PAM Reports Higher Profit in Q2 Despite 'Significant Disruptions'

PAM Reports Higher Profit in Q2 Despite 'Significant Disruptions'
Joe Vitiritto, CEO of PAM Transport (PAM Transport)

PAM Transport Inc. of Tontitown (Nasdaq: PTSI) on Thursday reported net income of $24.2 million in the second quarter, up 58.2% from $15.3 million a year ago.

The company posted earnings per share of $1.08, up from 67 cents.

Operating revenue increased 47.1% to $237.2 million for the quarter, compared to $161.2 million a year ago. The company’s logistics division reported revenue of $68 million, up from $47.1 million.

PAM transported nearly 95,000 loads in the second quarter, up from 89,840 in the same quarter a year ago. Revenue per truck per week was $4,738, up from $3,882.

Joe Vitiritto, CEO of PAM, said the company saw "significant disruptions" in the quarter including labor and supplier parts challenges. Through the first half of 2022, the company has only received 30% of its equipment order, but it anticipates that the remaining equipment deliveries will be made prior to the end of the year.

The delay has forced PAM to keep some of its current equipment longer than expected, resulting in an increase in its average fleet age. But, the company said, it does not expect to see significant additional maintenance costs related to delays.

"Even with those challenges, our people did a solid job of navigating through the quarter," Vitiritto said in a news release. We continue to demonstrate the resiliency of our model, while growing the business organically."

The results were the first since PAM’s approximately $80 million acquisition of Metropolitan Trucking Inc. of Saddle Brook, New Jersey, earlier this year. The company’s quarterly results were affected by a “preliminary litigation settlement,” but PAM did not elaborate.

Last year, a former PAM driver filed a lawsuit against the company in U.S. District Court for the Western District of Arkansas. The complaint said PAM violated the Fair Labor Standards Act and the Arkansas minimum wage law, among other charges.

In 2020, PAM settled a similar lawsuit for $16.5 million. The company set aside nearly $3.3 million in “legal reserves” in the second quarter and has set aside $6.7 million in the first six months of the year.

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