Company: PAMT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033356
Chunk: 79

Company: PAMT CORP
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 after December 31, 2024. While the enactment of the OBBBA restored 100% bonus depreciation for qualifying capital assets and reinstated the EBITDA-based limitation on interest deductibility under Section 163(j)—both of which increased temporary differences and, all else equal, would have increased deferred tax liabilities—the overall decrease reflects the offsetting effect of net operating losses generated in the period. As a result, the deferred tax liability decreased despite these legislative changes.

The OBBBA’s restoration of 100% bonus depreciation for qualifying capital assets acquired and placed in service after January 19, 2025 is expected to increase near-term deductions for fleet and facility investments and may reduce cash tax obligations in future periods. The reinstatements of the EBITDA-based limitation on the deductibility of business interest under Section 163(j), replacing the prior EBIT-based calculation is expected to enhance the Company’s ability to deduct interest expense and reduce future cash tax liabilities. The Company continues to evaluate the impact of this legislation on its deferred and current tax positions, including potential effects on future periods.

Accounts payable and accrued expenses remained relatively flat over the quarter, with balances of $33.1 million and $15.7 million, respectively at September 30, 2025 compared to $31.2 million and $14.6 million, respectively, at December 31, 2024.

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 $342.4 million at September 30, 2025. The increase was attributed entirely to the financing of additional revenue equipment during the first nine months of 2025.

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.

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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 is discussed below. While the Company has used derivative financial instruments in the past to manage its interest rate and commodity