Company: PAMT
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025711
Chunk: 66

Company: PAMT CORP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 increase the volatility of our earnings and have a materially adverse effect on our financial condition, results of operations or cash flows.
    
   During the first six months of 2025, we maintained a revolving line of credit with a borrowing limit of $60.0 million that contains certain restrictive covenants, which must be maintained by the Company on a consolidated basis. Under the terms of the loan agreement, the Company must maintain a debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, excluding gains/losses on equity securities and extraordinary items, calculated on a rolling four-quarter basis) ratio of less than 4.00 to 1.00 as of the end of each calendar quarter.
    
   As of  June 30, 2025, the Company was not in compliance with this financial covenant. The elevated debt to adjusted EBITDA ratio was primarily the result of increased funded debt related to the purchase of $144.2 million of revenue equipment during 2024, most of which was financed, combined with a decrease in trailing twelve-month adjusted EBITDA due to the phasing out of earlier, more favorable quarters from the rolling four-quarter calculation. The loan agreement provides a 45-day cure period for financial covenant violations, during which the Company is not deemed to be in default of the loan agreement. On  August 7, 2025, within the permitted cure period, the Company received a written waiver from the lender for the covenant violation applicable to the period ended  June 30, 2025. As a result of the waiver, the Company was not in default under the terms of the credit facility as of  June 30, 2025 or as of the date of this filing. The Company is in compliance with all other covenants under the agreement.
    
   At  June 30, 2025 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.

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   NOTE M: LEASES
   The Company currently leases shop, office and parking spaces in various locations in the United States and Mexico. The initial term for the majority of these leases is one year or less, with an option for early cancellation and an option to renew for subsequent one- month periods. These leases can be terminated by either party by providing notice to the other party of the intent to cancel or to not extend. Rel