P.A.M. posts $13.6M loss for quarter
Tontitown-based P.A.M. Transportation Services Inc. posted a loss in its fourth quarter as well as a dip in revenue, capping an exceptionally challenging year, said the company’s top executive.
On Monday, the trucking firm reported a loss of $13.6 million, or $2.37 a share, for the quarter ended Dec. 31, compared with profits of $6.1 million, or $1.01 a share, for the same period the previous year. A single analyst had predicted earnings of $1.36 per share, according to Yahoo Finance.
“In my entire career I don’t know that I experienced a year in which we were presented with so many challenges. Not necessarily broad industry challenges but challenges specific to P.A.M. Transport,” President Daniel Cushman said in a statement.
Revenue for the fourth quarter was $123.5 million, down nearly 11% compared with $138.2 million for the fourth quarter of 2018. The single analyst had forecast revenue of $132.6 million.
Profits were affected by nearly $20 million put aside for an expected settlement of a minimum wage lawsuit, according to a news release. The suit contended that some drivers were misclassified as owner-operators.
Revenue took a hit because of a 22% decrease in fuel surcharge revenue — down to $16.8 million from $21.6 million for the fourth quarter of 2018.
Cushman said the company’s challenges for the year included freight from Mexico being affected by a hurricane
and problems at border crossings when border agents were pulled to help with immigration issues, resulting in delays and cancellations of shipments for as long as two weeks.
P.A.M.’s largest customer, General Motors, also weathered a strike by the United Auto Workers labor union that shut the company down and lasted a month and a half. In addition, P.A.M. booked a litigation expense of $19.9 million for a preliminary settlement in a classaction suit over minimum wage violations.
“From a quarterly financial perspective, we were able to maintain profitability throughout the strike period as we recorded positive operating income for October and for the fourth quarter overall on an adjusted basis, excluding the litigation charges,” Cushman said. “Notwithstanding the impact of these charges, we are proud of our results considering the hurdles.”
For 2019 as a whole, P.A.M. reported earnings of $7.9 million, or $1.34 per share, down from $24 million, or $3.90 per share, for 2018. Revenue, including fuel surcharges, stood at $514.2 million for 2019, down 4% from $533.3 million the previous year.
P.A.M. shares closed at $48.30, down $1.41 or nearly 3%, in Monday’s trading on the Nasdaq exchange. The stock has traded as low as $41.82 and as high as $71.56 over the past year.