8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  February 7, 2008

________________________________

P.A.M. TRANSPORTATION SERVICES, INC.

 (Exact name of registrant as specified in its charter)

Delaware	0-15057	71-0633135
(State or other jurisdiction of  incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

297 West Henri De Tonti, Tontitown, Arkansas 72770

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (479) 361-9111

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On February 7, 2008, P.A.M. Transportation Services, Inc. issued a news release announcing its revenues and earnings for the fourth quarter and year ending December 31, 2007.  A copy of the news release is attached hereto as Exhibit 99.1.

The information contained in this report and the exhibit hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

The information herein (including the exhibit hereto) may contain "forward-looking statements" that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995 and otherwise may be protected.  Such statements are made based on the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties.  Actual results may differ from those anticipated by forward-looking statements.

Please refer to the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission for information concerning risks, uncertainties and other factors that may affect future results.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits.  The following exhibits are furnished with this Report:

 99.1 News release issued by the Registrant on February 7, 2008

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 hereunto duly authorized.

	P.A.M. TRANSPORTATION SERVICES, INC.
	(Registrant)
Date:  February 7, 2008	By: /s/ Robert W. Weaver
	Robert W. Weaver        President and Chief Executive Officer

EXHIBIT INDEX

Exhibit Number	Exhibit Description
99.1	News release issued by the Registrant on February 7, 2008

EX-99.1

Exhibit 99.1

FROM:  P.A.M. TRANSPORTATION SERVICES, INC.

P.O. BOX 188

Tontitown, AR  72770

Robert W. Weaver

(479) 361-9111

P.A.M. TRANSPORTATION SERVICES, INC.

ANNOUNCES RESULTS FOR THE FOURTH QUARTER

AND YEAR ENDED DECEMBER 31, 2007

Tontitown, Arkansas, February 7, 2008......P.A.M. Transportation Services, Inc. (NASDAQ:  PTSI) today reported a net loss of $839,909 or diluted and basic loss per share of $0.08 for the quarter ended December 31, 2007, and net income of $2,653,491 or diluted and basic earnings per share of $0.26 for the year ended December 31, 2007.  These results compare to net income of $4,270,819 or diluted and basic earnings per share of $0.41, and $17,963,758 or diluted and basic earnings per share of $1.74, respectively, for the quarter and year ended December 31, 2006.

Operating revenues excluding fuel surcharges were $84,985,721 for the fourth quarter of 2007 compared to $85,329,448 for the fourth quarter of 2006.  Operating revenues excluding fuel surcharges were $351,701,108 for the year ended December 31, 2007 compared to $351,372,974 for the year ended December 31, 2006.

Robert W. Weaver, President of the Company, commented, “The fourth quarter financial results continued to reflect the difficult operating environment we have experienced throughout 2007. The weakness in truck freight demand was most evident in December 2007, which accounted for the majority of our fourth quarter loss, with the low point for the quarter being from Christmas Eve until the end of the year. Although equipment utilization, measured in miles per truck per day, decreased only slightly as compared to the same period a year ago, market economics continued to favor shippers, allowing them to attain a $.05 decrease in our rate per total mile for the fourth quarter 2007 compared to the fourth quarter 2006.

Controlling the escalation of fuel costs through the recovery of fuel surcharges from our customers has also continued to be pressured by current market conditions, resulting in a $.04 increase in the average cost per mile for the quarter ended December 31, 2007 compared to the quarter ended December 31, 2006.

The Company incurred two large non-recurring expense items during the fourth quarter of 2007.  The first of these items was attributable to the closure of the Company’s Parsippany, New Jersey terminal, and consisted of approximately $300,000 in severance payments paid to 34 employees who were permanently laid off.  The Company expects to benefit from elimination of expenses incurred by the terminal beginning in the first quarter of 2008.

The second item stems from an adverse settlement that arose from a 1986 environmental remediation claim in which the Company was assessed and ordered to pay approximately $300,000 in damages.

Our dedicated business continues to represent the largest portion of our revenue at 54.1% of total revenue for the fourth quarter of 2007, down slightly from 55.3% for the third quarter of 2007.  Revenue derived from the automotive industry decreased from 48.5% in the third quarter of 2007 to 46.0% in the fourth quarter of 2007.  The decrease in the percentage of automotive business was predominantly attributable to the Company not renewing certain contracts that did not adequately compensate us for our services.

We do not see indications that our current market environment will improve significantly in the short term and intend to continue to focus on cost control while seeking to mitigate the effect of the continued downward pressure on rates in the freight market.”

P.A.M. Transportation Services, Inc. is a leading truckload dry van carrier transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec.  The Company also provides transportation services in Mexico through its gateways in Laredo and El Paso, Texas under agreements with Mexican carriers.

Certain information included in this document contains or may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements may relate to expected future financial and operating results or events, 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, excess capacity in the trucking industry; surplus inventories; recessionary economic cycles and downturns in customers' business cycles; increases or rapid fluctuations in fuel prices, interest rates, fuel taxes, tolls, license and registration fees; the resale value of the Company's used equipment and the price of new equipment; increases in compensation for and difficulty in attracting and retaining qualified drivers and owner-operators; increases in insurance premiums and deductible amounts relating to accident, cargo, workers' compensation, health, and other claims; unanticipated increases in the number or amount of claims for which the Company is self insured; inability of the Company to continue to secure acceptable financing arrangements; seasonal factors such as harsh weather conditions that increase operating costs; competition from trucking, rail, and intermodal competitors including reductions in rates resulting from competitive bidding; the ability to identify acceptable acquisition candidates, consummate acquisitions, and integrate acquired operations; a significant reduction in or termination of the Company's trucking service by a key customer; and other factors, including risk factors, included from time to time in filings made by the Company with the Securities and Exchange Commission.  The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

P.A.M. Transportation Services, Inc. and Subsidiaries Key Financial and Operating Statistics (unaudited)
	Quarter ended December 31,						Year Ended December 31,
	2007			2006			2007			2006
Revenue, before fuel surcharge	$	84,985,721		$	85,329,448		$	351,701,108		$	351,372,974
Fuel surcharge		17,176,399			11,175,357			57,140,082			48,895,589
		102,162,120			96,504,805			408,841,190			400,268,563
Operating expenses:
Salaries, wages and benefits		34,282,069			30,964,571			135,605,769			127,538,805
Fuel expense		32,077,856			22,865,543			114,241,966			97,286,538
Operating supplies		7,382,804			6,392,783			30,845,136			25,681,683
Rent and purchased transportation		9,472,002			9,919,581			38,717,543			43,844,054
Depreciation and amortization		9,173,789			8,741,648			38,759,047			33,929,107
Operating taxes and license		4,311,350			4,136,560			17,520,558			16,420,587
Insurance and claims		4,305,447			3,879,737			17,590,666			16,388,700
Communications and utilities		799,467			680,825			3,113,378			2,642,420
Other		2,001,685			1,603,327			7,129,738			5,425,503
(Gain) loss on disposition of equipment		(21,267	)		(30,607	)		(48,449	)		47,176
Total operating expenses		103,785,202			89,153,968			403,475,352			369,204,573
Operating (loss) income		(1,623,082	)		7,350,837			5,365,838			31,063,990
Other income (expense):
Interest expense		(669,958	)		(357,158	)		(2,453,090	)		(1,474,434	)
Other		1,099,384			133,884			1,707,211			447,849
Total other income (expense)		429,426			(223,274	)		(745,879	)		(1,026,585	)
(Loss) income before income taxes		(1,193,656	)		7,127,563			4,619,959			30,037,405
Income tax (benefit) expense		(353,747	)		2,856,744			1,966,468			12,073,647
Net (loss) income	$	(839,909	)	$	4,270,819		$	2,653,491		$	17,963,758
Diluted (loss) earnings per share	$	(0.08	)	$	0.41		$	0.26		$	1.74
Average shares outstanding – Diluted		10,077,287			10,307,929			10,238,706			10,301,806

	Quarter ended December 31,						Year Ended December 31,
Truckload Operations	2007			2006			2007			2006
Total miles		60,311,315			56,978,780			246,800,564			229,809,624
Operating ratio*		102.22	%		90.90	%		98.56	%		90.63	%
Empty miles factor		6.71	%		6.32	%		6.50	%		5.86	%
Revenue per total mile, before fuel surcharge	$	1.28		$	1.33		$	1.29		$	1.34
Total loads		90,688			79,004			355,694			315,379
Revenue per truck per work day	$	659		$	690		$	628		$	684
Revenue per truck per week	$	3,295		$	3,450		$	3,140		$	3,420
Average company trucks		1,996			1,917			2,027			1,820
Average owner operator trucks		56			44			57			45
Logistics Operations
Total revenue	$	7,868,956		$	9,521,403		$	33,786,056		$	42,718,353
Operating ratio		98.84	%		95.21	%		97.68	%		94.99	%

	As of December 31,
	2007			2006
Long-term debt to book capitalization		19.58	%		10.19	%
Shareholders’ equity	$	179,376,671		$	185,028,065

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* Operating ratio has been calculated based upon total operating expenses, net of fuel surcharge, as a percentage of revenue, before fuel surcharge.  We used revenue, before fuel surcharge, and operating expenses, net of fuel surcharge, because we believe that eliminating this sometimes volatile source of revenue affords a more consistent basis for comparing our results of operations from period to period.