P.A.M. Transportation Services Inc. reported earnings of $2.39 million for the third quarter of 2013, a 171 percent year-over-year increase.
It was an encouraging quarter for the Tontitown based carrier, which is two years removed from a $1.7 million third-quarter loss. P.A.M., ranked No. 65 on the list of the largest for-hire carriers by Transport Topics, reported a profit of $880,907 for the third quarter in 2012.
President Dan Cushman pointed to continued diversification of the company’s customer base as key to its turnaround efforts.
Operating revenue, including fuel surcharges, was $101.8 million for the third quarter, a 7.8 percent increase from the same time period in 2012. P.A.M. reported $94.5 million in revenue for 2012.
P.A.M. income for the first nine months of the year was $4.6 million, compared with $2.48 million in 2012. Analysts surveyed by Yahoo Finance projected earnings per share of 20 cents, which P.A.M. beat by 8 cents.
“We are pleased with our recent quarterly performance which affirms some of the strategies we have implemented in order to achieve consistent profitability,” Cushman said in a statement. “We have stayed on course in terms of our strategic diversity plan as we have continued to diversify our customer base and are constantly in search of opportunities for growth.”
A strong July helped boost the company’s third-quarter results. July, Cushman noted, brought in triple the income of the same month in 2012, which was the first profitable July for the company since 2002.
P.A.M.’s Mexico, expedited, automotive and dedicated divisions, plus its supply chain work, were strong performers.
Cushman said those areas of the company have the potential for additional growth.
Continued cuts in the company’s random freight division have helped curb costs.
P.A.M. has decreased its random freight movement from 40.5 percent to 38.1 percent since last year. Getting that number down an additional 8 percent is the carrier’s goal, Cushman said.
Additional savings were found in spending less on fleet maintenance, the company said. P.A.M.’s fleet-average truck is 1.3 years old.
P.A.M. stock ended the day trading at $17.20 per share. It has traded between $8.81 and $17.87 over the past year.
Business, Pages 29 on 10/26/2013