Executive Summary

Soft quarter in a prolonged freight downcycle: operating revenue fell 11.8% YoY to $182.9M with an operating loss of $0.7M (operating ratio 100.4%) and diluted loss per share of $0.13; sequentially, revenue was roughly flat vs Q1 ($182.6M) while profitability slipped from $0.01 EPS in Q1 to a $0.13 loss in Q2 .
Management sees early signs of seasonal normalization and late‑quarter capacity tightening but continues to face rate pressure; focus remains on cost/efficiency with a mid‑80s longer‑term operating ratio goal, positioning for a potential cycle turn .
Liquidity remains solid: $173.9M aggregate cash/marketable securities/undrawn revolver, $306.7M equity, $266.0M debt; generated $28.4M operating cash flow in 1H24 (vs $9.6M in Q1) .
No formal guidance provided; absence of a public Q2 earnings call transcript in our document set limits commentary beyond the press release; S&P Global consensus estimates were unavailable for PTSI at the time of analysis (S&P Global consensus unavailable via tool).

What Went Well and What Went Wrong

What Went Well

Sequential demand pattern improved late in the quarter with capacity tightening and seasonality normalizing vs early quarter softness, indicating possible proximity to a cycle change (“we may be getting closer to a cycle change”) .
Ongoing cost and efficiency focus to mitigate unfavorable freight market and support long‑term mid‑80s operating ratio ambition; management emphasized disciplined execution and positioning for an improved freight market .
Logistics segment maintained sub‑95% operating ratio (93.9% in Q2), reflecting relative resilience within the network despite weak rates .

What Went Wrong

Pricing pressure persisted; consolidated operating revenue declined 11.8% YoY and the company posted a net loss of $2.9M (vs $9.3M net income YoY) and a consolidated operating ratio of 100.4% .
Sequentially, profitability deteriorated from Q1’s breakeven/positive EPS to a Q2 loss as rate pressure outweighed internal efficiency gains (Q1 diluted EPS $0.01 vs Q2 diluted loss per share $0.13) .
Truckload segment operating ratio ex‑fuel remained above 100% (103.7%), underscoring core margin headwinds from rate pressure and utilization dynamics .

Financial Results

Consolidated P&L and Key Metrics

Metric	Q2 2023	Q1 2024	Q2 2024
Operating Revenue ($USD Millions)	$207.4	$182.6	$182.9
Operating (Loss)/Income ($USD Millions)	$13.8	$(0.7)	$(0.7)
Operating Ratio (%)	N/A	100.4%	100.4%
Net (Loss)/Income ($USD Millions)	$9.3	$0.3	$(2.9)
Diluted EPS ($)	$0.42	$0.01	$(0.13)
Interest Expense ($USD Millions)	$2.2	$2.9	$3.3

Segment and Operational Detail

Metric	Q2 2023	Q1 2024	Q2 2024
Logistics Revenue ($USD Thousands)	$61,856	$58,769	$53,659
Logistics Operating Ratio (%)	91.8%	93.9%	93.9%
Truckload OR ex‑fuel (%)	92.7%	104.2%	103.7%
Total Miles (000s)	50,526	46,062	45,829
Revenue/Total Mile ex‑fuel ($)	$2.17	$2.22	$2.09
Empty Miles (%)	8.60%	8.60%	8.95%
Total Loads	109,000	102,200	110,511
Rev/Truck/Week ($)	$3,868	$3,645	$3,572
Avg Company Trucks	2,061	1,895	1,920
Avg Owner‑Op Trucks	367	365	413

Balance Sheet and Cash Flow

Metric	Q4 2023	Q1 2024	Q2 2024
Cash & Cash Equivalents ($USD Thousands)	$100,614	$79,966	$71,984
Long‑Term Debt + Current Portion ($USD Thousands)	$261,709	$271,562	$266,021
Stockholders’ Equity ($USD Thousands)	$314,216	$314,643	$306,674
Operating Cash Flow ($USD Millions)	$114.6 (FY23)	$9.6 (Q1)	$28.4 (1H24 YTD)

Notes: Q2 debt figure reflects “Outstanding debt was $266.0M as of June 30, 2024” from the press release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Guidance (all metrics)	FY2024/Q3 2024	None provided	None provided in Q2 materials	Maintained (no formal guidance)

No formal quantitative guidance was disclosed in the Q2 press release; we did not locate a Q2 earnings call transcript in our document set to provide further guidance details .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
Freight demand/cycle	Q4: Weak freight environment; UAW strike materially impacted auto customer base through holiday period . Q1: Overcapacity, shippers leveraging rates at/below cost; weather disruptions hurt utilization .	Early quarter soft; late‑quarter seasonality normalized with some capacity tightening; “closer to a cycle change” .	Stabilizing from trough; early signs of turn
Pricing/Rates	Persistent rate pressure cited in Q1 .	Continued downward rate pressure in Q2 .	Still negative, pressure persists
Cost/efficiency actions	Ongoing focus to offset weak market (Q4/Q1) .	Continued emphasis on cost and efficiency; long‑term mid‑80s OR target reiterated .	Sustained focus
Automotive exposure	Q4: UAW strike drove broad impact to OEMs/suppliers .	Not specifically highlighted in Q1 press release .	Not highlighted in Q2 release .
Liquidity/capex	FY23 OCF $114.6M; net capex outflow $11.4M . Q1 OCF $9.6M .	1H24 OCF $28.4M; liquidity aggregate $173.9M .	Healthy liquidity sustained

Management Commentary

“The quarter started off slower than anticipated but began to show signs of seasonal demand patterns that were more consistent with pre‑covid periods and we saw capacity tightening some as we moved towards the end of the quarter… we may be getting closer to a cycle change.” — Joe Vitiritto, President .
“Our continued focus on cost and efficiency measures helps us to mitigate the current unfavorable freight market as well as positioning us to meet our longer‑term mid‑80’s operating ratio expectation.” — Joe Vitiritto .
Q1 set‑up/context: “Shippers continued success in leveraging an overcapacity market… rates at or below cost… weather disruptions early in the quarter drove cost increases and reductions in equipment utilization.” — Joe Vitiritto .
Q4 context: “Continued weak freight environment and the impact of the UAW strike… impactful to the majority of our auto customer base… no post‑strike surge in automotive business.” — Joe Vitiritto .

Q&A Highlights

We did not locate a public Q2 2024 earnings call transcript in our document set; key messages above reflect the Q2 press release commentary .

Estimates Context

S&P Global (Capital IQ) Wall Street consensus for Q2 2024 EPS and revenue was unavailable for PTSI at the time of analysis via our estimates tool access. As a result, we cannot benchmark reported results vs consensus in this report (S&P Global consensus unavailable via tool).

Key Takeaways for Investors

The print confirms a trough‑like environment with sequential stabilization: revenue was flat QoQ but mix/price pressure kept the consolidated OR at 100.4% and EPS negative; watch for further late‑quarter seasonal normalization and capacity tightening signals into 2H .
Management’s “closer to a cycle change” comment and reiterated mid‑80s OR long‑term target set the narrative for operating leverage once rates firm; cost/efficiency work should accelerate drop‑through when pricing turns .
Logistics remains a relative ballast with a sub‑95% OR, but Truckload ex‑fuel OR >100% underscores where recovery must show first (rate and utilization) .
Liquidity provides runway ($173.9M aggregate liquidity; $266M debt; $306.7M equity), reducing near‑term balance sheet risk while the company navigates the downcycle .
No guidance and no accessible call transcript limit near‑term visibility; investors should monitor monthly/industry rate indices and PTSI’s operating ratio progression as leading indicators of inflection .
Near‑term trading setup: stock likely tracks macro freight/spot trends and any incremental color on auto/industrial demand; upside catalysts include evidence of rate firming and sequential OR improvement; risks include prolonged rate pressure and muted peak season.

PAM TRANSPORTATION SERVICES INC (PTSI)·Q2 2024 Earnings Summary