PAM TRANSPORTATION SERVICES INC Files 2023 10-K

TL;DR

<b>PAM Transportation Services Inc. reported $7.72 million in revenue and $5.38 million in net income for fiscal year 2023, while maintaining compliance with its debt covenants.</b>

AI Summary

PAM TRANSPORTATION SERVICES INC (PAMT) filed a Annual Report (10-K) with the SEC on March 13, 2024. Total revenue for the fiscal year ended December 31, 2023, was $7,717,000. Net income for the fiscal year ended December 31, 2023, was $5,381,000. Earnings per share for the fiscal year ended December 31, 2023, was $0.01. The company maintained compliance with its debt to adjusted EBITDA ratio covenant of less than 4.00:1 throughout 2023. Outstanding advances on the line of credit were $0.1 million at December 31, 2023, with $59.9 million in availability.

Why It Matters

For investors and stakeholders tracking PAM TRANSPORTATION SERVICES INC, this filing contains several important signals. The company's financial performance in 2023, including revenue and net income figures, provides insight into its operational success and market position. Compliance with debt covenants indicates financial stability and prudent management of its credit facilities, which is crucial for investor confidence.

Risk Assessment

Risk Level: medium — PAM TRANSPORTATION SERVICES INC shows moderate risk based on this filing. The company's reliance on a line of credit with restrictive covenants and variable interest rates introduces financial risk, especially if borrowing needs increase or interest rates rise significantly.

Analyst Insight

Investors should monitor the company's debt levels and its ability to maintain compliance with covenants, particularly in light of fluctuating interest rates.

Key Numbers

• 7,717,000 — Total Revenue (Fiscal year ended December 31, 2023)
• 5,381,000 — Net Income (Fiscal year ended December 31, 2023)
• 0.01 — Earnings Per Share (Fiscal year ended December 31, 2023)
• 60,000,000 — Line of Credit Limit (Maximum borrowings)
• 4.00:1 — Debt to Adjusted EBITDA Ratio (Covenant limit)
• 0.1 — Outstanding Advances (Line of credit at December 31, 2023 (in millions))
• 59.9 — Available Borrowing (Line of credit at December 31, 2023 (in millions))
• 4.20% — Weighted Average Interest Rate (Equipment financings as of December 31, 2023)

Key Players & Entities

• PAM TRANSPORTATION SERVICES INC (company) — Filer
• 2023-12-31 (date) — Period of report
• 2024-03-13 (date) — Filed as of date
• $60.0 million (dollar_amount) — Maximum borrowings on line of credit
• 4.00:1 (dollar_amount) — Debt to adjusted EBITDA ratio covenant
• $0.1 million (dollar_amount) — Outstanding advances on line of credit at Dec 31, 2023
• $59.9 million (dollar_amount) — Availability to borrow on line of credit at Dec 31, 2023
• Term SOFR (other) — Interest rate benchmark

FAQ

Risk Factors

• Restrictive Covenants on Line of Credit [medium — financial]: The company's line of credit agreement contains restrictive covenants, including maintaining a debt to adjusted EBITDA ratio of less than 4.00:1, which could limit financial flexibility.
• Variable Interest Rates on Debt [medium — financial]: Borrowings on the line of credit are subject to variable interest rates (Term SOFR + 1.35%), exposing the company to interest rate risk.

Key Financial Figures

• $940 billion — t, the trucking industry generated over $940 billion in revenue during 2022 which represente

Filing Documents

• ptsi20231231_10k.htm (10-K) — 1513KB
• ex_633281.htm (EX-4.1) — 25KB
• ex_633280.htm (EX-21.1) — 5KB
• ex_633279.htm (EX-23.1) — 2KB
• ex_633278.htm (EX-31.1) — 12KB
• ex_633277.htm (EX-31.2) — 12KB
• ex_633276.htm (EX-32.1) — 8KB
• ex_633275.htm (EX-97.1) — 23KB
• graph2023.jpg (GRAPHIC) — 70KB
• 0001437749-24-007638.txt (&nbsp;) — 8144KB
• ptsi-20231231.xsd (EX-101.SCH) — 76KB
• ptsi-20231231_cal.xml (EX-101.CAL) — 65KB
• ptsi-20231231_def.xml (EX-101.DEF) — 526KB
• ptsi-20231231_lab.xml (EX-101.LAB) — 453KB
• ptsi-20231231_pre.xml (EX-101.PRE) — 568KB
• ptsi20231231_10k_htm.xml (XML) — 1185KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "Report") contains forward-looking statements, including statements about our operating and growth strategies, our expected financial position and operating results, industry trends, our capital expenditure and financing plans and similar matters. Such forward-looking statements are found throughout this Report, including under Item 1, Business, Item 1A, Risk Factors, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, and Item 7A, Quantitative and Qualitative Disclosures About Market Risk. In those and other portions of this Report, the words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "project", "could", "should", "would" and similar expressions, as they relate to us, our management, and our industry are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business. Actual results may differ materially. Some of the risks, uncertainties and assumptions that may cause actual results to differ from these forward-looking statements include, but are not limited to excess capacity in the trucking industry; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; a significant or sustained reduction in or termination of the Company's trucking service by a key customer, including as a result of recent or future labor disruptions; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, and license and registration fees; potential future economic, business and operational disruptions and uncertainties due to public health crises; the resale value of the Company's used equipment; the price and availability of new equipment consistent with anticipated acquisition and replacement plans; increases in compensation for an

Business

Business 1 Item 1A

Risk Factors

Risk Factors 7 Item 1B Unresolved Staff Comments 16 Item 1C Cybersecurity 16 Item 2

Properties

Properties 17 Item 3

Legal Proceedings

Legal Proceedings 17 Item 4 [Reserved] 18 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6 [Reserved] 20 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 28 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 55 Item 9A

Controls and Procedures

Controls and Procedures 55 Item 9B Other Information 58 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 58 PART III Item 10 Directors, Executive Officers and Corporate Governance 58 Item 11

Executive Compensation

Executive Compensation 58 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 58 Item 13 Certain Relationships and Related Transactions, and Director Independence 59 Item 14 Principal Accounting Fees and Services 59 PART IV Item 15 Exhibits, Financial Statement Schedules 59

SIGNATURES

SIGNATURES 62 Table of Contents PART I

Business

Item 1. Business. Unless the context otherwise requires, all references in this Annual Report on Form 10-K to "P.A.M.," the "Company," "we," "our," or "us" mean P.A.M. Transportation Services, Inc. and its subsidiaries. We are a holding company that owns subsidiaries engaged in providing truckload dry van carrier services transporting general commodities throughout the continental United States and Mexico, as well as in certain Canadian provinces. Our consolidated operating subsidiaries also provide transportation services in Mexico under agreements with Mexican carriers. Our freight consists primarily of automotive parts, expedited goods, consumer goods, such as general retail store merchandise, and manufactured goods, such as heating and air conditioning units. P.A.M. Transportation Services, Inc. is a holding company incorporated under the laws of the State of Delaware in June 1986. We conduct operations and hold assets principally through the following wholly-owned subsidiaries: P.A.M. Transport, Inc., Met Express, Inc., Costar Real Estate Holding, Inc., Costar Equipment, Inc., Costar Management, Inc., Select CDL Driving School, Inc., Unmoored Realty, LLC, T.T.X., LLC, P.A.M. Cartage Carriers, LLC, Overdrive Leasing, LLC, Choctaw Express, LLC, Choctaw Brokerage, Inc., Transcend Logistics, Inc., Decker Transport Co., LLC, East Coast Transport and Logistics, LLC, S & L Logistics, Inc., P.A.M. International, Inc, and P.A.M. Mexico Holdings LLC. Our operating authorities are held by P.A.M. Transport, Inc., Met Express, Inc., P.A.M. Cartage Carriers, LLC, Choctaw Express, LLC, Choctaw Brokerage, Inc., T.T.X., LLC, Decker Transport Co., LLC, and East Coast Transport and Logistics, LLC. We are headquartered and maintain our primary terminal, maintenance facilities, and our corporate and administrative offices in Tontitown, Arkansas, which is located in northwest Arkansas, a major center for the trucking industry and where the support services for most major truck

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