PAMT CORP

Previous wording

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, 2025.

Current wording

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, 2025.

Previous wording

Truckload services revenues, excluding fuel surcharges, represented 62.9% and 69.4% of total revenues, excluding fuel surcharges, for the quarters ended June 30, 2026, and 2025, respectively. The remaining operating revenues, before fuel surcharges, for the same periods were generated from brokerage and logistics services, representing 37.1% and 30.6%, respectively.

Current wording

Truckload services revenues, excluding fuel surcharges, represented 67.1% and 68.6% of total revenues, excluding fuel surcharges, for the quarters ended September 30, 2026, and 2025, respectively. The remaining operating revenues, before fuel surcharges, for the same periods were generated from brokerage and logistics services, representing 32.9% and 31.4%, respectively.

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 June 30, 2026 and 2025, approximately $27.8 million and $17.3 million, respectively, of the Company’s total revenue was generated from fuel surcharges. During the six months ended June 30, 2026 and 2025, approximately $47.0 million and $36.0 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 September 30, 2026 and 2025, approximately $26.6 million and $17.3 million, respectively, of the Company’s total revenue was generated from fuel surcharges. During the nine months ended September 30, 2026 and 2025, approximately $73.5 million and $53.3 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 second quarter of 2026, truckload services revenue, before fuel surcharges, decreased 7.3% to $86.1 million as compared to $92.8 million during the second quarter of 2025. The decrease was primarily due to a 3.3% decline in average rate per mile, from $2.04 for the quarter ended June 30, 2025 to $1.98 for the quarter ended June 30, 2026, as well as a 3.6% decrease in the average number of manned trucks during the period. The impact of these factors was partially offset by a 12.0% increase in truck utilization, as measured by miles per truck per day.

Current wording

During the third quarter of 2026, truckload services revenue, before fuel surcharges, remained flat at $91.2 million compared to the third quarter of 2025. The Company realized a 6.3% increase in average rate per mile, from $2.06 during the third quarter of 2025 to $2.19 during the third quarter of 2026, as well as a 2.8% increase in truck utilization, measured by miles per truck per day. The positive impact to revenue of these increases was offset by a 3.8% decrease in the average number of manned trucks compared to the prior-year quarter.

Previous wording

Rent and purchased transportation decreased from 30.2% of revenues, before fuel surcharges, during the second quarter of 2025 to 23.0% of revenues, before fuel surcharges, during the second quarter of 2026. The decrease was primarily due to a year-over-year decrease in the percentage of miles driven by third-party owner-operators rather than Company-employed drivers, as well as an increased allocation of third-party transportation services to the Company’s brokerage and logistics operations.

Current wording

Rent and purchased transportation decreased from 26.2% of revenues, before fuel surcharges, during the third quarter of 2025 to 18.5% of revenues, before fuel surcharges, during the third quarter of 2026. The decrease was primarily due to a year-over-year decrease in the percentage of miles driven by third-party owner-operators rather than Company-employed drivers, as well as an increased allocation of third-party transportation services to the Company’s brokerage and logistics operations.

Previous wording

Depreciation expense decreased from 23.0% of operating revenues during the second quarter of 2025 to 21.7% during the second quarter of 2026. The decrease was primarily due to the disposal of equipment during the second quarter of 2026 before replacement equipment was placed in service, resulting in a temporary reduction in the depreciable asset base.

Current wording

Depreciation expense decreased from 21.3% of operating revenues during the third quarter of 2025 to 20.8% during the third quarter of 2026. The decrease was primarily due to the disposal of equipment during the third quarter of 2026 before replacement equipment was placed in service, resulting in a temporary reduction in the depreciable asset base.

Previous wording

Interest expense increased from 4.2% of revenues, before fuel surcharges, during the second quarter of 2025 to 5.1% of revenues, before fuel surcharges, during the second quarter of 2026. The increase was attributable to the Company’s increased weighted-average interest rate on debt from 5.10% during the second quarter of 2025 to 5.59% during the second quarter of 2026, meaning the Company experienced a higher overall cost of new borrowings. The repayment of lower-rate debt and issuance of new debt at higher prevailing interest rates further contributed to the increase in interest expense. The fixed-cost nature of interest expense, combined with lower operating revenues in the second quarter of 2026, also increased interest expense as a percentage of revenue.

Current wording

Interest expense increased from 4.8% of revenues, before fuel surcharges, during the third quarter of 2025 to 5.2% of revenues, before fuel surcharges, during the third quarter of 2026. The increase was primarily attributable to a higher weighted-average interest rate on outstanding debt, which increased from 5.19% during the third quarter of 2025 to 5.65% during the third quarter of 2026, reflecting the repayment of lower-rate debt and the issuance of new debt at higher interest rates.

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 112.5% for the second quarter of 2025 to 114.2% for the second quarter of 2026.

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 106.7% during the third quarter of 2025 to 109.1% during the third quarter of 2026.

Previous wording

For the six months ended June 30, 2026, truckload services revenue, before fuel surcharges, decreased 11.3% to $164.3 million as compared to $185.3 million for the six months ended June 30, 2025. The decrease was primarily due to a 4.9% decline in average rate per mile, from $2.04 for the six months ended June 30, 2025 to $1.94 for the six months ended June 30, 2026, as well as a 5.1% decrease in the average number of manned trucks during the period. The impact of these factors was partially offset by an 8.9% increase in truck utilization, as measured by miles per truck per day.

Current wording

For the nine months ended September 30, 2026, truckload services revenue, before fuel surcharges, decreased 7.6% to $255.5 million as compared to $276.4 million for the nine months ended September 30, 2025. The decrease was primarily attributable to a 4.8% decrease in the average number of manned trucks during the period, as well as a 1.3% decline in average rate per mile, from $2.05 during the nine months ended September 30, 2025 to $2.02 during the nine months ended September 30, 2026. The impact of these factors was partially offset by a 6.9% increase in truck utilization, as measured by miles per truck per day.

Previous wording

Salaries, wages and benefits increased from 41.5% of revenues, before fuel surcharges, in the first six months of 2025 to 46.0% of revenues, before fuel surcharges, during the first six months of 2026. 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 41.3% of revenues, before fuel surcharges, in the first nine months of 2025 to 45.1% of revenues, before fuel surcharges, during the first nine months of 2026. The percentage-based increase was primarily attributable to lower operating revenues relative to the fixed-cost components of employee compensation, as well as higher driver wages resulting from increases in driver compensation rates implemented during 2026 as part of the Company's ongoing efforts to attract and retain qualified drivers in a competitive labor market.

Previous wording

Operating supplies and expenses decreased from 12.9% of revenues, before fuel surcharges, in the first six months of 2025 to 11.9% of revenues, before fuel surcharges, during the first six months of 2026. The decrease was primarily driven by a $0.5 million increase in the net benefit of fuel surcharge collections over fuel expense, lower maintenance costs associated with a decrease in the average number of trucks in service from 2,132 during the six months ended June 30, 2025 to 1,999 during the six months ended June 30, 2026, as well as the continued replacement of older equipment with newer equipment. The decrease in maintenance costs occurred despite an increase of 2.7 million miles driven during the first six months of 2026 compared to the prior-year period.

Current wording

Operating supplies and expenses increased from 12.8% of revenues, before fuel surcharges, in the first nine months of 2025 to 13.3% of revenues, before fuel surcharges, during the first nine months of 2026. The increase was primarily attributable to a $0.5 million decrease in the net benefit of fuel surcharge collections over fuel expense, as well as increased driver recruiting costs associated with the Company's ongoing efforts to attract qualified drivers in a competitive labor market. These increases were partially offset by lower maintenance costs resulting from a decrease in the average number of trucks in service, from 2,110 during the first nine months of 2025 to 2,003 during the first nine months of 2026, as well as the continued replacement of older equipment with newer equipment. Maintenance costs decreased despite an increase of 2.9 million miles driven during the first nine months of 2026 compared to the prior-year period.

Previous wording

Rent and purchased transportation decreased from 28.0% of revenues, before fuel surcharges, in the first six months of 2025 to 23.3% of revenues, before fuel surcharges, during the first six months of 2026. The decrease was primarily due to a year-over-year decrease in the percentage of miles driven by third-party owner-operators rather than Company-employed drivers, as well as an increased allocation of third-party transportation services to the Company’s brokerage and logistics operations.

Current wording

Rent and purchased transportation decreased from 27.4% of revenues, before fuel surcharges, in the first nine months of 2025 to 21.6% of revenues, before fuel surcharges, during the first nine months of 2026. The decrease was primarily due to a year-over-year decrease in the percentage of miles driven by third-party owner-operators rather than Company-employed drivers, as well as an increased allocation of third-party transportation services to the Company’s brokerage and logistics operations.

Previous wording

Depreciation decreased from 23.4% of revenues, before fuel surcharges, during the first six months of 2025 to 22.6% of revenues, before fuel surcharges, during the first six months of 2026. The decrease was primarily due to the disposal of equipment during the second quarter of 2026 before replacement equipment was placed in service, resulting in a temporary reduction in the depreciable asset base.

Current wording

Depreciation decreased from 22.7% of revenues, before fuel surcharges, during the first nine months of 2025 to 22.0% of revenues, before fuel surcharges, during the first nine months of 2026. The decrease was primarily due to the disposal of equipment during the third quarter of 2026 before replacement equipment was placed in service, resulting in a temporary reduction in the depreciable asset base.

Previous wording

Insurance and claims expense increased from 5.3% of revenues, before fuel surcharges, during the first six months of 2025 to 8.4% of revenues, before fuel surcharges, during the first six months of 2026. The increase was primarily attributable to an increase in the Company’s auto liability reserve during the first half of 2026 related to claims that may exceed insurance limits. The increase was also attributable to higher mileage-based insurance premiums associated with the 2.7 million additional miles driven during the first six months of 2026 compared to the prior-year period, as well as lower operating revenues, which reduced the ability to leverage certain fixed-cost components of insurance and claims expense.

Current wording

Insurance and claims expense increased from 5.3% of revenues, before fuel surcharges, during the first nine months of 2025 to 7.3% of revenues, before fuel surcharges, during the first nine months of 2026. The increase was primarily attributable to additional auto liability reserves recognized during 2026 related to claims in excess of the Company's insurance coverage limits. The increase was further attributable to higher mileage-based insurance premiums associated with approximately 2.8 million additional miles driven during the first nine months of 2026 compared to the prior-year period, as well as lower operating revenues relative to certain fixed components of insurance and claims expense.

Previous wording

Other operating expenses increased from 4.6% of revenues, before fuel surcharges, during the first six months of 2025 to 6.2% of revenues, before fuel surcharges, during the first six months of 2026. The increase was primarily due to lower operating revenues, which reduced the leverage of certain fixed costs included in other operating expenses, such as supplies and advertising expenses, as well as an increase in legal and professional expenses during the first six months of 2026, primarily associated with general operational support initiatives.

Current wording

Other operating expenses increased from 4.6% of revenues, before fuel surcharges, during the first nine months of 2025 to 5.9% of revenues, before fuel surcharges, during the first nine months of 2026. The increase was primarily attributable to higher marketing and advertising expenses associated with the Company's expanded driver recruiting efforts to attract qualified drivers in a competitive labor market, as well as increased legal and professional expenses associated with general operational support initiatives. Lower operating revenues also contributed to the percentage-based increase due to the fixed-cost nature of certain expenses included in this category.

Previous wording

Gain on sale or disposition of assets increased from 4.0% of revenues, before fuel surcharges, during the first six months of 2025 to 9.5% of revenues, before fuel surcharges, during the first six months of 2026. The increase was primarily due to a $12.7 million gain recognized on the sale of certain real property in Laredo, Texas, to a related party during the first quarter of 2026. The property consisted of land and operating facilities previously used in the Company’s trucking operations and was sold at a value determined based on an independent third-party appraisal. In dollar terms, gain on the sale or disposition of assets was $15.7 million during the first six months of 2026 compared to $7.4 million during the first six months of 2025. Excluding the gain on the sale of the Laredo property, the decrease in gains from the disposal of revenue equipment was primarily attributable to the fact that, during the first six months of 2025, proceeds from the disposition of certain older revenue equipment significantly exceeded the reduced estimated salvage values resulting from management’s change in accounting estimates related to the salvage value and useful lives of revenue equipment during the year ended December 31, 2024. During the first six months of 2026, proceeds from the disposition of revenue equipment were generally closer to estimated salvage values, resulting in lower gains on disposition.

Current wording

Gain on sale or disposition of assets increased from 4.1% of revenues, before fuel surcharges, during the first nine months of 2025 to 6.2% of revenues, before fuel surcharges, during the first nine months of 2026. In dollar terms, gains increased from $11.4 million during the first nine months of 2025 to $16.0 million during the first nine months of 2026. The increase was primarily attributable to a $12.7 million gain recognized during the first quarter of 2026 on the sale of certain real property in Laredo, Texas, to a related party. The property, consisting of land and operating facilities previously used in the Company's trucking operations, was sold at a value determined based on an independent third-party appraisal. Excluding the gain on the sale of the Laredo property, gains on the disposition of revenue equipment decreased compared to the prior-year period. During the first nine months of 2025, gains on dispositions were favorably impacted by the mix and carrying values of equipment sold. The equipment disposed of during the first nine months of 2025 included assets with lower carrying values, while equipment disposed of during the first nine months of 2026 generally had proceeds more closely aligned with its carrying values.

Previous wording

Interest expense increased from 4.2% of revenues, before fuel surcharges, during the first six months of 2025 to 5.3% of revenues, before fuel surcharges, during the first six months of 2026. The increase was attributable to the Company’s increased weighted-average interest rate on debt from 5.07% during the first six months of 2025 to 5.49% during the first six months of 2026, meaning the Company experienced a higher overall cost of new borrowings. The repayment of lower-rate debt and issuance of new debt at higher prevailing interest rates further contributed to the increase in interest expense. The fixed-cost nature of interest expense, combined with lower operating revenues in the first half of 2026, also increased interest expense as a percentage of revenue.

Current wording

Interest expense increased from 3.1% of revenues, before fuel surcharges, during the first nine months of 2025 to 3.5% of revenues, before fuel surcharges, during the first nine months of 2026. The increase was primarily attributable to a higher weighted-average interest rate on outstanding debt, which increased from 5.11% during the first nine months of 2025 to 5.54% during the first nine months of 2026, reflecting the repayment of lower-rate debt and the issuance of new debt at higher interest rates. Lower operating revenues during the first nine months of 2026 also contributed to the increase in interest expense as a percentage of revenue.

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, decreased from 111.7% for the first six months of 2025 to 108.9% for the first six months of 2026.

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, decreased from 110.1% for the first nine months of 2025 to 108.9% for the first nine months of 2026.

Previous wording

The following table sets forth, for brokerage and logistics 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.

Current wording

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.

Previous wording

Rent and purchased transportation decreased from 89.9% of revenues, before fuel surcharges, during the second quarter of 2025 to 88.2% of revenues, before fuel surcharges, during the second quarter of 2026. The decrease was primarily due to an improved spread between customer rates and third-party carrier costs.

Current wording

Rents and purchased transportation decreased from 90.2% of revenues, before fuel surcharges, during the third quarter of 2025 to 84.3% of revenues, before fuel surcharges, during the third quarter of 2026. The decrease was primarily attributable to an improved spread between customer rates and third-party carrier costs, reflecting favorable pricing dynamics amid changing market conditions.

Previous wording

During the first six months of 2026, brokerage and logistics services revenue, before fuel surcharges, increased 11.7% to $95.2 million as compared to $85.2 million during the first six months of 2025. The increase was primarily related to an 11.2% increase in the number of brokered loads during the first six months of 2026 as compared to the first six months of 2025.

Current wording

During the first nine months of 2026, brokerage and logistics services revenue, before fuel surcharges, increased 10.2% to $140.0 million as compared to $127.0 million during the first nine months of 2025. The increase was primarily attributable to a 7.3% increase in average revenue per load compared to the prior-year period, reflecting higher transportation rates associated with changing market conditions and available carrier capacity. The increase was further supported by a 2.7% increase in the number of brokered loads during the first nine months of 2026 compared to the prior-year period.

Previous wording

Rent and purchased transportation decreased from 89.1% of revenues, before fuel surcharges, during the first six months of 2025 to 87.2% of revenues, before fuel surcharges, during the first six months of 2026. The decrease was primarily due to an improved spread between customer rates and third-party carrier costs.

Current wording

Rent and purchased transportation decreased from 89.4% of revenues, before fuel surcharges, during the first nine months of 2025 to 86.3% of revenues, before fuel surcharges, during the first nine months of 2026. The decrease was primarily attributable to an improved spread between customer rates and third-party carrier costs, reflecting favorable pricing dynamics amid changing market conditions.

Previous wording

The brokerage and logistics services division operating ratio, which measures the ratio of operating expenses, net of fuel surcharges, to operating revenues, before fuel surcharges, improved from 98.3% for the first six months of 2025 to 95.9% for the first six months of 2026.

Current wording

The brokerage and logistics services division operating ratio, which measures the ratio of operating expenses, net of fuel surcharges, to operating revenues, before fuel surcharges, decreased from 98.6% during the first nine months of 2025 to 94.9% during the first nine months of 2026.

Previous wording

Net loss for all divisions was approximately $7.4 million, or 5.4% in excess of revenues, before fuel surcharges, for the second quarter of 2026 as compared to net loss of $9.6 million, or 7.2% in excess of revenues, before fuel surcharges, for the second quarter of 2025. This improvement in net loss resulted in diluted loss per share of ($0.36) for the second quarter of 2026 as compared to diluted loss per share of ($0.46) for the second quarter of 2025.

Current wording

Net loss for all divisions was approximately $8.1 million, or 5.9% in excess of revenues, before fuel surcharges, for the third quarter of 2026 as compared to net loss of $5.6 million, or 4.2% in excess of revenues, before fuel surcharges, for the third quarter of 2025. The decrease in net income resulted in diluted loss per share of $0.38 for the third quarter of 2026 as compared to diluted loss per share of $0.27 for the third quarter of 2025.

Previous wording

For the first six months of 2026, net loss for all divisions was approximately $7.5 million, or 2.9% in excess of revenues, before fuel surcharges as compared to net loss of $17.8 million, or 6.6% of revenues, before fuel surcharges for the first six months of 2025. The improvement in net loss resulted in a diluted loss per share of ($0.36) for the first six months of 2026 as compared to diluted loss per share of ($0.83) for the first six months of 2025.

Current wording

For the first nine months of 2026, net loss for all divisions was approximately $15.5 million, or 3.9% in excess of revenues, before fuel surcharges as compared to net loss of $23.4 million, or 5.8% in excess of revenues, before fuel surcharges for the first nine months of 2025. The decrease in net loss resulted in a diluted loss per share of $0.74 for the first nine months of 2026 as compared to diluted loss per share of $1.10 for the first nine months of 2025.

Previous wording

During the first six months of 2026, we used $16.7 million in cash from operating activities. Investing activities generated $47.3 million in cash in the first six months of 2026. Financing activities used $47.7 million in cash in the first six months of 2026.

Current wording

During the first nine months of 2026, we used $17.7 million in cash from operating activities. Investing activities generated $55.5 million in cash in the first nine months of 2026. Financing activities used $67.6 million in cash in the first nine months of 2026.

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 60 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 2026, we utilized cash on hand and long-term debt to finance purchases of revenue equipment and other assets of approximately $18.8 million. In addition, we acquired approximately $46.6 million of revenue equipment through vendor-direct financing arrangements during the first six months of 2026. This non-cash financing arrangement provides an additional source of liquidity for acquiring new equipment but does not result in cash inflows or outflows and, accordingly, is not reflected in the consolidated statement of cash flows.

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 60 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 nine months of 2026, we utilized cash on hand and long-term debt to finance purchases of revenue equipment and other assets of approximately $21.9 million. In addition, we acquired approximately $56.7 million of revenue equipment through vendor-direct financing arrangements during the first nine months of 2026. This non-cash financing arrangement provides an additional source of liquidity for acquiring new equipment but does not result in cash inflows or outflows and, accordingly, is not reflected in the consolidated statement of cash flows.

Previous wording

During the remainder of 2026, we expect to purchase approximately 239 new trucks and 350 new trailers while continuing to sell or trade older equipment, which we expect to result in net capital expenditures of approximately $32.1 million.

Current wording

During the remainder of 2026, we expect to purchase approximately 176 new trucks and 350 new trailers while continuing to sell or trade older equipment. We anticipate financing the purchase of new trucks primarily through vendor-direct financing arrangements, while utilizing cash on hand, proceeds from equipment dispositions, and other available financing sources to fund trailer purchases. Based on these anticipated transactions, we expect net cash capital expenditures of approximately $0.6 million during the remainder of 2026.

Previous wording

During the first six months of 2026, 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 3.35% (6.97% at June 30, 2026), 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, 2026, 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 nine months of 2026, 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 3.35% (7.03% at September 30, 2026), 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 September 30, 2026, 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

Trade accounts receivable increased by approximately $22.0 million from $66.9 million as of December 31, 2025 to $88.9 million as of June 30, 2026. The increase was primarily attributable to higher freight revenue invoiced during the latter part of the second quarter of 2026, as increased freight volumes and rates resulted in higher revenue activity compared to the fourth quarter of 2025. The timing of cash collections on the increased revenue invoiced during the latter part of the second quarter resulted in a greater amount of trade accounts receivable remaining outstanding as of June 30, 2026 compared to December 31, 2025.

Current wording

Trade accounts receivable increased by approximately $27.1 million from $66.9 million as of December 31, 2025 to $94.0 million as of September 30, 2026. The increase was primarily attributable to higher freight revenue invoiced during the latter part of the third quarter of 2026, as increased freight volumes and rates resulted in higher revenue activity compared to the fourth quarter of 2025. The timing of cash collections on the increased revenue invoiced during the latter part of the third quarter resulted in a greater amount of trade accounts receivable remaining outstanding as of September 30, 2026 compared to December 31, 2025.

Previous wording

Prepaid expenses and deposits decreased from $9.8 million at December 31, 2025 to $7.7 million at June 30, 2026. The decrease relates to the normal amortization of items prepaid as of December 31, 2025.

Current wording

Prepaid expenses and deposits decreased from $9.8 million at December 31, 2025 to $9.0 million at September 30, 2026. The decrease relates to the normal amortization of items prepaid as of December 31, 2025.

Previous wording

Our marketable equity securities portfolio decreased $9.8 million during the first six months of 2026, from $48.5 million at December 31, 2025 to $38.7 million at June 30, 2026. The decrease was primarily attributed to the sale of marketable equity securities approximating $18.4 million, offset by an $8.6 million increase in the fair value of the portfolio during the first six months of 2026. At June 30, 2026, the remaining marketable equity securities have a combined cost basis of approximately $18.3 million and a combined fair market value of approximately $38.7 million.

Current wording

Our marketable equity securities portfolio decreased $11.7 million during the first nine months of 2026, from $48.5 million at December 31, 2025 to $36.8 million at September 30, 2026. The decrease was primarily attributed to the sale of marketable equity securities approximating $19.4 million, offset by a $7.7 million increase in the fair value of the portfolio during the first nine months of 2026. At September 30, 2026, the remaining marketable equity securities have a combined cost basis of approximately $17.9 million and a combined fair market value of approximately $36.8 million.

Previous wording

Property and equipment decreased from $792.4 million at December 31, 2025 to $758.9 million at June 30, 2026. The decrease was primarily due to the disposition of aging trucks and trailers, as well as the sale of certain real property located in Laredo, Texas to a related party, which had a cost basis of $11.4 million, during the first quarter of 2026. These decreases were partially offset by purchases of new trucks and trailers during the first six months of 2026.

Current wording

Property and equipment decreased from $792.4 million at December 31, 2025 to $746.1 million at September 30, 2026. The decrease was primarily due to the disposition of aging trucks and trailers, as well as the sale of certain real property located in Laredo, Texas to a related party, which had a cost basis of $11.4 million, during the first quarter of 2026. These decreases were partially offset by purchases of new trucks and trailers during the first nine months of 2026.

Previous wording

Accounts payable decreased from $32.8 million as of December 31, 2025 to $27.4 million as of June 30, 2026. The decrease was primarily due to the payment of invoices during the first six months of 2026 related to revenue equipment purchases outstanding at December 31, 2025.

Current wording

Accounts payable decreased from $32.8 million as of December 31, 2025 to $26.9 million as of September 30, 2026. The decrease was primarily due to the payment of invoices during the first nine months of 2026 related to revenue equipment purchases outstanding at December 31, 2025.

Previous wording

Accrued expenses and other liabilities decreased from $41.1 million as of December 31, 2025 to $30.6 million as of June 30, 2026. The decrease was primarily attributable to payments made during the first six months of 2026 related to a previously disclosed auto liability claim. The Company recorded a $26.5 million liability related to the claim as of December 31, 2025. During the first six months of 2026, the Company paid $16.5 million of the liability, resulting in a remaining liability of $10.0 million as of June 30, 2026. The decrease was partially offset by an increase in the Company’s auto liability reserve during the second quarter of 2026 related to claims that may exceed insurance limits.

Current wording

Accrued expenses and other liabilities decreased from $41.1 million as of December 31, 2025 to $26.8 million as of September 30, 2026. The decrease was primarily attributable to payments made during the first nine months of 2026 related to a previously disclosed auto liability claim. The balance as of December 31, 2025 included a $26.5 million liability the Company recorded for the claim in the fourth quarter of 2025. During the first nine months of 2026, the Company paid $18.0 million of the liability, resulting in a remaining liability of $8.5 million as of September 30, 2026. The decrease was partially offset by increases in other accrued expenses, primarily related to the timing of payroll and other period-end accruals.

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 $333.9 million at December 31, 2025, to $332.8 million at June 30, 2026. The net decrease was primarily attributable to scheduled principal payments on existing revenue equipment, balloon payments related to revenue equipment taken out of service as part of trade-in transactions with certain equipment manufacturers, and the repayment of approximately $6.0 million of debt associated with the sale of certain real property in Laredo, Texas, to a related party during the first quarter of 2026. These decreases were partially offset by new financing arrangements for revenue equipment totaling $46.6 million during the first six months of 2026.

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, decreased from $333.9 million at December 31, 2025, to $323.1 million at September 30, 2026. The net decrease was primarily attributable to scheduled principal payments on existing revenue equipment, balloon payments related to revenue equipment taken out of service as part of trade-in transactions with certain equipment manufacturers, and the repayment of approximately $6.0 million of debt associated with the sale of certain real property in Laredo, Texas, to a related party during the first quarter of 2026. These decreases were partially offset by new financing arrangements for revenue equipment totaling $56.7 million during the first nine months of 2026.