Company: PAMT
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025711
Chunk: 84

Company: PAMT CORP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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, 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 a capital-intensive operator that finances a portion of its asset base, this change will enhance our ability to deduct interest expense and reduce future cash tax liabilities. Since the legislation was enacted after June 30, 2025, it did not affect our income tax provision or financial position as of that date. We are currently evaluating the broader implications of the new law on our liquidity, effective tax rate, and capital planning strategies for the remainder of 2025 and future periods. Based on a preliminary assessment, the Company expects the reinstatement of 100% bonus depreciation and the revised business interest limitation to accelerate tax deductions in the second half of 2025. These changes are expected to reduce the Company’s estimated income tax payable recorded as of June 30, 2025 by approximately $4.5 million, resulting in the recognition of a net tax receivable and a corresponding increase in deferred tax liabilities of approximately $4.5 million.

Accounts payable and accrued expenses remained relatively flat over the quarter, with balances of $31.0 million and $16.6 million, respectively at June 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 $331.2 million at June 30, 2025. The increase was primarily related to the financing of additional revenue equipment during the first six 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