P.A.M.’s net gain $2.1 million

Cash to settle suit keeps quarter from breaking record

P.A.M. Transportation Services Inc. reported net income of $2.1 million for the fourth quarter of 2014, finishing what CEO Daniel Cushman described as an “extremely satisfying year.”

Earnings per share for the Tontitown-based trucking company were 27 cents in the quarter ending Dec. 31, up from 15 cents a year ago. P.A.M also reported $101.7 million in total revenue, an improvement from its fourthquarter earnings of $96.5 million in 2013.

P.A.M.’s net income would have been reported at $4.6 million and 58 cents a share in the quarter if not for money held aside as a potential settlement payment for an ongoing lawsuit, which claims the company was in violation of minimum wage laws with regard to certain activities performed by drivers. It negated what would have been a record-setting earnings year for the company, but it didn’t dampen Cushman’s feelings regarding P.A.M.’s financial success.

“We are very proud of the fact that the results for 2014 would have been the best in the Company’s 35-year history were it not for the negative impact of the reserve for the lawsuit settlement,” Cushman said in a statement.

P.A.M.’s income for the year improved to $13.5 million despite the potential settlement payment, which is a 128.1 percent increase from $5.9 million reported in 2013. It was the second straight profitable year for the company, which previously reported four straight years of annual losses.

P.A.M.’s total revenue rose from $402.8 million a year ago to $410.9 million in 2014. Earnings per share also increased from 68 cents to $1.68 in 2014.

Cushman said all of P.A.M.’s key performance indicators — empty miles and revenue per truck each week — improved quarter-over-quarter and and year-over-year. But he added the company was not able to take advantage of seasonal opportunities in the fourth quarter of 2014.

“This type of opportunity is generally a result of utilizing a large random freight fleet, and according to our own goals, we have reduced our random fleet in exchange for more driver friendly freight and routes,” Cushman said. “We believe our random fleet is currently right-sized for our immediate needs, which is to support the backhaul needs of our other divisions as well as servicing our customer base that only has one-way freight. We have also started to focus more efforts into our brokerage division which has seen considerable growth in the most recent 60 days and is gaining great momentum.”

Board members in December expressed confidence in the direction of the company, authorizing the repurchase of 640,000 shares of stock at a maximum price of $32 million.

Cushman said Tuesday that the company’s model has been consistent across all divisions.

“The continued strong demand for our services and favorable fuel prices are certainly encouraging as we set our sights on the remainder of 2015 for which we intend to focus on growth and continuous profitability improvements,” Cushman said in the statement.

Shares of P.A.M. stock ended Tuesday trading at $56.66, up 40 cents per share.