Company: PAMT
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025711
Chunk: 39

Company: PAMT CORP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 39
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 of which could materially and adversely affect our future liquidity.

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.

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.

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.

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.

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