Truckload carrier Pam Transportation Services reported a net loss for the 2024 second quarter but noted some seasonal improvement as the period progressed.
Pam (NASDAQ: PTSI) reported a net loss of 13 cents per share, which was worse than a lone analyst estimate of 8 cents and well below earnings per share of 42 cents in the year-ago quarter. Comparisons to the prior-year period show higher interest expense was a 4-cent headwind (total debt increased 16% year over year to $266 million) and lower gains on equity holdings were a 3-cent headwind, assuming a normalized tax rate.
Consolidated revenue fell 12% year over year to $183 million. The company recorded an operating loss of $705,000, the third straight quarter it has booked a loss on the operating line.
Table: Pam Transportation’s key performance indicators
Revenue in the TL segment fell 11% y/y as average trucks in service declined 4% and revenue per truck was down 8%. The decline in revenue per truck per week was due to a 6% decline in loaded miles per truck and a 3% decline in revenue per loaded mile (excluding fuel).
“The quarter started off slower than anticipated but began to show signs of seasonal demand patterns that were more consistent with pre-covid periods and we saw capacity tightening some as we moved towards the end of the quarter,” said President Joe Vitiritto in a news release. “We continue to see downward rate pressure, but we are also seeing some opportunities that tell us we may be getting closer to a cycle change.”
Consolidated expenses declined 5% y/y but revenue was off 12%. Rent and purchased transportation expense increased 310 basis points (as a percentage of revenue), with depreciation expense increasing 260 bps. Salaries, wages and benefits expense was 90 bps higher y/y.
“Our continued focus on cost and efficiency measures helps us to mitigate the current unfavorable freight market as well as positioning us to meet our longer-term mid-80’s operating ratio expectation,” Vitiritto said.
Pam’s logistics segment reported a 13% y/y decline in revenue to $54 million. The company doesn’t provide gross profit margins for the unit or operating metrics like load counts and revenue per load.
The segment recorded a 93.9% OR, which was 210 bps worse y/y but in line with the first quarter.
Shares of PTSI were down 3.5% at 10:54 a.m. EDT on Thursday compared to the S&P 500, which was up 0.2%.
More FreightWaves articles by Todd Maiden
Knight-Swift seeing signs of market stabilization
Old Dominion notes green shoots, ready for market inflection
Heartland Express says recovery likely in 2025
The post Pam Transportation reports net loss in Q2 appeared first on FreightWaves.
