Arkansas' Public Companies

Arkansas Business, July 30, 2001

IN SPITE OF A MARKET hampered by slowing freight, driver shortages and rising interest and insurance rates, P.A.M. Transportation Services Inc. turned in some impressive numbers for 2000.

In 2000, total revenue was down slightly from 1999, $205.2 million against $207.4 million. Income fell 23 percent to $8.7 million. But in a year when many carriers lost money, P.A.M.'s $1.02 earnings per share looked stellar.

In the past year, the company's common stock has ranged from $7.50 per share to $11.

In the first quarter of 2001, it reported net income of $2.6 million, a 24 percent increase over the same period last year, and revenue of $54.1 million, a 7.9 percent increase.

The keys to maintaining profit lie in P.A.M.'s business model, said Dan Moore, an industry analyst who follows the company for Stephens Inc. in Little Rock.

Half of P.A.M.'s business is in dedicated contracts, an enviable route schedule. Dedicated routes are regular, repeated pickups and deliveries for a customer. Such routes offer stability through fixed rates and the ability to plan for the long term as well as generally paying higher, less competitive rates.

P.A.M. also has "outstanding" expense control, Moore said. The company's operating ratio, the percentage of expenses to revenue, was 90.6 percent, one of the lowest in the industry. Most carriers hover in the mid-90s.

P.A.M. transports general commodities throughout the continental United States and the Canadian provinces of Ontario and Quebec.

The company employs 1,899 people and operates the headquarters, maintenance facilities and its primary terminal in Tontitown.

SIMMONS FIRST NATIONAL CORP.

POWERED BY A record first quarter last year, Simmons First National Corp. recorded a 9.9 percent increase in net income to more than $18.8 million during 2000.

The company continued its strong first-quarter performance this year with record earnings of $4.5 million for the first quarter of 2001, an 8.5 percent increase.

Simmons completed its fourth acquisition in three years to add to its growing network in central and northwest Arkansas. The company paid $7.6 million cash on July 17, 2000 for two Conway and six northwest Arkansas locations, including Fayetteville, Springdale, Rogers and Sioam Springs.

The seller was First Financial Banc Corp. of El Dorado. The combined deposits of the eight branches were about $71 million at the time of the acquisition.

On the back side of the transaction, Simmons increased its loan-loss reserves by $2.6 million to cover problem loans purchased in the deal.

In addition to growth through acquisition, Simmons also opened an office in the heart of Little Rock's downtown financial district in April.

The company expanded its stock repurchase plan this year by an additional 200,000 shares, or 2.8 percent of the outstanding common stock.

The move came after Simmons neared completion of a 200,000-share stock repurchase plan announced last year.

Simmons First is a Pine Bluff-based bank holding company with total assets of $1.9 billion and banks in Pine Bluff, Jonesboro, Lake Village, Dumas, Rogers, Russellville, Searcy and El Dorado.