PAM Posts Higher Annual Profit, Despite Falling Income in Q4

PAM Posts Higher Annual Profit, Despite Falling Income in Q4
PAM Transport CEO Joe Vitiritto (PAM Transport)

PAM Transport Inc. of Tontitown (Nasdaq: PTSIon Monday reported that net income rose 18.5% in 2022, despite significantly higher expenses and a decrease in fourth-quarter profit.

For the fiscal year, PAM posted income of $90.7 million, up from $76.5 million. Earnings per share came to $4.04, up from $3.35. Revenue for the full year was $946.9 million, up 34% from $707.1 million. 

The company, which reported labor and supplier parts challenges in the first half of 2022, saw operating expenses jump 35% to $823.1 million, driven largely by higher employee pay. Total wages and benefits increased 29% to about $182 million. Operating supplies and expenses also rose sharply, climbing 62.4% to $166 million.

In the fourth quarter, income was slightly less than $18 million, a drop of more than 35% from $27.9 million a year ago. It would've been about $6 million higher if not for a "loss estimate for a claim anticipated to settle in excess of insurance policy limits," the company said. 

On a per-share basis, earnings came to 81 cents, down from $1.24.

Income came on revenue of $237.6 million, about 11% higher than the same period a year ago. Truckloads increased 16% in the quarter to 104,719, but revenue per truck fell 17% to $4,466. Revenue per total mile before fuel surcharge fell 11.5% in the quarter to $2.60.

"We did not see a traditional peak in the fourth quarter as we anticipated, but our entire team stepped up to the challenge and navigated a challenging environment well," PAM CEO Joe Vitiritto said.

For the full year, PAM reported 406,053 truck loads, an increase of 13.7% Revenue per truck was $4,593, up 6.3%.

Revenue for the full year totaled $277.8 million, up 7.6% from $211.7 million.

Shares of the company were down about 3% late Tuesday morning.

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