-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, USe3yECM94OJYQ/EwxUB1zYop9+HZZ8CNovL0IkZWB421E49T7lKkuhNIkULZXHc uxmOIY0WW6vdTOQlBOC3sg== 0000798287-00-000004.txt : 20000515 0000798287-00-000004.hdr.sgml : 20000515 ACCESSION NUMBER: 0000798287-00-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000512 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAM TRANSPORTATION SERVICES INC CENTRAL INDEX KEY: 0000798287 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING (NO LOCAL) [4213] IRS NUMBER: 710633135 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15057 FILM NUMBER: 627472 BUSINESS ADDRESS: STREET 1: HIGHWAY 412 WEST STREET 2: P O BOX 188 CITY: TONTITOWN STATE: AR ZIP: 72770 BUSINESS PHONE: 5013619111 MAIL ADDRESS: STREET 1: HIGHWAY 412 WEST CITY: TONTITOWN STATE: AR ZIP: 72770 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000 [ _ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to______ Commission File Number 0-15057 -------- P.A.M. TRANSPORTATION SERVICES, INC. ------------------------------------ (Exact name of registrant as specified in its charter) Delaware 71-0633135 -------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Highway 412 West, Tontitown, Arkansas 72770 ------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrants telephone number, including area code: (501) 361-9111 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ] No [ _ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: Class Outstanding at May 2, 2000 ----- ------------------------------- Common Stock, $.01 Par Value 8,440,957 PART I - FINANCIAL INFORMATION Item 1. Financial Statements
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) March 31, December 31, 2000 1999 ---- ---- (unaudited) (note) ASSETS Current assets: Cash and cash equivalents $ 4,657 $ 3,557 Receivables: Trade, net of allowance 27,227 22,890 Other 906 1,032 Operating supplies and inventories 72 60 Deferred income taxes 440 378 Prepaid expenses and deposits 6,487 4,408 Income taxes refundable 29 113 --------- --------- Total current assets 39,818 32,438 Property and equipment, at cost 183,931 177,502 Less: accumulated depreciation (56,030) (51,382) --------- --------- Net property and equipment 127,901 126,120 Other assets: Excess of cost over net assets acquired 8,810 8,911 Non compete agreement 228 261 Other 1,230 1,231 --------- --------- Total other assets 10,268 10,403 --------- --------- Total assets $ 177,987 $ 168,961 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 22,160 $ 22,271 Trade accounts payable 13,657 11,210 Other current liabilities 9,271 7,674 --------- --------- Total current liabilities 45,088 41,155 Long-term debt, less current portion 57,247 55,617 Non compete agreement 98 131 Deferred income taxes 20,053 18,693 Shareholders' equity: Common stock 84 84 Additional paid-in capital 19,460 19,452 Retained earnings 35,957 33,829 --------- --------- Total shareholders' equity 55,501 53,365 --------- --------- Total liabilities and shareholders' equity $ 177,987 $ 168,961 ========= ========= Note: The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. See notes to condensed consolidated financial statements.
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) Three Months Ended March 31, 2000 1999 ---- ---- Operating revenues $ 54,147 $ 51,391 Operating expenses: Salaries, wages and benefits 24,243 22,405 Operating supplies 9,835 8,155 Rent/purchased transportation 3,556 4,030 Depreciation and amortization 4,817 4,231 Operating taxes and licenses 2,956 2,852 Insurance and claims 2,290 1,998 Communications and utilities 587 610 Other 1,015 983 (Gain) loss on sale of equipment (46) (23) --------- --------- 49,253 45,241 --------- --------- Operating income 4,894 6,150 Other income (expense) Interest expense (1,354) (1,404) --------- --------- (1,354) (1,404) Income before income taxes 3,540 4,746 Income taxes --current 136 584 --deferred 1,276 1,354 --------- --------- 1,412 1,938 Net income $ 2,128 $ 2,808 ========= ========= Net income per common share: Basic $ 0.25 $ 0.34 ========= ========= Diluted $ 0.25 $ 0.33 ========= ========= Average common shares outstanding-Basic 8,440,298 8,342,198 ========= ========= Average common shares outstanding-Diluted 8,514,854 8,440,868 ========= ========= See notes to condensed consolidated financial statements.
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) (in thousands) Three months Ended March 31, 2000 1999 ---- ---- OPERATING ACTIVITIES Net income $ 2,128 $ 2,808 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,817 4,231 Non compete agreement amortization 33 96 Provision for deferred income taxes 1,276 1,354 (Gain)/loss on retirement of property and equipment (46) (23) Changes in operating assets and liabilities: Accounts receivable (4,312) 87 Prepaid expenses and other current assets (2,088) (1,424) Accounts payable 2,554 1,671 Accrued expenses 1,597 1,998 --------- --------- Net cash provided by operating activities 5,959 10,798 INVESTING ACTIVITIES Purchases of property and equipment (6,650) (16,832) Acquisition of business, net of cash acquired - (9,642) Proceeds from sales of assets 200 1,046 Lease payments received on direct financing leases 99 134 --------- --------- Net cash used in investing activities (6,351) (25,294) FINANCING ACTIVITIES Borrowings under lines of credit 46,975 53,644 Repayments under lines of credit (44,849) (53,644) Borrowings of long-term debt 4,204 14,551 Repayments of long-term debt (4,845) (4,328) Proceeds from exercise of stock options 7 63 --------- --------- Net cash provided by financing activities 1,492 10,286 --------- --------- Net increase (decrease) in cash and cash equivalents 1,100 (4,210) Cash and cash equivalents at beginning of period $ 3,557 $ 5,963 --------- --------- Cash and cash equivalents at end of period $ 4,657 $ 1,753 ========= ========= See notes to condensed consolidated financial statements.
P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 2000 NOTE A: BASIS OF PRESENTATION - --------------------------------- The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management's opinion, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2000 are not necessarily indicative of the results that may be expected for the year ended December 31, 2000. For further information, refer to the consolidated financial statements and the footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 1999. NOTE B: NOTES PAYABLE AND LONG-TERM DEBT - ---------------------------------------------- In the first three months of 2000, the Company's subsidiary, P.A.M. Transport, Inc., entered into an installment obligation for the purchase of revenue equipment in the amount of approximately $4.2 million. This obligation is payable in 48 monthly installments at an interest rate of 7.25%. PART I - FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FORWARD-LOOKING INFORMATION - ---------------------------- Certain information included in this Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may relate to financial results and plans for future business activities, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, general economic conditions, competition and other uncertainties detailed in this report and detailed from time to time in other filings by the Company with the Securities and Exchange Commission. THREE MONTHS ENDED MARCH 31, 2000 VS. THREE MONTHS ENDED MARCH 31, 1999 - -------------------------------------------------------------------------------- For the quarter ended March 31, 2000, revenues increased 5.4% to $54.1 million as compared to $51.4 million for the quarter ended March 31, 1999. The main factor for the increase was an increase in the average number of tractors from 1,405 in the first quarter of 1999 to 1,477 in the first quarter of 2000. The Company's operating ratio increased to 91.0% for the first quarter of 2000 as compared to 88.0% for the first quarter of 1999. Salaries, wages and benefits increased from 43.6% of revenues in the first quarter of 1999 to 44.8% of revenues in the first quarter of 2000. The increase relates primarily to an increase in costs associated with providing health care coverage to employees. Operating supplies and expenses increased from 15.9% of revenues in the first quarter of 1999 to 18.2% of revenues in the first quarter of 2000. The increase relates primarily to an increase in fuel costs of 3.2% net of a fuel surcharge passed to customers. Rent and purchased transportation decreased from 7.8% of revenues in the first quarter of 1999 to 6.6% of revenues in the first quarter of 2000. The decrease relates primarily to the replacement of rental trailers with Company owned trailers. Depreciation and amortization increased from 8.2% of revenues in the first quarter of 1999 to 8.9% of revenues in the first quarter of 2000. The increase is due to the replacement of older tractors which were fully depreciated. The Company's effective tax rate decreased from 40.8% in the first quarter of 1999 to 39.9% in the first quarter of 2000. This decrease is related to an increase in the deduction allowed for per diem payments made to drivers. LIQUIDITY AND CAPITAL RESOURCES - ---------------------------------- During the first three months of 2000, the Company generated $6.0 million in cash from operating activities. Investing activities used $6.4 million in cash in the first three months of 2000. Financing activities generated $1.5 million in the first three months of 2000 primarily from long-term borrowings. The Company's principal subsidiary, P.A.M. Transport, Inc., has a $15.0 million secured bank line of credit subject to borrowing limitations. Withdrawals from the line of credit are at an interest rate of LIBOR as of the first day of the month plus 1.40% (7.32% at March 31, 2000). Outstanding advances on this line of credit were approximately $9.3 million at March 31, 2000, including $3.3 million in letters of credit. The Company's borrowing base limitation at March 31, 2000 was $5.7 million. The line of credit is guaranteed by the Company and matures on May 31, 2001. In addition to cash flows from operations, the Company uses its existing line of credit on an interim basis to finance capital expenditures and repay long-term debt. Longer-term transactions, such as installment notes (generally three to five year terms at fixed rates), are typically entered into for the purchase of revenue equipment; however, the Company purchased additional revenue equipment during the first three months of 2000 at a cost of approximately $4.6 million using its existing line of credit. In addition, P.A.M. Transport, Inc. entered into an installment obligation during the first three months of 2000 for the purchase of revenue equipment in the amount of approximately $4.2 million, payable in 48 monthly installments at an interest rate of 7.25%. During the remainder of 2000, the Company plans to replace 219 tractors which will result in additional debt of approximately $11.9 million. Management expects that the Company's existing working capital and its available line of credit will be sufficient to meet the Company's capital commitments as of March 31, 2000, to repay indebtedness coming due in the current year, and to fund its operating needs during the remainder of fiscal 2000. PART II. OTHER INFORMATION ------------------------------ Item 3. Quantitative and Qualitative Disclosure about Market Risk. - ---------------------------------------------------------------------------- The Company's line of credit agreement provides for borrowings, which bear interest at variable rates based on the LIBOR. At March 31, 2000, the Company had approximately $9.3 million outstanding pursuant to the its line of credit. The Company believes that the effect, if any, of reasonably possible near-term changes in interest rates on the Company's financial position, results of operations, and cash flows should not be material. All customers are required to pay for the Company's services in U.S. dollars and the Company does not engage in hedging transactions relating to diesel fuel or any other commodity. Item 6. Exhibits and Reports on Form 8-K. - -------------------------------------------------- (a) The following exhibits are filed with this report: 11.1 - Statement Re: Computation of Diluted Earnings Per Share. 27.1 - Financial Data Schedule (for SEC use only). (b) Reports on Form 8-K None. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. P.A.M. TRANSPORTATION SERVICES, INC. Dated: May 9, 2000 By: /s/ Robert W Weaver --------------------------------- Robert W. Weaver President and Chief Executive Officer (principal executive officer) Dated: May 9, 2000 By: /s/ Larry J. Goddard --------------------------------- Larry J. Goddard Vice President-Finance, Chief Financial Officer, Secretary and Treasurer (principal accounting and financial officer) EX-11.1 2 EARNINGS PER SHARE COMPUTATION EXHIBIT (11)----STATEMENT RE: COMPUTATION OF DILUTED EARNINGS PER SHARE Diluted earnings per share computations assumes the exercise of stock purchase warrants and options to purchase shares of common stock. The shares assumed exercised are based on the weighted average number of warrants and options outstanding during the period and only include those warrants and options whose average share price during the period exceeds its related exercise price. The net additional shares issuable are calculated based on the treasury stock method and are added to the weighted average number of shares outstanding during the period.
DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED MARCH 31, 2000 Three Months - -------------------------------------------------------------- ------------ Actual net income (A) $ 2,127,748 ========== Assumed exercise of stock options and warrants 219,846 Application of assumed proceeds ($1,428,780) toward repurchase of outstanding common stock at an average market price of $9.834 (145,290) ---------- Net additional shares issuable 74,556 ========== Adjustment of shares outstanding: Weighted average common shares outstanding 8,440,298 Net additional shares issuable 74,556 ---------- Adjusted shares outstanding (B) 8,514,854 ========== Net income per common share (A) divided by (B) $ 0.25 ========== DILUTED EARNINGS PER SHARE FOR THE PERIOD ENDED MARCH 31, 1999 Three Months - -------------------------------------------------------------- ------------ Actual net income (A) $ 2,807,575 ========== Assumed exercise of stock options and warrants 280,407 Application of assumed proceeds ($1,516,412) toward repurchase of outstanding common stock at an average market price of $8.344 (181,737) ---------- Net additional shares issuable 98,670 ========== Adjustment of shares outstanding: Weighted average common shares outstanding 8,342,198 Net additional shares issuable 98,670 ---------- Adjusted shares outstanding (B) 8,440,868 ========== Net income per common share (A) divided by (B) $ 0.33 ==========
EX-27.1 3 FINANCIAL DATA SCHEDULE
5 1000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 4657 0 28773 640 72 39818 183931 56030 177987 45088 57247 84 0 0 55417 177987 0 54147 0 49253 0 0 1354 3540 1412 2128 0 0 0 2128 .25 .25
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