PAMT CORP
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
PAMT$14.01+6.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001437749-25-015763
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001437749-25-025711
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 45 previous paragraphs and 62 current paragraphs.
20 unchanged; 25 reworded; 10 added; 0 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Gain on disposition of equipment increased from 0.1% of revenues, before fuel surcharges, during the second quarter of 2024 to 4.8% of revenues, before fuel surcharges, during the second quarter of 2025.The increase was primarily due to the disposition of revenue equipment effected by management’s change in accounting estimates related to the salvage value and useful lives of revenue equipment during the year ended December 31, 2024. The reduced estimated salvage values had a direct impact on gains recognized when disposing revenue equipment during the six months ended June 30, 2025.
Current report
For the six months ended June 30, 2025, truckload services revenue, before fuel surcharges, decreased 11.3% to $185.3 million as compared to $208.8 million for the six months ended June 30, 2024. The decrease relates primarily to a 9.3% decrease in total miles travelled from 89.9 million during the first six months of 2024 to 81.6 million for the first six months of 2025 and to a 2.8% decrease in our rate per mile, from $2.10 for the first six months of 2024 to $2.04 for the first six months of 2025. The reduction in total miles was primarily driven by a 7.2% reduction in the average number of trucks operated while the average miles driven by each truck remained relatively flat when comparing the six months ending June 30, 2025 to the six months ending June 30, 2024. The reduction in truck count and miles is a result of the ongoing freight recession, characterized by an oversupply of available trucks in the market compared to available freight.
Current report
Gain on disposition of equipment increased from 0.0% of revenues, before fuel surcharges, during the first six months of 2024 to 4.0% of revenues, before fuel surcharges, during the first six months of 2025. The increase was primarily due to the disposition of revenue equipment effected by management’s change in accounting estimates related to the salvage value and useful lives of revenue equipment during the year ended December 31, 2024. The reduced estimated salvage values had a direct impact on gains recognized when disposing revenue equipment during the six months ended June 30, 2025.
Current report
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 103.9% for the first six months of 2024 to 111.7% for the first six months of 2025.
Current report
During the first six months of 2025, logistics and brokerage services revenue, before fuel surcharges, decreased 24.2% to $85.3 million as compared to $112.4 million during the first six months of 2024. The decrease was primarily related to a 30.9% decrease in the number of brokered loads during the first six months of 2025 as compared to the first six months of 2024.
Current report
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, increased from 93.9% for the first six months of 2024 to 98.3% for the first six months of 2025.
Current report
For the first six months of 2025, net loss for all divisions was approximately $17.8 million, or 6.6% in excess of revenues, before fuel surcharges as compared to net loss of $2.6 million, or 0.8% of revenues, before fuel surcharges for the first six months of 2024. The decrease in net income resulted in a diluted loss per share of $0.83 for the first six months of 2025 as compared to diluted loss per share of $0.12 for the first six months of 2024.
Current report
The loan agreement requires us to maintain a debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, excluding gains and losses on equity securities and extraordinary items, calculated on a rolling four-quarter basis) ratio of less than 4.00 to 1.00 as of the end of each calendar quarter. As of June 30, 2025, we were not in compliance with this financial covenant. The elevated debt to adjusted EBITDA ratio was primarily the result of increased funded debt related to the purchase of $144.2 million of revenue equipment during 2024, most of which was financed, combined with a decrease in trailing twelve-month adjusted EBITDA due to the phasing out of earlier, more favorable quarters from the rolling four-quarter calculation. The agreement provides a 45-day cure period for financial covenant violations, during which we are not deemed to be in default of the loan agreement. On August 7, 2025, within the permitted cure period, we received a written waiver from the lender for the covenant violation applicable to the period ended June 30, 2025. We remain in compliance with all other covenants under the agreement as of the date of this filing.
Current report
We are currently working with the lender to amend the financial covenant terms of the agreement on a prospective basis and anticipate having a revised covenant metric in place prior to the end of the quarter, ending September 30, 2025. However, we cannot guarantee that we will reach an agreement with the lender to revise this metric for future quarters on terms favorable to us or at all. If we are unable to reach an agreement with the lender to revise the financial covenant and do not meet the current covenant as of September 30, 2025, we would need to seek an additional waiver from the lender or obtain an alternative source of funding to supplement our cash flows. While we have not borrowed any funds under the line of credit during 2025, any failure to meet this covenant in a future quarter or obtain a waiver from the lender within the applicable cure period would accelerate our payment obligations with respect to any future amounts that we may borrow under the credit facility and prevent us from making further borrowings under the facility, either of which could materially and adversely affect our future liquidity.
Current report
In July 2025, the federal government enacted new tax legislation that includes several provisions applicable to tax years beginning after December 31, 2024. Two provisions are particularly relevant to our business. First, the law restores 100% bonus depreciation for qualifying capital assets placed in service after 2024, reversing the previously scheduled phase-down. This change is expected to increase our near-term deductions for fleet and facility investments and may reduce our cash tax obligations in future periods. Second, the legislation reinstates the more favorable EBITDA-based limitation on the deductibility of business interest under Section 163(j), replacing the prior EBIT-based calculation. As a capital-intensive operator that finances a portion of its asset base, this change will enhance our ability to deduct interest expense and reduce future cash tax liabilities. Since the legislation was enacted after June 30, 2025, it did not affect our income tax provision or financial position as of that date. We are currently evaluating the broader implications of the new law on our liquidity, effective tax rate, and capital planning strategies for the remainder of 2025 and future periods. Based on a preliminary assessment, the Company expects the reinstatement of 100% bonus depreciation and the revised business interest limitation to accelerate tax deductions in the second half of 2025. These changes are expected to reduce the Company’s estimated income tax payable recorded as of June 30, 2025 by approximately $4.5 million, resulting in the recognition of a net tax receivable and a corresponding increase in deferred tax liabilities of approximately $4.5 million.
Reworded paragraphs (25)
Previous wording
Truckload services revenues, excluding fuel surcharges, represented 67.6% and 63.5% of total revenues, excluding fuel surcharges, for the quarters ended March 31, 2025, and 2024, respectively. The remaining operating revenues, before fuel surcharges, for the same periods were generated from brokerage and logistics services, representing 32.4% and 36.5%, respectively.
Current wording
Truckload services revenues, excluding fuel surcharges, represented 69.4% and 66.5% of total revenues, excluding fuel surcharges, for the quarters ended June 30, 2025, and 2024, respectively. The remaining operating revenues, before fuel surcharges, for the same periods were generated from brokerage and logistics services, representing 30.6% and 33.5%, respectively.
Previous wording
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.
Current wording
The main factors that impact our profitability on the expense side are the costs incurred in transporting freight for our customers. Currently, our most challenging costs include capital equipment, wage and benefits costs, driver recruitment, training, independent broker costs (which we record as purchased transportation), maintenance, fuel and insurance costs.
Previous wording
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 March 31, 2025 and 2024, approximately $18.6 million and $21.6 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.
Current wording
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 June 30, 2025 and 2024, approximately $17.3 million and $22.7 million, respectively, of the Company’s total revenue was generated from fuel surcharges. During the six months ended June 30, 2025 and 2024, approximately $36.0 million and $44.4 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.
Previous wording
During the first quarter of 2025, truckload services revenue, before fuel surcharges, decreased by 9.6% to $92.4 million as compared to $102.2 million during the first quarter of 2024. The decrease relates primarily to a 6.5% decrease in total miles travelled from 44.1 million during the first quarter of 2024 to 41.2 million during the first quarter of 2025 and to a 3.3% decrease in our rate per mile, from $2.11 for the quarter ended March 31, 2024 to $2.04 for the quarter ended March 31, 2025. The reduction in total miles was primarily driven by a 3.5% reduction in the average number of trucks operated combined with a 1.5% reduction in average miles driven by each truck during the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024. The reduction in truck count and miles resulted from a less favorable freight market characterized by an oversupply of available trucks in the market compared to available freight.
Current wording
During the second quarter of 2025, truckload services revenue, before fuel surcharges, decreased 12.9% to $92.8 million as compared to $106.6 million during the second quarter of 2024. The decrease relates primarily to an 11.9% decrease in total miles travelled from 45.8 million for the second quarter of 2024 to 40.4 million for the second quarter of 2025 and to a 2.4% decrease in our rate per mile, from $2.09 for the second quarter of 2024 to $2.04 for the second quarter of 2025. The reduction in total miles was primarily driven by a 10.7% reduction in the average number of trucks operated while the average miles driven by each truck for the second quarter of 2025 compared to the second quarter of 2024 remained relatively flat. The reduction in truck count and miles is a result of the ongoing freight recession, characterized by an oversupply of available trucks in the market compared to available freight.
Previous wording
Salaries, wages and benefits increased from 40.5% of revenues, before fuel surcharges, in the first quarter of 2024 to 41.3% of revenues, before fuel surcharges, during the first quarter of 2025. The percentage-based increase relates primarily to the interaction of a decrease in operating revenues with the fixed-cost nature of employing human capital.
Current wording
Salaries, wages and benefits increased from 38.6% of revenues, before fuel surcharges, in the second quarter of 2024 to 41.7% of revenues, before fuel surcharges, during the second quarter of 2025. The percentage-based increase relates primarily to the interaction of a decrease in operating revenues with the fixed-cost nature of employing human capital.
Previous wording
Operating supplies and expenses increased from 12.4% of revenues, before fuel surcharges, during the first quarter of 2024 to 13.5% of revenues, before fuel surcharges, during the first quarter of 2025. The increase relates primarily to the interaction of expenses with fixed-cost characteristics, such as rents, driver training schools and operating taxes and licenses with a decrease in revenue.
Current wording
Operating supplies and expenses increased from 11.5% of revenues, before fuel surcharges, during the second quarter of 2024 to 12.3% of revenues, before fuel surcharges, during the second quarter of 2025. The increase relates primarily to the interaction of expenses with fixed-cost characteristics, such as rents, driver training schools and operating taxes and licenses with a decrease in revenue.
Previous wording
Rent and purchased transportation increased from 22.2% of revenues, before fuel surcharges, during the first quarter of 2024 to 25.8% of revenues, before fuel surcharges, during the first quarter of 2025. The increase was primarily due to a quarter-over-quarter increase in the percentage of miles driven by third-party owner-operators as opposed to company-employed drivers.
Current wording
Rent and purchased transportation increased from 26.7% of revenues, before fuel surcharges, during the second quarter of 2024 to 30.2% of revenues, before fuel surcharges, during the second quarter of 2025. The increase was primarily due to a quarter-over-quarter increase in the percentage of miles driven by third-party owner-operators as opposed to company-employed drivers.
Previous wording
Depreciation increased from 18.3% of revenues, before fuel surcharges, during the first quarter of 2024 to 24.0% of revenues, before fuel surcharges, during the first quarter of 2025. The increase is primarily attributed to management’s change in accounting estimates related to the salvage values and useful lives of revenue equipment during the year ended December 31, 2024. During 2024, the Company conducted a review of its revenue equipment and determined that changes in market conditions and expected asset usage warranted a revision to the estimated useful lives and salvage values of certain equipment. As a result, during the year ended December 31, 2024, the Company reduced the estimated useful lives of its trailer equipment and lowered the estimated salvage values of revenue equipment to better reflect their expected residual values at the end of their service periods. This change in accounting estimates shortened the depreciable life and increased the depreciable base for a significant portion of the company’s revenue equipment, thus increasing future monthly depreciation expense for the affected assets. In addition to the effect from the Company’s previous change in accounting estimate, the year-over-year increase can also be attributed to the interaction of a decrease in operating revenues with the fixed-cost nature of depreciation expense.
Current wording
Depreciation increased from 17.3% of revenues, before fuel surcharges, during the second quarter of 2024 to 23.0% of revenues, before fuel surcharges, during the second quarter of 2025. The increase is primarily attributed to management’s change in accounting estimates related to the salvage values and useful lives of revenue equipment during the year ended December 31, 2024. During 2024, the Company conducted a review of its revenue equipment and determined that changes in market conditions and expected asset usage warranted a revision to the estimated useful lives and salvage values of certain equipment. As a result, during the year ended December 31, 2024, the Company reduced the estimated useful lives of its trailer equipment and lowered the estimated salvage values of revenue equipment to better reflect their expected residual values at the end of their service periods. This change in accounting estimates shortened the depreciable life and increased the depreciable base for a significant portion of the company’s revenue equipment, thus increasing future monthly depreciation expense for the affected assets. In addition to the effect from the Company’s previous change in accounting estimate, the year-over-year increase can also be attributed to the interaction of a decrease in operating revenues with the fixed-cost nature of depreciation expense.
Previous wording
Non-operating income decreased from 3.7% of revenues, before fuel surcharges, during the first quarter of 2024 to 2.7% of revenues, before fuel surcharges, during the first quarter of 2025. The decline was primarily driven by slower growth in the market value of our marketable equity securities as of March 31, 2025, compared to the same date in 2024, as well as a reduction in interest income recognized during the quarter ended March 31, 2025.
Current wording
Non-operating income increased from 0.1% of revenues, before fuel surcharges, during the second quarter of 2024 to 2.4% of revenues, before fuel surcharges, during the second quarter of 2025. The increase was primarily driven by growth in the market value of our marketable equity securities as of June 30, 2025, compared to the same date in 2024.
Previous wording
Interest expense increased from 2.5% of revenues, before fuel surcharges, during the first quarter of 2024 to 4.2% of revenues, before fuel surcharges, during the first quarter of 2025. The increase is attributed to the Company’s increased long-term debt from $271.6 million at March 31, 2024 to $309.2 million at March 31, 2025, coupled with an increase in interest rates as the Company’s weighted average interest rate increased from 4.45% in 2023 to 5.04% in 2024.
Current wording
Interest expense increased from 2.9% of revenues, before fuel surcharges, during the second quarter of 2024 to 4.2% of revenues, before fuel surcharges, during the second quarter of 2025. The increase is attributed to the Company’s increased long-term debt from $266.0 million at June 30, 2024 to $331.2 million at June 30, 2025, coupled with an increase in interest rates as the Company’s weighted average interest rate increased from 4.55% in 2024 to 5.10% in 2025.
Previous wording
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 104.2% for the first quarter of 2024 to 110.9% for the first quarter of 2025.
Current wording
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 103.7% for the second quarter of 2024 to 112.5% for the second quarter of 2025.
Previous wording
During the first quarter of 2025, logistics and brokerage services revenue, before fuel surcharges, decreased 24.7% to $44.3 million as compared to $58.8 million during the first quarter of 2024. The decrease was primarily related to a 28.0% decrease in the number of brokered loads during the first quarter 2025 as compared to 2024.
Current wording
During the second quarter of 2025, logistics and brokerage services revenue, before fuel surcharges, decreased 23.6% to $41.0 million as compared to $53.7 million during the second quarter of 2024. The decrease was primarily related to a 33.7% decrease in the number of brokered loads during the second quarter 2025 as compared to 2024.
Previous wording
Rents and purchased transportation increased from 86.1% of revenues, before fuel surcharges, during the first quarter of 2024 to 88.4% of revenues, before fuel surcharges, during the first quarter of 2025. The increase results from paying third-party carriers a larger percentage of customer revenue, coupled with the interaction of a decrease in operating revenues and the need for purchased transportation.
Current wording
Rents and purchased transportation increased from 86.4% of revenues, before fuel surcharges, during the second quarter of 2024 to 89.9% of revenues, before fuel surcharges, during the second quarter of 2025. The increase results from paying third-party carriers a larger percentage of customer revenue.
Previous wording
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, increased from 93.9% for the first quarter of 2024 to 98.0% for the first quarter of 2025.
Current wording
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, increased from 93.9% for the second quarter of 2024 to 98.7% for the second quarter of 2025.
Previous wording
Net loss for all divisions was approximately $8.1 million, or (6.0)% of revenues, before fuel surcharges, for the first quarter of 2025 as compared to net income of $0.3 million, or 0.2% of revenues, before fuel surcharges, for the first quarter of 2024. The decrease in net income resulted in diluted loss per share of $0.37 for the first quarter of 2025 as compared to diluted earnings per share of $0.01 for the first quarter of 2024.
Current wording
Net loss for all divisions was approximately $9.6 million, or 7.2% in excess of revenues, before fuel surcharges, for the second quarter of 2025 as compared to net loss of $2.9 million, or 1.8% in excess of revenues, before fuel surcharges, for the second quarter of 2024. The decrease in net income resulted in diluted loss per share of $0.46 for the second quarter of 2025 as compared to diluted loss per share of $0.13 for the second quarter of 2024.
Previous wording
During the first three months of 2025, we generated $5.0 million in cash from operating activities. Investing activities generated $0.4 million in cash in the first three months of 2025. Financing activities used $16.3 million in cash in the first three months of 2025.
Current wording
During the first six months of 2025, we generated $17.2 million in cash from operating activities. Investing activities generated $7.7 million in cash in the first six months of 2025. Financing activities used $24.0 million in cash in the first six months of 2025.
Previous wording
Our primary use of funds is for the purchase of revenue equipment. We typically use installment notes with fixed interest rates and terms ranging from 36 to 84 months, 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 three months of 2025, we utilized cash on hand, installment notes, and our line of credit to finance purchases of revenue equipment and other assets of approximately $11.8 million.
Current wording
Our primary use of funds is for the purchase of revenue equipment. We typically use installment notes with fixed interest rates and terms ranging from 36 to 84 months, 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 six months of 2025, we utilized cash on hand and long-term debt to finance purchases of revenue equipment and other assets of approximately $18.1 million.
Previous wording
During the remainder of 2025, we expect to purchase approximately 282 new trucks and 775 new trailers while continuing to sell or trade older equipment, which we expect to result in net capital expenditures of approximately $30.2 million.
Current wording
During the remainder of 2025, we expect to purchase approximately 188 new trucks and 650 new trailers while continuing to sell or trade older equipment, which we expect to result in net capital expenditures of approximately $25.1 million.
Previous wording
During the first three months of 2025, we maintained a revolving line of credit with a borrowing limit of $60.0 million. Under this credit facility, amounts outstanding under the line bear interest at Term SOFR plus 1.85% (6.24% at March 31, 2025), are secured by our trade accounts receivable and mature on July 1, 2027. The credit facility also establishes an “unused fee” of 0.25% if average borrowings are less than $18.0 million. At March 31, 2025, we had no outstanding borrowings against the line of credit and approximately $0.2 million of outstanding letters of credit, with availability to borrow $59.8 million.
Current wording
During the first six months of 2025, we maintained a revolving line of credit with a borrowing limit of $60.0 million. Under this credit facility, amounts outstanding under the line bear interest at Term SOFR plus 1.85% (6.20% at June 30, 2025), are secured by our trade accounts receivable and mature on July 1, 2027. The credit facility also establishes an “unused fee” of 0.25% if average borrowings are less than $18.0 million. At June 30, 2025, we had no outstanding borrowings against the line of credit and approximately $0.2 million of outstanding letters of credit, with availability to borrow $59.8 million.
Previous wording
Prepaid expenses and deposits decreased from $11.6 million at December 31, 2024 to $10.5 million at March 31, 2025. The decrease relates to the normal amortization of items prepaid as of December 31, 2024.
Current wording
Prepaid expenses and deposits decreased from $11.6 million at December 31, 2024 to $8.5 million at June 30, 2025. The decrease relates to the normal amortization of items prepaid as of December 31, 2024.
Previous wording
Our marketable equity securities portfolio grew $3.0 million during the first quarter of 2025 from $42.6 million at December 31, 2024 to $45.6 million at March 31, 2025. The increase was driven entirely by unrealized gains due to favorable market value changes in the underlying equity holdings.
Current wording
Our marketable equity securities portfolio grew $5.8 million during the first six months of 2025 from $42.6 million at December 31, 2024 to $48.4 million at June 30, 2025. The increase was driven entirely by unrealized gains due to favorable market value changes in the underlying equity holdings.
Previous wording
Revenue equipment decreased from $733.2 million at December 31, 2024 to $697.6 million at March 31, 2025. The decrease is primarily due to the disposition of aging trucks and trailers during the first quarter of 2025, partially offset by purchases of new trucks and trailers during the first quarter of 2025.
Current wording
Revenue equipment decreased from $733.2 million at December 31, 2024 to $672.6 million at June 30, 2025. The decrease is primarily due to the disposition of aging trucks and trailers during the first six months of 2025, partially offset by purchases of new trucks and trailers during the first six months of 2025.
Previous wording
During the first quarter of 2025, our current income tax position shifted from a net refundable asset of $2.3 million at December 31, 2024 to a net payable liability of $6.4 million at March 31, 2025. This change was primarily driven by the reversal of previously recognized temporary differences, most notably those related to accelerated depreciation. The transition was expected and reflects the normal timing of cash tax obligations in relation to book-tax differences. In connection with these reversals, our deferred income tax liability also decreased from $92.5 million at December 31, 2024 to $81.2 million at March 31, 2025. The reduction primarily reflects the realization of deferred tax liabilities established in prior periods for the same temporary differences, most notably those related to accelerated depreciation.
Current wording
During the first six months of 2025, our current income tax position shifted from a net refundable asset of $2.3 million at December 31, 2024 to a net payable liability of $1.8 million at June 30, 2025. This change was primarily driven by the reversal of previously recognized temporary differences, most notably those related to accelerated depreciation. The transition was expected and reflects the normal timing of cash tax obligations in relation to book-tax differences. In connection with these reversals, our deferred income tax liability also decreased from $92.5 million at December 31, 2024 to $81.8 million at June 30, 2025. The reduction primarily reflects the realization of deferred tax liabilities established in prior periods for the same temporary differences, most notably those related to accelerated depreciation.
Previous wording
Accounts payable and accrued expenses remained relatively flat over the quarter, with balances of $31.1 million and $15.1 million, respectively at March 31, 2025 compared to $31.2 million and $14.6 million, respectively, at December 31, 2024.
Current wording
Accounts payable and accrued expenses remained relatively flat over the quarter, with balances of $31.0 million and $16.6 million, respectively at June 30, 2025 compared to $31.2 million and $14.6 million, respectively, at December 31, 2024.
Previous wording
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, decreased from $325.6 million at December 31, 2024 to $309.2 million at March 31, 2025. The decrease reflects schedule principal payments and the absence of new financing arrangements for revenue equipment during the first quarter of 2025.
Current wording
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 $325.6 million at December 31, 2024 to $331.2 million at June 30, 2025. The increase was primarily related to the financing of additional revenue equipment during the first six months of 2025.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Salaries, wages and benefits increased from 39.5% of revenues, before fuel surcharges, in the first six months of 2024 to 41.5% of revenues, before fuel surcharges, during the first six months of 2025. The percentage-based increase relates primarily to the interaction of a decrease in operating revenues with the fixed-cost nature of employing human capital.
Current report — wording carried from elsewhere
Operating supplies and expenses increased from 12.0% of revenues, before fuel surcharges, in the first six months of 2024 to 12.9% of revenues, before fuel surcharges, during the first six months of 2025. The increase relates primarily to the interaction of expenses with fixed-cost characteristics, such as rents, driver training schools and operating taxes and licenses with a decrease in revenue.
Current report — wording carried from elsewhere
Rent and purchased transportation increased from 24.5% of revenues, before fuel surcharges, in the first six months of 2024 to 28.0% of revenues, before fuel surcharges, during the first six months of 2025. The increase was primarily due to a quarter-over-quarter increase in the percentage of miles driven by third-party owner-operators as opposed to company-employed drivers.
Current report — wording carried from elsewhere
Depreciation increased from 17.8% of revenues, before fuel surcharges, during the first six months of 2024 to 23.4% of revenues, before fuel surcharges, during the first six months of 2025. The increase is primarily attributed to management’s change in accounting estimates related to the salvage values and useful lives of revenue equipment during the year ended December 31, 2024. In addition to the effect from the Company’s previous change in accounting estimate, the year-over-year increase can also be attributed to the interaction of a decrease in operating revenues with the fixed-cost nature of depreciation expense.
Current report — wording carried from elsewhere
Non-operating income increased from 1.8% of revenues, before fuel surcharges, during the first six months of 2024 to 2.5% of revenues, before fuel surcharges, during the first six months of 2025. The increase was primarily driven by growth in the market value of our marketable equity securities as of June 30, 2025, compared to the same date in 2024.
Current report — wording carried from elsewhere
Interest expense increased from 2.7% of revenues, before fuel surcharges, during the first six months of 2024 to 4.2% of revenues, before fuel surcharges, during the first six months of 2025. The increase is attributed to the Company’s increased long-term debt from $266.0 million at June 30, 2024 to $331.2 million at June 30, 2025, coupled with an increase in interest rates as the Company’s weighted average interest rate increased from 4.55% in 2024 to 5.10% in 2025.
Current report — wording carried from elsewhere
Rents and purchased transportation increased from 86.2% of revenues, before fuel surcharges, during the first six months of 2024 to 89.1% of revenues, before fuel surcharges, during the first six months of 2025. The increase results from paying third-party carriers a larger percentage of customer revenue.