TONTITOWN, Ark., Feb. 7 /PRNewswire-FirstCall/ -- 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

    * 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.

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