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P.A.M. communication Services (NASDAQ: PTSI) confirmed it has temporarily laid off about 75 employees, largely "non-essential ought daily operations" at response ought contemporary coronavirus-related auto mill closures.
Responding ought an email from FreightWaves, P.A.M. communication CEO Dan Cushman said 65 employees were laid off at Friday, "very few" of whom were drivers. Cushman said he doesn't hope a "wave 2" of layoffs except that "about 10 employees" were released from duty Tuesday.
Cushman said the reduction at adhere was direct related ought "auto plants shutting down."
The dry van truckload (TL) carrier, which gets much of its revenue from the country's largest creative instrument manufacturers (OEMs), is used ought adjusting operations and staffing levels because OEM manufacture schedules change.
In its third-quarter 2019 salary illustrate released at October, the Tontitown, Arkansas-based carrier announced that it had successfully redeployed "approximately 400 drivers affected" by the United Auto Workers labor encounter against General Motors Company (NYSE: GM), which began at Sept. 16. during the GM strike, the company leaned at its sales team ought discover replacement assets ought own those drivers seated at trucks.
The six-week encounter resulted at losing only 12 of those 400 drivers. at that time period, the company truly increased its overall driver calculate by six. during the fourth part of 2019, P.A.M. communication had an median driver calculate of 2,112 including owner-operators, an 83-driver exaggerate year-over-year.
FCAU) accounted because 9% and Ford machine Co. (NYSE: F) contributed 7%. The other two customers are no listed by isolate at the company's filings with the U.S. Securities and Exchange Commission." data-reactid="25">In 2019, P.A.M. Transportation's five largest customers accounted because about 40% of complete revenue — normal Motors represented 19%, Fiat Chrysler Automobiles (NYSE: FCAU) accounted because 9% and Ford machine Co. (NYSE: F) contributed 7%. The other two customers are no listed by isolate at the company's filings with the U.S. Securities and Exchange Commission.
40% of the company's 2019 complete revenue derived from communication services ought the lorry industry.
Through a myriad of obstacles at 2019 that included border-crossing delays, the GM encounter and a lawsuit, the carrier remained profitable, posting full-year net pay of $7.9 million. Excluding the shock of a lawsuit settlement at minimum revenue constitution violations, the carrier ended the year with adjusted net pay of $23.4 million, basically flat with 2018.
Cushman said the communication industry "stands together" at "this big time of need," referencing the company's contemporary collaboration with other carriers ought create cargo boards and conflict other opportunities.
"We devour reached out ought our complete customer basis and I devour reached out ought my friends at the industry and the response has been great. There does no emerge ought exist any feeling of a ‘competitor' mentality," Cushman added.
Cushman said those "friends at the industry" contain many members of the Arkansas Trucking Association, comparable ArcBest Corporation (NASDAQ: ARCB), USA Truck, Inc. (NASDAQ: USAK), FedEx Corporation (NYSE: FDX), CalArk, Walmart Inc. (NYSE: WMT), J.B. chase convey Services, Inc. (NASDAQ: JBHT) and non-Arkansas-based carriers comparable U.S. Xpress Enterprises, Inc. (NYSE: USX) and Dart Transit.
P.A.M. communication has made moves ought bolster its cross-border worry at 2020, given an expected exaggerate at automotive-related cross-border shipments. The United States-Mexico-Canada condense (USMCA), which was signed into constitution at Jan. 29, mandates an exaggerate at the percent of North American duty-free produced automotive parts from 62.5% ought 75% by 2023.
Laredo, Texas, stop because $19.8 million. at February, the carrier was listed at gymnasium filings because the latent buyer of Celadon's Mexican business, including carrier Jaguar Transportation, at a proposed million deal." data-reactid="32">At the complete of January, P.A.M. communication acquired bankrupt carrier Celadon Group's 53-acre Laredo, Texas, stop because $19.8 million. at February, the carrier was listed at gymnasium filings because the latent buyer of Celadon's Mexican business, including carrier Jaguar Transportation, at a proposed million deal.
However, Cushman said Tuesday that the company has ended its efforts ought earn Jaguar.
P.A.M. communication already owns a cross-dock facility at Laredo near the dust business Bridge, about 12 miles from the newly acquired facility.
"I'm optimistic we will exist uphold complete might soon," concluded Cushman.
Shares of PTSI were up 11% late Tuesday afternoon except devour lost around half their appraise during the fair selloff began at the final week of February.
