PAM Transport Inc. of Tontitown reported Monday second quarter income of $8.65 million, up from $7.3 million in the same quarter a year ago.
Earnings per share was $1.45, up from $1.17. Overall, revenue was $133 million, down from $135 million in 2018.
PAM President and CEO Dan Cushman said the quarter was the company’s second-best by operating in its history. He said PAM has set monthly records for 11 of the past 13 months.
Cushman said rate increases have helped the company pay its drivers more and increase its fleet, resulting in better income.
“As the year has progressed, we have experienced a more balanced market than comparative periods during 2018 and have been increasingly challenged to hold customer rates at levels that cover the new ‘normal’ increased driver and owner-operator rates, and that covers various other increased costs while maintaining acceptable margins,” Cushman said. “While we have not conceded to pressure to decrease rates on existing lanes, the market has not allowed the addition of new business at similar margins that were achieved during the comparative periods in 2018.”
PAM’s trucking division reported a slight decrease in overall loads, from 103,500 to a little more than 103,000; total miles was also down to 54.4 million from 57.2 million. Revenue per truck per week was $3,515, down from $3,716 in the same quarter a year ago.
The logistics division reported revenue of $19.5 million, down from $23.75 million a year ago. Cushman said the division is “superbly managed” but suffered the revenue drop because of rate decreases in the spot market.
“It’s been said that 2019 has been a bad year in terms of freight demand, but this has not been our experience,” Cushman said. “While demand has not been as strong as comparative periods in 2018, it has been much better for us than 2016 and 2017 when we last experienced downward rate pressure.”