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].
P.A.M. Transportation(PTSI) - 2023 Q2 - Quarterly Report