PAM Transport Services Inc. of Tontitown on Friday reported first-quarter income of $2.9 million, down from $5.4 million in the same quarter a year ago.
Revenue was up to $103.6 million from $99.5 million a year ago. Fuel surcharge revenue dropped from $16.8 million to $9.9 million as a result of continued lower fuel prices.
Earnings per share was 41 cents, down from 72 cents in the same quarter a year ago.
"Despite the softer freight environment, we were able to achieve base revenue growth of over 13 percent," CEO Dan Cushman said in a news release. "While revenue growth was positive, it was not enough to overcome the many cost challenges we faced in year-over-year comparables, primarily as they relate to fuel costs, driver acquisition costs and health care costs."
Cushman said the company had an additional $1.4 million in driver acquisition and $1 million in health care costs in the first quarter. Growth came from a bigger fleet size and better performance from its Dedicated and Mexico divisions.
PAM reported an increase in total miles from 51.8 million to 57.4 million, and increases in daily revenue per truck (from $642 to $678) and weekly revenue per truck ($3,210 to $3,390). The company also increased total loads from 72,136 to 79,692.
"While we are not satisfied with our earnings results for the first quarter of 2016, they do represent one of our top three best reported results for a first quarter,” Cushman said. “We remain optimistic that our business model will allow us the flexibility to quickly adapt to changing market conditions so that we can advance our goal of continuous improvement."