Dan Cushman, president and CEO of PAM Transport, at his office in Tontitown: “I have to focus on what we do and do it well.”
P.A.M. Transportation Services Inc. of Tontitown on Tuesday reported fourth-quarter net income of $2.1 million, up 62 percent from the same quarter last year, to close what its chief executive called a “satisfying year.”
The company said fourth-quarter diluted earnings per share was 27 cents, up from 15 percent in the same quarter last year. Revenue reached $78.9 million, up 4.5 percent from $75.5 million in the same quarter last year.
Fourth-quarter earnings would have been $4.6 million, or 58 cents per share, were it not for a $4 million reserve for a lawsuit settlement. Current and former P.A.M. drivers filed suit in August 2013 alleging unpaid wages under the Fair Labor Standards Act and the Arkansas Minimum Wage Law. The class-action lawsuit alleges P.A.M. did not compensation newly hired drivers properly.
Last week, the parties told a judge that they were making progress toward a settlement.
“We have had an extremely satisfying year,” President and CEO Dan Cushman said in a news release. “Beginning with second quarter, we had very consistent operating profits which averaged in the $8 million range for each quarter when excluding the fourth quarter lawsuit settlement reserve. Our model, which consists of our Automotive Division, Expedited Division, Dedicated Division, Mexico Division and random Van Division, has been very consistent.”
For the full year, the company posted net income of $13.5 million, up 129 percent from $5.9 million in 2013. Diluted earnings per share was $1.68, up from 68 cents in 2013. Revenue reached $316.6 million, up from $313.1 million in 2013.
In a news release, the company cited strong demand and “favorable” fuel prices for its results. But the company said the market for drivers remains “challenging,” adding that the company is continuing to invest in a student driver program.
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