Pamt Corp., formerly Pam Transportation Services, reported a net loss of $5.6 million, or 27 cents per share, in the third quarter, compared to earnings of 11 cents per share in the same period last year. This marks the fourth consecutive net loss for the Arkansas-based carrier.
On a year-over-year comparison, the per-share results benefitted from a $3.8 million increase in gains on equipment sales (a 14-cent tailwind at a normalized tax rate). Higher interest expense was a 6-cent headwind while a decline in non-operating income was a 4-cent drag.
Changes in Pamt’s (NASDAQ: PAMT) non-operating income are largely driven by fluctuations in the market value of its equity securities portfolio and lease income from a facility, among other items.
Consolidated revenue fell 18% year over year to $150 million. Nearly one-third of the company’s revenue is tethered to the automobile industry, which is navigating tariffs and a shifting trade landscape.
The TL unit reported a 10% decline in average trucks in service with revenue per truck per week falling 8%. Loaded miles were down 10% while revenue per loaded mile was off 3% at $2.24.
The segment reported a 106.7% adjusted operating ratio (inverse of operating margin), 620 basis points worse y/y.
Salaries, wages and benefits expenses increased 190 bps y/y (as a percentage of revenue) even with a reduction in company drivers. Rents and purchased transportation expenses were 90 bps higher and depreciation expense was 350 bps higher. (All expense lines are reported on a consolidated basis.)
This was the eighth straight operating loss for the TL unit.
Logistics revenue fell 17% y/y to $42 million. The OR deteriorated 480 bps y/y to 99.1%. Pamt doesn’t provide gross profit margins for the unit, or operating metrics like load counts and revenue per load.
Pamt generated operating cash flow of $23 million in the first three quarters of the year. Liquidity (cash, equity holdings and availability on its line of credit) of $175 million at the end of the quarter was down just slightly from the second quarter. Outstanding debt of $342 million was $11 million higher sequentially.
The company previously reported a debt covenant violation in its second-quarter filing with the Securities and Exchange Commission.
The covenant calls for debt-to-earnings before interest, taxes, depreciation and amortization to remain under 4 times. It received a waiver from the lender and said it was in negotiations to revise the covenant agreement. It provided no update on the matter in the third-quarter report.
Shares of PAMT were off 3.2% in after-hours trading on Tuesday.
More FreightWaves articles by Todd Maiden:
- Flatbed trends buttress Landstar amid dry van slump
- ArcBest headlines latest buyers of Yellow terminals
- USA Truck goes back on the market
The post Pamt Corp. books another loss in Q3 appeared first on FreightWaves.