Pamt Corp, formerly Pam Transportation Services, reported a net loss of $5.6 million, or 27 cents per share, in the third quarter, compared with a profit of 11 cents per share in the same period last year. It’s the fourth consecutive net loss for the Arkansas-based operator.
On a year-over-year basis, per-share results benefited from a $3.8 million gain on the sale of equipment (wind 14 cents at the regular tax rate). Higher interest expense was a headwind of 6 cents, while non-operating income was down 4 cents.
Changes in Pamt’s (NASDAQ: PAMT) non-operating income are primarily due to fluctuations in the market value of its equity securities portfolio and rental income from a facility and other items.
Consolidated revenue fell 18% year over year to $150 million. Nearly a third of the company’s revenue is allocated to the automotive industry, where tariffs and the business landscape are changing.
The TL unit reported a 10 percent drop in average trucks in service and weekly revenue per truck was down 8 percent. Loaded miles fell 10% while revenue per loaded mile fell 3% to $2.24.
The segment reported an adjusted operating ratio of 106.7% (inverse of operating margin), 620 basis points worse year-over-year.
Salaries, wages and benefits costs rose 190 bps annually (as a percentage of revenue) even as the company cut drivers. Purchased rent and transportation cost was 90 units per second and depreciation cost was 350 units per second. (All cost lines are reported in a consolidated manner.)
This was the eighth consecutive operating loss for the TL unit.
Logistics revenue decreased by 17% year-on-year to 42 million dollars. The OR decreased to 99.1% by 480 pairs/year. Pamt does not provide gross profit margins for the unit or operating metrics such as number of loads and revenue per load.
Pamt generated operating cash flow of $23 million in the first three quarters of the year. Liquidity (cash, equity and availability in its line of credit) of $175 million at the end of the quarter was down slightly from the second quarter. The outstanding debt of 342 million dollars increased by 11 million dollars respectively.
The company had previously reported a debt covenant violation in its second quarter filing with the Securities and Exchange Commission.
This covenant stipulates that debt to earnings before interest, taxes, depreciation and amortization remain below 4 times. It received a waiver from the lender and said it was negotiating a renegotiation of the agreement. It did not provide any updates on the matter in its third quarter report.
PAMT shares fell 3.2 percent in after-hours trading Tuesday.
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