P.A.M. Transportation Services, Inc. Announces Results for the Third Quarter Ended September 30, 2008

TONTITOWN, Ark., Oct. 28, 2008 (GLOBE NEWSWIRE) -- P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported net loss of $3,180,856 or diluted and basic loss per share of $0.33 for the quarter ended September 30, 2008, and net loss of $7,340,901 or diluted and basic loss per share of $0.76 for the nine month period then ended. These results compare to net income of $36,178 or diluted and basic earnings per share of $0.00, and $3,493,402 or diluted and basic earnings per share of $0.34, respectively, for the three and nine months ended September 30, 2007.

Operating revenues were $105,958,070 for the third quarter of 2008, a 4.7% increase compared to $101,170,999 for the third quarter of 2007. Operating revenues were $322,708,237 for the nine months ended September 30, 2008, a 5.2% increase compared to $306,679,071 for the nine months ended September 30, 2007.

Robert W. Weaver, President of the Company, commented, "Our $0.33 per share net loss for the quarter ended September 30, 2008 consists of, net of tax, an $0.08 per share operating loss, a $0.21 per share non-operating loss from the write-down of equity stock holdings, and $0.04 per share interest expense. This compares to, net of tax, operating income of $0.03 per share, $0.01 per share non-operating income, and $0.04 per share interest expense for the quarter ended September 30, 2007.

"The $0.21 non-operating loss is a non-cash charge due to a significant write-down of the company's stock portfolio to market value due to the hefty price declines experienced by the financial and banking sector. Once the value is written down, there can be no gains or write-ups in value until the securities are sold.

"Although both August and September posted a positive operating income, it was not enough to overcome the operating loss sustained in July. Revenue for the quarter ended September 30, 2008 increased 4.7% compared to revenue for the quarter ended September 30, 2007. Our rate per total mile, before fuel surcharge, increased $0.06 per mile to $1.35 from $1.29 due to changes in our customer base and to rate increases negotiated with customers. However these improvements are offset by the current weakness in freight demand that has resulted in a 3.8% quarter over quarter decrease in tractor utilization, measured in miles per tractor per day. A portion of the decrease in equipment utilization is also attributable to a decrease in the number of two man driving teams required by automotive lanes that have been replaced by single drivers used in general commodity lanes. The Company has decreased the average fleet size from 2,097 tractors during the third quarter 2007 to 1,971 tractors during the third quarter 2008 as we continue to balance fleet size to freight demand in an effort to improve equipment utilization.

"Current commodity prices have resulted in a downward trend in fuel prices that allowed an improvement in our ability to recover excessive fuel costs during the quarter. In addition, the campaign to lower the speed of our tractors is nearly 100% complete. The installation of auxiliary power units is underway and we expect to have 25% of the trucks selected for the install to be complete by year end.

"Revenue derived from automotive customers continued to comprise the largest sector of our total revenue during the third quarter of 2008. However, the marketing campaign continues in efforts to dilute the percentage of our revenue generated by the automotive industry. Total revenue from automotive decreased to 37.3% of revenue, before fuel surcharge, for the quarter ended September 30, 2008 compared to 48.5% of revenue, before fuel surcharge, for the quarter ended September 30, 2007.

"While quarter over quarter and year over year improvements in various areas have been made from our initiatives, the greatest current factors impacting results continue to be demand for our services and fuel prices."

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.

The P.A.M. Transportation Services, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5148

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


                          Quarter ended          Nine Months Ended
                           September 30,            September 30,
                        2008        2007         2008         2007
                     ----------- ----------- ------------ ------------

 Revenue, before fuel
  surcharge          $81,691,540 $86,625,193 $252,816,659 $266,715,387
 Fuel surcharge       24,266,530  14,545,806   69,891,578   39,963,684
                     ----------- ----------- ------------ ------------
                     105,958,070 101,170,999  322,708,237  306,679,071
                     ----------- ----------- ------------ ------------
 Operating expenses
  and costs:
   Salaries, wages
    and benefits      30,915,136  33,582,985   97,028,346  101,323,701
   Fuel expense       38,773,993  28,555,037  119,321,218   82,164,112
   Operating supplies
    and expenses       7,523,749   8,026,619   22,994,738   23,462,330
   Rent and purchased
    transportation    10,347,415   9,676,834   30,709,353   29,245,541
   Depreciation        9,288,736  10,086,327   27,573,905   29,585,257
   Operating taxes
    and licenses       3,952,960   4,255,095   12,476,083   13,209,208
   Insurance and
    claims             3,842,504   4,082,742   12,497,754   13,285,219
   Communications and
    utilities            656,830     783,595    2,224,937    2,313,911
   Other               1,232,701   1,694,770    3,734,664    5,128,053
   Loss (gain) on
    disposition of
    equipment            706,412     (55,882)     926,152      (27,182)
                     ----------- ----------- ------------ ------------
 Total operating
  expenses and costs 107,240,436 100,688,122  329,487,150  299,690,150
                     ----------- ----------- ------------ ------------
 Operating (loss)
  income              (1,282,366)    482,877   (6,778,913)   6,988,921

 Interest expense       (613,523)   (620,349)  (1,714,292)  (1,783,132)
  (expense) income    (3,377,474)    199,592   (3,596,552)     607,827
                     ----------- ----------- ------------ ------------
 (Loss) income before
  income taxes        (5,273,363)     62,120  (12,089,757)   5,813,616
 Income tax (benefit)
  expense             (2,092,507)     25,942   (4,748,856)   2,320,214
                     ----------- ----------- ------------ ------------
 Net (loss) income   $(3,180,856)    $36,178  $(7,340,901)  $3,493,402
                     ----------- ----------- ------------ ------------
 Diluted (loss)
  earnings per share      $(0.33)      $0.00       $(0.76)       $0.34
                     =========== =========== ============ ============
 Average shares
  outstanding -
  Diluted              9,665,125  10,265,758    9,722,657   10,293,407
                     =========== =========== ============ ============

                           Quarter ended          Nine Months Ended
                            September 30,            September 30,
 Truckload Operations    2008        2007         2008         2007
 -------------------- ----------- ----------- ------------ ------------
 Total miles          54,346,072  60,965,126  174,019,274  186,489,249
 Operating ratio*         101.82%      99.52%      103.31%       97.38%
 Empty miles factor         7.40%       6.72%        7.28%        6.44%
 Revenue per total
  mile, before fuel
  surcharge                $1.35       $1.29        $1.30        $1.29
 Total loads              82,849      91,929      269,167      265,006
 Revenue per truck
  per work day              $620        $633         $597         $619
 Revenue per truck
  per week                $3,100      $3,165       $2,985       $3,095
 Average company
  trucks                   1,931       2,036        1,973        2,036
 Average owner
  operator trucks             40          61           46           57

 Logistics Operations
 Total revenue        $8,412,252  $8,269,790  $26,051,918  $25,917,100
 Operating ratio           99.36%      98.73%       97.17%       97.33%

 * 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.
CONTACT:  P.A.M. Transportation Services, Inc.
          Robert W. Weaver
          (479) 361-9111
          P.O. Box 188
          Tontitown, AR  72770
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