P.A.M. Transportation Services, Inc. Announces Results for the Fourth Quarter and Year Ended December 31, 2008

TONTITOWN, Ark., Feb. 20, 2009 (GLOBE NEWSWIRE) -- P.A.M. Transportation Services, Inc. (Nasdaq:PTSI) today reported net loss of $11,423,986 or diluted and basic loss per share of $1.19 for the quarter ended December 31, 2008, and net loss of $18,764,885 or diluted and basic loss per share of $1.94 for the year ended December 31, 2008. These losses include significant non-cash write downs of $11.9 million ($1.25 per share) during the fourth quarter and $14.2 million ($1.48 per share) for the 2008 year. These results compare to net loss of $839,909 or diluted and basic loss per share of $0.08, and net income of $2,653,491 or diluted and basic earnings per share of $0.26, respectively, for the quarter and year ended December 31, 2007.

Operating revenues were $84,014,264 for the fourth quarter of 2008, a 17.8% decrease compared to $102,162,120 for the fourth quarter of 2007. Operating revenues were $406,722,502 for the year ended December 31, 2008, a 0.5% decrease compared to $408,841,190 for the year ended December 31, 2007.

Robert W. Weaver, President of the Company, commented, "We are pleased to see that our prior cost reduction efforts returned the trucking operation to operational profitability before certain write downs in the fourth quarter of 2008. Net income was $0.05 per share before non-cash charges. The Company's fourth quarter 2008 loss per share of $1.19 included non-cash charges triggered by the current equity market, including our own market capitalization, and general economic conditions. These charges, net of tax, included:

 1)   The one-time write off of the entire $10.2 million ($1.07 per
      share) balance of goodwill on our balance sheet. This write off
      relates to an annual test for goodwill impairment performed by
      the Company that is required by Generally Accepted Accounting
      Standards and was the result of our market capitalization falling
      significantly below our net asset value.

 2)   A $0.9 million ($0.10 per share) write down of equity investments
      to market value.

 3)   A $0.7 million ($0.07 per share) write down to market value of
      equipment held for sale.

 4)   A $0.1 million ($0.01 per share) write down of accounts
      receivable to net realizable value due to customer bankruptcies.

These items, $11.9 ($1.25 per share) million in total, necessitated by fair value financial reporting requirements, moved the Company from a positive net income, to the loss ultimately reported. While these non-cash charges negatively impacted our earnings and certain assets and equity, we remain confident with the strength of our balance sheet. As of December 31, 2008, our debt to equity ratio was 0.33:1 and our tangible book value per share was $16.52.

Although our fourth quarter was operationally profitable, we did experience a precipitous decline in freight demand in November and December. In light of this unprecedented decrease in freight demand, the Company has intensified its focus on cost reduction and cash conservation measures including fleet size and personnel reductions, decreasing capital expenditures, salary decreases for management personnel, pay and hiring freezes on all non-driving staff and line item focus on expense controls. While these are difficult decisions, they are necessary due to what has proven to be an extremely persistent recessionary economy.

Thus far in 2009, we have seen no indication the economic environment will change in the near term. As such, we will continue to pursue cost reduction and efficiency measures to meet these challenging times. In doing so, we must not compromise the superior service our customers demand and are accustomed to. I commend all of our employees for their dedicated efforts to meet these challenges during this demanding time."

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 December 31,      Year Ended December 31,
                   2008           2007            2008         2007   
               ------------  ------------   ------------  ------------
  before fuel                                                         
  surcharge    $  70,455,192 $  84,985,721 $ 323,271,851 $ 351,701,108
  surcharge       13,559,072    17,176,399    83,450,651    57,140,082
                ------------  ------------  ------------  ------------
                  84,014,264   102,162,120   406,722,502   408,841,190
                ------------  ------------  ------------  ------------
  and costs:                                                          
    wages and                                                         
    benefits      26,932,623    34,282,069   123,960,969   135,605,769
    expense       21,209,776    32,077,856   140,530,995   114,241,966
    and expenses   7,519,725     7,382,804    30,514,463    30,845,136
   Rent and                                                           
    tion           9,177,812     9,472,002    39,887,166    38,717,543
   Depreciation    9,903,446     9,173,789    37,477,351    38,759,047
    charge        15,413,137            --    15,413,137            --
    taxes and                                                         
    licenses       3,460,491     4,311,350    15,936,574    17,520,558
    and claims     3,520,445     4,305,447    16,018,199    17,590,666
    tions and                                                         
    utilities        643,434       799,467     2,868,371     3,113,378
   Other           1,384,224     2,001,685     5,118,888     7,129,738
   Loss (gain)                                                        
    on disposi-                                                       
    tion of                                                           
    equipment      25,276         (21,267)       951,427      (48,449)
                ------------  ------------  ------------  ------------
  expenses and                                                        
  costs           99,190,389   103,785,202   428,677,540   403,475,352
                ------------  ------------  ------------  ------------
  (loss) income (15,176,125)   (1,623,082)  (21,955,038)     5,365,838
  expense          (714,271)     (669,958)   (2,428,563)   (2,453,090)
  income         (1,399,619)     1,099,384   (4,996,170)     1,707,211
                ------------  ------------  ------------  ------------
  income before                                                       
  income taxes  (17,290,015)   (1,193,656)  (29,379,771)     4,619,959
 Income tax                                                           
  expense        (5,866,029)     (353,747)  (10,614,886)     1,966,468
                ------------  ------------  ------------  ------------
 Net (loss)                                                           
  income       $(11,423,986) $   (839,909) $(18,764,885) $   2,653,491
                ------------  ------------  ------------  ------------
  per share    $      (1.19) $      (0.08) $      (1.94) $        0.26
               ============= ============= ============= =============
  outstanding -                                                       
  Diluted          9,563,803    10,077,287     9,682,727    10,238,706
               ============= ============= ============= =============
                  Quarter Ended December 31,   Year Ended December 31,
  Operations           2008         2007          2008         2007   
 -----------      ------------  ------------ ------------- -----------
 Total miles       47,430,688   60,311,315   221,449,962   246,800,564
  ratio*              113.52%      102.22%       105.53%        98.56%
 Empty miles                                                          
  factor                7.26%        6.71%         7.28%         6.50%
 Revenue per                                                          
  total mile,                                                         
  before fuel                                                         
  surcharge       $      1.32  $      1.28  $       1.31  $       1.29
 Total loads           75,961       90,688       345,128       355,694
 Revenue per                                                          
  truck per                                                           
  work day        $       578  $       659  $        593  $        628
 Revenue per                                                          
  truck per                                                           
  week            $     2,890  $     3,295  $      2,965  $      3,140
 Average company                                                      
  trucks                1,871        1,996         1,949         2,027
 Average owner                                                        
  trucks                   35           56            44            57
 Total revenue    $ 7,654,959  $ 7,868,956  $ 33,706,321  $ 33,786,056
 Operating ratio      187.32%       98.84%       117.65%        97.68%
 *   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
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