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P.A.M. Transportation Services, Inc. Reports Record Results, Announces Stock Split

TONITOWN, AR / ACCESSWIRE / July 14, 2021 / P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) today reported net income of $15.3 million, or diluted earnings per share of $2.66, for the quarter ended June 30, 2021, and net income of $27.3 million, or diluted earnings per share of $4.74, for the six-month period then ended. These results compare to net loss of $0.8 million, or diluted loss per share of $0.14, and net loss of $2.1 million, or diluted loss per share of $0.37, respectively, for the three and six months ended June 30, 2020.

Operating revenues increased 73.4% to $161.3 million for the second quarter of 2021 compared to $93.0 million for the second quarter of 2020. For the six months ended June 30, 2021, operating revenues increased 39.6% to $310.1 million compared to $222.1 million during the six months ended June 30, 2020.

On July 13, 2021, the Company's Board of Directors declared a 2-for-1 forward stock split of its common stock in the form of a 100% stock dividend, payable on August 16, 2021, to stockholders of record on July 30, 2021. Under the terms of the stock split, the Company's stockholders will receive a dividend of one share for every share held on the record date. The dividend will be paid in authorized but unissued shares of common stock of the Company. The additional shares will be distributed by the Company's transfer agent, Computershare, and the per share price of the Company's common stock will adjust accordingly on The Nasdaq Stock Market. The Company expects trading will begin on a split-adjusted basis on August 17, 2021. The Company currently has approximately 5.7 million shares of common stock outstanding. After the stock split, the number of shares of common stock outstanding will increase to approximately 11.4 million shares.

Joe Vitiritto, President of the Company, commented, 'It was only one year ago that we were scrambling to find replacement freight as many of our largest customers reacted to the pandemic by completely suspending their operations. Now, just one year later and with a redesigned network, we are pleased to report record revenue and record operating income for the quarter. I have been really impressed with the progress our team has achieved in such a short timeframe, and I want to thank our driving associates for the work they put in every single day. We couldn't achieve any of this without their efforts. While we believe that there remains plenty of opportunity to improve on our recent operating results and we expect our team to continue to exceed expectations, it is satisfying to see such marked improvement so quickly.

'We are also pleased that the Board of Directors has approved a stock split, which demonstrates their continued confidence in our long-term potential. With this split, we will be able to increase the availability of our stock and enhance liquidity within the marketplace, allowing both current and new investors to share in our continued success.'

About P.A.M. Transportation Services, Inc.

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.

Forward-Looking Statements

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, prospects, plans 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, ongoing and potential future economic, business and operational disruptions and uncertainties due to the COVID-19 pandemic or other public health crises; 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, and 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; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; the impact of pending or future litigation; general risks associated with doing business in Mexico, including, without limitation, exchange rate fluctuations, inflation, import duties, tariffs, quotas, political and economic instability and terrorism; the potential impact of new laws, regulations or policy, including, without limitation, tariffs, import/export, trade and immigration regulations or policies; 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 publicly update or revise forward-looking statements, whether due to new information, future events or otherwise. Considering these risks and uncertainties, the forward-looking events and circumstances discussed above and in company filings might not transpire.

P.A.M. Transportation Services, Inc. and Subsidiaries
Key Financial and Operating Statistics
 Quarter Ended June 30,  Six Months Ended June 30,  
 2021  2020  2021  2020  
 (in thousands, except earnings per share)  (in thousands, except earnings per share)  


Revenue, before fuel surcharge
 145,175  85,765  280,316  197,587  
Fuel surcharge
  16,088   7,214   29,806   24,547  
Operating Revenue
  161,263   92,979   310,122   222,134  

Operating expenses and costs:
Salaries, wages and benefits
  33,841   27,576   67,237   60,374  
Operating supplies and expenses
  25,107   18,276   48,663   41,991  
Rent and purchased transportation
  61,676   30,360   119,689   73,287  
  14,334   14,237   28,686   28,532  
Insurance and claims
  3,116   2,515   6,363   2,557  
  2,772   1,967   5,498   7,811  
(Gain) loss on disposition of equipment
  (602)  55   (686)  103  
Total operating expenses and costs
  140,244   94,986   275,450   214,655  

Operating income (loss)
  21,019   (2,007)  34,672   7,479  

Non-operating income (expense)
  2,117   2,961   6,816   (6,115) 
Interest expense
  (2,193)  (2,179)  (4,472)  (4,391) 

Income (loss) before income taxes
  20,943   (1,225)  37,016   (3,027) 
Income tax expense (benefit)
  5,626   (402)  9,750   (900) 

Net income (loss)
 15,317  (823) 27,266  (2,127) 

Diluted earnings (loss) per share
 2.66  (0.14) 4.74  (0.37) 

Average shares outstanding - Diluted
  5,755   5,766   5,753   5,756  


 Quarter Ended June 30,  Six Months Ended June 30, 
Truckload Operations
 2021  2020  2021  2020 

Total miles (in thousands)
  46,464   43,916   93,530   98,002 
Operating ratio (1)
  84.02%  103.95%  86.93%  96.14%
Empty miles factor
  8.46%  11.80%  8.27%  9.56%
Revenue per total mile, before fuel surcharge
 $2.11  $1.59  $2.01  $1.65 
Total loads
  89,840   76,338   179,937   173,351 
Revenue per truck per work day
 $776  $540  $743  $607 
Revenue per truck per week
 $3,882  $2,700  $3,715  $3,035 
Average company-driver trucks
  1,602   1,562   1,628   1,573 
Average owner operator trucks
  371   462   369   504 

Logistics Operations
Total revenue (in thousands)
 $47,135  $15,807  $91,918  $36,319 
Operating ratio
  88.65%  95.23%  89.06%  96.53%
  1. 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.
P.A.M. Transportation Services, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets


June 30,



December 31,



 (in thousands, except share amounts)  
Current Assets:
Cash and cash equivalents
 $23,032  $337  
Trade accounts receivable, net
  88,204   77,731  
Other receivables
  6,868   5,127  
  1,284   1,345  
Prepaid expenses and deposits
  7,814   10,172  
Marketable equity securities
  33,016   27,941  
Income taxes refundable
  158   868  
Total current assets
  160,376   123,521  

Property and equipment
  602,952   653,676  
Less: accumulated depreciation
  196,542   202,851  
Total property and equipment, net
  406,410   450,825  

Other non-current assets
  3,920   4,246  
Total Assets
 $570,706  $578,592  

Current liabilities:
Accounts payable
 $35,836  $46,102  
Accrued expenses and other liabilities
  25,422   26,601  
Current portion of long-term debt
  60,338   57,776  
Total current liabilities
  121,596   130,479  

Long-term debt, net of current portion
  190,568   228,330  
Deferred income taxes
  78,407   68,883  
Other long-term liabilities
  2,779   919  
Total liabilities
  393,350   428,611  

Common stock, $.01 par value, 40,000,000 authorized; 11,697,023
and 11,695,719 shares issued; 5,726,243 and 5,727,895
shares outstanding, respectively
  117   117  
Additional paid-in capital
  84,401   84,148  
Treasury stock, at cost; 5,970,780 and 5,967,824 shares, respectively
  (159,262)  (159,118) 
Retained earnings
  252,100   224,834  
Total stockholders' equity
  177,356   149,981  
Total liabilities and stockholders' equity
 $570,706  $578,592  



Frequently Asked Questions and Answers Regarding the Two-For-One Stock Split

July 2021

What is a two-for-one stock split?

In a two-for-one stock split, effected as a stock dividend, the shareholder receives one additional share for each share he or she owns.

What is the difference between a two-for-one stock split and a stock dividend?

They are effectively the same. In both cases, shareholders will own twice as many shares.

Why are you splitting the stock now?

P.A.M. Transportation Services, Inc.'s Board of Directors made a decision to split the stock in order to make the shares more affordable to a broader range of potential investors and to increase liquidity in the trading of our stock (NASDAQ: PTSI).

How does a two-for-one stock split actually work?

After a two-for-one stock split, shareholders receive an additional share for every share they currently own and will therefore have twice as many shares after the split as before the split.

What happens to my cost basis per share after the stock split?

The total cost basis in your stock will not change but the cost basis per share will be halved due to the split.

For example, let's assume a shareholder purchased stock on July 1, 2021 at a price of $54.00 per share. After the stock split, that shareholder's cost basis will be $27.00 per share. By dividing your current cost basis by a factor of 2, you can calculate your new cost basis in the stock. Keep in mind, you will also now own twice as many shares.

Using the example above, let's assume a shareholder purchased 1,000 shares of stock at $54.00 on July 1, 2021 for a total cost basis of $54,000. After the two-for-one stock split, the shareholder owns 2,000 shares of stock at an adjusted cost basis per share of $27.00 for a total cost of the same $54,000.

What happens to the market value per share after the stock split?

Theoretically, the market value per share declines the same way the cost basis per share declines. For example, if the market value per share is $54.00 before the stock split, then the market value should fall to $27.00 ($54.00 divided by 2) after the stock split. However, due to the dynamics of the marketplace, the actual market value per share could be higher or lower than $27.00 after the stock split.

Will the stock split change my percentage ownership in the Company?

No. The stock split does not change the proportionate interest that a shareholder maintains in our company. A shareholder that owned 1% of the common stock before the split will continue to own 1% of our common stock after the split.

Did the shareholders vote to approve the stock split?

Shareholder approval was not needed as the number of shares outstanding after the split is still below the maximum number of shares authorized by our shareholders. Only Board of Directors' approval was necessary.

When is the Record Date?

July 30, 2021

When is the Distribution Date?

August 16, 2021

What is the ex-split / ex-dividend date?

August 17, 2021 is the ex-split or ex-dividend date. This date is the first day that PTSI stock will trade on a post-split basis at a post-split adjusted price.

What happens if I sell my shares on or between the Record Date and the Distribution Date?

If you buy shares after the record date for the stock split, you will be entitled to receive the additional shares that are issued on the distribution date.

If you sell your shares before the distribution date, you are not entitled to receive the additional split shares and the person that bought your shares will be entitled to receive the additional split shares. Trades that settle between the record date and the distribution date are considered 'trades with distribution' that ultimately entitle the buyer to the split shares, even though the buyer did not own the shares on the record date. These trades have a 'due bill' attached to them. A 'due bill' is an IOU from the seller indicating that the buyer, not the seller who was holding the shares on the record date, is entitled to the split shares upon their issuance.

What exactly will I receive?

For each PTSI common share held of record at the close of business on July 30, 2021, you will receive one additional share of PTSI stock. Since the stock split shares are being issued to registered shareholders in book-entry form rather than in the form of a stock certificate, holders of record will not receive a new stock certificate representing the additional stock split shares.

Will I receive a stock certificate for the new shares?

No. If you are a registered holder of P.A.M. Transportation Services, Inc. common shares, you will receive the stock split shares in book-entry form rather than in the form of stock certificates. This means that your shares will be credited to an account registered in your name on the books of P.A.M. Transportation Services, Inc., which are maintained by PTSI's transfer agent, Computershare Investor Services, rather than sent to you in physical stock certificate form.

If I want to buy additional shares is it better to buy now or wait until after the split?

We cannot provide shareholders with investment advice.

Can we buy shares between the announcement date and the Record Date?


If my shares are held in street name, how will I be notified?

Your broker will notify you.

Are the stock split shares to be distributed subject to federal income tax?

We have been advised by counsel that, under present federal income tax laws, your receipt of shares issued under this distribution is not taxable as income to you. However, if you sell any shares, this distribution must be considered in figuring the tax basis of your shares to determine your gain or loss for federal income tax purposes. For example, if prior to the dividend you own 100 shares with a basis of $50.00 per share, half of the basis in each of those shares would be allocated to the corresponding new share, resulting in a basis of $25.00 per share for each of the 200 shares owned after the split. For tax purposes, the holding period of the new shares is the same as for the old shares on which they were issued.

Under existing U.S. laws and regulations, the new shares issued will have a basis equal to one-half the adjusted cost or other basis of the shares on which they were distributed. The basis for computing gain or loss concerning the balance of your stock is reduced to one-half of its former basis. For tax purposes, the holding period for the new shares is the same as for the old shares on which they were issued. Although this tax information is provided for your assistance, we are not providing personal tax advice. You should consult your personal tax advisor regarding the tax consequences of any transaction you undertake with these shares.

Consult your Personal Tax Advisor: You should consult your own tax advisor regarding the calculation of your tax basis and the tax consequences of any distribution.

How can I update my address?

If you are a registered shareholder, you can update your address by contacting our transfer agent, Computershare Investor Services at 800-962-4284 or .

What is 'book-entry'?

Book-entry form of registered ownership allows you to own shares without having paper stock certificates in your possession. You are the record owner and enjoy the same shareholder benefits as you would with certificated shares.

What are the benefits of book-entry shares?

Book-entry ownership eliminates some of the problems associated with paper certificates such as storage and safety of securities. Book-entry shares also eliminate the requirement for physical movement of stock certificates at the time of sale or transfer of ownership.

How do I keep track of my book-entry shares?

If you hold your book-entry shares, you will receive a statement or confirmation detailing any activity affecting your book entry shares shortly after a transaction has taken place. You may also receive statements at other points of time.

I have stock certificates. Can I convert them to book-entry shares?

Yes. Simply send your stock certificates to Computershare Investor Services, P.O. Box 505000, Louisville, KY 40233-5000, with written instructions to deposit them in your account as book-entry items. Do not endorse the certificates or complete the assignment section. Certificates should be sent to Computershare Investor Services at the address above by registered or certified mail with return receipt requested, or some other form of traceable mail, and properly insured. Computershare Investor Services will provide to you a statement confirming the deposit of your shares to your book-entry account.

Can I get stock certificates for my book-entry shares?

You may request stock certificates for the whole shares in your book-entry account at any time. Simply contact Computershare Investor Services at 800-962-4284 or with your request and a stock certificate for the requested number of whole shares will be sent to you within 7-10 business days and delivered by first class mail.

What should I do with the stock certificates I currently hold? Are they still valid?

The stock certificates that you currently hold are still valid and should not be destroyed or exchanged. Those certificates continue to represent the same number of shares as shown on their face and should be kept in a secure place.

What happens if I lose my Stock Account Statement?

Unlike stock certificates, the Stock Account Statement is not a negotiable document, so there is no replacement fee. You can request replacement statements at any time by contacting Computershare Investor Services at 800-962-4284 or .

Who can I contact for additional information?

For questions on the stock split, please contact:

Computershare Investor Services

P.O. BOX 188
Tontitown, AR 72770
Allen W. West
(479) 361-9111

SOURCE: P.A.M. Transportation Services, Inc.

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