Company: PAMT
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001437749-25-015763
Chunk: 21

Company: PAMT CORP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 leases are now subject to terms not exceeding one year. In accordance with the provisions of ASC Topic 842, because all of our leased properties are currently subject to leases not exceeding one year, we do not recognize any right-of-use assets or corresponding operating lease liability as of  March 31, 2025.
    
   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 months ended  March 31, 2025. No cash payments were made for amounts included in the present value of operating lease liabilities during the three months ended  March 31, 2025.
    
   Operating Lease Costs
   
       Three Months Ended  
   March 31,  
   2025    2024  
     (in thousands) 
 Long term  $-  $85 
 Short term   779   692 
 Total  $779  $777 

   Lease Revenue
   The Company's operating lease revenue is disclosed in the table below.
   
       Three Months Ended  
   March 31,  
   2025    2024  
     (in thousands) 
 Leased truck revenue (recorded in revenue, before fuel surcharge)  $2,605  $1,991 
 Leased facility space revenue (recorded in non-operating income)   203   128 
 Total lease revenue  $2,808  $2,119 

   The Company has a lease-purchase program whereby we offer independent contractors the opportunity to lease a Company-owned truck. The terms associated with these leases require weekly lease payments over the terms of the leases, which range from 5 to 60 months. Payments under this program are classified in the Company’s financial statements under the consolidated statement of operations category Revenue.
    
   As of  March 31, 2025, the gross carrying value of trucks underlying these leases was $67.8 million and accumulated depreciation was $31.7 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.