PAM Transport Inc. of Tontitown on Tuesday reported third-quarter income of $6 million as the company stopped a slide of three consecutive quarters of losses.
PAM's income was an increase from $4.6 million in the third quarter of 2019. The company had reported $2.1 million in losses in the first half of 2020 thanks in large part to the COVID-19 pandemic; about 45% of PAM's business is with automobile manufacturers, many of whom closed during the early outbreak.
PAM reported revenue of $121.9 million, down from $128.99 million in the same quarter a year ago. Earnings per share was $1.04, up from 79 cents a year ago.
PAM reported revenue of $344.1 million for the first nine months of 2020, down from $390.7 million in the same span of 2019. Income for the first three quarters is $3.9 million, down from $21.5 million.
The third-quarter 2020 results were the first earnings for new CEO Joe Vitiritto, who took over from Dan Cushman on Aug. 18. Cushman retired in May after nearly 11 years with the company.
"Our quarterly results show marked improvement as compared to the previous quarter of this year where the company felt the full impact of revenue losses associated with the closing down of three of our top ten customers due to COVID-19 concerns," Vitiritto said. "With the return to operations for these customers and the general increase in nationwide economic activity, we quickly bounced back to a more normal mode of daily activity. While we aren't satisfied with these results, they are an indication of a strong model which will only require modest adjustments to attain our updated profitability improvement goals."
The company's truckload segment reported fewer loads transported in the quarter but a stable revenue per truck per week, a key metric in the industry. Total loads were 89,435, down from 101,047, but revenue per truck was $3,460 per week compared to $3,466 in the same quarter a year ago.
Revenue should improve as rates increase, Vitiritto said.
"The improvement in the macroeconomic environment experienced as a result of most of the country returning to work has created a tightening of truckload capacity," Vitiritto said. "This supply and demand imbalance allowed us to recover the rate declines experienced during the first few months of the pandemic.
"The page has now been turned and with shippers facing upward rate pressure, we continue to have the momentum necessary to significantly improve our rate structure as we move into the final quarter of 2020 and expect this upward pressure to continue well into next year."
The company's logistics segment reported revenue of $26.9 million, up from $17.7 million in the same quarter a year ago.