024, reflecting adjustments of $1,843,452[64] - The company recognized intangible assets totaling $114,900,000 across various acquisitions, including customer relationships and trade names[58] Operational Segments - The company’s CODM includes the CEO, CFO, and COO, who evaluate performance based on operational results from services provided by Company Drivers and Subhaulers[44] - The company’s operating segments include Drivers and Subhaulers, with the latter focusing on an asset-light model for transportation services[93] - For the three months ended March 31, 2025, total revenue was $95,206,021, with segment revenue from Drivers at $32,674,418 and Subhaulers at $62,531,603[94] Legal and Compliance Matters - Sierra Mountain Group, Inc. reached a settlement agreement for approximately $4,000,000 related to the misclassification of independent contractors, with final approval for $3,947,725 granted by the court[104] - Deluxe Auto Carriers, Inc. is evaluating a class action claim regarding unpaid meal and rest periods, with potential liabilities included in accrued liabilities as of December 31, 2024[105] - Deluxe Auto Carriers, Inc. was delinquent in its filings with the Department of Labor for Retirement Plan Information Returns from 2019 to 2022, but all filings were completed by December 31, 2024[106]
Proficient Auto Logistics, Inc.(PAL) - 2025 Q1 - Quarterly Report