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.
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%.