PAM Transportation Services Inc. (Nasdaq: PTSI) of Tontitown on Monday reported first-quarter income for fiscal 2023 of $5.2 million, a 78% drop from $23.9 million in the same quarter a year ago.
The company said profit was hit by "loss estimates for claims anticipated to settle in excess of insurance policy limits." Without those litigation charges, first-quarter profit would've been $12.7 million.
Profit was also weighed down by rising operating expenses, which increased 13% to $213.2 million, compared to $188.1 million in the same quarter a year ago. Payrolls jumped nearly 23% to $48.3 million, operating supplies and expenses rose 29.8% to $41.1 million, and insurance and claims costs increased from $6.9 million to $15.4 million.
The company reported revenue of $221.7 million, an increase from $219.4 million a year ago. Earnings per share was 23 cents, down from $1.06.
The company’s truckload division reported an increase in total loads delivered in the quarter, from 91,555 to 102,430. The increase in loads was offset by a drop in revenue per truck per week from $4,736 to $4,010.
PAM’s logistics division reported revenue of $68.3 million, down from $71.1 million.
Shares of the company were down about 1% in pre-market trading Tuesday. For the year to date, shares were down about 3%,