10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2022

or

☐    Transition Report Pursuant to the Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________to__________

P.A.M. TRANSPORTATION SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-1507	71-0633135
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification no.)

297 West Henri De Tonti, Tontitown, Arkansas 72770

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (479) 361-9111

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	PTSI	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days.

Yes  ☑            No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)

Yes  ☑            No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☑
Non-accelerated filer ☐	Smaller reporting company ☑
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                               Yes  ☐                     No  ☑ 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class	Outstanding at October 27, 2022
Common Stock, $.01 Par Value	22,187,063

P.A.M. TRANSPORTATION SERVICES, INC.

Form 10-Q

For the Quarter Ended September 30, 2022

Table of Contents

Part I. Financial Information		3
Item 1.	Financial Statements (unaudited).	3
	Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021	5
	Condensed Consolidated Statement of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2022 and 2021	6
	Notes to Condensed Consolidated Financial Statements as of September 30, 2022	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	16
Item 3.	Quantitative and Qualitative Disclosures about Market Risk.	22
Item 4.	Controls and Procedures.	22
Part II. Other Information		24
Item 1.	Legal Proceedings.	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	25
Item 6.	Exhibits.	26
Signatures		27

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands, except share and per share data)

	September 30,			December 31,
	2022			2021
ASSETS
Current assets:
Cash and cash equivalents	$	42,807		$	18,509
Accounts receivable-net:
Trade, less current estimated credit loss of $5,195 and $4,526, respectively		155,181			121,854
Other		6,580			7,092
Inventories		2,278			1,456
Prepaid expenses and deposits		12,002			10,962
Marketable equity securities		36,002			39,424
Income taxes refundable		733			277
Total current assets		255,583			199,574
Property and equipment:
Land		19,719			19,718
Structures and improvements		35,060			33,534
Revenue equipment		625,639			520,840
Office furniture and equipment		12,677			11,211
Total property and equipment		693,095			585,303
Accumulated depreciation		(233,817	)		(201,124	)
Net property and equipment		459,278			384,179
Other assets		4,626			3,628
TOTAL ASSETS	$	719,487		$	587,381
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	54,651		$	43,381
Accrued expenses and other liabilities		24,760			14,114
Income taxes payable		474			4,364
Current maturities of long-term debt		51,668			49,544
Total current liabilities		131,553			111,403
Long-term debt - less current portion		205,675			172,733
Deferred income taxes		98,938			86,715
Other long-term liabilities		185			420
Total liabilities		436,351			371,271
COMMITMENTS AND CONTINGENCIES (Note L)
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued		-			-
Common stock, $.01 par value, 40,000,000 shares authorized; 22,280,187 and 34,574,807 shares issued; 22,187,063 and 22,348,022 shares outstanding at September 30, 2022 and December 31, 2021, respectively		223			234
Additional paid-in capital		40,285			84,472
Treasury stock, at cost; 93,124 and 12,226,785 shares at September 30, 2022 and December 31, 2021, respectively		(2,877	)		(169,946	)
Retained earnings		245,505			301,350
Total stockholders’ equity		283,136			216,110
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	719,487		$	587,381

See notes to condensed consolidated financial statements.

All prior period share and per share data has been retroactively adjusted to reflect the stock splits effective August 16, 2021 and March 29, 2022, respectively.

3

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
OPERATING REVENUES:
Revenue, before fuel surcharge	$	216,475		$	166,331		$	615,303		$	446,647
Fuel surcharge		36,155			16,754			93,943			46,559
Total operating revenues		252,630			183,085			709,246			493,206
OPERATING EXPENSES AND COSTS:
Salaries, wages and benefits		50,847			34,937			133,069			102,173
Operating supplies and expenses		48,071			25,712			123,156			74,375
Rent and purchased transportation		93,501			72,698			273,521			192,387
Depreciation		16,289			12,740			46,647			41,426
Insurance and claims		5,149			3,443			19,281			9,806
Other		4,579			3,008			12,712			8,505
Gain on disposition of equipment		(1,301	)		(276	)		(2,662	)		(962	)
Total operating expenses and costs		217,135			152,262			605,724			427,710
OPERATING INCOME		35,495			30,823			103,522			65,496
NON-OPERATING (EXPENSE) INCOME		(1,886	)		37			(2,829	)		6,853
INTEREST EXPENSE		(1,922	)		(1,899	)		(5,587	)		(6,372	)
INCOME BEFORE INCOME TAXES		31,687			28,961			95,106			65,977
FEDERAL AND STATE INCOME TAX EXPENSE:
Current		4,462			2,141			10,193			2,368
Deferred		2,659			5,461			12,223			14,984
Total federal and state income tax expense		7,121			7,602			22,416			17,352
NET INCOME	$	24,566		$	21,359		$	72,690		$	48,625
INCOME PER COMMON SHARE:
Basic	$	1.10		$	0.94		$	3.26		$	2.13
Diluted	$	1.09		$	0.93		$	3.24		$	2.12
AVERAGE COMMON SHARES OUTSTANDING:
Basic		22,263			22,724			22,276			22,842
Diluted		22,440			22,860			22,468			22,962

See notes to condensed consolidated financial statements.

All prior period share and per share data has been retroactively adjusted to reflect the stock splits effective August 16, 2021 and March 29, 2022, respectively.

4

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

	Nine Months Ended
	September 30,
	2022			2021
OPERATING ACTIVITIES:
Net income	$	72,690		$	48,625
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		46,647			41,426
Bad debt expense		732			837
Stock compensation-net of excess tax benefits		528			347
Provision for deferred income taxes		12,223			14,984
Recognized loss / (gain) on marketable equity securities		4,340			(5,382	)
Gain on sale or disposition of equipment		(2,662	)		(962	)
Changes in operating assets and liabilities:
Accounts receivable		(22,727	)		(27,584	)
Prepaid expenses, deposits, inventories, and other assets		(2,983	)		1,781
Income taxes payable		(4,346	)		455
Trade accounts payable		4,917			1,929
Accrued expenses and other liabilities		10,714			(2,500	)
Net cash provided by operating activities		120,073			73,956
INVESTING ACTIVITIES:
Purchases of property and equipment		(42,953	)		(15,297	)
Acquisition of business, net of cash acquired		(64,317	)		-
Proceeds from disposition of equipment		12,568			28,047
Sales of marketable equity securities		-			1,496
Purchases of marketable equity securities, net of return of capital		(918	)		(4,302	)
Net cash (used in) provided by investing activities		(95,620	)		9,944
FINANCING ACTIVITIES:
Borrowings under line of credit		720,879			450,222
Repayments under line of credit		(720,879	)		(468,469	)
Borrowings of long-term debt		59,849			6,594
Repayments of long-term debt		(53,948	)		(42,032	)
Borrowings under margin account		948			4,387
Repayments under margin account		(1,127	)		(2,536	)
Repurchases of common stock		(5,877	)		(10,828	)
Net cash used in financing activities		(155	)		(62,662	)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		24,298			21,238
CASH, CASH EQUIVALENTS AND RESTRICTED CASH -Beginning of period		18,509			337
CASH, CASH EQUIVALENTS AND RESTRICTED CASH -End of period	$	42,807		$	21,575
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	5,406		$	6,425
Income taxes	$	14,540		$	2,581
NONCASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment included in accounts payable	$	0		$	2,282

See notes to condensed consolidated financial statements.

5

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands)

	Common Stock Shares / Amount						Additional Paid-In Capital			Treasury Stock			Retained Earnings			Total
Balance at January 1, 2022		22,348		$	234		$	84,472		$	(169,946	)	$	301,350		$	216,110
Net Income		-			-			-			-			23,942			23,942
Stock Split		-			111			(111	)		-			-			-
Treasury stock repurchases		(83	)		-			-			(3,000	)		-			(3,000	)
Retirement of Treasury Shares		-			(122	)		(44,289	)		172,946			(128,535	)		-
Stock based compensation		-			-			137			-			-			137
Balance at March 31, 2022		22,265		$	223		$	40,209		$	-		$	196,757		$	237,189
Net Income		-			-			-			-			24,182			24,182
Exercise of stock awards-shares issued including tax benefits		4			-			-			-			-			-
Stock based compensation		-			-			216			-			-			216
Balance at June 30, 2022		22,269		$	223		$	40,425		$	-		$	220,939		$	261,587
Net Income		-			-			-			-			24,566			24,566
Restricted stock issued		11			-			-			-			-			-
Restricted stock net settlement		-			-			(315	)		-			-			(315	)
Stock based compensation		-			-			175			-			-			175
Treasury stock repurchases		(93	)		-			-			(2,877	)					(2,877	)
Balance at September 30, 2022		22,187		$	223		$	40,285		$	(2,877	)	$	245,505		$	283,136

	Common Stock Shares / Amount						Additional Paid-In Capital			Treasury Stock			Retained Earnings		Total
Balance at January 1, 2021		22,912		$	117		$	84,148		$	(159,118	)	$	224,834	$	149,981
Net Income		-			-			-			-			11,949		11,949
Treasury stock repurchases		(12	)		-			-			(144	)		-		(144	)
Stock based compensation		-			-			79			-			-		79
Balance at March 31, 2021		22,900		$	117		$	84,227		$	(159,262	)	$	236,783	$	161,865
Net Income		-			-			-			-			15,317		15,317
Exercise of stock awards-shares issued including tax benefits		3			-			-			-			-		-
Stock based compensation		-			-			174			-			-		174
Balance at June 30, 2021		22,903		$	117		$	84,401		$	(159,262	)	$	252,100	$	177,356
Net Income		-			-			-			-			21,359		21,359
Stock Split		-			117			(117	)		-			-		-
Treasury stock repurchases		(570	)		-			-			(10,684	)		-		(10,684	)
Stock based compensation		-			-			95			-			-		95
Balance at September 30, 2021		22,335		$	234	(1)	$	84,379	(1)	$	(169,946	)	$	273,459	$	188,126

See notes to condensed consolidated financial statements.

All prior period share and per share data has been retroactively adjusted to reflect the stock splits effective August 16, 2021 and March 29, 2022, respectively.

(1) Common stock par value and additional paid-in capital dollar values are not retroactively adjusted for the stock split effective March 29, 2022.

6

P.A.M. TRANSPORTATION SERVICES, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (unaudited)

September 30, 2022

NOTE A: BASIS OF PRESENTATION

In accordance with generally accepted accounting principles (“GAAP”) and applicable rules of the Securities and Exchange Commission, the information reported in this Quarterly Report on Form 10-Q for P.A.M. Transportation Services, Inc. and its legally distinct subsidiaries, unless otherwise indicated, is presented on a consolidated basis. Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to “P.A.M.,” the “Company,” “we,” “our,” or “us” mean P.A.M. Transportation Services, Inc. and its consolidated subsidiaries.

The consolidated financial results for the three and nine months ended  September 30, 2022, include the results of our newly formed subsidiaries, Met Express, Inc. and Costar Equipment, Inc., from June 14, 2022, the date of the acquisition of substantially all of the assets and certain liabilities of Metropolitan Trucking, Inc. and its related entities, through  September 30, 2022. All material intercompany items and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the three and nine-month periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to the consolidated financial statements and the footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021.

On July 13, 2021 and March 8, 2022, our Board of Directors declared 2-for-1 forward stock splits of the shares of our common stock, each of which was effected in the form of a 100% stock dividend. The stock splits entitled each shareholder of record at the close of business on July 30, 2021 and March 18, 2022, respectively, to receive one additional share of common stock for each share of common stock owned as of that date. The stock splits were paid on August 16, 2021 and March 29, 2022, respectively. Upon the completion of the August 2021 stock split, our outstanding shares increased from approximately 5.7 million shares to approximately 11.4 million shares. Upon the completion of the March 2022 stock split, our outstanding shares increased from approximately 11.1 million shares to approximately 22.2 million shares. All share and per share amounts in this quarterly report on Form 10-Q give effect to these stock splits and have been adjusted retrospectively, where applicable, for all periods presented.

NOTE B: RECENT ACCOUNTING PRONOUNCEMENTS

In March 2020, the FASB issued Accounting Standards Update No. 2020-04, (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. ASU 2020-04 is effective as of  March 12, 2020, through  December 31, 2022. The Company has evaluated the provisions of this standard and determined that it is applicable to our line of credit and investment margin account. The London Interbank Offered Rate (“LIBOR”) was the basis for interest charges on outstanding borrowings for our line of credit. During the year 2021, the index for interest charges on the Company’s investment margin accounts was transitioned to the Secured Overnight Financing Rate (“SOFR”). The new index rate did not vary materially from LIBOR at the time of transition. During the third quarter of 2022, the index for interest charges on the Company’s line of credit was transitioned to the Secured Overnight Financing Rate (“SOFR”). The discontinuation of LIBOR did not materially alter any provisions of either of these debt instruments. The adoption of the new guidance did not have a material impact on the Company’s financial condition, results of operations, or cash flows.

NOTE C: REVENUE RECOGNITION

The Company has a single performance obligation, to transport our customer’s freight from a specified origin to a specified destination. The Company has the discretion to choose to self-transport or to arrange for alternate transportation to fulfill the performance obligation. Where the Company decides to self-transport the freight, the Company classifies the service as truckload services, and where the Company arranges for alternate transportation of the freight, the Company classifies the service as brokerage and logistics services. In either case, the Company is paid a rate to transport freight from its origin location to a specified destination. Because the primary factors influencing revenue recognition, including performance obligation, customer base, and timing of revenue recognition, are the same for both of its service categories, the Company utilizes the same revenue recognition method throughout its operations.

7

 

Company revenue is generated from freight transportation services performed utilizing heavy truck trailer combinations. While various ownership arrangements may exist for the equipment utilized to perform these services, including Company owned or leased, owner-operator owned, and third-party carriers, revenue is generated from the same base of customers. Contracts with these customers establish rates for services performed, which are predominantly rates that will be paid to pick up, transport and drop off freight at various locations. In addition to transportation, revenue is also awarded for various accessorial services performed in conjunction with the base transportation service. The Company also has other revenue categories that are not discussed in this note or broken out in our condensed consolidated statements of operations due to their immaterial amounts.

In fulfilling the Company’s obligation to transport freight from a specified origin to a specified destination, control of freight is transferred to us at the point it has been loaded into the driver’s trailer, the doors are sealed and the driver has signed a bill of lading, which is the basic transportation agreement that establishes the nature, quantity and condition of the freight loaded, the responsibility for invoice payment and the pickup and delivery locations. Our revenue is generated, and our customer receives benefit, as the freight progresses towards delivery locations. In the event our customer cancels the shipment at some point prior to the final delivery location and re-consigns the shipment to an alternate delivery location, we are entitled to receive payment for services performed for the partial shipment. Shipments are generally conducted over a relatively short time span, generally one to three days; however, freight is sometimes stored temporarily in our trailer at one of our drop yard locations or at a location designated by a customer. Our revenue is categorized as either Freight Revenue or Fuel Surcharge Revenue, and both are earned by performing the same freight transportation services, as discussed further below.

Freight Revenue – revenue generated by the performance of the freight transportation service, including any accessorial service, provided to customers.

Fuel Surcharge Revenue – revenue designed to adjust freight revenue rates to an agreed-upon base cost for diesel fuel. Diesel fuel prices can fluctuate widely during the term of a contract with a customer. At the point that freight revenue rates are negotiated with customers, a sliding scale is agreed upon that approximately adjusts diesel fuel costs to an agreed-upon base amount. In general, as fuel prices increase, revenue from fuel surcharge increases, so that diesel fuel cost is adjusted to the approximate base amount agreed upon.

Revenue is recognized over time as the freight progresses towards its destination and the transportation service obligation is fulfilled. For loads picked up during the reporting period, but delivered in a subsequent reporting period, revenue is allocated to each period based on the transit time in each period as a percentage of total transit time. There are no assets or liabilities recorded in conjunction with revenue recognized, other than accounts receivable and estimated credit losses.

NOTE D: MARKETABLE EQUITY SECURITIES

The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method, and interest and dividends on securities are included in non-operating income.

Marketable equity securities are carried at fair value, with gains and losses in fair market value included in the determination of net income. The fair value of marketable equity securities is determined based on quoted market prices in active markets, as described in Note J.

The following table sets forth market value, cost, and unrealized gains on equity securities as of September 30, 2022 and December 31, 2021.

	September 30, 2022		December 31, 2021
	(in thousands)
Fair market value	$	36,002	$	39,424
Cost		30,092		29,385
Unrealized gain	$	5,910	$	10,039

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of September 30, 2022 and December 31, 2021.

	September 30, 2022		December 31, 2021
	(in thousands)
Gross unrealized gains	$	9,278	$	12,458
Gross unrealized losses		3,368		2,419
Net unrealized gain	$	5,910	$	10,039

8

 

The following table shows the Company’s net realized gains during the three and nine months ending on September 30, 2022 and 2021, respectively, on certain marketable equity securities.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Sales proceeds	$	-	$	72	$	-	$	1,496
Cost of securities sold		-		19		-		560
Realized gain	$	-	$	53	$	-	$	936

For the quarter ended September 30, 2022, the Company recognized dividends received of approximately $428,000 in non-operating income in its condensed consolidated statements of operations. For the quarter ended September 30, 2021, the Company recognized dividends received of approximately $335,000 in non-operating income in its condensed consolidated statements of operations.

For the nine months ended September 30, 2022, the Company recognized dividends received of approximately $1,095,000 in non-operating income in its condensed consolidated statements of operations. For the nine months ended September 30, 2021, the Company recognized dividends received of approximately $995,000 in non-operating income in its condensed consolidated statements of operations.

The Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of September 30, 2022, and December 31, 2021, the Company had outstanding borrowings of approximately $1,035,000 and $1,214,000, respectively, under its margin account. Margin account borrowings are used for the purchase of marketable equity securities and as a source of short-term liquidity and are included in accrued expenses and other liabilities on our condensed consolidated balance sheets.

Our marketable equity securities portfolio had a net unrealized pre-tax loss in market value of approximately $2,387,000 during the third quarter of 2022, and a net unrealized pre-tax loss in market value of approximately $456,000 during the third quarter of 2021, which were reported as non-operating income in its condensed consolidated statements of operations for the respective periods.

NOTE E: STOCK-BASED COMPENSATION

The Company maintains a stock incentive plan (the “Plan”) under which incentive and nonqualified stock options and other stock awards may be granted. Under the Plan, 3,000,000 shares are reserved for the issuance of stock awards to directors, officers, key employees, and others. The stock option exercise price and the restricted stock value under the Plan shall not be less than 85% of the fair market value of the Company’s common stock on the date the award is granted. The fair market value is determined by the closing price of the Company’s common stock, on its primary exchange, on the same date that the option or award is granted.

During February 2022, the Company granted 29,120 shares of common stock to certain key employees. These stock awards had grant date fair values of $38.80 per share, based on the closing price of the Company’s stock on the date of grant, and vest in 25% increments over four years, beginning one year from the anniversary date of the grant.

During May 2022, the Company granted 1,855 shares of common stock to non-employee directors. These stock awards had a grant date fair value of $29.60 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.

During June 2022, the Company granted 3,500 shares of common stock to a key employee. This stock award had a grant date fair value of $27.68 per share, based on the closing price of the Company’s stock on the date of grant, and vests in 25% increments over four years, beginning one year from the anniversary date of the grant.

The total grant date fair value of stock vested during the first nine months of 2022 was approximately $269,000. The total pre-tax stock-based compensation expense, recognized in salaries, wages and benefits during the first nine months of 2022, was approximately $528,000 and includes approximately $55,000 recognized as a result of the grant of shares to certain non-employee directors. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.01 during the first nine months of 2022. As of September 30, 2022, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $2,601,000, which is being amortized on a straight-line basis over the remaining vesting period. As a result, the Company expects to recognize approximately $187,000 in additional compensation expense related to unvested stock awards during the remainder of 2022 and to recognize approximately $649,000, $641,000, $670,000, $343,000, and $111,000 in additional compensation expense related to unvested stock awards during the years 2023, 2024, 2025, 2026, and 2027, respectively.

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The total grant date fair value of stock vested during the first nine months of 2021 was approximately $80,000. The total pre-tax stock-based compensation expense, recognized in salaries, wages and benefits during the first nine months of 2021, was approximately $347,000 and includes approximately $80,000 recognized as a result of the grant of 326 shares to each non-employee director. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.02 during the first nine months of 2021. As of September 30, 2021, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $1,941,000, which was being amortized on a straight-line basis over the remaining vesting period.

A summary of the status of the Company’s non-vested restricted stock as of September 30, 2022, and changes during the nine months ended September 30, 2022, is as follows:

	Restricted Stock
	Number of Shares			Weighted- Average Grant Date Fair Value
Non-vested at January 1, 2022		239,212		$	9.25
Granted		34,475			37.18
Canceled/forfeited/expired		-			-
Vested		(24,355	)		11.06
Non-vested at September 30, 2022		249,332		$	12.93

NOTE F: SEGMENT INFORMATION

The Company follows the guidance provided by ASC Topic 280, Segment Reporting, in its identification of operating segments. The Company has determined that it has a total of two operating segments whose primary operations can be characterized as either Truckload Services or Brokerage and Logistics Services; however, in accordance with the aggregation criteria provided by FASB ASC Topic 280, the Company has determined that the operations of the two operating segments can be aggregated into a single reporting segment, Motor Carrier Operations. Truckload Services revenues and Brokerage and Logistics Services revenues, each before fuel surcharges, were as follows:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Amount		%		Amount		%		Amount		%		Amount		%
	(in thousands)
Truckload Services revenue	$	144,982		67.0	$	110,436		66.4	$	404,658		65.8	$	298,835		66.9
Brokerage and Logistics Services revenue		71,493		33.0		55,895		33.6		210,645		34.2		147,812		33.1
Total revenues	$	216,475		100.0	$	166,331		100.0	$	615,303		100.0	$	446,647		100.0

These segment results include of the results of the truckload services and brokerage operations acquired from Metropolitan Trucking, Inc., and related subsidiaries in the business combination discussed in Note P to the condensed consolidated financial statements.

NOTE G: TREASURY STOCK

The Company’s stock repurchase program has been extended and expanded several times, most recently in November 2021, when the Board of Directors reauthorized 500,000 shares of common stock for repurchase under the initial September 2011 authorization. As of September 30, 2022, there remain 365,266 shares of common stock authorized for repurchase under this plan.

During the first quarter of 2022, prior to the March 2022 stock split, we retired 12,268,395 shares of our treasury stock. Upon retirement of the treasury shares, we allocated the excess of the repurchase price over the par value of shares acquired to both retained earnings and paid-in capital. The portion allocated to paid-in capital was determined by applying the average paid-in capital per share, and the remaining portion was recorded to retained earnings. There was no effect on the Company’s overall equity position due to the retirement of treasury shares.

The Company accounts for treasury stock using the cost method. As of September 30, 2022, 93,124 shares were held in the treasury at an aggregate cost of approximately $2,877,000.

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NOTE H: EARNINGS PER SHARE

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by adjusting the weighted average number of shares of common stock outstanding by common stock equivalents attributable to dilutive restricted stock. The computation of diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on earnings per share. The computations of basic and diluted earnings per share were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands, except per share data)
Net income	$	24,566	$	21,359	$	72,690	$	48,625
Basic weighted average common shares outstanding		22,263		22,724		22,276		22,842
Dilutive effect of common stock equivalents		177		136		192		120
Diluted weighted average common shares outstanding		22,440		22,860		22,468		22,962
Basic earnings per share	$	1.10	$	0.94	$	3.26	$	2.13
Diluted earnings per share	$	1.09	$	0.93	$	3.24	$	2.12

NOTE I: INCOME TAXES

The Company and its subsidiaries are subject to U.S. and Canadian federal income tax laws as well as the income tax laws of multiple state jurisdictions. The major tax jurisdictions in which the Company operates generally provide for a deficiency assessment statute of limitations period of three years, and as a result, the Company’s tax years 2018 and forward remain open to examination in those jurisdictions.

In determining whether a tax asset valuation allowance is necessary, management, in accordance with the provisions of ASC 740-10-30, Accounting for Income Taxes, weighs all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is necessary. If negative conditions exist which indicate a valuation allowance might be necessary, consideration is then given to what effect the future reversals of existing taxable temporary differences and the availability of tax strategies might have on future taxable income to determine the amount, if any, of the required valuation allowance. As of September 30, 2022, management determined that the future reversals of existing taxable temporary differences and available tax strategies would generate sufficient future taxable income to realize its tax assets and therefore a valuation allowance was not necessary.

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by taxing authorities, based on the technical merits of the position. As of September 30, 2022, an adjustment to the Company’s condensed consolidated financial statements for uncertain tax positions has not been required as management believes that the Company’s tax positions taken in income tax returns filed or to be filed are supported by clear and unambiguous income tax laws. The Company recognizes interest and penalties related to uncertain income tax positions, if any, in income tax expense. During the nine months ended September 30, 2022 and 2021, the Company has not recognized or accrued any interest or penalties related to uncertain income tax positions.

The Company’s effective income tax rates were 23.6% and 26.3% for the nine months ended September 30, 2022 and 2021, respectively. Our effective tax rate for the nine months ended September 30, 2022 differs from amounts computed by applying the United States federal statutory rates to pre-tax income primarily due to state income taxes and the tax benefits related to stock compensation.

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NOTE J: FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash and cash equivalents, marketable equity securities, accounts receivable, trade accounts payable, and borrowings.

The Company follows the guidance for financial assets and liabilities measured on a recurring basis. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date and also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1:	Quoted market prices in active markets for identical assets or liabilities.
Level 2:	Inputs other than Level 1 inputs that are either directly or indirectly observable such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable; or other inputs not directly observable, but derived principally from, or corroborated by, observable market data.
Level 3:	Unobservable inputs that are supported by little or no market activity.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

At September 30, 2022, the following items are measured at fair value on a recurring basis:

	Total		Level 1		Level 2		Level 3
	(in thousands)
Marketable equity securities	$	36,002	$	36,002		-		-

The Company’s investments in marketable securities are recorded at fair value based on quoted market prices. The carrying value of other financial instruments, including cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities.

The carrying amount for the line of credit approximates fair value because the line of credit interest rate is adjusted frequently.

For long-term debt other than the lines of credit, the fair values are estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The carrying value and estimated fair value of this other long-term debt at September 30, 2022 was as follows:

	Carrying Value		Estimated Fair Value
	(in thousands)
Long-term debt	$	257,343	$	246,003

The Company has not elected the fair value option for any of its financial instruments.

NOTE K: NOTES PAYABLE

During the first nine months of 2022, the Company’s subsidiaries entered into installment obligations totaling approximately $76.8 million, including $35.5 million for the financing of real estate and $41.3 million for the purpose of purchasing revenue equipment and other assets. These obligations are payable in monthly installments and are recorded in long term debt and current maturities on the condensed consolidated balance sheets. The terms of these obligations vary from 60 months for trucks to 120 months for real estate. In addition, during June 2022 the Company’s subsidiaries assumed approximately $12.3 million of installment obligations as part of a business acquisition. The terms of these obligations varied from 1 month to 36 months for trucks acquired and from 24 months to 34 months for trailers acquired.

NOTE L: LITIGATION

We are involved in certain claims and pending litigation arising from the ordinary conduct of business. We also provide accruals for claims within our self-insured retention amounts. On September 1, 2019, we elected to become self-insured for certain layers of auto liability claims in excess of $1.0 million for which we previously maintained auto liability insurance coverage. On September 1, 2020, we elected to become self-insured for certain layers of auto liability claims in excess of $2.0 million. We currently specifically reserve for claims that are expected to exceed $2.0 million when fully developed, based on the facts and circumstances of those claims.

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However, if we experience claims that are not covered by our insurance or that exceed our estimated claim reserve, it could increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.

We are a defendant in a lawsuit which was filed on August 6, 2021, in the United States District Court for the Western District of Arkansas. The plaintiff is a former driver and is seeking class certification. The complaint alleges failure to pay minimum wage under the Fair Labor Standards Act and the Arkansas Minimum Wage Act, violations of the Electronic Funds Transfer Act (EFTA), violations of the Arkansas Wage Payment Law (discharge pay and unlawful, usurious advance fees), violations of the Arkansas Common Law, and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO).  Should this lawsuit be certified as a class action, to include similarly situated drivers as the plaintiff, the class will seek actual and liquated damages to include court costs and legal fees associated with the lawsuit. The class, if certified, will include any company driver employed from January 1, 2020 through the present and ongoing. A settlement agreement has been reached and is pending court approval. Management has determined that any losses under this claim will not be covered by existing insurance policies. This settlement has been fully reserved as of September 30, 2022.

NOTE M: LEASES

The Company currently leases shop, office and parking spaces in various locations in the United States and Mexico. The initial term for the majority of these leases is one year or less, with an option for early cancellation and an option to renew for subsequent one- month periods. These leases can be terminated by either party by providing notice to the other party of the intent to cancel or to not extend. Relatively short lease durations for these properties are intended to provide flexibility to the Company as changing operational needs and shifting opportunities often result in cancellation or non-renewal of these leases by the Company or the lessor.

The initial lease term for certain shop and office locations is for periods ranging from one to five years with early cancellation options. The Company prefers that leases include early cancellation provisions to prevent becoming locked into long-term leases that become operationally unjustified and to allow the flexibility to pursue more cost-effective options for similar properties if they become available. These leases often include the option to extend for additional periods, which may or may not be exercised. Based on historical experience, the Company does not always extend these leases, sometimes exercises the option to cancel leases early and sometimes lessors choose to cancel leases or not extend.

The Company leases trucks to owner-operators under our lease-to-own program. We also lease dock space to a related party at our Laredo, Texas terminal.

Right-of-Use Leases

The Company is party to operating leases which include initial terms ranging from three to five years and which do not include an option for early cancellation. In accordance with the provisions of ASC Topic 842, these leases resulted in the recognition of right-of-use assets and corresponding operating lease liabilities, respectively, valued at $0.5 million as of September 30, 2022. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date, using the Company’s incremental borrowing rate as of the respective dates of lease inception, as the rate implicit in each lease is not readily determinable. The right-of-use assets are recorded in other assets, and the lease liability is recorded in accrued expenses and other liabilities and in other long-term liabilities on our condensed consolidated balance sheet. Lease expense is recorded on a straight-line basis over the lease term and is recorded in rent and purchased transportation in our condensed consolidated statements of operations. While these lease agreements may contain provisions to extend after the initial term for an additional five years, the Company is not reasonably certain these extension options will be exercised. Therefore, potential lease payments that might occur under this extension period are not included in amounts recorded in our condensed consolidated balance sheets as of September 30, 2022.

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Scheduled amounts and timing of cash flows arising from future right-of-use operating lease payments at September 30, 2022, are:

Maturity of Lease Liabilities	(in thousands)
2022 (remaining)	$	84
2023		340
2024		114
2025 and thereafter		-
Total undiscounted operating lease payments	$	538
Less: Imputed interest		(14	)
Present value of operating lease liabilities	$	524
Balance Sheet Classification
Right-of-use assets (recorded in other non-current assets)	$	524
Current lease liabilities (recorded in other current liabilities)	$	339
Long-term lease liabilities (recorded in other long-term liabilities)		185
Total operating lease liabilities	$	524
Other Information
Weighted-average remaining lease term for operating leases (years)		1.58
Weighted-average discount rate for operating leases		3.74	%

Cash Flows

No new right-of-use assets were recognized as a non-cash asset addition that resulted from new operating lease liabilities during the three and nine months ended September 30, 2022. Cash paid for amounts included in the present value of operating lease liabilities was $0.1 million during the three months ended September 30, 2022 and is included in operating cash flows, within the condensed consolidated statement of cash flows. Cash paid for amounts included in the present value of operating lease liabilities was $0.4 million during the nine months ended September 30, 2022 and is included in operating cash flows, within the condensed consolidated statement of cash flows.

Operating Lease Costs

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Long-term	$	125	$	147	$	435	$	441
Short-term		627		572		1,732		1,632
Total	$	752	$	719	$	2,167	$	2,073

Lease Revenue

The Company's operating lease revenue is disclosed in the table below.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Leased truck revenue (recorded in revenue, before fuel surcharge)	$	2,228	$	2,039	$	6,519	$	5,444
Leased building space revenue (recorded in non-operating income)		99		169		426		506
Total lease revenue	$	2,327	$	2,208	$	6,945	$	5,950

The Company leases trucks to owner-operators under operating leases, which generally have a term of up to five years and include options to purchase the truck at the end of the lease. In the event that an independent contractor defaults on their lease, the Company generally leases the truck to another independent contractor.

As of September 30, 2022, the gross carrying value of trucks underlying these leases was $55.2 million and accumulated depreciation was $35.0 million. Depreciation is calculated on a straight-line basis over the estimated useful life of the equipment, down to an estimated salvage value. In most cases, the Company has agreements in place with certain manufacturers whereby salvage values are guaranteed by the manufacturer. In other cases, where salvage values are not guaranteed, estimates of salvage value are based on the expected market values of equipment at the time of disposal. During the quarter ended September 30, 2022, the Company incurred $1.6 million of depreciation expense for these assets.

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The Company leases dock space to a related party at our Laredo, Texas terminal. The dock space is depreciated in conjunction with the structures and improvements for the entire Laredo terminal on a straight-line basis over the estimated useful life of the assets. Lease income is recorded as a component of non-operating income in our condensed consolidated statements of operations.

Lease Receivables

Future minimum operating lease payments receivable at September 30, 2022:

	(in thousands)
2022 (remaining)	$	2,085
2023		6,472
2024		3,207
2025		94
2026 and thereafter		-
Total future minimum lease payments receivable	$	11,858

NOTE N: EFFECT OF COVID-19 PANDEMIC

The rapid spread of COVID-19 resulted in governmental authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, increased border and port controls and closures, and shutdowns. These measures and the public health concerns resulting from the outbreak severely disrupted economic and commercial activity. The resulting impact on domestic and global supply chains caused slowdowns and reduced freight demand for transportation companies such as ours. Because we have a significant concentration of customers within the automotive industry, our freight volumes and revenues were significantly affected by the closure of North American automotive manufacturing facilities beginning in late March of 2020. Our automotive customers resumed operations during the second quarter of 2020 and have not been materially disrupted during 2021 or the first nine months of 2022. Any future delays or interruptions of automotive production and other consumer activity affecting our customers that could result from any future wave of the virus or other similar outbreaks could further adversely affect our business. In addition, the implementation of measures to protect the health and safety of our employees, customers, vendors and the general public, or any state of federal vaccination mandates, may disrupt our ability to efficiently manage personnel and operations and to recruit and retain driver and non-driver personnel, which could have a material adverse effect on our operating results. Further, negative financial results, an economic downturn or uncertainty, or a tightening of credit markets caused by COVID-19 or other similar outbreaks could have a material adverse effect on our liquidity and our ability to effectively meet our short- and long-term financial obligations.

NOTE O: NONCASH INVESTING AND FINANCING ACTIVITIES

The Company financed approximately $16.9 million in equipment purchases during the first nine months of 2022 utilizing noncash financing.

NOTE P: ACQUISITION OF METROPOLITAN TRUCKING

On June 14, 2022, subsidiaries of the Company, Met Express, Inc. and Costar Equipment, Inc. (collectively, the “Buyer”), entered into an Asset Purchase Agreement with Metropolitan Trucking, Inc., and related subsidiaries. Metropolitan Trucking, Inc. was a truckload carrier headquartered in Saddle Brook, New Jersey, providing asset-based dry van truckload transportation services, including local, regional, and dedicated services. The acquisition has been determined to be a business combination.

Pursuant to the Asset Purchase Agreement, the Buyer acquired substantially all the assets and assumed certain specified liabilities of Metropolitan Trucking, Inc., and its related entities (the “Transaction”). The Buyer paid $79.9 million of total consideration, including cash and certain assumed indebtedness of Metropolitan Trucking, Inc., and its related entities. The Transaction closed on June 14, 2022.

Total cash paid of $64.3 million was funded out of the Company’s available cash. The Transaction included the assumption of $12.6 million of indebtedness and $2.9 million of other current liabilities. The Asset Purchase Agreement contains customary representations, warranties, covenants, escrow, and indemnification provisions.

The results of the acquired business have been included in the consolidated financial statements since the date of acquisition and represented 14.1% of consolidated total assets as of September 30, 2022 and represented 9.4% and 4.1% of operating revenue for the three and nine months ended September 30, 2022, respectively. Acquisition related expenses of $0.4 million are included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022.

The allocation of the purchase price is detailed in the tables below. The final purchase price allocation remains subject to other purchase accounting adjustments which may be identified, such as the final valuation of intangible assets and working capital adjustments, and therefore may differ materially from that reflected below.

15

 

The assets and liabilities associated with the acquisition were recorded at their fair values as of the acquisition date and the amounts are as follows:

	(in thousands)
Trade and other accounts receivable	$	10,821
Other current assets		316
Property and equipment		68,722
Total assets		79,859
Accounts payable		(2,915	)
Long-term debt		(12,627	)
Total cash paid	$	64,317

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING INFORMATION

Certain information included in this Quarterly Report on Form 10-Q constitutes “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, prospects, plans 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; ongoing and potential future economic, business and operational disruptions and uncertainties due to the COVID-19 pandemic, including from any future spikes or outbreaks of the virus, or other public health crises, as well as from the implementation of government actions taken in response to the pandemic; increases or rapid fluctuations in fuel prices, inflation, interest rates, fuel taxes, tolls, and 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; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; the impact of pending or future litigation; general risks associated with doing business in Mexico, including, without limitation, exchange rate fluctuations, inflation, import duties, tariffs, quotas, political and economic instability and terrorism; the potential impact of new laws, regulations or policy, including, without limitation, tariffs, import/export, trade and immigration regulations or policies; 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 publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward-looking events and circumstances discussed above and in company filings might not transpire.

CRITICAL ACCOUNTING POLICIES

Except as noted below, there have been no material changes to our critical accounting policies and estimates from the information provided in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Form 10-K for the fiscal year ended December 31, 2021.

Business Combinations. Assets acquired and liabilities assumed as part of a business acquisition are generally recorded at their fair value at the date of acquisition. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires management to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Accounting for business acquisitions requires management to make judgments as to whether a purchase transaction is a multiple element contract, meaning that it includes other transaction components such as a settlement of a preexisting relationship. This judgment and determination affects the amount of consideration paid that is allocable to assets and liabilities acquired in the business purchase transaction.

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BUSINESS OVERVIEW

The Company is a holding company that owns subsidiaries engaged in providing truckload dry van carrier services transporting general commodities throughout the continental United States, as well as in the Canadian provinces of Ontario and Quebec. Unless the context otherwise requires, this report presents information regarding the Company and its subsidiaries on a consolidated basis. The Company’s administrative headquarters are in Tontitown, Arkansas. From this location we manage operations conducted through our wholly-owned subsidiaries based in various locations around the United States and in Mexico and Canada. The operations of these subsidiaries can generally be classified into either truckload services or brokerage and logistics services. This designation is based primarily on the ownership of the asset that performed the freight transportation service. Truckload services are performed by Company divisions that generally utilize Company-owned trucks, long-term contractors, or single-trip contractors to transport loads of freight for customers, while brokerage and logistics services coordinate or facilitate the transport of loads of freight for customers and generally involve the utilization of single-trip contractors. Both our truckload operations and our brokerage and logistics operations have similar economic characteristics and are impacted by virtually the same economic factors as discussed elsewhere in this report.

For both operations, substantially all of our revenue is generated by transporting freight for customers and is predominantly affected by the rates per mile received from our customers, equipment utilization, and our percentage of non-compensated miles. These aspects of our business are carefully managed, and efforts are continuously underway to achieve favorable results. Truckload services revenues, excluding fuel surcharges, represented 67.0% and 66.4% of total revenues, excluding fuel surcharges, for the three months ended September 30, 2022 and 2021, respectively. Truckload services revenues, excluding fuel surcharges, represented 65.8% and 66.9% of total revenues, excluding fuel surcharges, for the nine months ended September 30, 2022 and 2021, respectively. The remaining revenues, excluding fuel surcharges, were generated from brokerage and logistics services.

The main factors that impact our profitability on the expense side are costs incurred in transporting freight for our customers. Currently, our most challenging costs include fuel, driver recruitment, training, wage and benefits costs, independent broker costs (which we record as purchased transportation), insurance, maintenance and capital equipment costs.

In discussing our results of operations, we use revenue, before fuel surcharge (and fuel expense, net of fuel surcharge), because management believes that eliminating the impact of this sometimes volatile source of revenue allows a more consistent basis for comparing our results of operations from period to period. During the three months ended September 30, 2022 and 2021, approximately $36.2 million and $16.8 million, respectively, of the Company’s total revenue was generated from fuel surcharges. During the nine months ended September 30, 2022 and 2021, approximately $93.9 million and $46.6 million, respectively, of the Company’s total revenue was generated from fuel surcharges. We may also discuss certain changes in our expenses as a percentage of revenue, before fuel surcharge, rather than absolute dollar changes. We do this because we believe the variable cost nature of certain expenses makes a comparison of changes in expenses as a percentage of revenue more meaningful than absolute dollar changes.

On July 13, 2021 and March 8, 2022, our Board of Directors declared 2-for-1 forward stock splits of the shares of our common stock, each of which was effected in the form of a 100% stock dividend. The stock splits entitled each shareholder of record at the close of business on July 30, 2021 and March 18, 2022, respectively, to receive one additional share of common stock for each share of common stock owned as of that date. The stock splits were paid on August 16, 2021 and March 29, 2022, respectively. Upon the completion of the August 2021 stock split, our outstanding shares increased from approximately 5.7 million shares to approximately 11.4 million shares. Upon the completion of the March 2022 stock split, our outstanding shares increased from approximately 11.1 million shares to approximately 22.2 million shares. All share and per share amounts in this quarterly report on Form 10-Q give effect to these stock splits and have been adjusted retrospectively, where applicable, for all periods presented. See Note A to the condensed consolidated financial statements for additional information on the stock split.

On June 14, 2022, newly formed subsidiaries of the Company completed the acquisition of substantially all the assets and certain liabilities of Metropolitan Trucking, Inc. and related entities (“Metropolitan”). Metropolitan was a 320-truck dry van truckload carrier, with the East Coast serving as its primary operating territory. The purchase price paid at closing included approximately $15.5 million in assumed debt and $64.3 million paid using available cash balances. The Company is currently operating these assets through its newly formed subsidiary, Met Express, Inc. See Note P to the condensed consolidated financial statements for more information regarding this acquisition.

IMPACT OF COVID-19

The Company’s primary concern during the COVID-19 pandemic has been to do its part to protect its employees, customers, vendors and the general public from the spread of COVID-19 while continuing to serve the vital role of supplying essential goods to the nation. For essential functions, including our driving professionals, we have distributed cleaning and protective supplies to various terminals so that they are available to those that need them, increased cleaning frequency and coverage, and provided employees direction on precautionary measures, such as sanitizing truck interiors, personal hygiene, and social distancing. We will continue to adapt our operations as required to ensure safety while continuing to provide a high level of service to our customers.

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While we and most of our customers have returned to normal operations and economic activity continued to increase during the periods presented, we continue to monitor ongoing developments with the COVID-19 pandemic. Any future waves or outbreaks of alternative strains of the virus could adversely impact our future operations and financial results.

The ultimate extent of the pandemic’s impact on the Company’s financial and operating results, which could be material, will be determined by the length of time the pandemic continues, its continued severity, further government regulations imposed in response to the pandemic and the pandemic’s continued effect on the economy and transportation demand.

The Company believes we will be able to continue to finance our near-term needs for working capital over the next twelve months, as well as any planned capital expenditures during such period, with cash balances, cash flows from operations, and borrowings believed to be available from financing sources.

RESULTS OF OPERATIONS – TRUCKLOAD SERVICES

The following table sets forth, for truckload services, the percentage relationship of expense items to operating revenues, before fuel surcharges, for the periods indicated. Fuel costs are reported net of fuel surcharges.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
	(percentages)
Operating revenues, before fuel surcharge		100.0			100.0			100.0			100.0
Operating expenses:
Salaries, wages and benefits		32.8			29.2			30.5			31.9
Operating supplies and expenses		8.1			8.0			7.1			9.2
Rent and purchased transportation		25.2			24.3			25.7			23.4
Depreciation		11.0			11.2			11.2			13.7
Insurance and claims		3.5			3.1			4.8			3.3
Other		2.9			2.4			2.7			2.4
Gain on sale or disposal of property		(0.9	)		(0.3	)		(0.7	)		(0.3	)
Total operating expenses		82.6			77.9			81.3			83.6
Operating income		17.4			22.1			18.7			16.4
Non-operating (expense) income		(0.9	)		0.1			(0.5	)		1.9
Interest expense		(1.0	)		(1.3	)		(1.0	)		(1.7	)
Income before income taxes		15.5			20.9			17.2			16.6

THREE MONTHS ENDED SEPTEMBER 30, 2022 VS. THREE MONTHS ENDED SEPTEMBER 30, 2021

During the third quarter of 2022, truckload services revenue, before fuel surcharges, increased 31.3% to $145.0 million as compared to $110.4 million during the third quarter of 2021. The increase in revenue was primarily the result of increases in the total number of miles driven during the third quarter of 2022 compared to the third quarter of 2021. The average number of trucks in our fleet during the third quarter of 2022 increased compared to the third quarter of 2021 due to the acquisition of the assets of Metropolitan Trucking, Inc. and to organic fleet growth.

Salaries, wages and benefits increased from 29.2% of revenues, before fuel surcharges, in the third quarter of 2021 to 32.8% of revenues, before fuel surcharges, during the third quarter of 2022. This percentage-based increase is primarily a result of an increase in average driver pay, an increase in the percentage of total miles driven by company drivers in lieu of owner-operators and the organic growth of our driver fleet during the third quarter of 2022, coupled with the addition of employees due to the acquisition of Metropolitan Trucking, Inc. during the second quarter of 2022.

The truckload services division operating ratio, which measures the ratio of operating expenses, net of fuel surcharges, to operating revenues, before fuel surcharges, increased from 77.9% for the third quarter of 2021 to 82.6% for the third quarter of 2022.

Non-operating income (expense) decreased from income of 0.1% of revenues, before fuel surcharges, during the third quarter of 2021 to expense of 0.9% of revenues, before fuel surcharges, during the third quarter of 2022. This decrease primarily resulted from the change in the market values of our portfolio of marketable equity securities. The Company recorded a $2.4 million decrease in the market value of our marketable equity securities in non-operating income (expense) during the third quarter of 2022, compared to a $0.5 million decrease in the market value of our marketable equity securities during the third quarter of 2021.

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NINE MONTHS ENDED SEPTEMBER 30, 2022 VS. NINE MONTHS ENDED SEPTEMBER 30, 2021

For the nine months ended September 30, 2022, truckload services revenue, before fuel surcharges, increased 35.4% to $404.7 million as compared to $298.8 million for the nine months ended September 30, 2021. The increase in revenue was primarily the result of an increase in the average rate per mile charged to our customers during the first nine months of 2022 compared to first nine months of 2021. Also contributing to the increase was an increase in total miles driven for the first nine months of 2022 compared to the first nine months of 2021.

Salaries, wages and benefits decreased from 31.9% of revenues, before fuel surcharges, in the first nine months of 2021 to 30.5% of revenues, before fuel surcharges, during the first nine months of 2022. The percentage-based decrease is primarily a result of the interaction of expenses with fixed-cost characteristics, such as general and administrative wages, maintenance wages, and operations wages with an increase in revenues for the periods compared.

Operating supplies and expenses decreased from 9.2% of revenues, before fuel surcharges, during the first nine months of 2021 to 7.1% of revenues, before fuel surcharges, during the first nine months of 2022. The percentage-based decrease relates primarily to a decrease in the average surcharge-adjusted fuel price paid per gallon of diesel fuel, which decreased as a result of increased fuel surcharge collections from customers. Fuel surcharge collections can fluctuate significantly from period to period as they are generally based on changes in fuel prices from period to period so that, during periods of rising fuel prices, fuel surcharge collections increase, while fuel surcharge collections decrease during periods of falling fuel prices. Fuel surcharge revenue generated from transportation services performed by owner-operators is reflected as a reduction in net operating supplies and expenses, while fuel surcharges paid to owner-operators for their services is reported along with their base rate of pay in the rent and purchased transportation category. These categorizations have the effect of reducing our net operating supplies and expenses while increasing the rent and purchased transportation category, as discussed below.

Rent and purchased transportation increased from 23.4% of revenues, before fuel surcharges, during the first nine months of 2021 to 25.7% of revenues, before fuel surcharges, during the first nine months of 2022. The increase was primarily due an increase in the rates charged by third-party carriers during the first nine months of 2022 compared to the first nine months of 2021. Also contributing to the increase were an increase in the average number of owner-operators under contract from 374 during the first nine months of 2021 to 391 during the first nine months of 2022, as well as an increase in the average rate per mile, including fuel surcharges, paid to owner-operators during the respective periods.

Depreciation decreased from 13.7% of revenues, before fuel surcharges, during the first nine months of 2021 to 11.2% of revenues, before fuel surcharges, during the first nine months of 2022. This decrease is primarily a result of the interaction of an increase in operating revenues with the fixed-cost nature of depreciation expense. Due to the fixed-cost nature of depreciation, an increase in operating revenues, before fuel surcharge, without a corresponding proportional increase in depreciation, decreases depreciation expense as a percentage of operating revenues.

Insurance and claims expense increased from 3.3% of revenues, before fuel surcharges, during the first nine months of 2021 to 4.8% of revenues before fuel surcharges, during the first nine months of 2022. This increase resulted from an increase in litigation reserves due to a preliminary settlement agreement regarding the minimum wage lawsuit discussed in Note L to our condensed consolidated financial statements and to increases in loss reserves.

The truckload services division operating ratio, which measures the ratio of operating expenses, net of fuel surcharges, to operating revenues, before fuel surcharges, improved from 83.6% for the first nine months of 2021 to 81.3% for the first nine months of 2022.

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RESULTS OF OPERATIONS – LOGISTICS AND BROKERAGE SERVICES

The following table sets forth, for logistics and brokerage services, the percentage relationship of expense items to operating revenues, before fuel surcharges, for the periods indicated. Brokerage service operations occur specifically in certain divisions; however, brokerage operations occur throughout the Company in similar operations having substantially similar economic characteristics.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
	(percentages)
Operating revenues, before fuel surcharge		100.0			100.0			100.0			100.0
Operating expenses:
Salaries, wages and benefits		4.6			4.8			4.6			4.6
Rent and purchased transportation		80.4			83.0			81.5			83.5
Other		0.7			0.8			0.8			0.8
Total operating expenses		85.7			88.6			86.9			88.9
Operating income		14.3			11.4			13.1			11.1
Non-operating (expense) income		(0.8	)		(0.1	)		(0.4	)		0.8
Interest expense		(0.6	)		(0.7	)		(0.6	)		(0.8	)
Income before income taxes		12.9			10.6			12.1			11.1

THREE MONTHS ENDED SEPTEMBER 30, 2022 VS. THREE MONTHS ENDED SEPTEMBER 30, 2021

During the third quarter of 2022, logistics and brokerage services revenue, before fuel surcharges, increased 27.9% to $71.5 million as compared to $55.9 million during the third quarter of 2021. The increase relates to an increase in the number of loads serviced and to an increase in the average rates charged to customers during the third quarter of 2022 as compared to the third quarter of 2021.

Rents and purchased transportation decreased from 83.0% of revenues, before fuel surcharges, during the third quarter of 2021 to 80.4% of revenues, before fuel surcharges, during the third quarter of 2022. The decrease resulted from paying third-party carriers a smaller percentage of customer revenue.

The logistics and brokerage services division operating ratio, which measures the ratio of operating expenses, net of fuel surcharges, to operating revenues, before fuel surcharges, improved from 88.6% for the third quarter of 2021 to 85.7% for the third quarter of 2022.

NINE MONTHS ENDED SEPTEMBER 30, 2022 VS. NINE MONTHS ENDED SEPTEMBER 30, 2021

During the first nine months of 2022, logistics and brokerage services revenue, before fuel surcharges, increased 42.5% to $210.6 million as compared to $147.8 million during the first nine months of 2021. The increase relates to an increase in the number of loads serviced and in the average rates charged to customers during the first nine months of 2022 as compared to the first nine months of 2021.

Rents and purchased transportation decreased from 83.5% of revenues, before fuel surcharges, during the first nine months of 2021 to 81.5% of revenues, before fuel surcharges, during the first nine months of 2022. The decrease resulted from paying third-party carriers a smaller percentage of customer revenue.

The logistics and brokerage services division operating ratio, which measures the ratio of operating expenses, net of fuel surcharges, to operating revenues, before fuel surcharges, improved from 88.9% for the first nine months of 2021 to 86.9% for the first nine months of 2022.

RESULTS OF OPERATIONS – COMBINED SERVICES

THREE MONTHS ENDED SEPTEMBER 30, 2022 VS. THREE MONTHS ENDED SEPTEMBER 30, 2021

Net income for all divisions was approximately $24.6 million, or 11.3% of revenues, before fuel surcharges for the third quarter of 2022 as compared to net income of $21.4 million, or 12.8% of revenues, before fuel surcharges for the third quarter of 2021. The increase in net income resulted in diluted earnings per share of $1.09 for the third quarter of 2022 as compared to diluted earnings per share of $0.93 for the third quarter of 2021.

20

NINE MONTHS ENDED SEPTEMBER 30, 2022 VS. NINE MONTHS ENDED SEPTEMBER 30, 2021

Net income for all divisions was approximately $72.7 million, or 11.8% of revenues, before fuel surcharges for the first nine months of 2022 as compared to net income of $48.6 million, or 10.9% of revenues, before fuel surcharges for the first nine months of 2021. The increase in net income resulted in a diluted earnings per share of $3.24 for the first nine months of 2022 as compared to diluted earnings per share of $2.12 for the first nine months of 2021.

LIQUIDITY AND CAPITAL RESOURCES

Our business has required, and will continue to require, a significant investment in new revenue equipment. Our primary sources of liquidity have been funds provided by operations, proceeds from the sales of revenue equipment, and borrowings under our credit facilities, installment notes, and investment margin account.

During the first nine months of 2022, we generated $120.1 million in cash from operating activities. Investing activities used $95.6 million in cash in the first nine months of 2022. Financing activities generated $0.2 million in cash in the first nine months of 2022.

Our primary use of funds is for the purchase of revenue equipment. We typically use installment notes, our existing line of credit on an interim basis, proceeds from the sale or trade of equipment, and cash flows from operations to finance capital expenditures and repay long-term debt. During the first nine months of 2022, we utilized cash on hand, installment notes, and our line of credit to finance purchases of revenue equipment and other assets of approximately $107.3 million, including the purchase of assets associated with the Metropolitan business acquisition.

We commonly finance the acquisition of revenue equipment through installment notes with fixed interest rates and terms ranging from 36 to 84 months. During the first nine months of 2022, the Company’s subsidiary, P.A.M. Transport, Inc., entered into installment obligations totaling approximately $76.8 million, including $35.5 million for the financing of real estate and $41.3 million for the purpose of purchasing revenue equipment and other assets. These obligations are payable in monthly installments.

During the remainder of 2022, we expect to purchase approximately 130 new trucks and 200 new trailers while continuing to sell or trade older equipment, which we expect to result in net capital expenditures of approximately $20.5 million.

We currently intend to retain our future earnings to finance our growth and do not anticipate paying cash dividends in the foreseeable future.

During the first nine months of 2022, we maintained a revolving line of credit. Amounts outstanding under the line bear interest at Term SOFR plus 1.35% (4.33% at September 30, 2022), are secured by our trade accounts receivable and mature on July 1, 2024. An “unused fee” of 0.25% is charged if average borrowings are less than $18.0 million. At September 30, 2022 outstanding advances on the line of credit were approximately $0.4 million, consisting of letters of credit, with availability to borrow $59.6 million.

Trade accounts receivable increased from $121.9 million at December 31, 2021 to $155.2 million at September 30, 2022. The increase resulted from an increase in freight revenues, which flow through accounts receivable, during the third quarter of 2022 as compared to the fourth quarter of 2021.

Prepaid expenses and deposits increased from $11.0 million at December 31, 2021 to $12.0 million at September 30, 2022. The decrease relates to the prepayment of policy renewals during the third quarter of 2022, offset by the normal amortization of items prepaid as of December 31, 2021.

Revenue equipment increased from $520.8 million at December 31, 2021 to $625.6 million at September 30, 2022. The increase is primarily due to the acquisition of trucks and trailers as part of the acquisition of Metropolitan Trucking during the second quarter of 2022.

Marketable equity securities decreased from $39.4 million at December 31, 2021 to $36.0 million at September 30, 2022. The $3.4 million decrease was due to a decrease in the market value of held marketable equity securities of $4.3 million and the purchase of marketable equity securities with a combined purchase cost of approximately $0.9 million during the first nine months of 2022.

Accounts payable increased from $43.4 million at December 31, 2021 to $54.7 million at September 30, 2022. This increase was primarily attributable to an increase in the amount due to third-party carriers as of September 30, 2022.

Accrued expenses and other liabilities increased from $14.1 million at December 31, 2021 to $24.8 million at September 30, 2022. The increase is primarily due to accruals of legal reserves during the first nine months of 2022.

21

Long-term debt and current maturities of long term-debt are reviewed on an aggregate basis, as the classification of amounts in each category are typically affected merely by the passage of time. Long-term debt and current maturities of long-term debt, on an aggregate basis, increased from $222.3 million at December 31, 2021 to $257.3 million at September 30, 2022. The increase was primarily related to the financing of certain real estate holdings to generate $35.5 million in available cash during the first three months of 2022 and to the assumption of $12.6 million of installment debt associated with the acquisition of Metropolitan Trucking during the second quarter of 2022.

NEW ACCOUNTING PRONOUNCEMENTS

See Note B to the condensed consolidated financial statements for a description of the most recent accounting pronouncements and their impact, if any, on the Company.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Our primary market risk exposures include equity price risk, interest rate risk, commodity price risk (the price paid to obtain diesel fuel for our trucks), and foreign currency exchange rate risk. The potential adverse impact of these risks are discussed below. While the Company has used derivative financial instruments in the past to manage its interest rate and commodity price risks, the Company does not currently enter into such instruments for risk management purposes or for speculation or trading.

The following sensitivity analyses do not consider the effects that an adverse change may have on the overall economy, nor do they consider additional actions we may take to mitigate our exposure to such changes. Actual results of changes in prices or rates may differ materially from the hypothetical results described below.

Equity Price Risk

We hold certain actively traded marketable equity securities, which subjects the Company to fluctuations in the fair market value of its investment portfolio based on the current market price of such securities. The recorded value of marketable equity securities decreased to $36.0 million at September 30, 2022 from $39.4 million at December 31, 2021. A 10% decrease in the market price of our marketable equity securities would cause a corresponding 10% decrease in the carrying amounts of these securities, or approximately $3.6 million. For additional information with respect to the marketable equity securities, see Note D to our condensed consolidated financial statements.

Interest Rate Risk

Our line of credit bears interest at a floating rate equal to SOFR plus a fixed percentage. Accordingly, changes in SOFR, which are affected by changes in interest rates, or a change to a new index rate, will affect the interest rate on, and therefore our costs under, the line of credit. Assuming $1.0 million of variable rate debt was outstanding under our line of credit for a full fiscal year, a hypothetical 100 basis point increase in SOFR would result in approximately $10,000 of additional interest expense.

Commodity Price Risk

Prices and availability of all petroleum products are subject to political, economic, and market factors that are generally outside of our control. Accordingly, the price and availability of diesel fuel, as well as other petroleum products, can be unpredictable. Because our operations are dependent upon diesel fuel, significant increases in diesel fuel costs could materially and adversely affect our results of operations and financial condition. Based upon our 2021 fuel consumption, a 10% increase in the average annual price per gallon of diesel fuel would increase our annual fuel expenses by $5.2 million.

Foreign Currency Exchange Rate Risk

We are exposed to foreign currency exchange rate risk related to the activities of our branch office located in Mexico. Currently, we do not hedge our exchange rate exposure through any currency forward contracts, currency options, or currency swaps as all of our revenues, and substantially all of our expenses and capital expenditures, are transacted in U.S. dollars. However, certain operating expenditures and capital purchases related to our Mexico branch office are incurred in or exposed to fluctuations in the exchange rate between the U.S. dollar and the Mexican peso. Based on 2021 expenditures denominated in pesos, a 10% increase in the exchange rate would increase our annual operating expenses by $0.2 million.

Item 4. Controls and Procedures.

Evaluation of disclosure controls and procedures. Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

22

Based on management’s evaluation, our chief executive officer and chief financial officer concluded that, as of September 30, 2022, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in internal controls over financial reporting. We regularly review our system of internal control over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems, consolidating activities, and migrating processes.

There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

23

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

We are involved in certain claims and pending litigation arising from the ordinary conduct of business. We also provide accruals for claims within our self-insured retention amounts. On September 1, 2019, we elected to become self-insured for certain layers of auto liability claims in excess of $1.0 million for which we previously maintained auto liability insurance coverage. On September 1, 2020, we elected to become self-insured for certain layers of auto liability claims in excess of $2.0 million. We currently specifically reserve for claims that are expected to exceed $2.0 million when fully developed, based on the facts and circumstances of those claims. Based on our knowledge of the facts, and in certain cases, opinions of outside counsel, we believe the resolution of such claims and pending litigation will not have a material effect on our financial position, results of operations or cash flows. However, if we experience claims that are not covered by our insurance or that exceed our estimated claim reserve, it could increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.

We are a defendant in a lawsuit which was filed on August 6, 2021, in the United States District Court for the Western District of Arkansas. The plaintiff is a former driver and is seeking class certification. The complaint alleges failure to pay minimum wage under the Fair Labor Standards Act and the Arkansas Minimum Wage Act, violations of the Electronic Funds Transfer Act (EFTA), violations of the Arkansas Wage Payment Law (discharge pay and unlawful, usurious advance fees), violations of the Arkansas Common Law, and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO).  Should this lawsuit be certified as a class action, to include similarly situated drivers as the plaintiff, the class will seek actual and liquated damages to include court costs and legal fees associated with the lawsuit. The class, if certified, will include any company driver employed from January 1, 2020 through the present and ongoing. A settlement agreement has been reached and is pending court approval. Management has determined that any losses under this claim will not be covered by existing insurance policies.

Item 1A. Risk Factors.

Except as noted below, there have been no material changes to the Company’s risk factors as previously disclosed in Item 1A to Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

A determination that independent contractors are employees could expose us to various liabilities and additional costs.

Federal and state legislation as well as tax and other regulatory authorities often seek to assert that independent contractors in the transportation service industry are employees rather than independent contractors. An example of such legislation enacted in California will now be enforceable with respect to trucking companies following the U.S. Supreme Court’s recent decision not to hear an appeal challenging the legislation. While the Company does not expect the California legislation to have a material impact on its business, there can be no assurance that other interpretations that support the independent contractor status will not change, that other federal or state legislation will not be enacted or that various authorities will not successfully assert a position that re-classifies independent contractors to be employees. If our independent contractors are determined to be our employees, that determination could materially increase our exposure under a variety of federal and state tax, workers’ compensation, unemployment benefits, labor, employment and tort laws, as well as our potential liability for employee benefits. In addition, such changes may be applied retroactively, and if so, we may be required to pay additional amounts to compensate for prior periods. Any of the above increased costs would adversely affect our business and operating results.

24

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

The Company’s stock repurchase program has been extended and expanded several times, most recently in November 2021, when the Board of Directors reauthorized 500,000 shares of common stock for repurchase under the initial September 2011 authorization. Since the reauthorization, the Company has repurchased 176,344 stock-split adjusted shares (including 41,610 pre-split shares) of its common stock under this repurchase program.

The following table summarizes the Company’s common stock repurchases during the third quarter of 2022. No shares were purchased during the quarter other than through this program, and all purchases were made by or on behalf of the Company and not by any “affiliated purchaser.”

Issuer Purchases of Equity Securities
Period	Total number of shares purchased		Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs		Maximum number of shares that may yet be purchased under the plans or programs (1)
July 1-31, 2022		--	$	--		--		458,390
August 1-31, 2022		--		--		--		458,390
September 1-30, 2022		93,124		30.86		93,124		365,266
Total		93,124	$	30.86		93,124

(1) The Company’s stock repurchase program does not have an expiration date.

25

Exhibit Number	Exhibit Description
3.1	Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 of the Company's Form 10-Q filed on May 15, 2002)
3.2	Certificate of Amendment of Amended and Restated Certificate of Incorporation of the Registrant, filed with the Secretary of State of the State of Delaware on April 30, 2020 (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on May 1, 2020)
3.3	Certificate of Amendment of Amended and Restated Certificate of Incorporation of the Registrant, filed with the Secretary of State of the State of Delaware on May 10, 2022
3.4	Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 of the Company's Form 8-K filed on December 11, 2007)
3.5	First Amendment to the Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 of the Company’s Form 8-K filed on January 7, 2020)
3.6	Second Amendment to the Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.3 of the Company’s Form 8-K filed on August 5, 2020)
3.7	Third Amendment to the Amended and restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on March 10, 2021)
31.1	Rule 13a-14(a) Certification of Principal Executive Officer
31.2	Rule 13a-14(a) Certification of Principal Financial Officer
32.1	Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

26

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	P.A.M. TRANSPORTATION SERVICES, INC.
Dated: October 28, 2022	By: /s/ Joseph A. Vitiritto
	Joseph A. Vitiritto
	President and Chief Executive Officer
	(principal executive officer)
Dated: October 28, 2022	By: /s/ Allen W. West
	Allen W. West
	Vice President-Finance, Chief Financial
	Officer, Secretary and Treasurer
	(principal accounting and financial officer)

27

EX-31.1

EXHIBIT 31.1

RULE 13a-14(a) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, JOSEPH A. VITIRITTO, President and Chief Executive Officer, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of P.A.M. Transportation Services, Inc., a Delaware corporation;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 28, 2022

/s/ Joseph A. Vitiritto         

Joseph A. Vitiritto

President and Chief Executive Officer

(principal executive officer)

EX-31.2

EXHIBIT 31.2

RULE 13a-14(a) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, ALLEN W. WEST, Chief Financial Officer, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of P.A.M. Transportation Services, Inc., a Delaware corporation;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 28, 2022

/s/ Allen W. West                  

Allen W. West

Vice President-Finance, Chief Financial

Officer, Secretary and Treasurer

(principal accounting and financial officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of P.A.M. Transportation Services, Inc. (the “Company”) on Form 10-Q for the period ending September 30, 2022 (the “Report”) as filed with the Securities and Exchange Commission, each of the undersigned hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: October 28, 2022

/s/ Joseph A. Vitiritto         

Joseph A. Vitiritto

President and Chief Executive Officer

(principal executive officer)

/s/ Allen W. West                  

Allen W. West

Vice President-Finance, Chief Financial

Officer, Secretary and Treasurer

(principal accounting and financial officer)

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 27, 2022
Document Information [Line Items]
Entity Central Index Key	0000798287
Entity Registrant Name	PAM TRANSPORTATION SERVICES INC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Entity File Number	0-1507
Entity Tax Identification Number	71-0633135
Entity Address, Address Line One	297 West Henri De Tonti
Entity Address, City or Town	Tontitown
Entity Address, State or Province	AR
Entity Address, Postal Zip Code	72770
City Area Code	479
Local Phone Number	361-9111
Title of 12(b) Security	Common Stock, $.01 par value
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,187,063

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 42,807	$ 18,509
Accounts receivable-net:
Trade, less current estimated credit loss of $5,195 and $4,526, respectively	155,181	121,854
Other	6,580	7,092
Inventories	2,278	1,456
Prepaid expenses and deposits	12,002	10,962
Marketable equity securities	36,002	39,424
Income taxes refundable	733	277
Total current assets	255,583	199,574
Property and equipment:
Land	19,719	19,718
Structures and improvements	35,060	33,534
Revenue equipment	625,639	520,840
Office furniture and equipment	12,677	11,211
Total property and equipment	693,095	585,303
Accumulated depreciation	(233,817)	(201,124)
Net property and equipment	459,278	384,179
Other assets	4,626	3,628
TOTAL ASSETS	719,487	587,381
Current liabilities:
Accounts payable	54,651	43,381
Accrued expenses and other liabilities	24,760	14,114
Income taxes payable	474	4,364
Current maturities of long-term debt	51,668	49,544
Total current liabilities	131,553	111,403
Long-term debt - less current portion	205,675	172,733
Deferred income taxes	98,938	86,715
Other long-term liabilities	185	420
Total liabilities	436,351	371,271
COMMITMENTS AND CONTINGENCIES (Note L)
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued	0	0
Common stock, $.01 par value, 40,000,000 shares authorized; 22,280,187 and 34,574,807 shares issued; 22,187,063 and 22,348,022 shares outstanding at September 30, 2022 and December 31, 2021, respectively	223	234
Additional paid-in capital	40,285	84,472
Treasury stock, at cost; 93,124 and 12,226,785 shares at September 30, 2022 and December 31, 2021, respectively	(2,877)	(169,946)
Retained earnings	245,505	301,350
Total stockholders’ equity	283,136	216,110
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 719,487	$ 587,381

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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Trade, allowance	$ 5,195	$ 4,526
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	40,000,000	40,000,000
Common stock, issued (in shares)	22,280,187	34,574,807
Common stock, outstanding (in shares)	22,187,063	22,348,022
Treasury stock (in shares)	93,124	12,226,785

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
OPERATING REVENUES:
Operating revenues	$ 252,630	$ 183,085	$ 709,246	$ 493,206
OPERATING EXPENSES AND COSTS:
Salaries, wages and benefits	50,847	34,937	133,069	102,173
Operating supplies and expenses	48,071	25,712	123,156	74,375
Rent and purchased transportation	93,501	72,698	273,521	192,387
Depreciation	16,289	12,740	46,647	41,426
Insurance and claims	5,149	3,443	19,281	9,806
Other	4,579	3,008	12,712	8,505
Gain on disposition of equipment	(1,301)	(276)	(2,662)	(962)
Total operating expenses and costs	217,135	152,262	605,724	427,710
OPERATING INCOME	35,495	30,823	103,522	65,496
NON-OPERATING (EXPENSE) INCOME	(1,886)	37	(2,829)	6,853
INTEREST EXPENSE	(1,922)	(1,899)	(5,587)	(6,372)
INCOME BEFORE INCOME TAXES	31,687	28,961	95,106	65,977
FEDERAL AND STATE INCOME TAX EXPENSE:
Current	4,462	2,141	10,193	2,368
Deferred	2,659	5,461	12,223	14,984
Total federal and state income tax expense	7,121	7,602	22,416	17,352
Net income	$ 24,566	$ 21,359	$ 72,690	$ 48,625
INCOME PER COMMON SHARE:
Basic (in dollars per share)	$ 1.10	$ 0.94	$ 3.26	$ 2.13
Diluted (in dollars per share)	$ 1.09	$ 0.93	$ 3.24	$ 2.12
AVERAGE COMMON SHARES OUTSTANDING:
Basic (in shares)	22,263	22,724	22,276	22,842
Diluted (in shares)	22,440	22,860	22,468	22,962
Freight Transportation Service [Member]
OPERATING REVENUES:
Operating revenues	$ 216,475	$ 166,331	$ 615,303	$ 446,647
Fuel Surcharge [Member]
OPERATING REVENUES:
Operating revenues	$ 36,155	$ 16,754	$ 93,943	$ 46,559

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
OPERATING ACTIVITIES:
Net income	$ 72,690	$ 48,625
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	46,647	41,426
Bad debt expense	732	837
Stock compensation-net of excess tax benefits	528	347
Provision for deferred income taxes	12,223	14,984
Recognized loss / (gain) on marketable equity securities	4,340	(5,382)
Gain on disposition of equipment	(2,662)	(962)
Changes in operating assets and liabilities:
Accounts receivable	(22,727)	(27,584)
Prepaid expenses, deposits, inventories, and other assets	(2,983)	1,781
Income taxes payable	(4,346)	455
Trade accounts payable	4,917	1,929
Accrued expenses and other liabilities	10,714	(2,500)
Net cash provided by operating activities	120,073	73,956
INVESTING ACTIVITIES:
Purchases of property and equipment	(42,953)	(15,297)
Acquisition of business, net of cash acquired	(64,317)	0
Proceeds from disposition of equipment	12,568	28,047
Sales of marketable equity securities	0	1,496
Purchases of marketable equity securities, net of return of capital	(918)	(4,302)
Net cash (used in) provided by investing activities	(95,620)	9,944
FINANCING ACTIVITIES:
Borrowings under line of credit	720,879	450,222
Repayments under line of credit	(720,879)	(468,469)
Borrowings of long-term debt	59,849	6,594
Repayments of long-term debt	(53,948)	(42,032)
Borrowings under margin account	948	4,387
Repayments under margin account	(1,127)	(2,536)
Repurchases of common stock	(5,877)	(10,828)
Net cash used in financing activities	(155)	(62,662)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	24,298	21,238
CASH, CASH EQUIVALENTS AND RESTRICTED CASH -Beginning of period	18,509	337
CASH, CASH EQUIVALENTS AND RESTRICTED CASH -End of period	42,807	21,575
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest	5,406	6,425
Income taxes	14,540	2,581
NONCASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment included in accounts payable	$ 0	$ 2,282

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock Outstanding [Member]	Common Stock [Member]		Additional Paid-in Capital [Member]		Treasury Stock [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2020	22,912
Balance at Dec. 31, 2020		$ 117		$ 84,148		$ (159,118)	$ 224,834	$ 149,981
Net income (loss)							11,949	11,949
Treasury stock repurchases (in shares)	(12)
Treasury stock repurchases						(144)		(144)
Stock based compensation				79				79
Net income (loss)							11,949	11,949
Balance (in shares) at Mar. 31, 2021	22,900
Balance at Mar. 31, 2021		117		84,227		(159,262)	236,783	161,865
Balance (in shares) at Dec. 31, 2020	22,912
Balance at Dec. 31, 2020		117		84,148		(159,118)	224,834	149,981
Net income (loss)								48,625
Net income (loss)								48,625
Balance (in shares) at Sep. 30, 2021	22,335
Balance at Sep. 30, 2021		234	[1]	84,379	[1]	(169,946)	273,459	188,126
Balance (in shares) at Mar. 31, 2021	22,900
Balance at Mar. 31, 2021		117		84,227		(159,262)	236,783	161,865
Net income (loss)							15,317	15,317
Stock based compensation				174				174
Net income (loss)							15,317	15,317
Exercise of stock awards-shares issued including tax benefits (in shares)	3
Balance (in shares) at Jun. 30, 2021	22,903
Balance at Jun. 30, 2021		117		84,401		(159,262)	252,100	177,356
Net income (loss)							21,359	21,359
Stock Split		117		(117)		0	0	0
Treasury stock repurchases (in shares)	(570)
Treasury stock repurchases						(10,684)		(10,684)
Stock based compensation				95				95
Net income (loss)							21,359	21,359
Balance (in shares) at Sep. 30, 2021	22,335
Balance at Sep. 30, 2021		234	[1]	84,379	[1]	(169,946)	273,459	188,126
Balance (in shares) at Dec. 31, 2021	22,348
Balance at Dec. 31, 2021		234		84,472		(169,946)	301,350	216,110
Net income (loss)							23,942	23,942
Stock Split		111		(111)
Treasury stock repurchases (in shares)	(83)
Treasury stock repurchases						(3,000)		(3,000)
Retirement of Treasury Shares		(122)		(44,289)		172,946	(128,535)
Stock based compensation				137				137
Net income (loss)							23,942	23,942
Balance (in shares) at Mar. 31, 2022	22,265
Balance at Mar. 31, 2022		223		40,209			196,757	237,189
Balance (in shares) at Dec. 31, 2021	22,348
Balance at Dec. 31, 2021		234		84,472		(169,946)	301,350	216,110
Net income (loss)								72,690
Net income (loss)								72,690
Balance (in shares) at Sep. 30, 2022	22,187
Balance at Sep. 30, 2022		223		40,285		(2,877)	245,505	283,136
Balance (in shares) at Mar. 31, 2022	22,265
Balance at Mar. 31, 2022		223		40,209			196,757	237,189
Net income (loss)							24,182	24,182
Stock based compensation				216				216
Net income (loss)							24,182	24,182
Exercise of stock awards-shares issued including tax benefits (in shares)	4
Balance (in shares) at Jun. 30, 2022	22,269
Balance at Jun. 30, 2022		223		40,425			220,939	261,587
Net income (loss)		0		0		0	24,566	24,566
Treasury stock repurchases (in shares)	(93)
Treasury stock repurchases		0		0		(2,877)		(2,877)
Stock based compensation		0		175		0	0	175
Net income (loss)		0		0		0	24,566	24,566
Restricted stock issued (in shares)	11
Restricted stock net settlement		0		(315)		0	0	(315)
Balance (in shares) at Sep. 30, 2022	22,187
Balance at Sep. 30, 2022		$ 223		$ 40,285		$ (2,877)	$ 245,505	$ 283,136

[1] Common stock par value and additional paid-in capital dollar values are not retroactively adjusted for the stock split effective March 29, 2022.

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Note A - Basis of Presentation

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Basis of Accounting [Text Block]

NOTE A: BASIS OF PRESENTATION

In accordance with generally accepted accounting principles (“GAAP”) and applicable rules of the Securities and Exchange Commission, the information reported in this Quarterly Report on Form 10-Q for P.A.M. Transportation Services, Inc. and its legally distinct subsidiaries, unless otherwise indicated, is presented on a consolidated basis. Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to “P.A.M.,” the “Company,” “we,” “our,” or “us” mean P.A.M. Transportation Services, Inc. and its consolidated subsidiaries.

The consolidated financial results for the three and nine months ended  September 30, 2022, include the results of our newly formed subsidiaries, Met Express, Inc. and Costar Equipment, Inc., from June 14, 2022, the date of the acquisition of substantially all of the assets and certain liabilities of Metropolitan Trucking, Inc. and its related entities, through  September 30, 2022. All material intercompany items and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included. The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the three and nine-month periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to the consolidated financial statements and the footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021.

On July 13, 2021 and March 8, 2022, our Board of Directors declared 2-for-1 forward stock splits of the shares of our common stock, each of which was effected in the form of a 100% stock dividend. The stock splits entitled each shareholder of record at the close of business on July 30, 2021 and March 18, 2022, respectively, to receive one additional share of common stock for each share of common stock owned as of that date. The stock splits were paid on August 16, 2021 and March 29, 2022, respectively. Upon the completion of the August 2021 stock split, our outstanding shares increased from approximately 5.7 million shares to approximately 11.4 million shares. Upon the completion of the March 2022 stock split, our outstanding shares increased from approximately 11.1 million shares to approximately 22.2 million shares. All share and per share amounts in this quarterly report on Form 10-Q give effect to these stock splits and have been adjusted retrospectively, where applicable, for all periods presented.

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Note B - Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

NOTE B: RECENT ACCOUNTING PRONOUNCEMENTS

In March 2020, the FASB issued Accounting Standards Update No. 2020-04, (“ASU 2020-04”), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. ASU 2020-04 is effective as of  March 12, 2020, through  December 31, 2022. The Company has evaluated the provisions of this standard and determined that it is applicable to our line of credit and investment margin account. The London Interbank Offered Rate (“LIBOR”) was the basis for interest charges on outstanding borrowings for our line of credit. During the year 2021, the index for interest charges on the Company’s investment margin accounts was transitioned to the Secured Overnight Financing Rate (“SOFR”). The new index rate did not vary materially from LIBOR at the time of transition. During the third quarter of 2022, the index for interest charges on the Company’s line of credit was transitioned to the Secured Overnight Financing Rate (“SOFR”). The discontinuation of LIBOR did not materially alter any provisions of either of these debt instruments. The adoption of the new guidance did not have a material impact on the Company’s financial condition, results of operations, or cash flows.

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Note C - Revenue Recognition

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE C: REVENUE RECOGNITION

The Company has a single performance obligation, to transport our customer’s freight from a specified origin to a specified destination. The Company has the discretion to choose to self-transport or to arrange for alternate transportation to fulfill the performance obligation. Where the Company decides to self-transport the freight, the Company classifies the service as truckload services, and where the Company arranges for alternate transportation of the freight, the Company classifies the service as brokerage and logistics services. In either case, the Company is paid a rate to transport freight from its origin location to a specified destination. Because the primary factors influencing revenue recognition, including performance obligation, customer base, and timing of revenue recognition, are the same for both of its service categories, the Company utilizes the same revenue recognition method throughout its operations.

Company revenue is generated from freight transportation services performed utilizing heavy truck trailer combinations. While various ownership arrangements may exist for the equipment utilized to perform these services, including Company owned or leased, owner-operator owned, and third-party carriers, revenue is generated from the same base of customers. Contracts with these customers establish rates for services performed, which are predominantly rates that will be paid to pick up, transport and drop off freight at various locations. In addition to transportation, revenue is also awarded for various accessorial services performed in conjunction with the base transportation service. The Company also has other revenue categories that are not discussed in this note or broken out in our condensed consolidated statements of operations due to their immaterial amounts.

In fulfilling the Company’s obligation to transport freight from a specified origin to a specified destination, control of freight is transferred to us at the point it has been loaded into the driver’s trailer, the doors are sealed and the driver has signed a bill of lading, which is the basic transportation agreement that establishes the nature, quantity and condition of the freight loaded, the responsibility for invoice payment and the pickup and delivery locations. Our revenue is generated, and our customer receives benefit, as the freight progresses towards delivery locations. In the event our customer cancels the shipment at some point prior to the final delivery location and re-consigns the shipment to an alternate delivery location, we are entitled to receive payment for services performed for the partial shipment. Shipments are generally conducted over a relatively short time span, generally one to three days; however, freight is sometimes stored temporarily in our trailer at one of our drop yard locations or at a location designated by a customer. Our revenue is categorized as either Freight Revenue or Fuel Surcharge Revenue, and both are earned by performing the same freight transportation services, as discussed further below.

Freight Revenue – revenue generated by the performance of the freight transportation service, including any accessorial service, provided to customers.

Fuel Surcharge Revenue – revenue designed to adjust freight revenue rates to an agreed-upon base cost for diesel fuel. Diesel fuel prices can fluctuate widely during the term of a contract with a customer. At the point that freight revenue rates are negotiated with customers, a sliding scale is agreed upon that approximately adjusts diesel fuel costs to an agreed-upon base amount. In general, as fuel prices increase, revenue from fuel surcharge increases, so that diesel fuel cost is adjusted to the approximate base amount agreed upon.

Revenue is recognized over time as the freight progresses towards its destination and the transportation service obligation is fulfilled. For loads picked up during the reporting period, but delivered in a subsequent reporting period, revenue is allocated to each period based on the transit time in each period as a percentage of total transit time. There are no assets or liabilities recorded in conjunction with revenue recognized, other than accounts receivable and estimated credit losses.

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Note D - Marketable Equity Securities

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE D: MARKETABLE EQUITY SECURITIES

The Company’s investments in marketable securities consist of equity securities with readily determinable fair values. The cost of securities sold is based on the specific identification method, and interest and dividends on securities are included in non-operating income.

Marketable equity securities are carried at fair value, with gains and losses in fair market value included in the determination of net income. The fair value of marketable equity securities is determined based on quoted market prices in active markets, as described in Note J.

The following table sets forth market value, cost, and unrealized gains on equity securities as of September 30, 2022 and December 31, 2021.

	September 30, 2022		December 31, 2021
	(in thousands)
Fair market value	$	36,002	$	39,424
Cost		30,092		29,385
Unrealized gain	$	5,910	$	10,039

The following table sets forth the gross unrealized gains and losses on the Company’s marketable securities as of September 30, 2022 and December 31, 2021.

	September 30, 2022		December 31, 2021
	(in thousands)
Gross unrealized gains	$	9,278	$	12,458
Gross unrealized losses		3,368		2,419
Net unrealized gain	$	5,910	$	10,039

The following table shows the Company’s net realized gains during the three and nine months ending on September 30, 2022 and 2021, respectively, on certain marketable equity securities.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Sales proceeds	$	-	$	72	$	-	$	1,496
Cost of securities sold		-		19		-		560
Realized gain	$	-	$	53	$	-	$	936

For the quarter ended September 30, 2022, the Company recognized dividends received of approximately $428,000 in non-operating income in its condensed consolidated statements of operations. For the quarter ended September 30, 2021, the Company recognized dividends received of approximately $335,000 in non-operating income in its condensed consolidated statements of operations.

For the nine months ended September 30, 2022, the Company recognized dividends received of approximately $1,095,000 in non-operating income in its condensed consolidated statements of operations. For the nine months ended September 30, 2021, the Company recognized dividends received of approximately $995,000 in non-operating income in its condensed consolidated statements of operations.

The Company’s equity securities are periodically used as collateral against any outstanding margin account borrowings. As of September 30, 2022, and December 31, 2021, the Company had outstanding borrowings of approximately $1,035,000 and $1,214,000, respectively, under its margin account. Margin account borrowings are used for the purchase of marketable equity securities and as a source of short-term liquidity and are included in accrued expenses and other liabilities on our condensed consolidated balance sheets.

Our marketable equity securities portfolio had a net unrealized pre-tax loss in market value of approximately $2,387,000 during the third quarter of 2022, and a net unrealized pre-tax loss in market value of approximately $456,000 during the third quarter of 2021, which were reported as non-operating income in its condensed consolidated statements of operations for the respective periods.

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Note E - Stock-based Compensation

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

NOTE E: STOCK-BASED COMPENSATION

The Company maintains a stock incentive plan (the “Plan”) under which incentive and nonqualified stock options and other stock awards may be granted. Under the Plan, 3,000,000 shares are reserved for the issuance of stock awards to directors, officers, key employees, and others. The stock option exercise price and the restricted stock value under the Plan shall not be less than 85% of the fair market value of the Company’s common stock on the date the award is granted. The fair market value is determined by the closing price of the Company’s common stock, on its primary exchange, on the same date that the option or award is granted.

During February 2022, the Company granted 29,120 shares of common stock to certain key employees. These stock awards had grant date fair values of $38.80 per share, based on the closing price of the Company’s stock on the date of grant, and vest in 25% increments over four years, beginning one year from the anniversary date of the grant.

During May 2022, the Company granted 1,855 shares of common stock to non-employee directors. These stock awards had a grant date fair value of $29.60 per share, based on the closing price of the Company’s stock on the date of grant, and vested immediately.

During June 2022, the Company granted 3,500 shares of common stock to a key employee. This stock award had a grant date fair value of $27.68 per share, based on the closing price of the Company’s stock on the date of grant, and vests in 25% increments over four years, beginning one year from the anniversary date of the grant.

The total grant date fair value of stock vested during the first nine months of 2022 was approximately $269,000. The total pre-tax stock-based compensation expense, recognized in salaries, wages and benefits during the first nine months of 2022, was approximately $528,000 and includes approximately $55,000 recognized as a result of the grant of shares to certain non-employee directors. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.01 during the first nine months of 2022. As of September 30, 2022, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $2,601,000, which is being amortized on a straight-line basis over the remaining vesting period. As a result, the Company expects to recognize approximately $187,000 in additional compensation expense related to unvested stock awards during the remainder of 2022 and to recognize approximately $649,000, $641,000, $670,000, $343,000, and $111,000 in additional compensation expense related to unvested stock awards during the years 2023, 2024, 2025, 2026, and 2027, respectively.

The total grant date fair value of stock vested during the first nine months of 2021 was approximately $80,000. The total pre-tax stock-based compensation expense, recognized in salaries, wages and benefits during the first nine months of 2021, was approximately $347,000 and includes approximately $80,000 recognized as a result of the grant of 326 shares to each non-employee director. The recognition of stock-based compensation expense decreased both diluted and basic earnings per common share by approximately $0.02 during the first nine months of 2021. As of September 30, 2021, the Company had stock-based compensation plans with total unvested stock-based compensation expense of approximately $1,941,000, which was being amortized on a straight-line basis over the remaining vesting period.

A summary of the status of the Company’s non-vested restricted stock as of September 30, 2022, and changes during the nine months ended September 30, 2022, is as follows:

	Restricted Stock
	Number of Shares			Weighted- Average Grant Date Fair Value
Non-vested at January 1, 2022		239,212		$	9.25
Granted		34,475			37.18
Canceled/forfeited/expired		-			-
Vested		(24,355	)		11.06
Non-vested at September 30, 2022		249,332		$	12.93

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Note F - Segment Information

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Segment Reporting and Concentration Risk Disclosure [Text Block]

NOTE F: SEGMENT INFORMATION

The Company follows the guidance provided by ASC Topic 280, Segment Reporting, in its identification of operating segments. The Company has determined that it has a total of two operating segments whose primary operations can be characterized as either Truckload Services or Brokerage and Logistics Services; however, in accordance with the aggregation criteria provided by FASB ASC Topic 280, the Company has determined that the operations of the two operating segments can be aggregated into a single reporting segment, Motor Carrier Operations. Truckload Services revenues and Brokerage and Logistics Services revenues, each before fuel surcharges, were as follows:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Amount		%		Amount		%		Amount		%		Amount		%
	(in thousands)
Truckload Services revenue	$	144,982		67.0	$	110,436		66.4	$	404,658		65.8	$	298,835		66.9
Brokerage and Logistics Services revenue		71,493		33.0		55,895		33.6		210,645		34.2		147,812		33.1
Total revenues	$	216,475		100.0	$	166,331		100.0	$	615,303		100.0	$	446,647		100.0

These segment results include of the results of the truckload services and brokerage operations acquired from Metropolitan Trucking, Inc., and related subsidiaries in the business combination discussed in Note P to the condensed consolidated financial statements.

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Note G - Treasury Stock

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Treasury Stock [Text Block]

NOTE G: TREASURY STOCK

The Company’s stock repurchase program has been extended and expanded several times, most recently in November 2021, when the Board of Directors reauthorized 500,000 shares of common stock for repurchase under the initial September 2011 authorization. As of September 30, 2022, there remain 365,266 shares of common stock authorized for repurchase under this plan.

During the first quarter of 2022, prior to the March 2022 stock split, we retired 12,268,395 shares of our treasury stock. Upon retirement of the treasury shares, we allocated the excess of the repurchase price over the par value of shares acquired to both retained earnings and paid-in capital. The portion allocated to paid-in capital was determined by applying the average paid-in capital per share, and the remaining portion was recorded to retained earnings. There was no effect on the Company’s overall equity position due to the retirement of treasury shares.

The Company accounts for treasury stock using the cost method. As of September 30, 2022, 93,124 shares were held in the treasury at an aggregate cost of approximately $2,877,000.

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Note H - Earnings Per Share

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE H: EARNINGS PER SHARE

Basic earnings per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by adjusting the weighted average number of shares of common stock outstanding by common stock equivalents attributable to dilutive restricted stock. The computation of diluted earnings per share does not assume conversion, exercise, or contingent issuance of securities that would have an anti-dilutive effect on earnings per share. The computations of basic and diluted earnings per share were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands, except per share data)
Net income	$	24,566	$	21,359	$	72,690	$	48,625
Basic weighted average common shares outstanding		22,263		22,724		22,276		22,842
Dilutive effect of common stock equivalents		177		136		192		120
Diluted weighted average common shares outstanding		22,440		22,860		22,468		22,962
Basic earnings per share	$	1.10	$	0.94	$	3.26	$	2.13
Diluted earnings per share	$	1.09	$	0.93	$	3.24	$	2.12

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Note I - Income Taxes

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE I: INCOME TAXES

The Company and its subsidiaries are subject to U.S. and Canadian federal income tax laws as well as the income tax laws of multiple state jurisdictions. The major tax jurisdictions in which the Company operates generally provide for a deficiency assessment statute of limitations period of three years, and as a result, the Company’s tax years 2018 and forward remain open to examination in those jurisdictions.

In determining whether a tax asset valuation allowance is necessary, management, in accordance with the provisions of ASC 740-10-30, Accounting for Income Taxes, weighs all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is necessary. If negative conditions exist which indicate a valuation allowance might be necessary, consideration is then given to what effect the future reversals of existing taxable temporary differences and the availability of tax strategies might have on future taxable income to determine the amount, if any, of the required valuation allowance. As of September 30, 2022, management determined that the future reversals of existing taxable temporary differences and available tax strategies would generate sufficient future taxable income to realize its tax assets and therefore a valuation allowance was not necessary.

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by taxing authorities, based on the technical merits of the position. As of September 30, 2022, an adjustment to the Company’s condensed consolidated financial statements for uncertain tax positions has not been required as management believes that the Company’s tax positions taken in income tax returns filed or to be filed are supported by clear and unambiguous income tax laws. The Company recognizes interest and penalties related to uncertain income tax positions, if any, in income tax expense. During the nine months ended September 30, 2022 and 2021, the Company has not recognized or accrued any interest or penalties related to uncertain income tax positions.

The Company’s effective income tax rates were 23.6% and 26.3% for the nine months ended September 30, 2022 and 2021, respectively. Our effective tax rate for the nine months ended September 30, 2022 differs from amounts computed by applying the United States federal statutory rates to pre-tax income primarily due to state income taxes and the tax benefits related to stock compensation.

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Note J - Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

NOTE J: FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s financial instruments consist of cash and cash equivalents, marketable equity securities, accounts receivable, trade accounts payable, and borrowings.

The Company follows the guidance for financial assets and liabilities measured on a recurring basis. This guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date and also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1:	Quoted market prices in active markets for identical assets or liabilities.
Level 2:	Inputs other than Level 1 inputs that are either directly or indirectly observable such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable; or other inputs not directly observable, but derived principally from, or corroborated by, observable market data.
Level 3:	Unobservable inputs that are supported by little or no market activity.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

At September 30, 2022, the following items are measured at fair value on a recurring basis:

	Total		Level 1		Level 2		Level 3
	(in thousands)
Marketable equity securities	$	36,002	$	36,002		-		-

The Company’s investments in marketable securities are recorded at fair value based on quoted market prices. The carrying value of other financial instruments, including cash, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities.

The carrying amount for the line of credit approximates fair value because the line of credit interest rate is adjusted frequently.

For long-term debt other than the lines of credit, the fair values are estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The carrying value and estimated fair value of this other long-term debt at September 30, 2022 was as follows:

	Carrying Value		Estimated Fair Value
	(in thousands)
Long-term debt	$	257,343	$	246,003

The Company has not elected the fair value option for any of its financial instruments.

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Note K - Notes Payable

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Long-Term Debt [Text Block]

NOTE K: NOTES PAYABLE

During the first nine months of 2022, the Company’s subsidiaries entered into installment obligations totaling approximately $76.8 million, including $35.5 million for the financing of real estate and $41.3 million for the purpose of purchasing revenue equipment and other assets. These obligations are payable in monthly installments and are recorded in long term debt and current maturities on the condensed consolidated balance sheets. The terms of these obligations vary from 60 months for trucks to 120 months for real estate. In addition, during June 2022 the Company’s subsidiaries assumed approximately $12.3 million of installment obligations as part of a business acquisition. The terms of these obligations varied from 1 month to 36 months for trucks acquired and from 24 months to 34 months for trailers acquired.

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Note L - Litigation

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE L: LITIGATION

We are involved in certain claims and pending litigation arising from the ordinary conduct of business. We also provide accruals for claims within our self-insured retention amounts. On September 1, 2019, we elected to become self-insured for certain layers of auto liability claims in excess of $1.0 million for which we previously maintained auto liability insurance coverage. On September 1, 2020, we elected to become self-insured for certain layers of auto liability claims in excess of $2.0 million. We currently specifically reserve for claims that are expected to exceed $2.0 million when fully developed, based on the facts and circumstances of those claims.

However, if we experience claims that are not covered by our insurance or that exceed our estimated claim reserve, it could increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.

We are a defendant in a lawsuit which was filed on August 6, 2021, in the United States District Court for the Western District of Arkansas. The plaintiff is a former driver and is seeking class certification. The complaint alleges failure to pay minimum wage under the Fair Labor Standards Act and the Arkansas Minimum Wage Act, violations of the Electronic Funds Transfer Act (EFTA), violations of the Arkansas Wage Payment Law (discharge pay and unlawful, usurious advance fees), violations of the Arkansas Common Law, and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO).  Should this lawsuit be certified as a class action, to include similarly situated drivers as the plaintiff, the class will seek actual and liquated damages to include court costs and legal fees associated with the lawsuit. The class, if certified, will include any company driver employed from January 1, 2020 through the present and ongoing. A settlement agreement has been reached and is pending court approval. Management has determined that any losses under this claim will not be covered by existing insurance policies. This settlement has been fully reserved as of September 30, 2022.

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Note M - Leases

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Lessor, Operating Leases [Text Block]

NOTE M: LEASES

The Company currently leases shop, office and parking spaces in various locations in the United States and Mexico. The initial term for the majority of these leases is one year or less, with an option for early cancellation and an option to renew for subsequent one- month periods. These leases can be terminated by either party by providing notice to the other party of the intent to cancel or to not extend. Relatively short lease durations for these properties are intended to provide flexibility to the Company as changing operational needs and shifting opportunities often result in cancellation or non-renewal of these leases by the Company or the lessor.

The initial lease term for certain shop and office locations is for periods ranging from one to five years with early cancellation options. The Company prefers that leases include early cancellation provisions to prevent becoming locked into long-term leases that become operationally unjustified and to allow the flexibility to pursue more cost-effective options for similar properties if they become available. These leases often include the option to extend for additional periods, which may or may not be exercised. Based on historical experience, the Company does not always extend these leases, sometimes exercises the option to cancel leases early and sometimes lessors choose to cancel leases or not extend.

The Company leases trucks to owner-operators under our lease-to-own program. We also lease dock space to a related party at our Laredo, Texas terminal.

Right-of-Use Leases

The Company is party to operating leases which include initial terms ranging from three to five years and which do not include an option for early cancellation. In accordance with the provisions of ASC Topic 842, these leases resulted in the recognition of right-of-use assets and corresponding operating lease liabilities, respectively, valued at $0.5 million as of September 30, 2022. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date, using the Company’s incremental borrowing rate as of the respective dates of lease inception, as the rate implicit in each lease is not readily determinable. The right-of-use assets are recorded in other assets, and the lease liability is recorded in accrued expenses and other liabilities and in other long-term liabilities on our condensed consolidated balance sheet. Lease expense is recorded on a straight-line basis over the lease term and is recorded in rent and purchased transportation in our condensed consolidated statements of operations. While these lease agreements may contain provisions to extend after the initial term for an additional five years, the Company is not reasonably certain these extension options will be exercised. Therefore, potential lease payments that might occur under this extension period are not included in amounts recorded in our condensed consolidated balance sheets as of September 30, 2022.

Scheduled amounts and timing of cash flows arising from future right-of-use operating lease payments at September 30, 2022, are:

Maturity of Lease Liabilities	(in thousands)
2022 (remaining)	$	84
2023		340
2024		114
2025 and thereafter		-
Total undiscounted operating lease payments	$	538
Less: Imputed interest		(14	)
Present value of operating lease liabilities	$	524
Balance Sheet Classification
Right-of-use assets (recorded in other non-current assets)	$	524
Current lease liabilities (recorded in other current liabilities)	$	339
Long-term lease liabilities (recorded in other long-term liabilities)		185
Total operating lease liabilities	$	524
Other Information
Weighted-average remaining lease term for operating leases (years)		1.58
Weighted-average discount rate for operating leases		3.74	%

Cash Flows

No new right-of-use assets were recognized as a non-cash asset addition that resulted from new operating lease liabilities during the three and nine months ended September 30, 2022. Cash paid for amounts included in the present value of operating lease liabilities was $0.1 million during the three months ended September 30, 2022 and is included in operating cash flows, within the condensed consolidated statement of cash flows. Cash paid for amounts included in the present value of operating lease liabilities was $0.4 million during the nine months ended September 30, 2022 and is included in operating cash flows, within the condensed consolidated statement of cash flows.

Operating Lease Costs

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Long-term	$	125	$	147	$	435	$	441
Short-term		627		572		1,732		1,632
Total	$	752	$	719	$	2,167	$	2,073

Lease Revenue

The Company's operating lease revenue is disclosed in the table below.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Leased truck revenue (recorded in revenue, before fuel surcharge)	$	2,228	$	2,039	$	6,519	$	5,444
Leased building space revenue (recorded in non-operating income)		99		169		426		506
Total lease revenue	$	2,327	$	2,208	$	6,945	$	5,950

The Company leases trucks to owner-operators under operating leases, which generally have a term of up to five years and include options to purchase the truck at the end of the lease. In the event that an independent contractor defaults on their lease, the Company generally leases the truck to another independent contractor.

As of September 30, 2022, the gross carrying value of trucks underlying these leases was $55.2 million and accumulated depreciation was $35.0 million. Depreciation is calculated on a straight-line basis over the estimated useful life of the equipment, down to an estimated salvage value. In most cases, the Company has agreements in place with certain manufacturers whereby salvage values are guaranteed by the manufacturer. In other cases, where salvage values are not guaranteed, estimates of salvage value are based on the expected market values of equipment at the time of disposal. During the quarter ended September 30, 2022, the Company incurred $1.6 million of depreciation expense for these assets.

The Company leases dock space to a related party at our Laredo, Texas terminal. The dock space is depreciated in conjunction with the structures and improvements for the entire Laredo terminal on a straight-line basis over the estimated useful life of the assets. Lease income is recorded as a component of non-operating income in our condensed consolidated statements of operations.

Lease Receivables

Future minimum operating lease payments receivable at September 30, 2022:

	(in thousands)
2022 (remaining)	$	2,085
2023		6,472
2024		3,207
2025		94
2026 and thereafter		-
Total future minimum lease payments receivable	$	11,858

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Note N - Effect of COVID-19 Pandemic

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Effect of COVID-19 Pandemic [Text Block]

NOTE N: EFFECT OF COVID-19 PANDEMIC

The rapid spread of COVID-19 resulted in governmental authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, increased border and port controls and closures, and shutdowns. These measures and the public health concerns resulting from the outbreak severely disrupted economic and commercial activity. The resulting impact on domestic and global supply chains caused slowdowns and reduced freight demand for transportation companies such as ours. Because we have a significant concentration of customers within the automotive industry, our freight volumes and revenues were significantly affected by the closure of North American automotive manufacturing facilities beginning in late March of 2020. Our automotive customers resumed operations during the second quarter of 2020 and have not been materially disrupted during 2021 or the first nine months of 2022. Any future delays or interruptions of automotive production and other consumer activity affecting our customers that could result from any future wave of the virus or other similar outbreaks could further adversely affect our business. In addition, the implementation of measures to protect the health and safety of our employees, customers, vendors and the general public, or any state of federal vaccination mandates, may disrupt our ability to efficiently manage personnel and operations and to recruit and retain driver and non-driver personnel, which could have a material adverse effect on our operating results. Further, negative financial results, an economic downturn or uncertainty, or a tightening of credit markets caused by COVID-19 or other similar outbreaks could have a material adverse effect on our liquidity and our ability to effectively meet our short- and long-term financial obligations.

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Note O - Noncash Investing and Financing Activities

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Noncash Investing and Financing Activities Disclosure [Text Block]

NOTE O: NONCASH INVESTING AND FINANCING ACTIVITIES

The Company financed approximately $16.9 million in equipment purchases during the first nine months of 2022 utilizing noncash financing.

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Note P - Acquisition of Metropolitan Trucking

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE P: ACQUISITION OF METROPOLITAN TRUCKING

On June 14, 2022, subsidiaries of the Company, Met Express, Inc. and Costar Equipment, Inc. (collectively, the “Buyer”), entered into an Asset Purchase Agreement with Metropolitan Trucking, Inc., and related subsidiaries. Metropolitan Trucking, Inc. was a truckload carrier headquartered in Saddle Brook, New Jersey, providing asset-based dry van truckload transportation services, including local, regional, and dedicated services. The acquisition has been determined to be a business combination.

Pursuant to the Asset Purchase Agreement, the Buyer acquired substantially all the assets and assumed certain specified liabilities of Metropolitan Trucking, Inc., and its related entities (the “Transaction”). The Buyer paid $79.9 million of total consideration, including cash and certain assumed indebtedness of Metropolitan Trucking, Inc., and its related entities. The Transaction closed on June 14, 2022.

Total cash paid of $64.3 million was funded out of the Company’s available cash. The Transaction included the assumption of $12.6 million of indebtedness and $2.9 million of other current liabilities. The Asset Purchase Agreement contains customary representations, warranties, covenants, escrow, and indemnification provisions.

The results of the acquired business have been included in the consolidated financial statements since the date of acquisition and represented 14.1% of consolidated total assets as of September 30, 2022 and represented 9.4% and 4.1% of operating revenue for the three and nine months ended September 30, 2022, respectively. Acquisition related expenses of $0.4 million are included in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022.

The allocation of the purchase price is detailed in the tables below. The final purchase price allocation remains subject to other purchase accounting adjustments which may be identified, such as the final valuation of intangible assets and working capital adjustments, and therefore may differ materially from that reflected below.

The assets and liabilities associated with the acquisition were recorded at their fair values as of the acquisition date and the amounts are as follows:

	(in thousands)
Trade and other accounts receivable	$	10,821
Other current assets		316
Property and equipment		68,722
Total assets		79,859
Accounts payable		(2,915	)
Long-term debt		(12,627	)
Total cash paid	$	64,317

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Note D - Marketable Equity Securities (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Marketable Securities [Table Text Block]

	September 30, 2022		December 31, 2021
	(in thousands)
Fair market value	$	36,002	$	39,424
Cost		30,092		29,385
Unrealized gain	$	5,910	$	10,039

Unrealized Gain (Loss) on Investments [Table Text Block]

	September 30, 2022		December 31, 2021
	(in thousands)
Gross unrealized gains	$	9,278	$	12,458
Gross unrealized losses		3,368		2,419
Net unrealized gain	$	5,910	$	10,039

Schedule of Realized Gain (Loss) [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Sales proceeds	$	-	$	72	$	-	$	1,496
Cost of securities sold		-		19		-		560
Realized gain	$	-	$	53	$	-	$	936

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Note E - Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

	Restricted Stock
	Number of Shares			Weighted- Average Grant Date Fair Value
Non-vested at January 1, 2022		239,212		$	9.25
Granted		34,475			37.18
Canceled/forfeited/expired		-			-
Vested		(24,355	)		11.06
Non-vested at September 30, 2022		249,332		$	12.93

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Note F - Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022				2021				2022				2021
	Amount		%		Amount		%		Amount		%		Amount		%
	(in thousands)
Truckload Services revenue	$	144,982		67.0	$	110,436		66.4	$	404,658		65.8	$	298,835		66.9
Brokerage and Logistics Services revenue		71,493		33.0		55,895		33.6		210,645		34.2		147,812		33.1
Total revenues	$	216,475		100.0	$	166,331		100.0	$	615,303		100.0	$	446,647		100.0

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Note H - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands, except per share data)
Net income	$	24,566	$	21,359	$	72,690	$	48,625
Basic weighted average common shares outstanding		22,263		22,724		22,276		22,842
Dilutive effect of common stock equivalents		177		136		192		120
Diluted weighted average common shares outstanding		22,440		22,860		22,468		22,962
Basic earnings per share	$	1.10	$	0.94	$	3.26	$	2.13
Diluted earnings per share	$	1.09	$	0.93	$	3.24	$	2.12

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Note J - Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	Total		Level 1		Level 2		Level 3
	(in thousands)
Marketable equity securities	$	36,002	$	36,002		-		-

Fair Value, by Balance Sheet Grouping [Table Text Block]

	Carrying Value		Estimated Fair Value
	(in thousands)
Long-term debt	$	257,343	$	246,003

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Note M - Leases (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturity of Lease Liabilities	(in thousands)
2022 (remaining)	$	84
2023		340
2024		114
2025 and thereafter		-
Total undiscounted operating lease payments	$	538
Less: Imputed interest		(14	)
Present value of operating lease liabilities	$	524
Balance Sheet Classification
Right-of-use assets (recorded in other non-current assets)	$	524
Current lease liabilities (recorded in other current liabilities)	$	339
Long-term lease liabilities (recorded in other long-term liabilities)		185
Total operating lease liabilities	$	524
Other Information
Weighted-average remaining lease term for operating leases (years)		1.58
Weighted-average discount rate for operating leases		3.74	%

Lease, Cost [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Long-term	$	125	$	147	$	435	$	441
Short-term		627		572		1,732		1,632
Total	$	752	$	719	$	2,167	$	2,073

Operating Lease, Lease Income [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	(in thousands)
Leased truck revenue (recorded in revenue, before fuel surcharge)	$	2,228	$	2,039	$	6,519	$	5,444
Leased building space revenue (recorded in non-operating income)		99		169		426		506
Total lease revenue	$	2,327	$	2,208	$	6,945	$	5,950

Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity [Table Text Block]

	(in thousands)
2022 (remaining)	$	2,085
2023		6,472
2024		3,207
2025		94
2026 and thereafter		-
Total future minimum lease payments receivable	$	11,858

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Note P - Acquisition of Metropolitan Trucking (Tables)

9 Months Ended

Sep. 30, 2022

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

	(in thousands)
Trade and other accounts receivable	$	10,821
Other current assets		316
Property and equipment		68,722
Total assets		79,859
Accounts payable		(2,915	)
Long-term debt		(12,627	)
Total cash paid	$	64,317

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Note A - Basis of Presentation (Details Textual) shares in Millions	Mar. 08, 2022	Jul. 13, 2021	Aug. 16, 2022 shares	Jul. 30, 2022 shares	Mar. 29, 2022 shares	Mar. 18, 2022 shares
Stockholders' Equity Note, Stock Split, Conversion Ratio	2	2
Shares, Outstanding, Ending Balance (in shares)			11.4	5.7	22.2	11.1

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Note D - Marketable Equity Securities (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Investment Income, Dividend	$ 428,000	$ 335,000	$ 1,095,000	$ 995,000
Equity Securities, FV-NI, Unrealized Gain (Loss), Total	(2,387,000)	$ (456,000)
Margin Account Borrowings [Member] | Accrued Expenses and Other Liabilities [Member]
Short-Term Debt, Total	$ 1,035,000		$ 1,035,000		$ 1,214,000

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Note D - Marketable Equity Securities - Securities Classified As Available-for-sale (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair market value	$ 36,002	$ 39,424
Cost	30,092	29,385
Unrealized gain	$ 5,910	$ 10,039

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Note D - Marketable Equity Securities - Unrealized Gains and Losses on Marketable Equity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Gross unrealized gains	$ 9,278	$ 12,458
Gross unrealized losses	3,368	2,419
Unrealized gain	$ 5,910	$ 10,039

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Note D - Marketable Equity Securities - Realized Gains on Marketable Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Sales proceeds	$ 0	$ 72	$ 0	$ 1,496
Cost of securities sold	0	19	0	560
Realized gain	$ 0	$ 53	$ 0	$ 936

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Note E - Stock-based Compensation (Details Textual) - USD ($)		1 Months Ended			6 Months Ended	9 Months Ended
	May 29, 2014	Jun. 30, 2022	May 31, 2022	Feb. 28, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value						$ 269,000	$ 80,000
Allocated Share-based Compensation Expense, Impact on Earnings Per Share, Diluted (in dollars per share)						$ 0.01
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total						$ 2,601,000	$ 1,941,000
Allocated Share-based Compensation Expense, Impact on Earnings Per Share, Basic (in dollars per share)							$ 0.02
Amortization, Current Year [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total						187,000
Amortization, Next Year [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total						649,000
Amortization Year 2 [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total						641,000
Amortization, Year 3 [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total						670,000
Amortization, Year 4 [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total						343,000
Amortization, Year 5 [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total						111,000
Salaries, Wages and Benefits [Member]
Share-Based Payment Arrangement, Expense						528,000	$ 347,000
Director [Member] | Salaries, Wages and Benefits [Member]
Share-Based Payment Arrangement, Expense						$ 55,000	$ 80,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Grants in Period (in shares)					326
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)						34,475
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)						$ 37.18
The 2014 Stock Option Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)	3,000,000
The 2014 Stock Option Plan [Member] | Stock Award [Member] | Key Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)				29,120
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)				$ 38.80
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)				4 years
The 2014 Stock Option Plan [Member] | Stock Award [Member] | Key Employees [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage				25.00%
The 2014 Stock Option Plan [Member] | Stock Award [Member] | Key Employees [Member] | Share-Based Payment Arrangement, Tranche Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage				25.00%
The 2014 Stock Option Plan [Member] | Stock Award [Member] | Key Employees [Member] | Share-Based Payment Arrangement, Tranche Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage				25.00%
The 2014 Stock Option Plan [Member] | Stock Award [Member] | Key Employees [Member] | Share-based Payment Arrangement, Tranche Four [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage				25.00%
The 2014 Stock Option Plan [Member] | Stock Award [Member] | Director [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)			1,855
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)			$ 29.60
The 2014 Stock Option Plan [Member] | Stock Award [Member] | A Key Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)		3,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)		$ 27.68
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)		4 years
The 2014 Stock Option Plan [Member] | Stock Award [Member] | A Key Employee [Member] | Share-Based Payment Arrangement, Tranche One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage		25.00%
The 2014 Stock Option Plan [Member] | Stock Award [Member] | A Key Employee [Member] | Share-Based Payment Arrangement, Tranche Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage		25.00%
The 2014 Stock Option Plan [Member] | Stock Award [Member] | A Key Employee [Member] | Share-based Compensation Award, Tranche Four [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage		25.00%
The 2014 Stock Option Plan [Member] | Minimum [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%

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Note E - Stock Based Compensation - Summary of Nonvested Restricted Stock (Details) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Non-vested (in shares) | shares	239,212
Nonvested - weighted average grant date fair value (in dollars per share) | $ / shares	$ 9.25
Granted (in shares) | shares	34,475
Granted - weighted average grant date fair value (in dollars per share) | $ / shares	$ 37.18
Canceled/forfeited/expired (in shares) | shares	0
Canceled/forfeited/expired - weighted average grant date fair value (in dollars per share) | $ / shares	$ 0
Vested (in shares) | shares	(24,355)
Vested - weighted average grant date fair value (in dollars per share) | $ / shares	$ 11.06
Non-vested (in shares) | shares	249,332
Nonvested - weighted average grant date fair value (in dollars per share) | $ / shares	$ 12.93

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Note F - Segment Information (Details Textual)	9 Months Ended
	Sep. 30, 2022
Number of Operating Segments	2

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Note F - Segment Information - Segment Revenue Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue, before fuel surcharges	$ 252,630	$ 183,085	$ 709,246	$ 493,206
Freight Transportation Service [Member]
Revenue, before fuel surcharges	$ 216,475	$ 166,331	615,303	446,647
Freight Transportation Service [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member]
Revenue, before fuel surcharges			$ 615,303	$ 446,647
Revenue, before fuel surcharges, percentage	100.00%	100.00%	100.00%	100.00%
Truckload Services [Member] | Freight Transportation Service [Member]
Revenue, before fuel surcharges	$ 144,982	$ 110,436
Truckload Services [Member] | Freight Transportation Service [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member]
Revenue, before fuel surcharges			$ 404,658	$ 298,835
Revenue, before fuel surcharges, percentage	67.00%	66.40%	65.80%	66.90%
Brokerage and Logistics Services [Member] | Freight Transportation Service [Member]
Revenue, before fuel surcharges	$ 71,493	$ 55,895
Brokerage and Logistics Services [Member] | Freight Transportation Service [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member]
Revenue, before fuel surcharges			$ 210,645	$ 147,812
Revenue, before fuel surcharges, percentage	33.00%	33.60%	34.20%	33.10%

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Note G - Treasury Stock (Details Textual) - September 2011 Reauthorization [Member] - USD ($)	3 Months Ended
	Mar. 31, 2022	Sep. 30, 2022	Nov. 30, 2017
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in shares)			500,000
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased (in shares)		365,266
Treasury Stock, Shares, Retired (in shares)	12,268,395
Treasury Stock, Common, Shares (in shares)		93,124
Treasury Stock, Common, Value		$ 2,877,000

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Note H - Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income (loss)	$ 24,566	$ 24,182	$ 23,942	$ 21,359	$ 15,317	$ 11,949	$ 72,690	$ 48,625
Basic weighted average common shares outstanding (in shares)	22,263			22,724			22,276	22,842
Dilutive effect of common stock equivalents (in shares)	177			136			192	120
Diluted weighted average common shares outstanding (in shares)	22,440			22,860			22,468	22,962
Basic earnings per share (in dollars per share)	$ 1.10			$ 0.94			$ 3.26	$ 2.13
Diluted earnings per share (in dollars per share)	$ 1.09			$ 0.93			$ 3.24	$ 2.12

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Note I - Income Taxes (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statute of Limitations (Year)	3 years
Open Tax Year	2018 2019 2020 2021 2022
Income Tax Examination, Penalties and Interest Expense, Total	$ 0	$ 0
Effective Income Tax Rate Reconciliation, Percent, Total	23.60%	26.30%

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Note J - Fair Value of Financial Instruments - Securities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Marketable equity securities	$ 36,002	$ 39,424
Fair Value, Inputs, Level 1 [Member]
Marketable equity securities	$ 36,002

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Note J - Fair Value of Financial Instruments - Fair Value of Long-term Debt Other Than Lines of Credit (Details) - Equipment Financing [Member] $ in Thousands	Sep. 30, 2022 USD ($)
Reported Value Measurement [Member]
Long-term debt	$ 257,343
Estimate of Fair Value Measurement [Member]
Long-term debt	$ 246,003

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Note K - Notes Payable (Details Textual) $ in Millions	1 Months Ended	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2022 USD ($)	Jun. 14, 2022 USD ($)
Metropolitan Trucking Inc and Related Entities [Member]
Business Acquisition, Installment Obligations Assumed			$ 12.3
Trucks [Member] | Minimum [Member] | Metropolitan Trucking Inc and Related Entities [Member]
Business Acquisition, Assumed Obligations, Number of Monthly Installments	1
Trucks [Member] | Maximum [Member] | Metropolitan Trucking Inc and Related Entities [Member]
Business Acquisition, Assumed Obligations, Number of Monthly Installments	36
Trailers [Member] | Minimum [Member] | Metropolitan Trucking Inc and Related Entities [Member]
Business Acquisition, Assumed Obligations, Number of Monthly Installments	24
Trailers [Member] | Maximum [Member] | Metropolitan Trucking Inc and Related Entities [Member]
Business Acquisition, Assumed Obligations, Number of Monthly Installments	34
Equipment Financing [Member]
Notes Payable, Total		$ 76.8
Equipment Financing [Member] | Real Estate Financing [Member]
Notes Payable, Total		35.5
Equipment Financing [Member] | Revenue Equipment [Member]
Notes Payable, Total		$ 41.3
Equipment Financing [Member] | Trucks [Member] | Minimum [Member]
Notes Payable, Number of Monthly Installments		60
Equipment Financing [Member] | Trailers [Member] | Maximum [Member]
Notes Payable, Number of Monthly Installments		120

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Note L - Litigation (Details Textual) - USD ($) $ in Millions	Sep. 30, 2022	Sep. 01, 2020	Sep. 01, 2019
Self Insurance Auto Liability Claims Threshold Amount		$ 2	$ 1
Self Insurance Auto Liability Claims Threshold Amount		$ 2	$ 1
Minimum [Member]
Self Insurance Liability Claims, Exceeding Amount Reserve Threshold	$ 2

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Note M - Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 0		$ 0
Operating Lease, Payments	100		400
Property, Plant and Equipment, Net, Total	459,278		459,278		$ 384,179
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance	233,817		233,817		$ 201,124
Depreciation, Total	16,289	$ 12,740	46,647	$ 41,426
Leases without Early Cancellation Options [Member] | Other Noncurrent Assets [Member]
Operating Lease, Right-of-Use Asset	$ 500		$ 500
Trucks under Operating Lease [Member]
Lessor, Operating Lease, Term of Contract (Year)	5 years		5 years
Property, Plant and Equipment, Net, Total	$ 55,200		$ 55,200
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Ending Balance	35,000		$ 35,000
Depreciation, Total	$ 1,600
Minimum [Member] | Shop and Office Leases with Early Cancellation Options [Member]
Lessee, Operating Lease, Term of Contract (Year)	1 year		1 year
Minimum [Member] | Leases without Early Cancellation Options [Member]
Lessee, Operating Lease, Term of Contract (Year)	3 years		3 years
Maximum [Member] | Shop and Office Leases with Early Cancellation Options [Member]
Lessee, Operating Lease, Term of Contract (Year)	5 years		5 years
Maximum [Member] | Leases without Early Cancellation Options [Member]
Lessee, Operating Lease, Term of Contract (Year)	5 years		5 years

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Note M - Leases - Operating Lease (Details) $ in Thousands	Sep. 30, 2022 USD ($)
2022 (remaining)	$ 84
2023	340
2024	114
2025 and thereafter	0
Total undiscounted operating lease payments	538
Less: Imputed interest	$ (14)
Weighted-average remaining lease term for operating leases (years) (Year)	1 year 6 months 29 days
Weighted-average discount rate for operating leases	3.74%
Accrued Expenses And Other Liabilities And Other Long-term Liabilities [Member]
Present value of operating lease liabilities	$ 524
Right-of-use assets (recorded in other non-current assets)	524
Total operating lease liabilities	524
Other Current Liabilities [Member]
Current lease liabilities (recorded in other current liabilities)	339
Other Noncurrent Liabilities [Member]
Long-term lease liabilities (recorded in other long-term liabilities)	$ 185

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Note M - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Long-term	$ 125	$ 147	$ 435	$ 441
Short-term	627	572	1,732	1,632
Total	$ 752	$ 719	$ 2,167	$ 2,073

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Note M - Leases - Lease Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lease revenue	$ 2,327	$ 2,208	$ 6,945	$ 5,950
Trucks under Operating Lease [Member]
Lease revenue	2,228	2,039	6,519	5,444
Dock Space under Operating Lease [Member]
Lease revenue	$ 99	$ 169	$ 426	$ 506

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Note M - Leases - Lease Receivables (Details) $ in Thousands	Sep. 30, 2022 USD ($)
2022 (remaining)	$ 2,085
2023	6,472
2024	3,207
2025	94
2026 and thereafter	0
Total future minimum lease payments receivable	$ 11,858

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Note O - Noncash Investing and Financing Activities (Details Textual) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Noncash or Part Noncash Acquisition, Fixed Assets Acquired	$ 16.9

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Note P - Acquisition of Metropolitan Trucking (Details Textual) - Metropolitan Trucking Inc and Related Entities [Member] - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jun. 14, 2022	Sep. 30, 2022	Sep. 30, 2022
Business Combination, Consideration Transferred, Total	$ 79,900
Payments to Acquire Businesses, Gross	64,317
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-Term Debt	12,627
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	$ 2,915
Acquired Business As a Percent of Total Assets		14.10%	14.10%
Acquired Business As a Percent of Operating Revenue		9.40%	4.10%
Business Combination, Acquisition Related Costs		$ 400	$ 400

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Note P - Acquisition of Metropolitan Trucking - Assets Acquired and Liabilities Assumed (Details) - Metropolitan Trucking Inc and Related Entities [Member] $ in Thousands	Jun. 14, 2022 USD ($)
Trade and other accounts receivable	$ 10,821
Other current assets	316
Property and equipment	68,722
Total assets	79,859
Accounts payable	(2,915)
Long-term debt	(12,627)
Payments to Acquire Businesses, Gross	$ 64,317