Company: PAMT
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025711
Chunk: 69

Company: PAMT CORP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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charge)  $2,623  $2,501  $5,228  $4,492 
 Leased building space revenue (recorded in non-operating income)   209   111   412   239 
 Total lease revenue  $2,832  $2,612  $5,640  $4,731 

   The Company leases trucks to owner-operators under operating leases, which generally have a term of up to five years and include options to purchase the truck at the end of the lease. In the event that an owner-operator defaults on their lease, the Company generally leases the truck to another independent contractor.
    
   As of  June 30, 2025, the gross carrying value of trucks underlying these leases was $67.5 million and accumulated depreciation was $33.9 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. During the quarter ended  June 30, 2025, the Company incurred $2.4 million of depreciation expense for these assets.
    
   The Company leases dock space to a related party at our Laredo, Texas, terminal. The dock space is depreciated in conjunction with the structures and improvements for the entire Laredo terminal on a straight-line basis over the estimated useful life of the assets. Lease income is recorded as a component of non-operating income in our condensed consolidated statements of operations.
    
   Lease Receivables
    
   Future minimum operating lease payments receivable at  June 30, 2025:

       (in thousands)  
     
 2025 (remaining)  $5,343 
 2026   7,198 
 2027   308 
 2028 and thereafter   - 
 Total future minimum lease payments receivable  $12,849 

   NOTE N: NONCASH INVESTING AND FINANCING ACTIVITIES
   The Company financed approximately $15.5 million in equipment purchases during the first six months of 2025 utilizing noncash financing, compared to approximately $39.9 million during the same period