P.A.M. Transportation Services Inc. saw its net income for the third quarter increase in 2020 compared to the same period in 2019.
The Tontitown-based company reported $6 million in net income for 3Q 2020 compared to $4.6 million for 2019. However, P.A.M.’s year-to-date net income has fallen sharply from year-to-year. In 2020, the company has only netted $3.9 million, while it had $21.5 million in net income in 2019 in the first nine months.
While the company’s 3Q net income increased from 2019 to 2020, its revenue (before fuel surcharge) dropped 0.3 percent. In 2019’s 3Q, P.A.M. made $110.1 million in revenue, while it made 109.9 million in 3Q 2020. The fuel surcharge revenue also decreased by 35.9 percent from $18.8 million for 3Q 2019 to $12.1 million for 3Q 2020.
“Our quarterly results show marked improvement as compared to the previous quarter of this year where the Company felt the full impact of revenue losses associated with the closing down of three of our top ten customers due to COVID-19 concerns. With the return to operations for these customers and the general increase in nationwide economic activity, we quickly bounced back to a more normal mode of daily activity. While we aren’t satisfied with these results, they are an indication of a strong model which will only require modest adjustments to attain our updated profitability improvement goals,” P.A.M. Transportation president Joe Vitiritto said in a statement.
P.A.M.’s third quarter performance was a significant improvement from its second quarter performance. In the second quarter, P.A.M. reported a loss of $0.8 million, as well as a net loss of $2.1 million for the first six months of 2020. In addition, the company had a revenue of $85.8 million for the second quarter and $7.2 million for its fuel surcharge revenue. These figures represented a 23.7 percent and a 65.1 percent drop from 2019’s second quarter, respectively.
Year-to-date revenue in 2020 currently is at $307.4 million, a decrease of 7.6 percent, compared to the first nine months of 2019, when the company had $332.8 million before the fuel surcharge. The fuel surcharge also decreased compared to 2019, dropping 36.7 percent to $36.6 million for the first nine months of 2020.
P.A.M. has had a total operating revenue of $344.1 million, as of Sept. 30, for 2020. This is a decline of 11.9 percent from the same period in 2019 when it had $390.7 million.
According to Vitiritto, P.A.M. has purchased 49,755of common stock during the first nine months of 2020 and is authorized to purchase an additional 179,241 shares of common stock. As of Oct. 16, P.A.M. stock is valued at $49.49 per share on the NASDAQ stock exchange.