P.A.M. Transportation Services Inc. of Tontitown on Wednesday reported fourth-quarter net income of $6.1 million, down 81 percent from the same quarter last year, amid non-cash, non-operating losses associated with company investments in equity securities.
The publicly traded truckload dry van carrier said fiscal 2018 net income was $24 million, down 38 percent from the previous year.
But quarterly and annual operating revenue rose, by 25 percent and 21 percent, respectively, and CEO Daniel Cushman said a strong second half of the year pushed the company to strong fourth-quarter and 2018 results.
“Each month of the fourth quarter individually broke previous operating records for that respective month, so we are encouraged by the continued strong demand through year end,” Cushman said in a news release. “While a portion of our 2018 success is certainly attributable to a strong freight market in general, much of our success came from our commitment to expand on business with customers where relationships were established during the weak market periods of 2016 and early 2017.”
The company said its non-cash and non-operating losses came amid new accounting requirements last year that required changes in the fair value of equity investments flow through earnings. Last year’s results were up against results in 2017 that included a non-cash income tax benefit, the result of the tax reform law enacted during the fourth quarter of 2017.
Despite an industry-wide challenge to attract and retain drivers, Cushman said the company achieved a 20 percent increase in truck fleet count last year.
“Much of the success in this area is attributable to customer support for freight rate increases, which facilitated both across-the-board and lane-specific rate increases to our drivers,” he said. “Increasing density in key lanes and the recurring nature of much of our dedicated business has also been key to our ability to offer predicable, recurring home time.”
Cushman also said the company continues to invest in fleet renewal, fleet growth and real estate, including an expansion of its corporate headquarters.